 Open Enrollment Highlights  Setting the Stage for 2012 Health Care  Review Health Plan Choices for 2012  Introduce New Flexible Spending Account administrator  Resources for enrollment decision-making

 Important to enroll: review changes to plans/premiums; certify tobacco user status for medical and term life insurance  On line enrollment through E-Benefits  October 24 – November 24, 2011 (firm deadline)

Flexible Benefits  Pre-Tax  Annual Choice Making Core Benefits  No annual election  Benefit provided to all eligible employees  University contributes portion of the cost Voluntary Benefits  Group rates  Payroll deductions  Employee pays full cost

Core Benefits  Long Term Disability  Basic Accidental Death and Dismemberment  Basic Employee Term Life Insurance  Retirement

Flexible Benefits  Medical  Flexible Spending Accounts ◦ Health Care FSA ◦ Dependent Care FSA  Short Term Disability  Additional Term Life (Employee, Spouse, Child)  Additional Accidental Death & Dismemberment (Employee, Spouse, Child)

Voluntary Benefits  Accident Insurance  Dental Insurance  Critical Illness Insurance  Home/Auto Insurance  Group Legal Plan  Universal Life Insurance

Voluntary Benefits  Accident Insurance  Dental Insurance  Critical Illness Insurance  Home/Auto Insurance  Group Legal Plan  Universal Life Insurance Annual Dental Rates

Pressure from increasing costs and tight budgets shape 2012 options

 2000 $ 54,010,667  2002 $ 64,393,663  2004 $ 74,964,501  2006 $ 92,429,490  2008 $111,250,048  2010 $140,445,094

2011 Premiums  Employees ◦ $14,400,000 (11%)  Purdue ◦ $120,000,000 (89%) Employees 20% Employer 80%

 Legislation passed in 2011 ◦ K-12 school corporations required to maintain their health care costs within a certain range or they would be required to join the state’s health plans. ◦ An amendment to include Higher Education was drafted by lawmakers but never introduced in committees.

 Legislation introduced in 2005 ◦ Suggested state institutions join Medco, the state’s prescription purchasing vendor.  Legislation passed in 2011 ◦ All higher education institutions join Medco. ◦ Impact on Purdue: Employee’s on the Choice plan will be migrated to Medco (from CIGNA) effective Jan. 1, 2012.

Type of PlanState of Indiana Premium EE only Purdue EE Only Low Tier Below $44k Purdue EE Only Higher Tier $44k or Above High Deductible 1$354Not offered

Type of PlanState of Indiana Premium EE only Purdue EE Only Low Tier Below $44k Purdue EE Only Higher Tier $44k or Above High Deductible 1$354Not offered High Deductible 2 (Choice) $524$155$515

Type of PlanState of Indiana Premium EE only Purdue EE Only Low Tier Below $44k Purdue EE Only Higher Tier $44k or Above High Deductible 1$354Not offered High Deductible 2 (Choice) $524$155$515 Traditional PPO (Purdue Incentive) $2,958$286$742

Type of PlanState of Indiana Premium EE only Purdue EE Only Low Tier Below $44k Purdue EE Only Higher Tier $44k or Above High Deductible 1$354Not offered High Deductible 2 (Choice) $524$155$515 Traditional PPO (Purdue Incentive) $2,958$286*$742* (Copay Plan) Not offered$531$977 * Family $912 $2,159

 No Part-time eligibility. ◦ Must work 37 ½ hours or more per week  No Same Sex Domestic Partner coverage.  No salary tier.  The State has just two coverage levels. ◦ Employee Only ◦ Family

 Try to reduce increases by healthy lifestyles and good consumer habits  Increase Premiums  Plan Design ◦ Deductibles ◦ Co insurance or Co pays ◦ Out of pocket maximums ◦ Incentives to use lower cost providers

Plan Pays 100% EE DeductibleEE Co-insurance Share Plan Co-insurance Share Out of Pocket Maximum Premium

Co Pays$15 to 30 per visit in network for office visits Deductible$250 EE $500 family * Hospital In and Outpatient Co Insurance15% in network (30% out) Out of Pocket Maximum $1,200 EE $2,400 family * In network

Co Pays$15 to 30 per visit in network for office visits ER CoPay $200 ($150) MRI, CT $200 ($50) Deductible$250 EE $500 family * Hospital In and Outpatient Co Insurance15% in network (30% out)20% in network Out of Pocket Maximum $1,200 EE $2,400 family * In network Premium increase 30% Tiered lab network Quest, MidAmerica, LabCorp $0 In Network Lab 30% Out of Network Lab 50%

If your doctor does not normally send lab work to a Tier 1 lab, ask the doctor to give you a lab order form, so that you may go to another lab to have the work done. Watch for more info Arrangements are underway to contract with national laboratories:  Quest  LabCorp  Mid America (PUSH is a draw site for Mid America Labs)

Under 44,000 DifferenceOver 44,000 Difference Employee Only$690$159 ($3/wk) $1270$293 ($6/wk) Employee & Children $1201$277 ($5/wk) $2097$484 ($9/wk) Employee & Spouse $1745$403 ($8/wk) $3051$704 ($13/wk) Family$2113$488 ($9/wk) $3687$951 ($18/wk)

Deductible$500 EE $1,000 family * In network Co Insurance15% in network (40% out) Out of Pocket Maximum $2,000 EE $4,000 family * In network

Deductible$500 EE $1,000 family * In network Co Insurance15% in network (40% out)20% in network Out of Pocket Maximum $2,000 EE $4,000 family * In network $2,200 EE $4,400 Family *in network Premium increase 15% Tiered lab network Quest, MidAmerica, LabCorp $0 In Network Lab 30% Out of Network Lab 50%

Under 44,000 DifferenceOver 44,000 Difference Employee Only$329$43 ($<1/wk) $853$111 ($2/wk) Employee & Children $598$78 ($1.5/wk) $1411$184 ($3.5/wk) Employee & Spouse $869$113 ($2/wk) $2055$268 ($5/wk) Family$1049$137 ($2.6/wk) $2483$324 ($6/wk)

 No deductible  Retail: ◦ Generic 20% co-insurance ◦ Preferred Brand 30% co-insurance ◦ Non-preferred Brand 50% co-insurance  Mail Order: ◦ 15%, 25%, 45%  Out of Pocket Maximums $1300 per person and $2600 per family. No Change for 2012

Deductible$1,300 EE $2,600 family * In network Health Savings Account $650 EE $1,300 family Co Insurance20% in network 50% out of network Out of Pocket Maximum $3,300 EE $6,600 family * In network Premium increase 10% Prescription Plan coverage through Medco

Under 44,000 DifferenceOver 44,000 Difference Employee Only$171$16 ($<1/wk) $567$52 ($1/wk) Employee & Children $308$28 ($<1/wk) $908$83 ($1.5/wk) Employee & Spouse $407$37 ($<1/wk) $1419$129 ($2.5/wk) Family$512$47 ($<1/wk) $1700$155 ($3/wk)

 New Flex Spending Account Administrator  Dental Premiums Slight Increase  Implement $250 additional premium ◦ Additional Premium for tobacco users, each for employee and/or spouse/SSDP ◦ Everyone MUST go through open enrollment and certify tobacco user status. If you do not, you will default to tobacco user and you will be assessed the additional premium along with any spouse/SSDP covered on your medical plan!!! Also, if you carry Add’l Term Life Insurance you will be assessed the tobacco user premium!

E-Benefits Certification  I have not used tobacco products in the past 12 months.  I have used tobacco products in the past 12 months, but I have completed an approved tobacco cessation program between Sept. 1- Nov. 23, 2011 to qualify for a waiver of the additional premium for tobacco users.  I have used tobacco products in the past 12 months.

 Open Enrollment Guide  Choose Well, Live Well News  Schedule of Activities ◦ Voluntary Benefit Fair (10/26) ◦ CIGNA medical plan (10/27 and 11/4) ◦ Flexible Spending with PayFlex (11/7) ◦ Walk In Enrollment Help Sessions  Websites ◦ www://purdue.edu/benefits/ ◦ ◦  Call Human Resources at x2251

Do too many factors and figures get confusing? Maybe some sample employee stories would help.

Reminders for Enrollment  Tobacco User Status Certification  October 24 – November 24, 2011 Z…Z..Z.. Z…Z..Z.Z Z…. Z..Z …Z.. Z