2013 Member Meeting

transcript

2013 Member 2013 Member MeetingMeeting

Presented by:

Welcome, Introductions & Announcements

About Today’s Webinar Presentation

All phone lines will be muted Questions can be submitted in writing

during the webcast A Question & Answer session will be held

at the end of the webinar A hard copy of the presentation provided

via email for your reference

THANK YOU FOR ATTENDING!

Today’s Agenda Doug Jensen: Welcome and Introductions

NAMIC Insurance Solutions Team

• Service Tools and Administration• Financial Update & FSA Overview• Benefits Service Center

Gibson 2014 Strategies & Renewals

• Ancillary Benefits• Medical Plan Changes• Pre-65 Retirees• Extend Health: Post-65 Retiree Exchange• Health Care Reform

Today’s Agenda

Benefit Service/Administration • New benefit administration• Benelogic Control

Open Enrollment 2014• Dates and expectations

2014: Looking Forward The Value of ICSO

ICSO H&W Named Fiduciaries Doug Jensen, Chair (12/2014), Illinois FAIR Plan

Association

Dane Austin (12/2014), New York Property Insurance

Anneliese Jivan (12/2016), California FAIR Plan

Ron Cassesso (12/2016), PIPSO

Jerry Warner (12/2015), New Jersey Insurance UW Association

Serving Without Compensation or Expense Reimbursement

Have a Personal Stake in the Success of the Program

Key PartnersICSO H&W Named Fiduciaries

Provide Oversight

NAMIC Insurance Solutions (NIS) Benefit Administration and Finance

Management

Benelogic Control Benefit System

Connect Your Care FSA Services

Gibson Insurance Broker/Consultant

Extend Health Post 65 Retiree

Health Markets Insurance Agency (Insphere) Pre-65 Retiree

ICSO H&W Named FiduciariesDuties and Responsibilities

Ensure availability of desired benefits for plan participants and employers

Maintain responsibility for signing off on various programs, policies and procedures

Explore opportunities for improvements in programs and/or process

Assure financial integrity of program and compliance with various regulations 9

ICSO Health & Welfare Participants

42 Participating Employers

Total Number of Lives 1,464• 625 Active Employee Lives• 528 Dependent Lives• 311 Retiree Lives

Health Ins - 27 Employers

Offering Quality Benefit Plan Accessibility and

Stability in a Constantly Changing Environment

2013 ICSO H&W Impediments Unknowns created by Healthcare Reform (ACA)

ADP weak link in administrative chain

ICSO H&W temporary cash flow challenges

High premiums paid for SBR medical coverage

High long-term cost of post-65 retiree medical coverage

Aetna decision to non-renew master medical plan

covering • non-SBR actives and • pre-65 retirees

High cost of ancillary coverages

Challenges in simplifying processes of benefit handling

and procurement for employers

2013 ICSO H&W Enhancements

Many Enhancements Were Transparent and Some are Ongoing

Continued implementation of plan adjustments required by Healthcare Reform (ACA)

Effective 8/1/2013: Terminated benefit administration services of ADP• Administration services transferred to the NAMIC Insurance

Solutions team• Benefit administration system moved to the Benelogic

Control System, along with COBRA services• FSA management moved to Connect Your Care

Successful marketing of SBR medical programs for various employers

Improved pricing for ancillary coverages

Successful implementation of Extend Health for post-65 retiree

coverage

2013 ICSO H&W Enhancements (cont’d)

Response to loss of Aetna Master Medical plan• No impact on Aetna SBR plans or non-Aetna plans• Extensive but unsuccessful market research for full

replacement plan option• Identified private solution for pre-65’s, similar to the post-

65 Extend Health– Health Markets Insurance Agency (formerly Insphere)

introduced as pre-65 retiree solution• Options identified for the Aetna master group plans

impacted

Updated Participation Agreement• Important for

– Single 5500 filing– Clarify terms, conditions, expectations– Clear documentation of common agreement as an employer

group and a Trust

Continued expansion of ICSO website

Updating of the ICSO Benefit Guide, Manual and Grid

Service, Tools & Administration

ICSO H&W Eligibility Grid

Great resource tool for eligibility requirements

Unable to address every circumstance

Summary Plan Description prevails

Updates in progress

ICSO H&W Eligibility Grid

• Continued updates being made to ensure it remains• Relative• Accurate

• Most current copies found posted on the Benelogic website through your HR Portal

• We encourage you to reference this if you are not already using this tool!

Benefit Manual & Administration Guide

ICSO H&W provides members with detailed procedural guides

– Compilation of information and tools each member group will need for ongoing oversight and service

Updates in progress

Current copies posted through your HR portal

www.icsohrp.benelogic.com

NAMIC Insurance Solutions (NIS)

Overview

ICSO: A Full Service SolutionNIS, Gibson, Benelogic Roles

Named Fiduciaries

Participating Employers

Plan Participants

Your ICSO H&W Circle of Strength for Service

Strategic Consulting

H&W Vendor Management

Carrier Issue Resolution

Renewal Management

New Business

Technical Benefit Support

Health Care Reform

Represent the NFs

Customer Service

Billing

FSA Financial Administration

Member/Employer Issue Resolution

Record Keeping

Cash Flow Management

Financial Reporting

Non-carrier Dispute Resolution

Online Enrollment

Carrier Connections

Salary Changes and Updates

COBRA Management

FSA Link (to Connect YourCare)

NAMIC Insurance Solutions Team

Gregg Dykstra – COO and General Counsel. Areas of responsibility include NAMIC Insurance Services

David Middleton – ICSO H&W Plan Administrative Executive. Areas of responsibility include insurance services and financial management.

Gigi Houston – Employee Benefits Specialist, and Human Resources expert. Areas of responsibility include ICSO H&W benefit management and invoicing.

Andy Knoblauch – Sr Accountant. Areas of responsibility include financial management support for ICSO H&W members.

NIS Contact Information P. O. Box 68700

3601 Vincennes Road Indianapolis, IN 46268

Phone: (317) 875-5250

NAMIC Insurance SolutionsGigi Houston, SPHR / ICSO H&W Benefit Specialist

•email – icsoadmin@namic.org•call center phone: (855) 656-4276

David Middleton / ICSO H&W Plan Admin Executive •email - Dmiddleton@namic.org

Andy Knoblauch – Senior Accountant •email – Aknoblauch@namic.org

Site Administrator Website

ICSO H&W Benefit Service Website: https://icsohrp.benelogic.com

Access benefits information and:• Census and Enrollment Data• Summary Plan Documents, Benefit Summaries and • Summary of Benefits and Coverage (SBCs)• Member Communications• ICSO H&W Benefit Manual & Administration Guide• ICSO H&W Eligibility Grid

Site Administrator Tools

www.icso-hw.orgBasic information on Programs, Members,

Named Fiduciaries, FAQ and contact information

New services coming soon!

Currently preparing the ICSO H&W website to

allow ICSO site administrators secure access.

This will provide an easy and secure solution for

file sharing with NAMIC Insurance Solutions.

Financial Review

Statements of Net Assets Available for Benefits 2011/2012

Statement of Changes in Net Assets Available for Benefits Year End 12/31/12

Statement of Net Assets 9/30/13

Statement of Changes in Net Assets Available for Benefits9/30/13

Named Fiduciaries

Plan Participants

Renewal Management

New Business

Health Care Reform

Represent the NFs

Customer Service

Billing

Record Keeping

Financial Reporting

Online Enrollment

Carrier Connections

COBRA Management

Gibson Team/Key ICSO Members

Tim Leman, CEO and Principal Lead consultant on Gibson Team for ICSO H&W

tleman@gibsonins.com (574) 245-3512

Jan Phifer, Employee Benefits Practice Responsible for all benefit plan management for the ICSO H&W, including all medical, ancillary and retiree medical

programs.jphifer@gibsonins.com (574) 245-3503

DeAnna Kinyon, Employee Benefits Practice Responsible for successful Extend Health roll-out in 2013,

and is in the role of back-up service for the Gibson team.dkinyon@gibsonins.com (574) 245-

2014 Strategies

and Renewals

Aetna Master Medical Plan Termination

Impacted by many changes in the administration of

employee benefits, including the Affordable Care Act

(ACA), effective 1/1/2014 the Aetna Master Health Plans

for the ICSO Health and Welfare plans will be terminated.

Extensive market research was performed to seek out an alternative master medical plan

• No carrier willing to do a full replacement• For many reasons, primarily the uncertainty of how

the regulations under ACA will impact these plans going forward

The solution is in 2 parts

• Part 1: Group medical – working independently with the employers whose active group medical is impacted

• Part 2: Pre-65 retirees – implemented a retiree HRA solution through Health Insurance Market Agency (formerly Insphere)

Guarantee issue coverage – no pre-existing condition limitations

Employer funds their portion of the PREMIUM ONLY through the HRA

Different from the post-65 retirees - pre-65 retirees cannot access these funds for any medical expense reimbursement

Annual fee for managing the HRA

Ancillary Benefits Life, STD, LTD and Voluntary Life with Lincoln Financial

Group• Benefits second to none!• Large guarantee issue and benefit maximums• Managed LTD option available with 90 day waiting

period• AM Best Rating: A+ Superior

Dental with MetLife• Broad, national network • Plan design improvements over prior carrier• Reduced out of network costs• 2014 minimal increase of 6%• AM Best Rating: A+ Superior

Vision with VSP • No change in benefits• No increase for 2014• AM Best Rating: A Excellent

The move to the new Ancillary Benefit Providers was a Success!!

Post-65 Retirees – ExtendHealth and the HRAs

Roll-out of the ExtendHealth = A Success!• Worked as promised• Rave Reviews

Enrollment stats

October 1st enrollment count• 195 eligible participants• 181 made elections• 8 chose not to participate• 6 unreachable (not contacted)

Post-65 Retirees – ExtendHealth and the HRAsOf the 181 participants

107 Unique Plans Selected

17 different carriers

Top Plan Carriers:• AARP MS• Aetna• American Continental Insurance Company (An Aetna Co)• Humana• Anthem Blue Cross of California

Post-65 Retirees – ExtendHealth and the HRAs

Key points about the move to ExtendHealth Only available to employers with 150+ retirees

• Membership in the ICSO H&W qualifies access • Retirees use HRAs to purchase individual plans,

– HRA funds can be available to pay for out-of-pocket expenses*

Individual counseling services Substantially reduced financial and administrative burden on

the employers A “getting started” introduction for active or retired

employees/spouses turning 65 is included in the “Turning 65 Checklist” on the ICSO website (www.icso-hw.org)

*Unlike pre-65’s whose HRA dollars are for Premiums Only

Flexible Spending Accounts

FSA – Encourage Participation

Terrific benefit – underutilized

Communication with staff about benefits of FSA to encourage participation

Pre-Tax means tax savings to participants

More staff (non-highly compensated employee) participation increases chances of passing compliance testing

Additional information on ICSO website

ACA continues to limit the healthcare FSA to a maximum of $2,500 in 2014

Participation can minimize employer testing issues

FSAReminders Employers must pass compliance testing

Two primary tests• Eligibility • Ratio Highly Compensated

Employers must remit funds within 90 day window

Employees can submit claims for current year through the 1st quarter of next year

FSAEarly Testing can identify potential issues for 2014

Reminders to participating employers including updates on eligibility and utilization rules

Manual review to identify potential issues

Begin 2014 testing earlier in first quarter

ConnectYourCare FSA Services

Several Service Enhancements

Healthcare Payment (Debit) Card Accounts easily accessed through healthcare payment card

Online Account Access Participant Portal provides real-time account balances,

claims and reimbursement requests

RapidRequest Claims Processing State-of-the-art claims processing enables automated,

paperless claims handling Reduces processing time for speedy turnaround of

reimbursements

Customer Service Customer Service representatives are available to assist via

phone or email

Health Care Reform (ACA)

Continued Opportunities and Challenges for Employee Benefits

Next to payroll, medical benefits are the largest expense for most ICSO H&W employers

On behalf of ICSO H&W, Gibson continues to work with each employer group individually

–To develop a best practices framework for plan design, cost control and wellness

–Health benefit design strategies that will be key for the long term

–Manage compliance with Healthcare Reform

Additional challenges for 2014

Continued implementation of the Affordable Care Act

Small employers (up to 50 eligible employees) moving to Community Rating (age-rated structure for employees & dependents) – at first renewal on or after January 1, 2014

Gibson team will continue to provide ongoing communication to the ICSO H&W members as the law and mandates become more clearly defined

Health Care Reform Impact Model Notices

Notification to employees of their right to seek coverage on the ExchangesContinued monitoring of HCR developments for upcoming guidance on the notice requirement

Summary of Benefits and Coverage (SBC)•Document must be provided to all existing employees

• during the Open Enrollment, • 60 days prior to a mid-year benefit plan change; • to new hires with their benefit enrollment packets

•SBCs can be copied in B&W

Health Care Reform Impact (cont’d)

For plan years beginning on or after January 1, 2014:

Non-discrimination for fully-insured plans• The federal non-discrimination rules related to

compensation will be applied to health insurance plans• Prohibit discrimination in favor of highly-compensated

employees

Patient Centered Outcomes Research Institute fees (PCORI)• For fully insured medical plans – the insurance company

is responsible for paying this fee• Excluded: HSAs, health FSAs, and stand-alone dental and

vision coverage

This list not all inclusive

Health Care Reform Impact (cont’d)

Gibson Client Bulletins

• Timely updates and notices of provisions of ACA evolve and mandates are enacted

To receive these Client Bulletins, contact Jan Phifer jphifer@gibsonins.com

New and Improved Benefit Administration

Named Fiduciaries

Plan Participants

Renewal Management

New Business

Health Care Reform

Represent the NFs

Customer Service

Billing

Record Keeping

Financial Reporting

Online Enrollment

Carrier Connections

COBRA Management

NIS Administration Services

ICSO H&W Employee Benefit Specialist– Gigi Houston, SPHR– icsoadmin@namic.org– (855) 656-4276

Hours of operation: 8:30 am to 5:00 pm CTAssistance with

– Benefit service issues– Employee record management– Communication with insurance providers– Claim resolution – Monthly invoicing

NISThe Benelogic Control™ System

https://icsohrp.benelogic.comThe Benelogic database administration allows

Site Administrators have access to all employee data – Secure login permissions can be put in place to limit

access to sensitive data for various Site administrators

Allows “paperless” administration with employee and HR records

Ad Hoc report writer– allows employers to data sort employee records for

reporting purposes

HR Portal for ICSO H&W

Mailbox: info@icso.benelogic.com Phone: 1.888.898.1310 Hours of operation: 7:30 am – 4:00 pm Central

Time (Voicemail after hours)

Responsibilities Maintaining the system Special imported data error corrections Coding for Open Enrollment – New carriers,

new members Rate changes Salary increase data entry

Benelogic Service Center

Access to Documents Global

– Life Insurance Certificates– Evidence of Insurability Form– Conversion Option Pamphlet

Site Specific – STD Claim Forms– Summaries of Benefits and Coverages– Carrier Website Links

Site Administrator AccessBenelogic Service Center

Reports• Pre-Packaged Reports

– Employee Data– Census– Enrollments

• Ad-hoc Report Writer– Employee Information –Ex: Employee ID’s– Dependent Information– Plans– Costs (Annual/Monthly/Per Pay)

Salary Changes and Updates– Email salary change information to both:

• info@icso.benelogic.com• icsoadmin@namic.org

Life Event Changes (adding new hires, retirees, etc)– 2 steps:

• Input Life Event information into the Benelogic system www.icsohrp.benelogic.com

• Email icsoadmin@namic.org for notification that a Life Event has occurred

Open Enrollment

November 18th through

December 8th

Open Enrollment Dates

Open Enrollment (OE) Access– Employee access via www.icsohrp.benelogic.com after Open

Enrollment begins– Employee User ID– Temporary Password – same as ID

Open Enrollment Tips– Employees not required to complete enrollment at one time– Enrollments not finalized until “Submit” is selected– Even if submitted, elections can be changed until OE closes

Confirmations– Employees may print an Enrollment Summary

• use new plan year effective date for new year’s benefit elections

Employee Self-ServiceBenelogic Service Center

Beneficiary Designations– All employees need to access the employee self-

service to enter beneficiary designations

www.icsohrp.benelogic.comMedical FSA

ACTIVE ENROLLMENT– Eligible Employees must re-enroll if they chose to

participate in the 2014 Medical FSA– Each Participant will need to enter their annual

pledge amount.

Ancillary Benefits (Dental, Vision, Supplemental Life)– Employees need to access the employee self-service

to make a change to their current benefit enrollments

OPEN ENROLLMENT 2014

Annual enrollment for Medical Benefits

For the SBRs working with GibsonThose who are “early renewing” on December 1st

– Employees will NOT use the Benelogic system for these updates/changes

– Gibson will be managing the changes to be uploaded into the Benelogic system

Those remaining with the 1/1/14 renewal date– Election choices should be completed before December 15th to

ensure updated information is complete with the carrier

Benelogic Service CenterOPEN ENROLLMENT 2014

Annual enrollment for Medical BenefitsFor the Non-SBRs working with Gibson for your medical

Your plan changes and options have been presented to youOnce your plan designs have been decided upon

– Employees will use the Benelogic system to apply for their enrollment elections• Selecting a carrier and plan of benefits• Making any election updates or changes

OPEN ENROLLMENT DATESThe Benelogic system will be open from

November 18th through December 8th

OPEN ENROLLMENT 2014

Annual enrollment for Medical Benefits

For group medical plans not working with Gibson for your medical

Once you and your broker have completed your renewal review

– Send all updated enrollment, premium and plan changes to icsoadmin@namic.org

– If possible, provide this information prior to December 15th to ensure the Benelogic system is updated for the January invoicing

Benelogic Service CenterOPEN ENROLLMENT 2014

Looking Forward

ICSO H&W Long Term Objectives

Availability of comprehensive and affordable health & welfare products fulfilling employers’ commitments to employees and retirees

Health & welfare options that allow employees and employers to select products that best suit their individual needs

Mutually successful long term relationship with NAMIC, Gibson, Benelogic and other vendor partners

Consistently satisfactory service in an ever-changing environment

ICSO H&W Long Term Objectives

Necessary resources and communications available to assure employer and employee understanding of benefits

Effective handling of administrative issues as they arise

Expansion in number of participating employers and employees

Satisfactory management of Healthcare Reform (ACA) impact over time

Continued research for plan and benefit options to enhance the ICSO H&W benefit portfolio

2014 Hot Buttons Continued review and potential marketing of SBR

healthcare coverages

Design, review and marketing of non-SBR healthcare coverages

Prepare for ACA changes in 2014 and beyond• Work to ensure compliance

Implementation of ExtendHealth for pre 65 retirees

Growth in membership and membership value

Equitable administrative costs

The Value of ICSO

Growing Membership

This year we welcome Kentucky to the ICSO H&W!

Message: “ICSO offers quality benefit plan accessibility and stability in a constantly changing environment”

Marketing initiative continues – GOAL: to increase ICSO membership

Who do you know that could benefit from membership in ICSO?

Employers that fit the ICSO H&W model

Employers that want to:

Attract and retain qualified employees

Provide a high level of employee benefits at a reasonable cost

Increase efficiency – “Do more with less”

Focus on their business not their benefits

Make informed benefit decisions for employees and retirees

– Leverage knowledge of employer best practices– Increase bargaining power by joining a larger pool – Obtain administrative/consultative support with

benefits issues

How ICSO stands apart Providing coverage options for different

populations– Active employees– Pre-65 retirees– Post-65 Medicare retirees – Eligible dependents

Meeting the critical needs of small & large employers

Regulatory compliance

Shared administrative cost and services

How ICSO stands apart

Offering the comprehensive suite of health & welfare options that have been reviewed today:Active MedicalRetiree Medical HRA for qualified pre and post-65 retireesDentalVisionHealth Care Flexible Spending Account (HC FSA) Basic Life and AD&D Insurance; Supplemental Life InsuranceShort-term Advice to Pay and Long-term Disability InsuranceContinuation/Conversion of Coverage

– Life insurance Continuation or Conversion – COBRA or State Continuation for medical coverage on disabled

employees surviving spouses or dependents

ICSO Health & Welfare Trust Competitively priced and unique

benefits not available outside the group

Reducing administrative costs and burdens

Remaining fresh and relevant Confidence in programs going forward

in a rapidly changing environment

Your Full Service Solution!

Your Service Team

David MiddletonICSO Plan Administrator

Gregg DykstraNAMIC COO & Gen’l Counsel

Tim Leman, Presidentand CEO, Gibson

Gigi Houston SPHREmployee Benefits Spclst

Andy KnoblauchSenior Accountant

Jan PhiferBenefits Practice, Gibson

Open Discussion

Questions

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