Your 2014 Benefits Annual Enrollment

Employee Presentation

October 2014

Do I have to enroll?

• If you are currently enrolled in Kellogg benefits, your selection will automatically roll-over to next year unless you make a change.

2013 2014

HSA HSA Option A

PPO PPO

HRA HSA Option B

• Enrollment required for: – Flexible Spending Account– Health Savings Account– Vacation purchase

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Annual Enrollment November 4-15, 2013

Watch Some Videos

How are all three medical plans alike?

How are the medical plans different ?

HighlightsWhat’s New for 2014

Currently enrolled in HRA? The HRA Plan will not longer be available in 2014. Be sure to use your HRA funds before January 1, 2014. Any remaining balance in your HRA will be forfeited. Check your HRA balance by contacting your medical carrier, CIGNA or BCBSMI.

New Medical Plans in 2014• HSA Option A (Modified)

• HSA Option B

• PPO Plan (Modified)

• HMO Medical Plans available in some locations

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New

• Save more! Per IRS guidelines, HSA maximum contributions are increasing to $3,300 for individual coverage and $6,550 for family coverage in 2014.

• PPO changes include:– Annual deductible– Out-of-pocket maximum– Prescription drug co-pay and co-insurance

• Voluntary AD&D coverage will be a separate election in 2014. 4

HighlightsWhat’s New for 2014

Coverage Level Company Contribution

Employee Contribution

Total Contribution

Individual $500 $2,800 $3,300

Family $1,000 $5,550 $6,550

• 2013 Feeling Gr-r-reat! REWARDS! – Employees must complete the online

Health Assessment during Benefits Annual Enrollment in order to claim any REWARDS!

– Go to the Kellogg Benefits Center, step #4 of the enrollment checklist, to complete the online Feeling Gr-r-reat! Health Assessment

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HighlightsWhat’s New for 2014

• Same-gender spouse– Employees legally married to a same gender spouse can change

their relationship to “spouse” for benefit coverage• Stop imputed income• Update beneficiary information

– Call the Kellogg Benefit Center by November 30th

HSA Medical Plans – Modified and New 2014 Options

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HSA Option A (modified) HSA Option B

  In-network Out-of-network In-network Out-of-network

Annual Deductible$1,900/individual $3,800/family

$3,800/individual$7,600/family

$2,400/individual $4,800/family

$4,800/individual$9,600/family

Annual Out-of-Pocket Maximum (includes annual deductible)

$3,250/individual $6,500/family

$6,500/individual$13,000/family

$4,000/individual $8,000/family

$8,000/individual$16,000/family

Kellogg Contribution $500/individual$1,000/family

$500/individual$1,000/family

Preventive Care100% (no annual deductible)

60% (after annual deductible)

100% (no annual deductible) 60% (after annual deductible)

Office VisitPrimary Care or Specialist

80% (after annual deductible)

60% (after annual deductible)

80% (after annual deductible) 60% (after annual deductible)

Hospital (inpatient or outpatient)

80% (after annual deductible)

60% (after annual deductible)

80% (after annual deductible) 60% (after annual deductible)

Prescription DrugsAfter Annual Deductible

GenericPreferred BrandNon-Preferred Brand

Retail PharmacyYou Pay: $7 co-pay25% ($25 min, $50 max)35% ($50 min, $100 max)

Mail OrderYou Pay: $15 co-pay25% ($65 min, $125 max)35% ($125 min, $250 max)

Watch a Video

How an HSA plan works

New

Changes noted in bold blue

Health Savings Account

• If you enroll in a HSA Medical Plan, you will have a Health Savings Account. Your Health Savings Account is administered through the Kellogg Benefits Center. Once you activate your account you can:

– Receive Kellogg contributions• Deposited into your account by

January 3, 2014 – Make your own contributions via

payroll deduction• Deposited after each payroll

deduction

• You can view your Health Savings Account balance and transactions anytime at kelloggbenefitscenter.com

• To contribute (and receive Kellogg Contributions) to a Health Savings Account you cannot be covered under another health plan, such as Medicare or a PPO. Refer to the Kellogg Benefits Center website for more information. 7

PPO Plan - Modified

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  2013 2014

  In-network Out-of-network In-network Out-of-network

Annual Deductible$400/individual $1,200/family

$800/individual$2,400/family

$500/individual $1,500/family

$1,000/individual$3,000/family

Annual Out-of-Pocket Maximum

(includes deductible)

$2,000/individual $6,000/family

$4,000/individual$12,000/family

$2,600/individual $7,800/family

$5,200/individual$15,600/family

Kellogg Contribution None None

Preventive Care100% (no annual

deductible)60% (after annual

deductible)100% (no annual deductible) 60% (after annual deductible)

Office VisitPrimary Care or Specialist

80% (after annual deductible)60% (after annual

deductible)80% (after annual deductible) 60% (after annual deductible)

Hospital (inpatient or outpatient)

80% (after annual deductible)60% (after annual

deductible)80% (after annual deductible) 60% (after annual deductible)

Prescription Drugs

GenericPreferred BrandNon-Preferred Brand

2013 Retail PharmacyYou Pay: $7 co-pay25% ($25 min, $50 max)35% ($50 min, $100 max)

2013 Mail OrderYou Pay: $15 co-pay25% ($65 min, $125 max)35% ($125 min, $250 max)

2014 Retail PharmacyYou Pay: $10 co-pay40% ($30 min, $60 max)50% ($75 min, $150 max)

2014 Mail OrderYou Pay: $25 co-pay40% ($75 min, $150 max)50% ($187.50 min, $375 max)

Watch a Video

How a PPO plan works

Changes noted in bold blue

Dental Plan – No Change

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Plan Features Base Premium

Annual DeductibleYou pay this amount before the plans pay anything.

$50 single$150 family

$50 single$150 family

Co-insuranceThe plan pays this amount after you reach your deductible.

Preventive Care (Coverage for exams and cleaning)

100% of CIGNAapproved amounts,no annual deductible

100% of CIGNAapproved amounts,no annual deductible

Diagnostic/Restorative Care (Fillings, X-rays, root canals, oral surgery, inlays, onlays, crowns)

70% of CIGNA approved amounts

80% of CIGNA approved amounts

Prosthodontic Care (Occlusal guards, bridges, dentures)

50% of CIGNAapproved amounts

50% of CIGNAapproved amounts

Orthodontia (No age limit) Not Covered 50% of CIGNA approved

amounts

Implants 50% of CIGNA approved amounts

50% of CIGNA approved amounts

Maximum When the dental plan payments reach these maximums, you pay 100% of all other expenses.

Annual Maximum (Per covered person) $1,200 $2,000

Orthodontia Lifetime Maximum (Per covered person) N/A $2,000

Vision Plan – No Change

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Co-paymentThe plan pays 100% after you meet each co-payment per visit.

Eye Exam(One visit every 12 months) $10

Lenses (Plan covers replacement of lenses once every 12 months)

$25(applies to both lenses and frames) Plan provides an allowance of up to $120 for frames

Contacts (Plan covers replacement of contacts once every calendar year instead of frames/lenses during the same period)

$0 Plan provides an allowance of up to $125

Flexible Spending Accounts

• Flexible Spending Accounts (FSAs) help you cover your expenses – tax free

• There are two types of Flexible Spending Accounts

– Health Care/Limited Purpose FSA

– Dependent Day Care FSA

• “Use it or lose it”

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Type of FSA Health Care Limited Purpose

Available with Medical Plan

Use it to pay for • Medical, dental, vision– Annual Deductibles– Co-pays– Co-insurance– Other costs not

covered by your plan

• Dependents’ out-of-pocket costs

• Dental, vision– Annual Deductibles– Co-pays– Co-insurance– Other costs not

covered by your plan

• Dependents’ out-of-pocket costs

Other things to know May be used to reimburse medical expenses only after annual deductible met

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Flexible Spending Accounts (FSAs) Health Care FSA vs. Limited Purpose FSA

Dependent Day Care FSA

• Use the Dependent Day Care FSA to reimburse yourself on a tax-free basis for day care, day camp, elder care or other expenses you pay because:

– You and your spouse/domestic partner (if married) work

– You and your spouse/domestic partner (if married) go to school full time

– Your spouse isn’t physically or mentally able to care for himself or herself

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The Dependent Day Care FSA is not intended to help you pay for your child’s healthcare. • You can set aside money for your child’s health

care in the Health Care FSA.

Vacation Purchase

• You are eligible to purchase 5 additional vacation days if you have: – Less than 25 years of service (eligible for less than six weeks of

annual vacation accrual)– Less than one week of vacation carried over from 2013 into 2014

Pay through pre-tax payroll deductions through 2014

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If you do not plan to use the additional week of purchased vacation before December 30,

2014, you may submit a request for a refund.

Enroll in Your Benefits

• Visit the Kellogg Benefits Center website during Annual Enrollment – View benefits information beginning October 18, 2013– Enroll November 4 – 15, 2013

• Access the website two ways:– Go to www.kelloggbenefitscenter.com from any computer with

Internet access– Employees who currently use the myHR Portal to access their

benefits may also link to the Kellogg Benefits Center website from there

• You can also enroll over the phone by calling the Kellogg Benefits Center at 1-888-280-6933

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Additional Hours During Annual Enrollment:Representatives available at 1-888-280-6933 from 8 am to 6 pm Eastern time, Monday through Friday.

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• You can access your retirement, medical and insurance benefits through the Kellogg Benefits Center:

• You can access the following benefits and programs through the myHR Portal and myHR Service Center:

Medical Life Insurance

Pharmacy Accidental Death & Dismemberment

Dental Retirement Plans

Vision Flexible Spending Accounts

Disability/Leave of Absence

Feeling G-r-r-reat

Other programs such as Tuition Reimbursement, Workers’ Compensation, Vacation Purchase, Employee Stock Purchase Plan, Employee Discount Program, Adoption Assistance

How To Access Your 2014 Benefits

ANNUAL ENROLLMENT 2014 COMMUNICATIONS

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Oct 1: Notice of Exchanges

Oct 4: Notice of Creditable Coverage

Oct. 15: myTotalRewards Newsletter

Oct 9: Feeling Gr-r-reat Postcard, to eligible employees reminder to complete Health Assessment to claim REWARDS!

Oct 25 – Nov 4 – NUH Mailer / Salaried email Annual Enrollment notice

Nov 4: Microsite linked in annual enrollment step #1

October 2013 November/December 2013

Annual Enrollment Webinars • Oct. 22, 2-3 PM ET• Oct. 29, 7-8 PM ET• Nov. 12, 2-3 PM ET• Nov. 13, 11-12 PM ET

Oct 15: Postcard - What’s changing for 2014; promote decision KBC tools and resources available for enrollment

Oct 18: Benefit Guide Microsite and Health Care Cost Comparison Tool link on KBC homepage

Annual Enrollment Communications

Nov 4: On KBC AE Checklist - HSA user guide, Quick Guides, SBC’s, SPD’s, HIPPA Notice

Dec 11-16: NUH Mailer/Salaried Email - HSA User Guide for 2014 HSA enrollees