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2014 open enrollment

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2014 PLAN YEAR ANNUAL OPEN ENROLLMENT GUIDE Department of Human Resources October 2013
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Page 1: 2014 open enrollment

2014 PLAN YEARANNUAL OPEN ENROLLMENT GUIDE

Department of Human ResourcesOctober 2013

Page 2: 2014 open enrollment

IMPORTANT OPEN ENROLLMENT DATES

Annual Open Enrollment Election Period:

NOVEMBER 15TH – 29TH, 2013

Benefits Fair:

NOVEMBER 20TH & 21ST

8:30 AM – 3:30PM

Kentucky Building – KY Room

Pre-Open Enrollment Educational Sessions:

TUESDAY, NOVEMBER 5TH • 9:00 AM - DSU Annex A210

• 10:30 AM – DSU Auditorium (DFM)

• 2:00 PM – WAB Room 227

WEDNESDAY, NOVEMBER 6TH • 9:00 AM – WAB Room 227

• 2:00 PM – DSU Annex A210

THURSDAY, NOVEMBER 7TH • 8:00 AM – South Campus 226

• 10:30 AM – DSU Auditorium (DFM)

Page 3: 2014 open enrollment

HIGHLIGHTS OF THE 2014 PLAN YEAR ANNUAL OPEN ENROLLMENT

• There will be NO rate increases in 2014 for the Dental, Life*, and Disability* plans. – *NOTE: Individuals moving to a new age bracket will see an increase in life and disability premiums ,

based on the age-banded rate structure.

• There will be modest Health Plan increases in employee premiums and minor benefit plan changes in 2014. – The University’s Health Plan contribution will increase from $471 to $525 per month, which helped

alleviate more significant benefit plan reductions and employee premium increases

• Employee Assistance Program – Anthem EAP will replace Compsych/Guidance Resources as WKU’s Employee Assistance Program provider.

Page 4: 2014 open enrollment

BENEFIT ENHANCEMENT FOR 2014

Lincoln Financial will replace Sun Life as WKU’s Life and Disability provider in 2014.

• This carrier change comes with many advantages for employees who wish to enroll for the first time or increase the optional employee or spouse life coverage or elect short term disability.

• During open enrollment, Lincoln Financial will offer a one-time special guarantee issue period which provides a unique opportunity for employees to enroll in optional employee life, spouse life, and short term disability without completing a statement of health subject to approval.

Page 5: 2014 open enrollment

BENEFIT ENHANCEMENT FOR 2014

• The University provided basic life insurance policy will increase from $30,000 to $35,000

• The maximum spouse life coverage amount will increase from $80,000 to $250,000.

• Because of the carrier change, all employees will be asked to update life insurance beneficiary information during open enrollment this year.

DON’T MISS THIS UNIQUE

OPPORTUNITY!!!

PROTECT YOU AND YOUR FAMILY FROM

THE POTENTIAL FOR INCOME LOSS AND OTHER FINANCIAL

HARDSHIPS SHOULD THEY ARISE!

Page 6: 2014 open enrollment

WKU HEALTH PLANWhat’s Changing for 2014?

Page 7: 2014 open enrollment

2014 HEALTH PLAN CHANGESWhile Health Plan benefits and premiums have remained unchanged over the past 3 years (with the exception of several benefit enhancements), there will be some changes in 2014: 

• Modest Increases in Employee Premiums

• The Economy Plan will be the FREE Option for Employee Only Coverage in 2014

• A Specialist Office Visit Copay will be added to the Health Plan

• A $50 Annual Rx Deductible will be added and applicable to Tier 2 & Tier 3 Prescriptions

Page 8: 2014 open enrollment

2014 HEALTH PLAN MONTHLY RATESClick icon to add picture

• The University’s Health Plan

contribution will increase from

$471 per month to $525 per

month

• The increase in the University’s

contribution helped alleviate

more significant benefit plan

reductions and employee

premium increases

  CostWKU Monthly Contribution

Employee Monthly

Premiums High Plan      

EE Only $600 $525 $75EE + Spouse $965 $525 $440EE + Child(ren) $775 $525 $250Family $1155 $525 $630Cross Ref Couple $965 $1050 (2x$525) $0Cross Ref Family $1155 $1050 (2x$525) $105

Standard Plan      EE Only $550 $525 $25EE + Spouse $830 $525 $305EE + Child(ren) $685 $525 $160Family $975 $525 $450Cross Ref Family $975 $1050 (2x$525) $0

Economy Plan      EE Only $525 $525 $0 EE + Spouse $750 $525 $225EE + Child(ren) $625 $525 $100Family $875 $525 $350

Page 9: 2014 open enrollment

HEALTH PLAN DESIGN CHANGES FOR 2014

High Standard Economy

Primary Care Office Visit Copay

$25 $35 $35

Specialist Office Visit Copay

$40 $50 $50

Addition of a Specialist Office Visit Copay:

• The average cost to see a Specialist is nearly double that of a Primary Care Physician

• Primary Care will include the following:– General Practitioners, Family Practice,

Internal Medicine, OB/GYN, Pediatricians and Geriatrics

• All other types of Office Visits will fall under Specialists and be subject to the new copay level

Page 10: 2014 open enrollment

PRESCRIPTION BENEFIT CHANGES FOR 2014

Addition of a $50 Annual Rx Deductible for Tier 2 & Tier 3 Drugs:

• No deductible for Generics!– Tier 2 and Tier 3 Drugs cost on average

more than 6 times the cost of Tier 1 Generic Drugs!

• Tier 2 & Tier 3 drugs made up over 70% of our total Rx costs in 2013

• Use Generics whenever possible!

High Standard Economy

Tier 1 Generic

$10 $15 $15

Tier 2 Brand Preferred

$25 *after $50 annual deductible

$30 *after $50 annual deductible

$35 *after $50 annual deductible

Tier 3 Brand Non-Preferred

$35 *after $50 annual deductible

$45 *after $50 annual deductible

$45 *after $50 annual deductible

Page 11: 2014 open enrollment

HEALTH PLAN COMPARISON CHARTBenefit Highlight (In-Network) HIGH STANDARD ECONOMY

Deductible • Single• Family

$400 $800

$750$1500

$1000$2000

Out of Pocket Max• Single• Family

$1500 $3000

$2000$4000

$4000$8000

Coinsurance (after annual deductible) 10% 20% 30%

Preventive Care Services $0 $0 $0

Office Visit Copay $25 $35 $35

Specialist Visit Copay $40 $50 $50

Rx Copay• Generic• Brand Preferred (after $50 annual deductible)

• Brand Non Preferred (after $50 annual deductible)

$10$25$35

$15$30$45

$15$35$45

Page 12: 2014 open enrollment

VISION PLAN

Benefit In Network Non-Network(Reimbursement)

Exam(every 12 months)

$10 copay Up to $42

Prescription lenses and frames*lenses every 12 months*frames every 24 months

$20 copay Up to $40 - $125Varies by lens type

Prescription contact lenses*once every 12 months

Elective – up to $130Non-elective - $20 copay up to $250

Up to $210

No changes to the visioncoverage for the 2014 Plan Year

Vision coverage is automatically included with participation in the WKU Health Plan

Page 13: 2014 open enrollment

EMPLOYEE WELLNESS PROGRAM

• We are excited to launch the second year of the Employee Wellness Program starting in January 2014

• We encourage you to participate in the health improvement activities to improve your health and wellbeing and earn incentive rewards

• Additional information is available at https://wku.livehealthier.com

Page 14: 2014 open enrollment

FLEXIBLE SPENDING ACCOUNTSMedical and Dependent Care FSA’s

Page 15: 2014 open enrollment

IMPORTANT INFORMATION!!

Without an FSA

With an FSA

Annual Gross Salary

$30,000 $30,000

Annual Healthcare Expenses

$1,000 $1,000

Annual Daycare Expenses

$2,000 $2,000

Contributions to an FSA

$0 $3,000

Taxable Income $30,000 $27,000

Estimated Taxes $10,695 $9,626

Net Tax Savings by Using an FSA

$0 $1,069

Voluntary Medical and Dependent Care FSA’s REQUIRE annual re-enrollment. You MUST take action during open enrollment to re-enroll!!

Employees who waive the WKU Health Plan and receive the $150/mo. are NOT required to re-enroll annually. It will automatically continue unless you elect health coverage.

All employees enrolled in Flexible Spending will receive a new FSA Card for the 2014 Plan Year.

Example of the Tax Savings applicable to Flexible Spending Accounts

Page 16: 2014 open enrollment

FLEXIBLE SPENDING ACCOUNTS

Waiver Funds(employees who waive WKU Health Plan)

$150/month

Medical Flexible Spending Account

Up to $2,500/year

Dependent Care Flexible Spending Account

Up to $5,000/year

Page 17: 2014 open enrollment

DENTAL PLAN

Page 18: 2014 open enrollment

DENTAL PLAN COMPARISON CHART

CORE PPO PREMIER

Deductible $50 Single/$150 Family $50 Single/$150 Family

Annual Max $1000 $1000

Diagnostic/Preventive Services

100% - no deductible 100% - no deductible

Minor Services 50% - after deductible 80% - after deductible

Major Services Not covered 50% - after deductible

Orthodontia Not covered 50% up to $1000 lifetime max for dependents up to age 19

Page 19: 2014 open enrollment

2014 DENTAL PLAN MONTHLY RATESClick icon to add picture

• There will be no

changes in dental plan

rates or benefits for

2014*

*Some employees may notice a

$0.01 increase or decrease in the

monthly premium as a result of

some rounding changes in a few

coverage levels

  CostWKU

Monthly Contribution

Employee Monthly

Premiums

CORE PPO PLAN      

EE Only $13.06 $13.06 $0

EE + Spouse $26.06 $13.06 $13.00

EE + Child(ren) $24.94 $13.06 $11.88

Family $40.86 $13.06 $27.80

PREMIER PLAN

EE Only $25.32 $13.06 $12.26

EE + Spouse $49.66 $13.06 $36.60

EE + Child(ren) $58.90 $13.06 $45.84

Family $92.36 $13.06 $79.30

Page 20: 2014 open enrollment

LIFE AND DISABILITY INSURANCEBasic, Optional, Spouse, & Dependent Life

Short-term & Long-term Disability

Page 21: 2014 open enrollment

LINCOLN FINANCIAL - NEW LIFE & DISABILITY INSURANCE CARRIER

• During open enrollment, Lincoln Financial will offer a one-time special guarantee issue period which provides a unique opportunity for employees to enroll in optional employee life, spouse life, and short-term disability without completing a statement of health and subject to approval.

• Employee Optional Life Guarantee Issue up to $250,000

• Spouse Optional Life Guarantee Issue up to $30,000

Page 22: 2014 open enrollment

OPTIONAL EMPLOYEE, SPOUSE, & DEPENDENT LIFE INSURANCE MONTHLY RATES

AGE Employee Spouse

00-29 $0.090 $0.110

30-34 $0.114 $0.134

35-39 $0.135 $0.155

40-44 $0.151 $0.171

45-49 $0.258 $0.278

50-54 $0.389 $0.409

55-59 $0.619 $0.639

60-64 $1.013 $1.033

65-69 $1.706 $1.726

70-74 $2.723 N/A

Dependent Child(ren) $5,000 Policy $0.82/month

Dependent Child(ren) $10,000 Policy $1.63/month

To compute your monthly optional life rate:

_______________________ x ____________________ / 1,000

(age band rate per thousand) (desired amount of coverage)

Note: Premiums are based on age as of January 1, 2014. Premiums will automatically increase on January 1st of each subsequent year if you or a spouse progress to a new age band

Page 23: 2014 open enrollment

SHORT-TERM DISABILITYWKU Employee have the opportunity to purchase a short-term disability policy through Lincoln Financial. Short-term disability provides a weekly benefit of 60% of salary up to a maximum of $1,250 per week for up to 13 weeks.

Short-term disability is designed to protect employees from income loss associated with absence from work due to injury, sickness or disease.

Important: Short-term disability will be offered under a special guarantee issue period during open enrollment this year!!

*No changes to the University provided Long-Term Disability

Age Rate00-25 $.089

25-29 $.090

30-34 $.069

35-39 $.069

40-44 $.066

45-49 $.070

50-54 $.081

55-59 $.104

60-64 $.122

65-69 $.137

70+ $.142

To compute your short –term disability monthly premium:

Salary / 52 weeks x 60% x Age Band Rate

Page 24: 2014 open enrollment

IMPORTANT INFORMATION ABOUT ANNUAL OPEN ENROLLMENT• You may enroll or make changes during the Open Enrollment

election period between November 15th – 29th

• The choices you make during the Open Enrollment period will be effective for the plan year beginning January 1, 2014 through December 31, 2014

• You will not be able to drop or add coverage until the next Open Enrollment period in November 2014 for the 2015 Plan Year, unless you have a change in family status or experience a “qualifying event”

Page 25: 2014 open enrollment

MAKING CHANGES THROUGHOUT THE YEAR: QUALIFYING EVENTS• If you experience a qualifying event during the 2014 plan year,

you can make mid-year election changes to your benefits

• You must notify the WKU Benefits Team within 31 days of the qualifying event

• Examples of qualifying events include:– Birth or adoption– Marriage or Divorce– Employment Status (dependent loses/gains other coverage)– Dependent no longer meets eligibility criteria– Spouse’s annual enrollment period or change in benefit offerings

Page 26: 2014 open enrollment

OPEN ENROLLMENT BEGINS NOVEMBER 15TH!

• Additional information will be shared via email and the HR Benefits website

• A new communication and enrollment portal will be introduced in the coming weeks

• Watch for future communication from WKU Benefits

NO MORE PAPER!!

All open enrollment information will be

communicated electronically this year

All open enrollment changes will be made in the new enrollment

system


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