2014 Insurance and Wellness Benefits Committee

Purpose of the Committee 2  Review Current Insurance and Wellness Benefits  Provide Recommendations on Insurance Benefits  Assist with Development of new Benefits/Programs  Assist with Selection of Insurance Broker  Represent the Employee Associations

3  Role of Broker  Negotiate Renewals  Assist with Claim Resolution  Conduct Open Enrollment Meetings  Provide Employee Resources  Broker Representatives for ECC  Scott Schroepfer, Broker  Nancy Brown, Account Manager  Jodie Miller, Claims Representative

Benefit Package 4  Medical Insurance  Health Savings Account  Dental Insurance  Vision Insurance  Basic Life/Accidental Death & Dismemberment (AD&D) Insurance  Long Term Disability (LTD)  PSRS/PEERS Retirement  Paid Holidays  Vacation Leave  Personal Leave  Sick Leave

Benefit Package - Continued 5  Voluntary Life/Accidental Death & Dismemberment (AD&D) Insurance  Employee  Spouse & Children  Flexible Spending Accounts (FSA)  Health Care  Dependent Care  Employee Assistance Program (EAP)  Wellness Programs  403b/457b Retirement Plans  Tuition Reimbursement  Tuition Waiver  Employee  Spouse & Children

Glossary of Terms  Premium  The amount of money charged by an insurance company for coverage.  Employer determines how much of the premium employees must pay for coverage.  East Central College currently contributes 100% of premium.  Employee’s Deductions are Pre-taxed which provides an additional savings for the employee. 6

Glossary of Terms  Provider  The clinic, hospital, doctor, dentist, laboratory, health care practitioner or pharmacy that provides services. 7 Providers In-Network The facilities, providers and suppliers your insurance carrier has contracted with to provide health care services and discounts. Out-of-Network The facilities, providers and suppliers your insurance carrier has not contracted with to provide health care services.

Glossary of Terms  Deductible  The amount you pay before your plan begins to pay. 8 $1000 Deductible Examples Example 1Example 2 Cost of Service$250$5000 YTD Deductible$250$1000 Plan Pays$0$4000

Glossary of Terms  Copayment or Copay  A fixed amount you pay. The amount can vary by the type of covered service. Copayments do not apply to the deductible. 9 Example Cost of Office Visit$200 Copayment$25 Plan Pays$175

Glossary of Terms  Coinsurance  Your share of the cost after the deductible is met. The covered health care service is calculated as a percent /20% Coinsurance Example Cost of Covered Service$100 80% - Insurance pays$80 20% - Member pays$20

Glossary Terms  Out-of-Pocket Maximum (OOPM)  OOPM protects you from very high medical expenses. After you reach the annual OOPM, your health insurance begins to pay 100% of covered health care services or items for the Plan year.  The OOPM includes deductibles, coinsurance and copayments. It does not include your monthly premium. 11

Glossary Terms  Health Savings Account (HSA)  Cost Savings  Funded with tax-exempt dollars  Medical plan contribution reduction  Used to help pay for health expenses including deductible, coinsurance and certain services not covered by your health plans.  Choices  This is your account! You control and manage your health care expenses. You decide when to use your HSA dollars.  You may use the money in your account for family member’s health expenses (even if they are not on your health plan).  Long-Term Advantages  Save for future medical expenses  Funds roll over year-to-year  Interest-bearing savings account  Account is portable, which means you take it with you  Retirement dollars are tax deferred 12

Medical Loss Ratio 2012 (Jan – Dec) 13  Coventry ProductPremiumClaims MLR Average Medical$1,349,438$ 687, % Rx$0$ 250,541 Total$1,349,438$ 938,200

Medical Loss Ratio 2013 (Jan – Dec) 14  Coventry ProductPremiumClaims MLR Average Medical$1,359,983$1,014,504 96% Rx$0$ 290,720 Total$1,359,983$1,305,224

Medical Loss Ratio 2014 (Jan – Jul) 15  Anthem ProductPremiumClaims MLR Average Medical$760,383$751, % Rx$0$162,066 Total$760,383$913,793

Renewal Factors 16  Trend  Prediction of how much health care cost will rise over the next policy year  The Market’s current health care inflation rate  Group Experience – Medical, Pharmacy & Ancillary Claims  Medical Loss Ratio (MLR)  Claims compared to premiums  Claims Analysis  Carrier Discounts  Network Usage  Plan Design  Wellness Program  Funding

Renewal Factors - Continued 17  Health Care Reform Taxes and Fees  Patient-Centered Outcomes Research Institute ( PCORI ) fee.  Effective $1 fee multiplied by the average number of covered lives under the plan. Effective 2014 the fee increases to $2 and then beginning 2015 the fee is indexed for future years.  Component represents approximately a 4% - 5% increase to renewal each year.  College Budget for Renewal  2015 Budget has 4% increase for all insurance benefits combined (medical, dental, vision and life)

Renewal Timeline 18  Currently Seeking Renewal numbers from Anthem and other providers  Upcoming Committee Meetings  October 3 – Review Renewals/Recommend Suggestions  October 10 – Review Plans with the Suggested Changes  October 17 – Finalize Recommendations  November 3 – Board Approval  November 10 – Open Enrollment Begins