BEDFORD COUNTY PUBLIC SCHOOLSOpen Enrollment Benefit Update

For 2013-2014

REMAINING UNCHANGED

Dental benefit and rates – Dependents now covered until age 26

Vision – Dependents now covered until age 26 AFLAC

VRS No change to overall VRS rate Employees will be moved from 3% Contribution to 5%.

This 2% increase will be offset with a 2.4% increase in salary Your account information can be accessed from www.varetire.org

Click on MyVRS and register

HEALTH

Overall 0.5% increase in premiums Success of self-funded plan Carryover operating funds were moved into the plan

HEALTH

$1,500 Complete Plan School Board is covering the 0.5% increase Changed the co-pay for physical therapy from $50 to $25

HEALTH $2,500 High Deductible with Health Savings Account

Increased deductible Employee only from $2,500 to $3,000

Employee plus from $5,000 to $6,000

Plan will pay 100% after deductible is met Increased employer contribution to the Health Savings Account Payment into Health Savings Account twice a year

$3,000 HIGH DEDUCTIBLE

How is it different? No co-pay; you pay the entire doctor bill, however, you still receive

the Piedmont discounted rate No drug card; you pay the Piedmont discounted rate, or you can go

to Wal-Mart or another retailer So, if the deductible is higher and you are required to pay the doctor

bill, how can this plan be better than the $1,500 complete plan?

$3,000 HIGH DEDUCTIBLE

1. The Health Savings Account is the reason, but this still might not be the plan for everyone!

2. Everything counts toward the deductible, whereas the co-pay for the doctor and drugs under the $1,500 plan do not count toward the deductible

3. You still are allowed a wellness visit at no cost

4. Money put into your Health Savings Account is yours

$3,000 HIGH DEDUCTIBLE

Health Savings Account Everything that goes in is yours, and you do not need to use it by the end of

the year Money goes in tax free, earnings are tax free, and when you take it out it is

tax free (Only for valid medical expenditures) Choice of bank account with debit card –or- 22 different Vanguard Mutual funds No forms to fill out to get your money, just take it out. However, you are

responsible for providing IRS proof that you had valid expenses to cover the withdrawal

There are limits to the overall contribution: Employee Only $3,250

Employee Plus $6,450

You and your spouse cannot be enrolled in a Flexible Spending Plan (AFLAC)

$3,000 HIGH DEDUCTIBLE

Example: Employee Only Savings on employee premium $120 Employer contribution to Health Savings $1,500 Total savings $1,620 Compare to the $1,500 difference in deductible from the 1,500

Complete plan If you do not need the money to cover expenses, you can leave it in

the account, it is yours

$3,000 HIGH DEDUCTIBLE

Example: Employee Plus Savings on employee premium:

Child $1,080, Children $1,320, Spouse $2,292, Family $2,736

Employer contribution to Health Savings: Child $1,500, Children $2,204, Spouse $1,566, Family $2,410

Total savings: Child $2,580, Children $3,524, Spouse $3,858, Family $5,146

Compare to the $3,000 difference in deductible from the $1,500 Complete plan

WHO SHOULD CONSIDER THE $3,000 HIGH DEDUCTIBLE?

Everyone!

• Possible reasons for NOT choosing the plan:• If you are currently on expensive medications, remember, there is no co-

pay; you pay the cost

• You need to have access to cash to meet the deductible. Between the savings in premium and what the board is contributing to the Health Savings Account, this should not be an issue. Payments into the Health Savings will take place in June and January.

BEDFORD COUNTY PUBLIC SCHOOLSOpen Enrollment Benefit Update

For 2013-2014

QUESTIONS?