2011 State Health Open Enrollment Presentation

Introduction Open Enrollment dates are October 12 – November 10, 2010

Agenda SHBP Options for Plan Changes 2011 Benefit Overview 2011 Retiree Changes

2011 Benefit Options Healthcare vendors remain - CIGNA and United Healthcare Active members and retirees under age 65 have the following options for 2011: Health Reimbursement Arrangement (HRA) Health Maintenance Organization (HMO) High Deductible Health Plan (HDHP)

2011 Plan Changes There will be a number of changes to the Plan effective January 1, 2011 It is important that you read the 2011 Active Employee Decision Guide, so you will know what is changing, and what affect the changes will have on your benefits, options, rates, etc. before making your election for the 2011 Plan Year

Changes for all SHBP Members The Open Access Plan (OAP) option will no longer be offered The Tobacco Surcharge increases to $80 per month The Spousal Surcharge is increasing to $50 per month The Pre-existing clause will no longer apply to any SHBP option Social Security Numbers (SSN) must be collected for all dependents

Changes for all SHBP Members All premiums will increase. Some tiers will see a higher increase in order to accommodate the addition of dependents previously not eligible for coverage (health care reform) Changes to co-pays, deductibles, out-of-pocket limits Life-time maximum benefits limit will be removed All SHBP members will receive new ID cards before January 1, 2011

Changes for all SHBP Members Children who were not eligible to be in the Plan last year, may be eligible this year Children can be covered until the end of the month of their 26 th birthday –OK to be married –Does not have to be FT Student –Does not have to live at home (includes step- children)

Current OAP Members Effective January 1, 2011 the OAP Option will no longer be offered Members currently in the OAP Option will need to make another benefit selection during the Open Enrollment for the 2011 Plan Year. If you do not go online and make another election, coverage will roll over into the HRA with their current healthcare vendor and the Tobacco surcharge and Spousal Surcharge (if applicable) will apply. Members will remain in the HRA option for the 2011 Plan Year

Tobacco and Spousal Surcharges Tobacco Surcharge will increase to $80 Spousal surcharge will increase to $50 Employees MUST answer the Surcharge questions when making their 2011 benefit selection Failure to answer the Surcharge Questions will result in paying the applicable surcharge(s) for the entire plan year unless you experience a qualifying event that will allow the removal of the surcharge Information on steps to take to remove the surcharges is available at

HMO Deductible Changes TIERFROMTO You$600$1000 You + Spouse$900$1500 You + Child(ren)$900$1500 You+ Family$1200$2000 Your specialist office visit co-pay will change from $35 to $45

HMO Maximum Out-of-Pocket Changes TIERFROMTO You$2000$3000 You + Spouse$3000$4500 You + Child(ren)$3000$4500 You+ Family$4000$6000

HMO Prescription Drug Co-Pay Changes TIERFROMTO Tier 1 – Generic$15$20 Tier 2 – Preferred Brand $40$50 Tier 3 – Non Preferred Brand $75$90

HRA Deductible Changes TIERFROMTO You$1100$1300 You + Spouse$1900$2250 You + Child(ren)$1900$2250 You+ Family$2750$3250

HRA Maximum Out-of-Pocket Changes TIERFROMTO You$2500$3000 You + Spouse$4100$5000 You + Child(ren)$4100$5000 You+ Family$5700$7000

HRA Plan Design –Health Reimbursement Account (HRA) Credits –$ 500 – You –$1,000 – You + Spouse –$1,000 – You + Child(ren) –$1,500 – You + Spouse + Child(ren) – Plus $125 for annual physical and completing a health assessment. Employee and spouse can each earn this. (Cigna is also offering additional incentives.) – SHBP credits the HRA account each year to help pay covered medical expenses

Features of the HRA Plan Low employee premiums HRA credits each year that pay for covered initial charges, whether medical or pharmacy expenses. These dollars also reduce your deductible and maximum out-of-pocket expenses You do not pay co-pays under this plan but co-insurance whether it is for your prescription drugs, office visits or surgery Any dollars not used at the end of the year roll over to the next year 100 percent coverage for preventive care and the cost of these services do not come out of your HRA credits

HDHP Deductible Changes Deductibles FROM 2010 In- Network FROM 2010 Out- of-Network TO 2011 In- Network TO 2011 Out- of-Network You $1200$2400$1500$3000 You + Spouse $2400$4800$3000$6000 You + Child(ren) $2400$4800$3000$6000 You + Family $2400$4800$3000$6000

HDHP Out-of-Pocket Maximum Changes Out-of-Pocket FROM 2010 In- Network FROM 2010 Out- of-Network TO 2011 In- Network TO 2011 Out- of-Network You $1800$4000$2400$5300 You + Spouse $3100$7400$4100$9800 You + Child(ren) $3100$7400$4100$9800 You + Family $3100$7400$4100$9800

Changes for Medicare Eligible Retirees The Medicare Advantage Private Fee (MA PFFS) for Service Plans will be replaced by the Medicare Advantage Preferred Provider Organization (PPO) Plans This change is due to the requirement by the Centers for Medicare & Medicaid Services (CMS) that all national and private MA PFFS plans offer a PPO network Medicare-eligible retirees may still elect any other option (HMO, HRA, or HDHP) but will pay the full cost

CIGNA-Humana Alliance CIGNA’s Medicare Advantage Private Fee-for-Service Plan will be replaced by the Humana Group Medicare Advantage PPO due to a newly formed alliance between CIGNA and Humana and the information receive will show the Humana name Since retirees may also receive information from other MA Plans, including Humana, retirees should only be concerned with mail that says for SHBP Retirees on the envelope

Medicare Advantage PPO Plans The Four Medicare Advantage PPO options offered in 2011 are: –Humana Group Medicare Advantage PPO Standard –Humana Group Medicare Advantage PPO Premium –United Healthcare Medicare Advantage PPO Standard –United Healthcare Medicare Advantage PPO Premium

Medicare Advantage PPO Plans The MA PPO Standard and Premium plans include prescription drug coverage as with the current MA PFFS plans Retirees will be able to choose from a large national provider network Benefits and co-payments and/or coinsurance will be the same whether the provider is in-network or out-of-network

Medicare Advantage PPO Plans Retirees can seek care from any provider that accepts Medicare (regardless if they have a signed contract with the health care vendor) If the retiree sees a provider who does not accept Medicare assignment, the retiree will be balance billed

Important Reminders-Retirees If eligible and the retiree selects any option other than one of the MA PPO Options, they will pay the entire cost of the premium If the retiree is enrolled in a SHBP MA PPO option they should NOT enroll in an individual Medicare Part D or Medicare Advantage Plan as doing so will cause the retiree to lose their SHBP coverage

Important Reminders-Retirees Retirees enrolled in one of the CIGNA or United Healthcare (UHC) Medicare Advantage (MA PFFS) Plans will receive a cancellation notice from their health care vendor advising them that their current MA PFFS option will end December 31, 2010 Retirees should not be alarmed-This notice is a requirement of CMS. Their new coverage under the MA PPO Option will take effect January 1, 2011

Important Reminders-Retirees Medicare Advantage enrollment is optional for retirees under age 65. Enrollment in the MA PPO plan must be approved by CMS Pre 65 retirees may enroll in the HRA, HDHP or HMO and will pay the same rate as active employees If the retiree is under age 65 they must answer the surcharge questions

Open Enrollment October 12 – November 10, 2010 Employees will make their health election at Web site will open at 4 a.m. on October 12 and close at 4:30 p.m. on November 10, 2010 The Active Employee Health Plan Decision Guide will be available on the Web site at and (no printed hardcopies)

Open Enrollment October 12 – November 10, 2010 You MUST go online to make your benefit selection. If you do not go online and you are –In the OAP, you will be enrolled in the HRA with your current healthcare vendor and tier and the Tobacco surcharge and Spousal surcharge (if applicable) will be applied –In the HMO, HRA or HDHP, you will rollover into the same coverage and tier and the Tobacco surcharge and Spousal surcharge (if applicable) will be applied

Open Enrollment October 12 – November 10, 2010 If you do not make an Open Enrollment election coverage will roll over and the tobacco surcharge and spousal surcharge (if applicable) will apply. You will not be allowed to make a change to coverage until the next Open Enrollment unless you experience a qualifying event that allows a change.

Open Enrollment October 12 – November 10, 2010 When making your benefit election, you should make sure you have selected the correct option Confirm you have added all eligible dependents you wish to be included in their coverage Confirm you have answered the surcharge questions correctly Click “Confirm” and Print their Confirmation

Reminders You may go online and make changes anytime during Open Enrollment (4 a.m. on October 12 until the Web-site closes at 4:30 p.m. on November 10, 2010) You must answer the surcharge questions each time they log on to the web site The last selection made when the web site closes at 4:30 p.m. will be the option members are placed in for the 2011 Plan Year

Questions or Additional Information CIGNA – HMO, HRA, HDHP United Healthcare – HMO, HDHP Definity HRA

Important Notice The information provided in this presentation is a summary of changes for the 2011 Plan Year. It is intended only to highlight principal benefits Please refer to the Active Employee Decision Guide for more details THANK YOU