1. DBR Benefits Briefing October 2015

2. 2 This presentation is intended for communication purposes only, it is not a guarantee of benefits. Please see insurance plan documents and http://ucnet.universityofcalifornia.edu/OE for complete information. http://ucnet.universityofcalifornia.edu/OE

3. 3 Are You Covered?  What do you need?  What are your priorities? – Monthly cost of plan – Cost of care – Choice of provider – Ease to manage

4. 4 Thank you DBRs!!! We rely on you to be an informed resource for the employees in your departments.  Health insurance benefits  Other insurance and programs  Retirement benefits  Disability Services  Human Resources programs and events

5. 5 Your Benefits and Disability Partners BenefitsDisability Services Lisa RomeroElizabeth Delo Kevin Wilson-SmithChristie Pryce Cynthia Del RosarioTami Schmittgen Edna Arellano Laura Morgan Steve Pulliam (temp)

6. 6 Agenda  Open Enrollment Basics  2016 Health Plans and Programs  Other Plans & Programs  Administrative News & Reminders  Retirement Resources & Partners

7. 7 Open Enrollment Dates Start: Thursday, October 29 at 8:00 AM End: Tuesday, November 24 at 5:00 PM All changes effective on January 1, 2016

8. 8 Actions  Change or enroll in medical, dental, vision or legal  Enroll eligible family members in medical, dental, vision or legal plans  Enroll in Health or Dependent Care Flexible Spending Account (reenroll each year)  Change contribution to Blue Shield Health Savings Account

9. 9 How to Make Changes  Go to Open Enrollment website on UCnet http://ucnet.universityofcalifornia.edu/OE – Select “Sign In” – Sign-in using your AYSO ID and password – Select “Open Enrollment for 2016” link – Select the tab for the change you desire – Confirm your selection – Print your confirmation

10. Resetting Passwords on AYSO https://atyourserviceonline.ucop.edu/ayso/ Encourage employees to use the “forgot password” and “forgot username” options on At Your Service Online If that doesn’t work, call or email: Edna Arellano edna.arellano@hr.ucsb.edu x4048 edna.arellano@hr.ucsb.edu

11. 11 Booklets and Open Enrollment Website  Oct 23 - Booklets mail o Cut-off date for mailing August 31 o Employees input in PPS after this date should be referred to web for OE materials  Oct 26 - OE website launches http://ucnet.universityofcalifornia.edu/oe http://ucnet.universityofcalifornia.edu/oe o News stories on UCnet o Benefit Education Videos o Medical Plan Chooser

12. 12 Videos and News Stories on UCnet  Medical Plan Comparison  English and Spanish  Medical Terms and Concepts  Making the Most of Your Medical Benefits  Disability Benefits  OE Overview and Rates  Medical Plan Satisfaction Survey News StoriesBenefit Videos

13. 13 Campus Events Mini-Fair & Presentations – November 12 at UCEN  Fair participants - Medical plans, Optum, Delta Dental, ARAG Legal, Fidelity  Presentations by medical plan representatives Presentations by Benefits Staff in November  Medical Plan Comparison  Blue Shield Health Savings Plan Help Desks in November  Farmers Market  Q&A with Computer Lab

14. 14 Health Plans & Programs Medical Behavioral Health Dental Vision UC Living Well Health Programs

15. 15 All Health Plans Continue in 2016  Health Net Blue & Gold HMO  Kaiser HMO  UC Care PPO  Blue Shield Health Savings Plan  Core  Delta Dental PPO  DeltaCare USA  Vision Services Plan

16. 16 2016 Medical Plan Impact on Employee Paycheck  34% will see a rate reduction  50% will see increases of < $6  16% will see increases of $18-$53* (Impact estimates based on 2015 enrollment) * Remember… o Pre-tax premiums through TIP reduces the impact on actual take home pay due to savings on Federal State and FICA taxes.

17. 17 2016 Medical Pay Band Adjustment 2015 Pay Band Range for Medical Contribution Base Using Full-Time Salary as of Jan 2014 1$51,000 & under 2$51,001 to $101,000 3$101,001 to $152,000 4$152,001 & over  Pay Bands are adjusted annually, based on the change in California consumer price index from February of prior year to February of current year (CA Department of Finance).  The index used is that for urban wage earners and clerical workers (CPI-U).  The change from February 2014 to February 2015 was 0.34%. 2016 Pay Band Range for Medical Contribution Base Using Full-Time Salary as of Jan 2015 1$51,000 & under 2$51,001 to $102,000 3$102,001 to $153,000 4$153,001 & over

18. 18 Few Changes to Medical Plans  Some enhanced benefits – Travel Immunizations/Vaccine coverage improved and included in all medical plans.  Provider networks – UC Care expands UC Select/Tier 1 network in Santa Barbara  Additional wellness and health resources

19. UC Care PPO UC Select Tier 1 Copays Blue Shield Preferred Tier 2 Deductible 20% Coinsurance Non-Preferred Out-of-Network Tier 3 Deductible 50% Coinsurance Your costs are based on the tier/network that the provider is in and the service that you receive Not all services are covered at as a UC Select/Tier 1benefit Some services are covered only at the Blue Shield Preferred and Non-Preferred tiers

20. UC Care - Santa Barbara Network Update ProviderStatus Sansum Clinic  UC Select/Tier 1 Quest Diagnostic Lab Unilab  UC Select/Tier 1 Cottage Hospital  UC Select/Tier 1 as of 1/1/16 Pueblo Radiology  UC Select/Tier 1 as of 1/1/16 Pacific Diagnostic Lab  UC Select/Tier 1 as of 1/1/16 Santa Barbara Preferred Health Partners  Some physicians are in Blue Shield Preferred/Tier 2 No changes in the Ventura and Santa Maria networks.

21. UC Care - Ambulatory Surgical Centers UC Select (Tier 1) Blue Shield Preferred (Tier 2) Non- Preferred (out-of-network) CURRENT N/A 20%50% NEW FOR 2016: Adding coverage at the UC Select level $100 per surgery20%50% Outpatient Surgery performed at an Ambulatory Surgical Center (ASC).

22. Blue Shield Health Savings Plan 22 Combines high deductible PPO medical plan with a savings account to pay out-of-pocket expenses Medical Coverage Blue Shield PPO blueshieldca.com/uc Health Savings Account HealthEquity healthequity.com/ed/uc/ +

23. 23 Contributions to Health Savings Account  UC Contribution (1/1/16) – $500 individual – $1000 family (2 or more)  Employees can contribute up to (optional): – Single-coverage: $2,850 ($3,350 – $500) – Family-coverage: $5,750 ($6,750 – $1,000) – Catch-up contribution, age 55+: $1,000 UC Contribution is prorated for plans that start after January 1 Employees may elect to make contributions using the Open Enrollment application or throughout the year by submitting a UPAY 850 to Benefits.

24. 24 Health Saving Account - Limitations Health Savings Account “owners”  Must live in US  You can’t be enrolled in: o Health Flexible Spending Account (FSA) o Other traditional health plan o Medicare Part A or B  Can’t be claimed as a dependent on someone else’s tax return

25. 25 Optum Behavioral Health  No changes for 2016  Continues to provide mental health and substance abuse treatment for: – Health Net Blue & Gold HMO – Kaiser HMO (may also use Kaiser providers) – UC Care PPO (may also use non-Optum) – Blue Shield Health Savings Plan (may also use non-Optum)

26. 26 Core – Behavioral Health The Core medical plan uses Blue Shield providers for in-network care. Applied Behavioral Analysis (ABA) Autism Support CURRENTNEW FOR 2016 Not CoveredAfter deductible, 20% in/out-of-network

27. 27 2016 UC Living Well Program A healthy, engaged, and productive workforce is essential to support UC’s academic and research mission Highlight local wellness programs Local wellness coordinators serve as SMEs Build on current system-wide policies and partnerships that support healthy workforce and culture Optum Wellness is being discontinued. ! Leverage health plan wellness programs

28. 28 Health Net Blue & Gold Quit for Life Smoking Cessation Program CURRENT Online program – web based learning and support tools No telephonic coaching NEW FOR 2016 Online program – web based learning and support tools Telephonic coaching – phone based behavioral coaching More information on: http://www.healthnet.com/uchttp://www.healthnet.com/uc

29. 29 Health Net Blue & Gold Omada Prevent Program CURRENT Health improvement program targeting members at risk for diabetes NEW FOR 2016 Health improvement program expanded to target members at risk for diabetes and/or heart disease More information on: http://www.healthnet.com/uchttp://www.healthnet.com/uc

30. 30 Blue Shield Health Savings Plan New Programs Welvie Online surgery support tool for members Oncology Practice of the Future Program is an innovative approach predicated upon deep partnerships with providers to ensure best care for members in need More information on http://www.blueshieldca.com/uchttp://www.blueshieldca.com/uc

31. 31 Core Medical New Program Oncology Practice of the Future Program is an innovative approach predicated upon deep partnerships with providers to ensure best care for members in need More information on http://www.blueshieldca.com/uchttp://www.blueshieldca.com/uc

32. 32 TeleHealth Programs  Designed to enhance the care you already receive from your personal physician: – When you are considering the ER or urgent care for nonemergency medical issues – After normal office hours – When your primary care physician is not available – With pediatric care, if your child’s primary care physician is not available  Doctors can also diagnose, recommend and prescribe medication for many of your non-emergent medical issues

33. 33 TeleHealth – How it works  24/7/365 access to consultations anywhere through online video, phone or secure email  Staffed by Board Certified Physicians  Preregistration on plan website is recommended – Health Net – MDLive – UC Care – Teledoc – Blue Shield Health Savings Plan – Teledoc – Core – Teledoc  See plan benefit summary for copay/coinsurance

34. 34 Dental  Dental plans continue with no benefit changes – Delta Dental PPO – DeltaCare USA (HMO)  Both plans continues to be fully paid by UC on behalf of employees

35. 35 Dental Plan Comparison Delta Dental PPODelta Care USA (HMO) Worldwide CoverageCalifornia Service Area Choose Delta PPO or non-Delta Large network Assigned to dental group Small network in Santa Barbara (4 groups) Coinsurance 20% - 50% Copays - upgrades cost more Maximum benefit up to $1700No maximum benefit Preventive care covered 100%

36. 36 Vision  Vision Services Plan (VSP) – No benefit changes – Plan continues to be fully paid by UC on behalf of employees – Routine eye exams and eye wear; some coverage for contact lenses

37. 37 Other Plans Health FSA Dependent Care FSA Legal

38. Flexible Spending Accounts (FSA) payroll contribution Make monthly payroll contribution with pre-tax earnings Submit claims or use Health Spending Card Submit claims for reimbursement or use Health Spending Card enroll or reenroll Must enroll or reenroll during Open Enrollment Blue Shield HSP members may not enroll in Health FSA Save taxes Save taxes on eligible expenses Health FSA medical, dental, vision, prescription drugs, etc Dependent Care FSA child care adult day care CONEXIS http://UC.conexisfsa.com 1-800-482-4120http://UC.conexisfsa.com

39. 39 Health Flexible Spending Account (FSA)  2016 maximum annual contribution will be $2,550 – Minimum annual contribution is $180  Effective in 2015, new carryover rule – NO grace period – All 2015 expenses must be incurred by Dec 31, 2015 – You may carry-over $500 of unused funds into 2016, even if you don’t reenroll for 2016 – Unused funds greater than $500 will be forfeited – You will have access to the carryover funds in May 2016, after run-out period to process all 2015 claims

40. Health Flexible Spending Account (FSA) Dec 31 2015 April 15 2016 May 2016 Plan year Deadline to submit 2015 claims Jan 2015 Deadline to incur 2015 expenses End of runout period Can access 2015 carryover $ Each year $500 can be carried over, indefinitely Can continue to use debit card, even if not enrolled in 2016

41. 41 Dependent Care Flexible Spending Account  2016 maximum annual contribution will be $5,000 – $2500 if married filing a separate tax return – If spouse is also eligible to make contributions, combined amount should not exceed annual maximum – Minimum annual contribution is $180  You may incur expenses during plan year and grace period in the following year  Submit claims by April 15 of the following year  Any money left in account will be forfeited

42. Dependent Care Flexible Spending Account Dec 31 2015 Mar 15 2016 April 15 2016 Plan year + grace period Jan 2015 Deadline to incur 2015 plan expenses Deadline to submit 2015 plan claims

43. 43 Legal - ARAG  OPEN for new enrollments  Slight changes to benefits which result in fewer limitations and higher benefit maximums for certain services - strengthening benefits overall – Example: Limitation of one claim per benefit year per family unit is being eliminated  Premium remains the same

44. Legal – ARAG Identity Theft Protection REMINDER - Benefits added in 2015 include: - Full service identity restoration - Identity Theft Insurance up to $1million - Lost wallet services - Credit monitoring service, internet surveillance of personal information and child identity monitoring (register on website) - Powered by CSID, leader of global enterprise level identity protection and fraud detection solutions.

45. 45 Other Insurance  These plans are not part of Open Enrollment  Employees may apply to enroll or change coverage levels in these plans at any time.  They may be required to submit a Statement of Health.

46. 46 Disability UC-Paid Short-Term Disability Supplemental Short- and Long-Term Disability  Not an Open Enrollment Action  No benefit changes for 2016 to either plan  UC continues to provide limited STD plan at no cost to employees  Supplemental coverage cost to employees remains the same in 2016  Liberty Mutual continues as the disability partner

47. 47 Life Basic and Core Life Employee Supplemental Life Dependent Basic and Expanded Life  Not an Open Enrollment action  No benefit or premium changes to the plans in 2016  Prudential continues as the carrier

48. 48 Personal Accident Insurance (AD&D)  Not an Open Enrollment action  No benefit changes  Premium remains the same  AIG continues as carrier

49. 49 Administrative News New Benefits Eligibility Rules SECOVA Family Member Eligibility Verification New Employee Benefits Webinars

50. 50 NEW Benefits Eligibility Rules in 2016  New rules to comply with Affordable Care Act (ACA)  Continuing “Group A” – Our current population of employee that are eligible for Full, Mid-Level and Core. (BELI 1-4)  Introducing “Group B” – A new population of employees eligible for Core Benefits (BELI 4). Example: Students, Grad Student, employees paid under a flat rate amount arrangement such as BYA, SST or SSC.

51. 51 Concepts used to determine benefits  The determination of continuing or loss of eligibility is based on a calculation of hours worked during a 12- month “look-back” measurement period.  Measurement periods are: – November 1 to October 31 for monthly paid employees – November 9 to November 7 for bi-weekly paid employees  First measurement period started November 2014.

52. 52 “Default” benefit coverage ends in 2016  As of January 1, 2016 there will be no more default or automatic coverage  Employees must take a positive action to be enrolled – Applies to all levels of benefits- BELI 1-4 More information and training coming soon! http://www.hr.ucsb.edu/benefits/welcome

53. Family Member Eligibility Verification  Employees adding a new family member during Open Enrollment will receive a notice from SECOVA in January.  Employees who add new family members to their health plans are required to participate in the Family Member Eligibility Verification (FMEV) program.  SECOVA asks for documentation to verify that the family member satisfies the UC eligibility criteria.  See UCnet for more information: – UC Group Insurance Eligibility Factsheet – Family Member Eligibility Verification Process

54. 54 New Employee Benefits Orientation  Systemwide workgroup developing orientation to be delivered via live webinars  Shared system-wide webinar would be: – Consistent – Efficient – Knowledgeable – Relevant – Convenient

55. 55 NEBO Design Delivery channel  Different options for different learners  live webinar  on-demand videos  possible weekly chat opportunity Audience/ Frequency  Weekly for full benefits eligibility  Monthly for Safe Harbor, Faculty and Spanish speakers Length  Webinar content w/ questions to 1 ½ hrs Hosts/Facilitators  UCPath hosts with support from RASC Content  High level benefits descriptions, eligibility, process, guides to resources Collateral Materials  Welcome Kits provided in advance

56. 56 Retirement Resources RASC Online Tools Local Workshops Fidelity Retirement Services

57. 57 Retirement Resources & Partners  Retirement Administration Service Center (RASC) – Answers questions about pension and health benefits – Processes retirements – Contact via Online form on UCnet or 1-800-888-8267  UCnet – Preparing for Retirement Roadmap  AYSO – Interactive Retirement Estimator  UC Focus on Your Future web – Retirement Roadmap  UCSB Benefits Workshops – UC Retirement System – Tier 1976 – Retirement Readiness Workshop – Retiree Health – Planning for Retirement

58. 58 Retirement Resources & Partners  Fidelity Retirement Services – Retirement Savings Programs o 403b, 457b, DCP – Local workshop schedule on UCfocusonyourfuture.com – One-on-One consultations – Department meetings – Cesar Cap, UCSB Rep: cesar.cap@fmr.comcesar.cap@fmr.com – Customer Service: 1-866-682-7787

59. 59 myUCretirement.com coming February 2016

60. 60