2011 u.s. benefits update
DESCRIPTION
2011 U.S. Benefits Update. 2011 Annual Enrollment Nov. 1 – 19, 2010. AGENDA. U.S. Medical – Goals and Results Consumer-Driven Health Care (HDHP) – Putting you more in control Helping You Control Your Costs – HDHP with HSA, and New Tools on Your Life Choices (YBR) 2011 Benefit Changes - PowerPoint PPT PresentationTRANSCRIPT
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2011 U.S. Benefits Update
2011 Annual Enrollment Nov. 1 – 19, 2010
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AGENDA
U.S. Medical – Goals and Results
Consumer-Driven Health Care (HDHP) – Putting you more in control
Helping You Control Your Costs – HDHP with HSA, and New Tools on Your Life Choices (YBR)
2011 Benefit Changes
Controlling Costs and Improving Health
Health Risk Assessment and Biometrics
Dependent Eligibility Verification
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U.S. Medical – Goals and Results
U.S. Benefits Results and Goals Claims have been significantly higher than premiums
Deliver effective medical benefits and protect employees from catastrophic financial loss
Goal of greater than 50% enrollment in HDHP
Consumer-Driven Health Care (HDHP) Allows participants to use a tax advantaged Health Savings Account (HSA)
Gives participants an incentive to learn about the costs and quality of care before spending
Studies show HDHP participants are:
Twice as likely as those in other medical options to learn about costs
Three times as likely to choose a less expensive treatment option
Chronic patients were 20% more likely to follow treatment
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ConocoPhillips Movement to the HDHP
In the last three years:
Participant costs reduced by $20 million
Company costs reduced by $25 million
Total savings of $45 million!
Active Enrollment History
50%
37%
31%26%
34% 34%
27%
21%
10%
25%
38%
51%
6% 4%2%3%
0%
10%
20%
30%
40%
50%
60%
2008 2009 2010 2011 Projected
PPO EPO HDHP Traditonal
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Phase One: Preventive Care
Network Preventive Medical Care is covered at 100%
Certain Preventive Prescription Drugs are covered at 100% up to $1,500/person/yr.
If you meet the $1,500 limit, then you pay 20% until you reach the out-of-pocket maximum.
These amounts do not apply to your deductible (deductible waived).
HDHP: When you pay…and when you don’t(Network Benefits)
Phase Three: Meet your out-of-pocket
maximum You pay 20% of the negotiated / discounted costs for covered network care and prescription drugs until you reach the out-of-pocket max.
Annual Out-of-Pocket Max.: (amount includes deductible): $4,000 - “You only” $8,000 - other coverage levels
Phase Four: The HDHP handles
the rest The plan pays 100% of covered medical services and prescription drug costs for the remainder of the calendar year
Phase Two: Meet your deductible
You pay 100% of negotiated / discounted, covered medical & prescription drug costs, until you meet your deductible
All covered medical & prescription drug costs are applied to your deductible
Annual Deductible: $1,200 - “You only” $2,400 - other coverage levels
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Eligibility
Enrolled in HDHP Employees must be
enrolled in the HDHP with HSA
Cannot be covered by any other medical option that is not a HDHP
MedicareIndian/Veterans coverage Spouse’s HMO/PPO Spouse’s general FSA
How the HSA Works
Funding
You & ConocoPhillips ConocoPhillips is
contributing $500 “You only” or $750 “other coverage levels”
You can contribute before-tax funds to your HSA through payroll deduction
Total 2011 contribution (yours & ConocoPhillips) can’t exceed the IRS maximum of $3,050 / $6,150
Over 55 – You can contribute an additional $1,000
Tax advantages
“Triple crown” federal tax savings
Tax deductible contributions
Tax-free earnings (current interest rate .40%)
Tax-free withdrawals when used for qualified medical expenses
Using the funds
It’s your money Pay for eligible health
care expenses directly from the account
Unused amounts roll over from year to year ― there’s no “use it or lose it” rule and no maximum account balance
The money is yours ― You own the “bank” account
You can take it with you when you leave or retire, unlike an FSA
Investment options when your balance reaches $2,000
Why is theHDHP offeredwithout HSA?
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New YBR Tools
Still considering the switch to the HDHP with HSA? Check out the new estimating and comparison tools on YBR.
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Medical Option Highlights (Network)
HDHP PPO EPO Traditional
2011 Increase 0% 17% 15% 30%
Monthly Costs AnnualizedIndividual/Family
$0 - $0 $1,152-$3,240 $1,380-$3,852 $1,812 - $5,064
HSA Company Contribution
$500 / $750 $0 $0 $0
DeductibleIndividual/Family
$1,200 (you only)$2,400 (you + more)
(includes all medical and prescription drug costs)
$500 (indiv.) $1,500(fam.)
$500 (individual)*$1,500 (family)*
$900 (indiv.)$2,700(fam.)
Out-of-pocket Maximum (includes deductible)Individual/Family
$4,000 (you only)$8,000 (you + more) 100% coverage thereafter
(includes all medical and prescription drug costs)
$3,000 (indiv.)$6,000 (fam.)100% coverage thereafter
No limit on out-of-pocket expenses
– which means your costs continue without ever hitting a maximum limit
$3,000 (indiv.)$6,000 (fam.)100% coverage thereafter
*Items new for 2011
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Medical Options Highlights (Network) continued …
HDHP PPO EPO Traditional
Network Networks are the same. Must use an Aetna Select Network provider or no benefits will be paid
No network. You can choose any doctor or facility
Preventive Medical Care
No deductible. Network services covered at 100%(annual wellness exam, mammogram, colonoscopy, etc.)
No deductible. Services covered at 100%.*
Physician Visits (non-preventive)
20% after deductible
$25 copay (PCP); $50 copay* (specialist)
$25 copay (PCP);$50 copay* (specialist)
20% after deductible
Outpatient Surgery 20% after deductible
$400 copay after deductible*
20% after deductible
Inpatient Hospitalization
20% after deductible $400 per day up to a $2,000 per admit maximum after deductible*
20% after deductible
Emergency Room 20% after deductible $150 copay after deductible*
20% after deductible
*Items new for 2011
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Other 2011 Benefit Changes (Medical)
Medical Changes 2010 2011
Dependent Requirements Restrictions on over age 19 dependents (tax dependents or students)
Children can be covered up to age 26
Penalty for not wearing a seatbelt or helmet in a motor vehicle accident
No Penalty Out-of-pocket maximums double for participants in the PPO, HDHP & Traditional medical options. Inpatient hospitalization per admission copay doubles for the EPO medical option.
New Health Management Administration
Aetna Healthways
New Health Savings Account (HSA) Aetna JP Morgan Chase
FSA and HSA Accounts Can purchase over-the-counter drugs
As a result of health care reform, can no longer use these accounts to purchase over-the-counter drugs without a prescription
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New in 2011! JPMorgan Chase (Chase) becomes direct administrator of Health Savings Accounts (HSAs)
Welcome Kit Includes one debit card
Deposit slip
Online access - www.chasehsa.com Need debit card to register
Order up to three additional debit cards for family members over 18 years of age
Balance and transactions
Online bill payment
Information on investment funds
Designate a beneficiary
No charge for 3 extra debit cards Free Checks – contact number on back of debit card
Can I get more than one HSA
card?
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Other 2011 Benefit Changes (Rx)
Prescription Drug Changes 2010 2011
Brand / Generic Drug Cost Difference – “Member Pays the Difference” Program
Member pays the difference in costs out-of-pocket
Difference no longer applies to: Deductibles Out-of-Pocket Maximums Preventive Rx Allowance ($1,500) Maximum Coinsurance
Out-of-pocket Maximum for Prescriptions
Mail Order Preferred and Retail Non-Preferred - $150 Mail Order Non-Preferred - $250
Mail Order Preferred and Retail Non-Preferred - $200 Mail Order Non-Preferred - $400
Diabetic testing meters and strips
Covered under medical & Rx benefits
Covered under Rx benefit
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Dental Option Changes 2010 2011
Preventive Dental Option N/A New option at $0 monthly cost to cover preventive dental services (exams, cleanings, x-rays etc.)
Annual Maximum and Orthodontia Lifetime Maximum
$1,500 $2,000
Aetna Dental DMO Employee concerns about shrinking network and dentist wait
Option eliminated due to employee concerns
Other 2011 Benefit Changes (Dental)
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Well-Being Assessment & Biometrics
Long-term strategy to increase participant awareness of health risks:
1. 2011 – Know your numbers: take a well-being assessment and four biometric screenings (blood pressure, cholesterol, body mass and blood sugar)
• Screenings at work locations or employee’s physician
• Employees will receive a $600 discount on 2012 annual premium costs ($50 per month)
2. 2012 – Take well-being assessment and biometric screenings and if at risk, take action to receive a discount on premium costs in 2013
3. 2013 - Take well-being assessment and biometric screenings and if at risk, take action and improve results: To the extent provided by law, employees are incentivized, through 2014 premium discounts, to show improvements
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U.S. Dependent Eligibility Verification
Background
2009 Communications resulted in a 4% drop in dependents resulting in an average annual savings of almost $5 million
Full dependent eligibility verification conducted by Hewitt; July 7 - August 6, 2010
Results and Next Steps
2010 Dependent eligibility verification resulted in an additional annual savings of $4.7 million
Beginning January 1, 2011: all dependents added for medical and dental coverage must provide documentation to support eligibility
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Where can I find out more?
ConocoPhillips Benefits Center
800-622-5501 or 718-354-1344,8 a.m. - 6 p.m. Central time, Monday - Friday
Login to YBR through HR Express
Online benefits information also available at http://hr.conocophillips.com (SPDs, Claim Forms, Benefit Highlights, DocFind, Preventive Care brochure and more)
HDHP blog (through HR Express)
2011 Benefits Changes & New Tools Blog (through HR Express)
Health Care Reform - www.healthcare.gov
Annual Enrollment Materials – Delivered on November 1, 2010
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Disclaimer
This presentation is intended to be accurate, but if there is any
discrepancy between these materials or the presentation and
the terms of the official plan documents, the official plan
documents will control. In addition, although ConocoPhillips
intends to continue these benefit plans indefinitely, the
company reserves the right to amend, change or terminate any
of these benefit plans or provisions at any time.
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