ARIZONA WESTERN COLLEGE Dr. Ruth Whisler and Mrs. Patricia Jimenez 1

 The most important papers -  Ruth Notes (concept borrowed from Cliff Notes)  PowerPoint will be on the HR website  Most important Dates – (next slide)  Questions at the end, please. BEFORE WE BEGIN - … 2

 Dates to Remember!  Enrollment period: May 5 th – May 15 th  Deadline for making changes: May 15 th  Changes effective: JULY 1, 2014  YOUR Benefits Expert: Patty Jimenez – x /2015 BENEFIT YEAR Dates are non-changeable 3

 Consortium – Self Insured  Yuma Area Benefits Consortium  AWC, City of Yuma, Crane Elementary District, Yuma School District One  Traditionally: Annual premium increase, absorbed by AWC  This year costs increased again – 12% for Plan A; 3% HDHP (High Deductible Health Plan)  Cannot absorb – SO AWC continues to keep premium costs to employees equitable BRIEF HISTORY OF INSURANCE BENEFITS … 4

High Deductible Health Plan (HDHP) - (Misnamed )  Available with or without dental coverage  Vision is included  Life is part of AWC package  HSA (Health Savings Account) – auto rollover (Optional benefit) Plan A (Needs a new name)  Available with or without dental coverage  Vision is included  Life is part of AWC package  FSA ( FLEX Spending Account ) - enroll each year (Optional benefit) TODAY: TWO PLANS … 5

Not under AWC Control  Premium increases for both plans.  Plan A – 12%  High Deductible Health Plan (HDHP) -- 3% Under AWC Control  AWC will pay $510/month toward each full time employee’s health care benefits ($6,120/year)  This means:  If you are on Plan A: AWC will pay $510/month for full time employee premiums (with and without dental)  If you are on HDHP: AWC will continue to pay the full premium for the employee (with and without dental coverage)  AND - AWC will contribute $1,536 to each member’s HSA account – July 1, 2014  You retain control over which plan you choose for yourself and your dependents. THINGS YOU SHOULD KNOW BEFORE WE CONTINUE… LOCUS OF CONTROL … 6

Medicare IRS Pub.969, p  Bottom line: Medicare prohibits HSA.  You may participate in the HDHP even if you have Medicare.  But, beginning the first month you are enrolled in Medicare, you cannot contribute to an HSA IRS 1040 Filings  If you use the account during the calendar year, you must file Form 8889 (very short). It simply reports contributions.  Box 12 of your W-2, Wage and Tax Statement from your employer will contain the amount AWC contributed to your HSA IRS REGULATIONS : HEALTH SAVINGS ACCOUNTS NOTE: These important items should be discussed with your tax preparer or financial consultant. AWC is not a tax service nor responsible for interpreting IRS regulations. 7

HEALTH SAVINGS ACCOUNT FORM 8889 … 8

Let’s look at the breakdown of costs and coverage AWC CONTRIBUTES TO YOUR COVERAGE REGARDLESS OF YOUR CHOICE OF PLAN 9 …

High Deductible with DentalArizona Western College Cost Coverage Category Employee CostSubsidy+ EE Rate Total Premium Employee ONLY-$ EE + Child(ren)$291.00$ 54.00$382.00$ EE + Spouse$330.00$ 59.00$382.00$ EE + Family$509.00$ 68.00$382.00$ PREMIUMS FOR HIGH DEDUCTIBLE (HDHP) [EMPLOYEE & DEPENDENTS] MEDICAL, VISION AND PRESCRIPTION … 10 High Deductible without Dental Employee ONLY-$ EE + Child(ren)$257.00$ 54.00$345.00$ EE + Spouse$292.00$ 59.00$345.00$ EE + Family$452.00$ 68.00$345.00$

Benefit Description High Deductible (HDHP) with Health Savings Account (HSA) [HSA Employer Contribution $1,536/year - delivered to your account on July 1, 2014] In-NetworkOut-of-Network Annual Deductible$1,500/person $3,000/family $3,000/person $6,000/family Coinsurance85%60% Office VisitAfter deductible is met insurance pays 85% After deductible is met insurance pays 60% Out-of-Pocket Max$3,000/person $6,000/family $8,000/person $16,000/family Maximum Annual BenefitNew: No ceiling (cap) for benefit coverage HIGH DEDUCTIBLE – BENEFIT DESCRIPTION – IF YOU ARE NOT COVERED BY MEDICARE … 11

IRS Pub. 969, p. 2 (2013)  You can claim tax deduction for contributions you or anyone except your employer make to your account  Employer contributions may be excluded from your gross income  Contributions remain in your account until you use them And….  Interest & other earnings are tax free  Distributions may be tax free if used for qualified medical expenses  HSA is portable – goes with you  Qualified Medical Expenses are those incurred by you, spouse, dependents claimed on your tax return HEALTH SAVINGS ACCOUNT BENEFITS – IF NOT ON MEDICARE NOTE: AWC and the presenters of these slides do not take responsibility for IRS changes in rules. DO speak with your financial consultant or tax preparer. 12

Plan A with DentalArizona Western College Cost Coverage Category Employee CostSubsidy+ EE Rate Total Premium Employee ONLY$ 57.00$ $ EE + Child(ren)$492.00$ 75.00$510.00$1, EE + Spouse$549.00$ 83.00$510.00$1, EE + Family$806.00$103.00$510.00$1, PREMIUMS FOR PLAN A [EMPLOYEE & DEPENDENTS] MEDICAL, VISION AND PRESCRIPTION … 13 Plan A without Dental Employee ONLY$ 20.00$ $ EE + Child(ren)$421.00$ 75.00$510.00$1, EE + Spouse$474.00$ 83.00$510.00$1, EE + Family$712.00$103.00$510.00$1,325.00

Benefit DescriptionPlan A In-NetworkOut-of-Network Annual Deductible$750/person $1,500/family $1,500/person $3,000/family Coinsurance80%50% Office Visit$20 copay50% Out-of-Pocket Max$5,250/person $10,500/family $9,000/person Maximum Annual BenefitNew: No ceiling (cap) for benefit coverage PLAN A - BENEFIT DESCRIPTION … 14

Let’s look at actual out of pocket costs in and out of network, Health Savings Accounts & Flexible Savings Accounts, and more benefits provided at no cost to our employees! LET’S COMPARE…. …. 15

Monthly Rates for Medical, Dental, Vision and Prescription Plan A with Dental Plan A without Dental HDHP with Dental HDHP without Dental Employee$ 57.00$ Child(ren)$492.00$421.00$291.00$ Spouse$549.00$474.00$330.00$ Family$806.00$712.00$509.00$ WHAT WILL I PAY? EMPLOYEE AND DEPENDENT COVERAGE … 16

OUT OF POCKET COMPARISON Plan A: Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network Per Person: $5,250 per year (7/1/14—6/30/15) Per Family: $10,500 When met: Insurance pays 100% of costs Per Person: $3,000 ________________________________________________________________________________________________________________________ HDHP: Per Person: $3,000 per year (7/1/14—6/30/15) Per Family: $6,000 When met: Insurance pays 100% of everything Per Person: Same WHAT DOES IT REALLY MEAN? COMPARISON : IN NETWORK– HDHP & PLAN A Remember – July-June, not calendar year 17

Plan A: Out of Pocket (OOP) maximum: deductible, copays, and coinsurance all accumulate to the out of pocket maximum - In Network Per Person: $9,000 per year (7/1/14—6/30/15) Per Family: $9,000/person – total figure depends upon persons in family When met: Insurance pays 100% of costs Per Person: $9,000 ___________________________________________________________ HDHP: Per Person: $8,000 per year (7/1/14—6/30/15) Per Family: $16,000 When met: Insurance pays 100% of costs Per Person: Same COMPARISON – OUT OF NETWORK … 18

 Health Savings Account: HDHP Program  Contribution Limits for :  $3,300 for Single; $6,550 for Family (This includes the employer contribution.)  If you are 55+, your contribution limit is increased by $1,000 (IRS Pub 969, p.5)  Benefits:  AWC “up fronts” the first level of deduction : $1,536.  You can add to your HSA account through payroll deduction for the time and amount you choose. Be sure to work with Mrs. Patty Jimenez to make this happen:  Stays with you. It’s your money even if you change jobs.  NO “use it or lose it” conditions. Your money rolls over into the next year.  Reduces your taxable income: The money remains tax-free when you deposit and withdraw for qualified medical expenses.  Pays for insurance deductibles, medical care and supplies that are not typically covered by medical insurance such as prescription medicines, dental, LASIK eye surgery and much more.  HSA Investment Account is available online at HEALTH SAVINGS ACCOUNT (HSA) – AWC GIVES TO EMPLOYEES … 19

 How it Works:  You and AWC deposit money into your eflexHSA for current and future medical expenses.  You’ll receive an eflex debit card to use for eligible medical expenses.  Acts as a debit card - swipe the card at the time of purchase and funds are automatically withdrawn from your account and paid directly to the provider. Card can also be used for on-line and US mail bill payments (hospital or provider).  Even if you’re no longer covered under the HDHP, eflexHSA can remain active, you just won’t be able to contribute funds.  Reimbursement/Withdrawal – You can make a withdrawal at any time. Request your distribution online, funds will be sent via direct deposit to your checking or savings account within five days.  (1099 will be issued) YOUR HEALTH. YOUR MONEY. YOUR CONTROL. See your financial consultant for specific data. 20

 Reduce your taxable income by what you spend on non- reimbursable medical and dependent care expenses.  Maximums: How much can I select?  $2,500 Health  $5,000 Dependent Care  You select your deduction at the beginning of the benefit year and it remains stable until the next Open Enrollment period  VERY IMPORTANT  Even if you are currently enrolled in the Flexible Spending Account, you MUST enroll for each plan year.  This is a “use it or lose it” account. It does not roll over nor follow you when you leave employment. FLEXIBLE SPENDING ACCOUNT (FSA) – PLAN A …. 21

Note: You can check the cost of your prescriptions to determine if this is the best plan for you. (Phone or on-line options.) As easy as 1, 2, 3…. 1.Your doctor writes your prescription for a 90-day supply, plus 3 refills within a single year 2.Complete the order form 3.Mail the form, original prescriptions and payment information to:  Catamaran Home Delivery – PO Box – Ft. Lauderdale FL  For additional information, please visit : Note: You pay full cost of prescriptions until deductible is met. MAIL ORDER OPTION -- PRESCRIPTIONS: CATAMARAN HOME DELIVERY …. 22

 AWC will continue to pay 100% of Life Insurance AND Short Term Disability Insurance premiums for full time employees.  Life Insurance Benefit:  $20,000 per individual/first two years of employment  2.5 times your gross annual salary after two years of service  Short Term Disability Benefit: In the event of an illness or disability in excess of 60 calendar days:  66.67% (2/3) of weekly earnings up to a max of $1,000  For a maximum of 26 weeks - FMLA in the mix AWC-PROVIDED LIFE INSURANCE & SHORT TERM DISABILITY INSURANCE Please see Mrs. Patty Jimenez for individual questions about this benefit. 23

 Sun Life Benefit – More than 100 Miles from Home - Part of the Package  Assist America – 24/7, 365  Med Consultation, Evaluation, Referral  Hospital Admission Guarantee  Emergency Medical Evacuation  Critical Care Monitoring  Medical Repatriation  Prescription Assistance  Emergency Trauma Counseling  Compassionate Visit  Care of Minor Children  Legal & Interpreter Referrals  Return of Mortal Remains ** EMERGENCY TRAVEL ASSISTANCE … 24

There’s MORE WAIT, 25 ….

 SunLife  Available for full time employees and dependents  Purchase additional Life Insurance through convenient payroll deductions.  Cost is based on age.  Employee – Guarantee to employee : $100,000 (no physical).  Spouse – 1/2 of employee coverage up to a maximum of $25,000.  Children – up to a maximum of $5,000 for each child.  Your dependents may ONLY be covered if the employee is enrolled in this optional benefit. OPTIONAL (ADDITIONAL) LIFE INSURANCE BENEFITS …. 26

 AETNA EAP {Employee Assistance Plan}  Free, confidential support for you and anyone living in your household to help you balance the demands of work, life and personal issues.  Assessment & short term counseling – 10 Visits.  24 hour crisis intervention line.  Referrals to other resources as needed.  , or visit  Note: There is an AWC security code required for this service. This code is available in Human Resources and your benefits packet. EMPLOYEE ASSISTANCE PLAN Log in: Aetna EAP 27

MUST know:  ALL employees must complete an Election form– EVEN if you are NOT making any changes.  If you are switching from PLAN A to HDHP, you will need the following:  A new Enrollment  An eflex form  A voided check and  FSA (Flexible Spending Account) – You will need to complete the PayFlex form in order to be or remain enrolled. REMINDERS – “MUST KNOW” INFO - …. 28

 Final things to Remember: Patty Jimenez – x76037 FINAL HOT ITEMS -- These are definite dates; they cannot be altered. 29 Everyone must complete the Election Form. (Even if you have no changes.) All forms are available on the Human Resources website, in this room today, and in the HR suite. Submit all forms to H.R. no later than close of day, May 15 All changes are effective July 1, 2014.

Thank You, Dr. Ruth Whisler Mrs. Patty O. Jimenez INDIVIDUAL QUESTIONS WILL BE ANSWERED AT THE CONCLUSION OF THE PRESENTATION – OR COME TO HR X …