2014 USG Open Enrollment

November 11 – 22, 2013

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Agenda

Healthcare Plan Voluntary Benefits Communications What employees will need to do Affordable Care Act - 2014 Questions?

Projected Cost increases for 2014

Actuarial estimates forecast a projected increase of about 3.7% – mainly due to increased enrollment in the plan

Affordable Care Act Related Costs beginning in 2014 – approximately ($20M)– Reinsurance fees

– Increased Enrollment due to individual mandate

– Plan design changes

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Goals for 2014 Healthcare Plan

USG and employees share projected 2014 cost increases

Make sure current employees are not penalized for increased costs due to ACA (budget request)

Begin introducing behavioral rewards and penalties– i.e. tobacco surcharge, increased co-pays for emergency room

Ensure USG is secondary payer for new Medicare-eligible employees

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2014 Premiums – Good news!

No increase in premiums for employees enrolled in the BCBSGa plans

4.3% increase in premiums for employees enrolled in Kaiser

2014 Healthcare Monthly Premiums

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Plan Changes – Open Access POS

Increase Emergency Room co-pay from $50 to $150 Prescription drug changes/programs:

– Increase Preferred Brand Name prescription co-pay from $30 to $35 (messaging and to use generics! $10 for 30 day supply)

– Add new Drug Therapies

– Introduce Rational Med Program

– Introduce Active Choice program; encourage employees on maintenance medications to use mail order pharmacy

Out-of-network deductible increase ($400 to $500 for single and from $1,200 to $1,500 for family)

Out-of-network annual maximums increase ($2,000 to $3,000 for single and $4,000 to $5,000 for family)

ACA requirement – co-payments for office visits and emergency room will be included in out-of-pocket maximum

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7PROPRIETARY AND CONFIDENTIAL © 2013 Express Scripts Holding Company. All Rights Reserved.

Generic Fill Rate Opportunity

Every 1% increase in GFR leads to Plan Cost savings of

1.8%

Increased GFR this period saved you

$3,090,398

Improve your GFR to maximum potential of

88.5%

72.1% 75.6%

88.5%

Previous GFR Current GFR Maximum Potential GFR

Generic Fill Rate Potential

Plan Changes – HSA Open Access POS Plan (HDHP)

Increase Participant Co-insurance from 10% to 15% Create an out-of-network deductible distinct from in-network -

$2,500 for single and $5,000 for family Add Mail Order Delivery option and encourage use of Mail

Order delivery for maintenance medications

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Plan Changes – BlueChoice HMO Plan

Increase PCP co-pay from $15 to $20 Add Mail Order Delivery option and encourage use of Mail

Order delivery for maintenance medications ACA Required plan change: Add annual out-of-pocket

maximums of $6,350 for single and $12,700 for family

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Plan Changes – Kaiser HMO Plan

Increase PCP co-pay from $15 to $20 ACA Required plan change: Add annual out-of-pocket

maximums of $6,350 for single and $12,700 for family Co-pays on Sr. Advantage plan are being changed to match

active employee plan – decrease in premiums for retirees enrolled in this plan

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ID Cards

Employees enrolled in the BSBSGa plans will receive new ID cards for 2014

Employees enrolled in the OA POS plan will not receive a new prescription ID card unless the enrollment is new for 2014; employees should continue using “Medco” pharmacy cards!

All employees enrolled in the Kaiser HMO plans will receive a new ID card in 2014

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Tobacco Surcharge - 2014

$50 per month tobacco surcharge will apply to spouses and dependent children 18+ enrolled in the healthcare plan per tobacco user

Active Open enrollment – all employees must certify tobacco use status in 2014

If an employee does not certify, their tobacco use status will default to tobacco user and $50 per month will be added to their healthcare premium

Encourage employees to quit using tobacco products!

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New Medicare-Eligible Retirees in 2014

Current rule: Retiree/Spouse will enroll in Medicare Part B or pay full premium

2014: USG Plan will only pay as though Retiree/Spouse has Medicare (Secondary coverage)

Retirees who became Medicare Eligible prior to 1/1/14 and do not enroll in Medicare will pay either full premium or $100 additional premium

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Wellness

Wellness Mini-Grants AwardedGeorgia Gwinnett College

Georgia Regents University

University of West Georgia

University of Georgia

Kennesaw State University

Columbus State University

2014: Institutions continue to promote wellness awareness on campuses

Additional Mini-grants available spring 2014 Base-line wellness added to healthcare plan anticipated

2015

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Voluntary Benefits 2014

New for 2014

System–Wide Voluntary Benefits program All institutions offer the same set of voluntary

benefits plans

– Dental

– Vision

– Life and AD&D

– Disability

– FSA/HSA

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Project Highlights

Consolidated 130 different voluntary benefits plans down to 6 plans

100% employee paid except basic life Steering Committee comprised of institution HR/Benefits

leaders worked with System office to choose finalist vendors and recommend plan design

Savings estimated at approximately $4 million across all institutions

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Why change?

Our new approach allows USG/institutions to offer benefits that are:Higher Employee Value – achieved enhanced plan designsGuaranteed premiums for 3-5 yearsUniform and consistent plans across all institutionsReduced cost for USG and employees

Goals of USG Benefits Plans

– Recruit top faculty and staff

– Provide benefits programs that offer real value for employees and their families

– Invest in our employees health and well-being

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What’s new for 2014?

Brand for USG benefits

– We provide • You decide

• USG will provide competitive benefit choices

• Employees can decide which benefits fit their life

– Consistent, recognizable brand identity for all USG Benefits communication pieces

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What’s new for 2014?

Plan Benefits & Carriers

– Dental – MetLife -> Delta Dental

– Vision - EyeMed

– Life and AD&D – CIGNA -> Minnesota Life

– Disability – MetLife

– FSA/HSA – US Bank

Dental – Delta Dental

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*Preventive services don’t count toward the deductible**Benefit limits on replacement dentures or crowns apply

Coverage Tier Base Plan High Plan

Employee $24.82 $30.66

Employee + Spouse $49.62 $61.30

Employee & Child(ren) $47.12 $58.24

Family $79.38 $98.10

Vision – EyeMedIn-Network Out-of-Network

reimbursementExam Benefits $10.00 $40

Exam Frequency 1 per 12 months

Single Vision Lens $25.00 $40

Lens Frequency 1 per 12 months

Frames Benefit $150 $58

Frames Frequency 1 per 12 months

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Coverage Tier Monthly Premium

Employee $6.38

Employee + Spouse $14.38

Employee & Child(ren) $12.14

Family $18.84

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Supplemental Life and AD&DMinnesota Life

Supplemental Life and AD&D– 1x – 8x salary with a maximum limit of $2.5M

– No age reductions

– Employees elect 1x without EOI during Open Enrollment

Spouse Life– Coverage options of $10,000 through $500,000 in $10,000 increments

– EOI required for new or increased coverage during Open Enrollment

Child Life– $5,000, $10,000 and $15,000 coverage options

– EOI not required

AD&D– Employee or Family coverage options of $10,000 to $500,000

– EOI not required

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Short and Long Term Disability – MetLife

Short-term disability (STD)

– 14 day elimination period

– 60% of salary up to $2,500 per week

– No Pre-ex

– EOI for late entrants; waived for Open Enrollment

– Benefits continue up to 11 weeks Long-term disability (LTD)

– 90 day elimination period

– 60% of salary up to $15,000 per month

– 3/12 pre-ex

– Benefits continue to SSNRA

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FSA/HSA – US Bank

HSA

• USG is paying the monthly account fees in 2014

• Investment threshold set at $1,000

• 2014 Match - $375/$750

FSA

• Limit of $2,500

• New “limited-purpose FSA” for employees enrolled in HSA

• Limited-purpose FSA can be used for dental, vision and post-deductible medical expenses only

Use 2013 Health Care FSA funds before Jan. 1

For employees moving from an FSA to an HSA:

– Employees are not allowed to contribute to an HSA while they have an active FSA.

– Employees Health Care FSA balance must be $0 on or before January 1, 2014 or neither the employee nor USG will be allowed to contribute to new HSA until April 1, 2014.

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USG has planned communications to help employees understand the new plan options …

Communication Pieces

Benefits Summary

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Communication Pieces

Open Enrollment Newsletter

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Communication Pieces Open Enrollment e-mail announcement(s)

Flyer and post cards

Comprehensive Benefits Summary Booklet

Video and Text messaging

Benefit specific flyers

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USG Website - Benefits

Redesign of site will be completed by October 21st – could be earlier

Wellness site:

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What employees need to do

1. Opt in for text messaging

2. Attend a local Benefits Fair or Benefits Meetings (if available)

3. Review USG Open Enrollment materials

4. Enroll for benefits (and recertify their tobacco status) during the Open Enrollment – November 11th – 22nd!

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Affordable Care Act - 2014

Affordable Care Act (ACA)Health Insurance Marketplace

Health Insurance Marketplace Notices will be mailed Friday to all employees (does not include retirees)

Notices must be provided in writing to all new hires beginning October 1, 2013

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Health Insurance Marketplace

All individuals are required to have health coverage in 2014 or pay a penalty

If an employee is not eligible for health insurance through USG, he/she can enroll in health coverage through Federal Health Insurance Marketplace

Information is available through the Federal Health Insurance Marketplace website at www.healthcare.gov/families/.

Affordability & Tax Credit (or subsidies) through the Marketplace

If an employee is eligible for healthcare coverage through USG, generally the employee will not receive a subsidy if he/she enrolls in the new Health Insurance Marketplace instead of the USG plan since the HSA Open Access POS plan meets the Affordability requirements under the Affordable Care Act

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Questions?