2018 Open Enrollment...**WTW Benefits Online database. Includes food, beverage and other select global FMCG organizations Employee Per Pay Contributions Principles •Diageo goal is

2018 Open EnrollmentOverview

Open Enrollment

• Enrollment Period:

• October 30th to November 10th 2017 (11:59 p.m. EST)

• This is the time to:

• Review your elections and make any changes to coverage

• IMPORTANT: Make sure your dependents are covered under the plans

• Health Care FSA, Dependent Care FSA, Vacation Buy Program and ShareValue Plan elections do not carry over year-to-year. You need to make an active election.

IMPORTANT – IMPORTANT - IMPORTANT

US Health Care Reform Reminder

Every individual must have health insurance or pay 2.5% of their yearly

income or $695 per person for the year, whichever is higher. There is an

additional $347.50 fee per child under age 18.

Where to Find Information

• Total Rewards Microsite - information and links to resources to help you understand your options to make informed benefits decisions

• Access to the microsite is not only during Open Enrollment, but all year long

Available All Year Round

www.DNAtotalrewards.com

What is the most important thing to do?Compare your options

Confidential and Personalized to you and your family’s needs

Deductible

• The amount you pay for health care services before your health insurance begins to pay

• For Diageo’s CDHP plans, all services (other than annual preventive care), are subject to the plan’s deductible, including prescription drug coverage

• Today for Diageo’s Plan 90, inpatient and outpatient services are subject to the plan’s deductible

Co-Insurance

• Your share of the

costs of a health

care service. It’s

calculated as a

percentage of the

amount the plan

allows to be

charged for services

• Coinsurance begins

after you’ve paid

your plan’s

deductible

• This is a way for an

employee to pay a

portion of the overall

cost of care

Copay

• A copay is a fixed

amount paid for

health care

service, usually at

the time care is

received

• The amount can

vary by the type of

service

• You may also

have a copay

when you get a

prescription filled

Out of Pocket Maximum

• An out-of-pocket maximum is the most someone will have to pay during the calendar year for health care services

• Once the out-of-pocket maximum is reached, the plan begins to pay 100% of the allowed amount for covered services

• For out-of-network services, even after reaching the out-of-pocket maximum you may be subject to additional expenses, for example, the provider may balance bill the member

In and Out of Network

• In-network provider is one contracted with UHC to provide services to plan members for specific pre-negotiated rates

• Out-of-network provider is one not contracted with the health insurance plan

• If you visit a physician or other provider within the network, the amount you will be responsible for paying will be less than if you go to an out-of-network provider

Medical Options Key Terms

Medical OptionsUHC 90 Plan

• The plan change is the

removal of the copay

structure. This will move all

the plan options to be more

similar for the use of services

(deductible/co-insurance)

• The movement in the US is to

“consumer driven” plans and

more transparency on cost of

services. The goal is to give

better understanding and

information on your heath

choices that can improve the

overall cost and quality

• The long term goal is to better

control of the continuing cost

increases

Deductible In-Network Out-Network In-Network Out-Network

Single $250.00 $500.00 $250.00 $500.00

Family $750.00 $1,500.00 $750.00 $1,500.00

OOP

Single $2,500.00 $5,000.00 $2,500.00 $5,000.00

Family $5,000.00 $10,000.00 $5,000.00 $10,000.00

Co-insurace 10% 30% 10% 30%

Physician Visits

Premium Provider Primary Care $25 copay 30% 10% 30%

Primary Care $30 copay 30% 10% 30%

Premium Provider Specialty Care $35 copay 30% 10% 30%

Specialist Care $40 copay 30% 10% 30%

Urgent Care $25 copay 10%

Emergency Room $100 Copay 10%

Outpaitient 10% 30% 10% 30%

Inpatient 10% 30% 10% 30%

Prescriptions

Generic

Formulary

Non-Formulary 100% before deductible, $50 copay 100% before deductible, $50 copay

2017

UHC 90 Plan

100% before deductible, $10 copay


2018

UHC 90 Plan



Medical OptionsUHC CDHP Plan A

Deductible In-Network Out-Network In-Network Out-Network

Single $1,500.00 $3,000.00 $1,500.00 $3,000.00

Family $3,000.00 $6,000.00 $3,000.00 $6,000.00

OOP

Single $2,800.00 $5,600.00 $2,800.00 $5,600.00

Family $5,600.00 $11,200.00 $5,600.00 $11,200.00

Co-insurace 20% 40% 20% 40%

Physician Visits

Premium Provider Primary Care 20% 40% 20% 40%

Primary Care 20% 40% 20% 40%

Premium Provider Specialty Care 20% 40% 20% 40%

Specialist Care 20% 40% 20% 40%

Outpaitient 20% 40% 20% 40%

Inpatient 20% 40% 20% 40%

Prescriptions

Generic

FormularyNon-Formulary

Deductible, then $35 copay Deductible, then $35 copay


2017 2018

UHC CDHP UHC CDHP Plan A


• Plan will remain unchanged. The

design is driven by IRS

guidelines – deductible levels,

out-of-pocket levels, rules

around how the deductible and

coinsurance work

• Allows us to offer the Health

Savings Account. A tax

advantaged account that belongs

to you the employee. You can

put in pre-tax money and pay for

qualified medical expenses tax

free

• Diageo offers a “seed” into the

account of $500 single / $1,000

employee + 1 or more

• Similar plan design and value to

the 90 Plan

Medical OptionsUHC CDHP Plan B (*New Plan for 2018)

Deductible In-Network Out-Network

Single $3,000.00 $6,000.00

Family $6,000.00 $12,000.00

OOP

Single $6,550.00 $13,100.00

Family $13,100.00 $26,200.00

Co-insurace 20% 40%

Physician Visits

Premium Provider Primary Care 20% 40%

Primary Care 20% 40%

Premium Provider Specialty Care 20% 40%

Specialist Care 20% 40%

Outpaitient 20% 40%

Inpatient 20% 40%

Prescriptions

Generic


Deductible, then $35 copay


2018

UHC CDHP Plan B


• New option is a good competitive

plan in the market and gives good

coverage for employees who want

to pay less from their paycheck

• Allows us to again offer the Health

Savings Account. A tax

advantaged account that belongs

to you the employee. You can put

in pre-tax money and pay for

qualified medical expenses tax

free

• Diageo offers a “seed” into the

account of $500 single / $1,000

employee + 1 or more

• Becoming a very common offering

in the market and within our

benchmarks

Medical OptionsAll Options

Deductible In-Network Out-Network In-Network Out-Network In-Network Out-Network

Single $250.00 $500.00 $1,500.00 $3,000.00 $3,000.00 $6,000.00

Family $750.00 $1,500.00 $3,000.00 $6,000.00 $6,000.00 $12,000.00

OOP

Single $2,500.00 $5,000.00 $2,800.00 $5,600.00 $6,550.00 $13,100.00

Family $5,000.00 $10,000.00 $5,600.00 $11,200.00 $13,100.00 $26,200.00

Co-insurace 10% 30% 20% 40% 20% 40%

Physician Visits

Premium Provider Primary Care 10% 30% 20% 40% 20% 40%

Primary Care 10% 30% 20% 40% 20% 40%

Premium Provider Specialty Care 10% 30% 20% 40% 20% 40%

Specialist Care 10% 30% 20% 40% 20% 40%

Outpaitient 10% 30% 20% 40% 20% 40%

Inpatient 10% 30% 20% 40% 20% 40%

Prescriptions

Generic




2018

UHC 90 Plan




2018 2018

UHC CDHP Plan A UHC CDHP Plan B


• Network access is

the same for all the

plans – they use

the same UHC

network

• You will see value,

potential cost

savings, and better

quality by using

more cost efficient

doctors (virtual

visits, primary care,

premier providers)

and different care

settings (offsite

imaging and MRI)

Premium Calculations

How are the premiums calculated?

Premium and Contributions

PremiumGeneral Inflation

Administration

Advances in medical devices / medications /

hospitals

Government Mandates

Provider Expenses

Overall Usage under the plan -

claims

Usage for the past 18 months

Medical ContributionsWage Based Contributions

New for 2018 – Review of Salary contributions• With the movement towards greater cost share, many

employers are designing their benefits to assist lower income employees

*NBGH 2017 Large Employers' Health Plan Design

**WTW Benefits Online database. Includes food, beverage and other select global FMCG organizations

Employee Per Pay Contributions Principles• Diageo goal is to achieve an 80%

company, 20% employee cost share of the premiums

• This is consistent in the market and in our Benchmark groups

• With continuing cost increases, there is a growing concern for employees ability to absorb these costs. Companies like Diageo are taking steps to share on these costs differently

2%

13%

6%

27%

4%

0%

4%

46%

0% 10% 20% 30% 40% 50%

Deductibles

Health Account Contributions

Oput-of-Pocket maximums

Premium contribution

Wage-Based Cost Sharing

Benchmark** Large Employers*

Medical ContributionsAll Options

2017 2018

Monthly Impact

if same elecion

made 2017 2018

Monthly Impact

if same elecion

made 2017 2018

Below $100,000 Below $100,000 Below $100,000

Employee Only $111.31 $98.22 -$13.09 $45.67 $42.93 -$2.74 N/A $12.16

Employee + Spouse $257.56 $216.08 -$41.48 $110.50 $94.45 -$16.05 N/A $26.76

Employee + Child(ren) $222.44 $186.62 -$35.82 $95.42 $81.57 -$13.85 N/A $23.11

Family $374.64 $314.30 -$60.34 $160.72 $137.38 -$23.34 N/A $38.93

$100,000 to $174,999 $100,000 to $174,999 $100,000 to $174,999

$144.05 $32.74 $83.00 $37.33 $46.22

$316.92 $59.36 $182.61 $72.11 $101.69

$273.70 $51.26 $157.70 $62.28 $87.83

$460.97 $86.33 $265.61 $104.89 $147.92

$175,000 and over $175,000 and over $175,000 and over

$189.89 $78.58 $123.07 $77.40 $80.28

$417.76 $160.20 $270.76 $160.26 $176.62

$360.79 $138.35 $233.84 $138.42 $152.54

$607.65 $233.01 $393.83 $233.11 $256.91

UHC Plan 90 UHC CDHP Plan A UHC CDHP Plan B

Choosing your optionPerson making $175,000 / Single only Coverage

10.26%

28.81%

12.95%

28.35%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

No Claims

$0 - $499

2015 2016

@38% of members under

the plans use $500 or less

on claims in a year

Low UtilizerFull Cost

Preventive Care $201.00

Visit to PCP (cold/flu) $159.00

Labwork $341.00

1 Prescription $12.00

UHC 90 PlanUHC CDHP

Plan A

UHC CDHP

Plan B

Preventive Care $0.00 $0.00 $0.00

Visit to PCP (cold/flu) $159.00 $159.00 $159.00

Labwork $116.00 $341.00 $341.00

Prescriptions (penicillin) $10.00 $12.00 $12.00

Employee's 2018 Annual Paycheck Contributions $2,278.68 $1,476.84 $548.04

Health Savings Account "seed" (subtract from total) $0.00 $500.00 $500.00

Total Out of Pocket = $2,563.68 $1,488.84 $560.04

Choosing your optionPerson making $175,000 / Single only Coverage

29.41%

23.55%

28.28%

22.39%

0.00% 5.00% 10.00% 15.00% 20.00% 25.00% 30.00% 35.00%

$500 - $1,999

$2,000 - $9,999

2015 2016


the plans spend between

$500 and $10,000 on

claims in a year

Moderate UtilizerFull Cost


Knee surgery $8,999.00

Physical Therapy (10 sessions) $1,000.00

2 Prescriptions $215.24

UHC 90 PlanUHC CDHP

Plan A

UHC CDHP

Plan B


Knee Replacement $1,124.90 $2,249.90 $3,599.90

Physical Therapy (10 sessions) $100.00 $200.00 $200.00

Prescriptions (Cholesteral lowering, pain) $130.00 $43.05 $43.05



Total Out of Pocket = $3,633.58 $3,469.79 $4,306.31

Choosing your option Person making $175,000 / Single only Coverage

5.03%

2.14%

0.58%

0.23%

5.23%

2.01%

0.63%

0.16%

0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00%

$10,000 - $24,999

$25,000 - $49,999

$50,000 - $99,999

$100,000 - $199,999

2015 2016


the plans experience over

$10,000 on claims in a

year

Heavy UtilizerFull Cost


Heart attack $17,473.00

Heart attack (PCP/specialist follow up) $91.00

Back Surgery $22,105.00

Back Surgery (specialist follow up) $91.00

Physical Therapy (30 sessions) $3,000.00

3 Prescriptions $4,472.72

UHC 90 PlanUHC CDHP

Plan A

UHC CDHP

Plan B


Heart attack $1,972.30 $2,800.00 $5,894.60

Heart attack (specialist follow up) $9.10 $0.00 $18.20

Back Surgery $518.60 $0.00 $87.20

Back Surgery (specialist follow up) $0.00 $0.00 $0.00

Physical Therapy (30 sessions) $0.00 $0.00 $0.00

Prescriptions (Cholesterol lowering, pain, anticoagulant) $0.00 $0.00 $0.00



Total Out of Pocket = $4,778.68 $3,776.84 $6,463.36

Choosing your option

• Benefits of a Health Savings Account• Triple tax advantage – money goes in tax pre-tax, grows tax-free,

and withdrawn tax-free if used for qualified medical expenses

• The account is yours – You must open it, the company makes a contribution into it, the money rolls over from year to year and it is yours if you ever leave Diageo

• Money can be invested – this is self directed by you, and you can choose from multiple options that Fidelity offers

• Things to know• $500 individual coverage, $1,000 for two people or more covered

contributed into the Fidelity HSA account

• Annual contribution limits for the HSA are combined employee and employer

• Additional catch-up available for employees over age 55

• Can not have a traditional Flexible Spending Account in your household (tax related)

• Employees over age 65 should discuss and review the Health Savings Account rules before enrolling

Health Savings Account

Annual

Health Savings Account

(HSA) Limit

2018 HSA limit is $3,450 for

individuals and $6,850 for

family coverage.

Remember that any company

contributions count toward the

annual maximum amount.

To help you as a consumer

• Programs offered to help employees and help assist in the increasing plan costs:

Available Programs

Cancer Resource Center

• Treatment Decision Support

• Access to Centers of Excellence

• 2nd Opinion Services and Clinical Consulting

Prescription Management

• Clinical effectiveness review

• Specialty Drug Management

• Quantity Limit Management

Woman’s Health Programs

• Reproductive Resource Services

• Maternity Support

• Neonatal Resource Services

Bariatric Programs

• Treatment Decision Support

• Centers of Excellence


• Allows you to see a doctor over your smart phone or computer

• Non-emergency medical conditions like flu, colds, pink-eye, rashes and fevers

• Can even provide prescriptions if needed (most States)

• This works with all family members – including children

• Providers are expected to provide care within 30 minutes of a request

• Myuhc.com

• Pick a virtual provider group (several depending on State)

• Create an account

• Complete information on what your issues are…..

• Get connected to the doctor

• Cost of a virtual provider is less……

Available Programs

To help you as a consumerMy UHC

Access to your plan

details, finding a doctor,

pricing a doctor or facility

and quality rankings

Dental & Vision Coverage

• Summary Descriptions at www.DNAtotalrewards.com

• Rates remain the same

Dental

Vision

http://www.dnatotalrewards.com/


• Flexible Spending Account Annual Carryover

• Participants may carry over a maximum of $500 to the following year

• Applies to the Health Care FSA only (not the Dependent Care)

• Funds will automatically be transferred if employees have $500 or less in

their account at the end of 2017

• In October 2017 the IRS limit for the FSA was increased to $2,650 for

2018

• Discount Optional Therapy

• Available for non-traditional treatments such as yoga, naturopath and

more

Available Programs

Other Benefits

• The majority of other benefits will remain unchanged

for the coming year, including:

• Dental, Vision, Disability & Life insurance > unchanged

• Life Insurance, Supplemental Life

• No rate increases (changes only with age/Salary)

• 401(k) Savings Plan

• Company-provided Long-Term and Elective Disability

• No rate increases (changes only with age/Salary)

• Commuter Expense Reimbursement Account

• Employee Assistance Program (EAP)

• Group Auto, Home and Pet Insurance

• Legal Assistance Plan

• ShareValue Plan

• 2018 offering price $111.74 (2017 offering price was $96.61)

• Vacation Buy Program

• Work / Life Benefits

Don’t Forget

Enrollment Process

1. Remember the Resources: review the Benefits Guide and the Medical

Comparison, and visit our microsite to help them understand all your

available options

2. Use Alex: During Open Enrollment. Also you can use the tools at

www.mydiageobenefits.com or www.dnatotalrewards.com to help

estimate their cost of care and decide which plan best suits their needs

3. Enroll: You must visit www.mydiageobenefits.com or call the Benefits

Center at 1-800-523-2309 between 8 a.m. and 8 p.m. EST by

November 10, 2017, to elect benefits for the coming year

What you need to do

Important note: If you cannot access to www.mydiageobenefits.com then

please call the Benefits Center at 1-800-523-2309 between 8 a.m. and 8

p.m. EST.

Enrollment Process

• If You Don’t Enroll• Eligible employees who were enrolled in the UHC 100 Plan or

UHC HMO will be defaulted to the UHC CDHP Plan A at employee only coverage

• If you are enrolled in the UHC 90 Plan or the UHC CDHP (Plan A in 2018), you will remain in their current plan at their current coverage level

• FSA contributions, the Vacation Buy Program and ShareValue

Plan elections will NOT carry over to 2018

• Life Events• Employees must notify the company within 31 days of their life

event

• Contact the Benefits Center at 1-800-523-2309 between 8 a.m.

and 8 p.m. EST or go to www.mydiageobenefits.com to report a

life event

What you need to do

Questions?

Documents

2018 Open Enrollment...**WTW Benefits Online database. Includes food, beverage and other select global FMCG organizations Employee Per Pay Contributions Principles •Diageo goal is