1 EHA Early Retiree Options for Health Insurance for How to make the best decision for you!

2 How did you learn about today’s session? Article in EHA newsletter Contact from school district Contact from local education association Contact from OSERS by Contact from EHA or Blue Cross personnel Other WHICH CONTACT WOULD YOU PREFER?

3 Review of options Current $600 deductible PPO Plan –To maintain, do nothing! New plans –$1,500 deductible PPO Plan To start, call Blue Cross for application –$2,850 HDHP Plan To start, call Blue Cross for application Consider enrolling in Health Savings Account (HSA)

4 How can you decide which EHA plan to choose? Consider what you paid for health care last year in: –Office visit co-pay –Deductible for medical care –Co-pay for medical care –Co-pay for prescriptions –Premium saving for making a change

5 Example of Costs for 6 office visits, $600 in tests, and 2 drugs per month $600 PPO$1,500 PPO$2,850 HDHP 6 $2106 $50 $3006 $165 $990 Ded. for tests $600Ded. for tests $600Ded. for tests $ $30 $72024 $35 $84024 $60$1,440 80/20 70/30 $0Total charges of $3,030 exceed deductible of $2,850 Cost Prem sav Total $1,530 $0 $1,530 Cost Prem sav Total $1,740 $ -970 $ 770 Cost Prem sav Total $2,850 $ -970 $1,880 No tax break Tax break for $4,050 Net cost $ -1,000 $ 880

6 Comparison for single coverage Feature$600 ded.$1,500 ded. $2,850 ded. HDHP Deductible$600$1,500$2,850 Max out of pocket w/ ded. $2,600$4,500$2,850 Office visit$35$50Inc. in ded. Coins.80/2070/30Inc. in ded. Drugs – % copay $ minimums 25% / 50% $5 / $30 / $60 30% / 50% $7 / $35 / $60 Inc. in ded. Routine care$500 subject to ded. and coins. $500 not subject to ded. Premium savingsNone$970 per year$970 per year PLUS tax break

7 Example of out-of-pocket cost Hypothetical out-of-pocket expense $600 PPO $1,500 PPO $2,850 HDHP $400 in covered charges You pay entire amount $400 You pay entire amount $400 You pay entire amount $400 $1,000 in covered charges $600 applied to deductible; $400 paid 80/20%: You pay $680 You pay entire amount $1,000 You pay entire amount $1,000 $25,000 in covered charges $600 applied to deductible; stop-loss at $2,000: member pays $2,600 *Does not include Rx $1,500 applied to deductible; stop- loss at $3,000: member pays $4,500 *Does not include Rx $2,850 applied to deductible; 100% coverage after deductible: member pays $2,850 *Does include Rx

8 To make a change, do this: Call Blue Cross at –Tell them you are with EHA –Ask for application to change policy –Have your Blue Cross ID number ready –Fill out application and return to Blue Cross If you want to open a Health Savings Account, contact Union Bank (or your financial provider) after you sign up for the HDHP –Go to EHA web site to sign up on-line

9 Click here to sign up for a Health Savings Account

10 Click on logo to go to Union Bank web site

11 Click here

12 Click Accept

13 Find Nebraska and click Next

14 Click on “Deposit Health Savings Account” – Single Coverage (or Family Coverage), then scroll down and click “Next.”

15 Fill out on-line application for account

16 Enter: “Educators Health Alliance” as your employer to get no-fee account, and say you are “Retired” for occupation

17 Last steps for HSA account Either submit application on-line, or print forms and mail to Union Bank Wait for your ID card to be issued (it is a debit card that can be used for office visit costs, drug costs, etc.) FUND your account by making check payable to Union Bank and mailing in deposit

18 If you change plans, you will need to stay in the plan you choose for 3 years before you can switch back to the older plan. You can change by August 1, or Dec. 1, or next year…. Questions?