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
100% before deductible, $35 copay
2018
UHC 90 Plan
100% before deductible, $10 copay
100% before deductible, $35 copay
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
Deductible, then $50 copay Deductible, then $50 copay
2017 2018
UHC CDHP UHC CDHP Plan A
Deductible, then $10 copay Deductible, then $10 copay
• 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
FormularyNon-Formulary
Deductible, then $35 copay
Deductible, then $50 copay
2018
UHC CDHP Plan B
Deductible, then $10 copay
• 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
FormularyNon-Formulary
Deductible, then $35 copay Deductible, then $35 copay
Deductible, then $50 copay Deductible, then $50 copay
2018
UHC 90 Plan
100% before deductible, $10 copay
100% before deductible, $35 copay
100% before deductible, $50 copay
2018 2018
UHC CDHP Plan A UHC CDHP Plan B
Deductible, then $10 copay Deductible, then $10 copay
• 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
@50% of members under
the plans spend between
$500 and $10,000 on
claims in a year
Moderate UtilizerFull Cost
Preventive Care $201.00
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
Preventive Care $0.00 $0.00 $0.00
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
Employee's 2018 Annual Paycheck Contributions $2,278.68 $1,476.84 $963.36
Health Savings Account "seed" (subtract from total) $0.00 $500.00 $500.00
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
@10% of members under
the plans experience over
$10,000 on claims in a
year
Heavy UtilizerFull Cost
Preventive Care $201.00
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
Preventive Care $0.00 $0.00 $0.00
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
Employee's 2018 Annual Paycheck Contributions $2,278.68 $1,476.84 $963.36
Health Savings Account "seed" (subtract from total) $0.00 $500.00 $500.00
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
To help you as a consumer
• 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/
To help you as a consumer
• 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?