KCIT Benefit Plan Presented By: Scott Snowden Snowden & Associates, Inc.

KCIT Endorsed by: AGC, Builders Exchange, KAHC, KCSA Mass purchasing power Discounted rates for member firms Local personalize service The Kentucky Construction Industry Trust was established over 30 years ago to provide comprehensive employee benefits to members of participating trade associations. Due to the mass purchasing power of this fully insured insured trust, even small businesses are able to take advantage of a high level of quality benefits at costs normally available only to large employers. Currently, there are over 800 employers participating in the trust with approximately 10,000 construction employees and their families covered for benefits

Products Available Health Insurance (Carrier Anthem) –Dual choice plans –PPO and Health Savings Account Plans –Excellent national network of physicians and hospitals –Wellness programs available Group Term Life An inexpensive way for an employer to provide basic life coverage during and employees working years. Volumes of insurance can be scheduled based on percentage of compensation, job title or flat amount for all employees

Products Available (continued) Group Long Term Disability –Benefits up to a monthly maximum of $8,000 –“Own Occupation” definition available during the first two years of disability –Benefits available for partial disability Group Short Term Disability –Benefits up to a weekly maximum of $800 –Benefits begin on the eighth day for an illness; immediately for an accident –Benefits are payable for up to 13, 26 or 52 weeks –Maternity coverage

Products Available (continued) Dental –Plans available as employer paid or voluntary (payroll deducted) –Orthodontia offered as a rider –Strong provider networks Prevailing Wage Program Prevailing wage plans are available with complete administration from a third party including banking of hours. Qualified benefit plans include health, life, dental, disability and health care waiver of premium. Administrative Compliance Services Plan administration and billing services are provided by the trust administrator. They also offer COBRA and cafeteria plan administration.

Positioning Under health care reform, as of 01/01/14 the small group market (outside of association plans) will move to a modified community rating model. This means that premiums would no longer be partially based on your group’s claims, but rather on a blended risk associated with the small group pool. Basically, this means that you have no opportunity for discounting if you are a healthy to average risk group. Under community rating, the healthy groups subsidize the less healthy, thus increasing pricing for a large percentage of groups. Also, the reform guidelines for non-association plans will change the rating spread (top to bottom) from a 1-5 ratio down to a 1-3 ratio. This should benefit older age brackets, but the younger age brackets could see dramatic premium increases.

KCIT Strategies After a lengthy analysis of the reform law, the KCIT has received guidance from legal professionals on how to fit in to the Health and Human Services Department’s definition of a bona fide association and be viewed as a single large group plan as a Multiple Employer Welfare Arrangement (MEWA). This enables us to continue to base rates on your group’s risk and continue with the current ratios. This should make the KCIT program an excellent fit for any average to better than average risk group. It will be one of the only avenues for small groups to obtain any discounting for favorable risk.

KCIT Strategies (continued) In order to comply, we will have to require the following of every participating group: Compliance with large group laws even if you have fewer than 20 employees (COBRA, Medicare will be secondary payer, Mental Health Parity, Autism, etc). The KCIT has a third party administrator that will offer the related administrative services for you to stay in compliance. Our office will assist you in understanding these laws. Uniform renewal which is in April of each year, starting in Compliance with the HHS provisions will require that we renew all participating KCIT groups renew together. This will result in a short year for some. For example, if you renewed or joined the program in January, you will renew again in April. Like industries will be required. Participating firms will need to be 51% commercial construction related by the 2014 renewal and have an approved construction related SIC code. Minimum group size will be two employees. It is our belief that the savings opportunities for KCIT participants will far outweigh the compliance burdens. The exception to this could be high risk groups. We will be able to shop the various insurance carriers in the marketplace for you and find the best fit, either in or out of the KCIT.

KCIT Wellness Program Finally, there is a wellness program that is simple to use. The KY Construction Industry Trust has committed funding to encourage participating employees and their spouse’s to take the first steps in identifying medical conditions and how to manage their risks for positive long-term health. Clearly, the healthier you are, the better long-term risk will be associated with our group. This risk is reflected in renewal rates each year. Not only is there the potential for improved rating factors, and improved lifestyles but a healthier workforce would be a more productive workforce.

KCIT Wellness Program 1) Employer communicates program to employees 2) Employee/spouse does online health assessment OR Employee/spouse has preventive physical exam 3) Anthem tracks the assessment or exam code and notifies KCIT 4) KCIT credits $125/yr to employer's bill for each person completing assessment or exam

KCIT Wellness Program The $125 credit is applied to the bill on a quarterly basis for any covered employee and/or spouse who completes the online health assessment or has a preventive physical exam. These credits help the employer to subsidize costs and assist them in continuing with the current level of benefits. You may access the free online assessment by going to and registering (click on register and select a password). You would then select the health assessment which would be completed in a secure, confidential format. If getting the physical exam, just make sure that the doctor codes it as preventive and not just monitoring of a condition (for those who go in annually to maintain a medication, for example). If the doctor sends you to a separate outpatient facility for part of the exam (blood draw, x-ray, etc.) the deductible under our plan would apply, so you would incur costs.

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