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2014 PLAN YEARANNUAL OPEN ENROLLMENT GUIDE
Department of Human ResourcesOctober 2013
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)
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.
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.
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!
WKU HEALTH PLANWhat’s Changing for 2014?
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
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
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
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
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
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
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
FLEXIBLE SPENDING ACCOUNTSMedical and Dependent Care FSA’s
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
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
DENTAL PLAN
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
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
LIFE AND DISABILITY INSURANCEBasic, Optional, Spouse, & Dependent Life
Short-term & Long-term Disability
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
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
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
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”
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
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