health care 2010 presentation
TRANSCRIPT
A.D. FARROW CO. & CENTENNIAL PARKASSOCIATE BENEFITS RENEWAL
May 6, 2010
401(k) Profit Sharing Plan
401(k) Employer Match Reinstatement
Effective May 1, the A.D. Farrow Co. Profit Sharing plan will again include an employer contribution
A 25% match of a participating associate's contribution, up to 6% (i.e. the maximum ER contribution will be 1.5%)
So put, for example, 6% of your pay into an account that grows until your retirement, and the company will add 1.5%, for a total of 7.5%.
In effect, your money will earn 25% on the first day!
Health Insurance Renewal 2010
Remain with Anthem as our long-term partner
Offer two types of plans through Anthem: OPTION 1 - Traditional Blue Access 4.0 OPTION 2 - Lumenos HSA (Health Savings
Account)
Anthem Traditional Blue Access 4.0
OPTION ONE
Traditional Plan Comparison
$25 Office Visit Co-Pay Prescription -
$15/$50/50% $500 Ind / $1,500 Family Out of Pocket
$3,000/$6,000 $150/20% Emergency
Room $50 Urgent Care
$20 office visit copay Prescription - $10/$30/$60 $1,000 Ind / $2,000 Family Out of Pocket $4,000/$8,000 $200/20% Emergency Room*
$75/Ded, 20% Urgent Care*
Generic drugs unless DAW*
*Follows industry trends.
Anthem Traditional 2009-2010
OPTION 1:Anthem Traditional 2010-2011
Per Pay Deduction Comparison
Class 4 – All Other Associates
$46.04 Associate Only $93.32 Associate +
Spouse $73.19 Associate +
Child $128.40 Family
Class 4 – All Other Associates
$47.50 Associate Only $96.28 Associate +
Spouse $75.51 Associate + Child $132.47 Family
Classes 1-3 not shown here (Motorcycle Sales and Managers ) also increase just 3.2%
Anthem Traditional 2009-2010
OPTION 1:Anthem Traditional 2010-2011
Anthem Lumenos HSA (Health Savings Account)
OPTION TWO
“A high-deductible health plan (HDHP) is a health care plan that charges a lower
premium and has a higher deductible than traditional health care plans.”
Introduction of the HSA
Health Savings Account (HSA) Good for…
…those with single coverage who only go to the doctor a few times a year for preventative visits and have few to no prescriptions;
…those who anticipate reaching/exceeding the individual or family deductible due to known medical expenses;
…those who want to have an opportunity to save tax free for future medical expenses.
Trad vs HSA Plan Comparison
$20 Office Visit Co-Pay
Prescription - $10/$30/$60
$1,000 Ind / $2,000 Family
Out of Pocket $4,000/$8,000 $200/20% Emergency Room $75/20% Urgent Care
Preventative visits covered 100%Non Prev. – 100% after Ded.
Prescription – Medical Ded. applies, then $10/$30/$50
$2,500 Ind / $5,000 Fam
Out of Pocket $3,000/$6,000 100% after Deductible 100% after Deductible
OPTION 1:Anthem Traditional 2010-2011
OPTION 2:Anthem Lumenos HSA 2010-2011
Per Pay Deduction Comparison
Class 4 – All Other Associates
$47.50 Associate Only $96.28 Associate +
Spouse $75.51 Associate +
Child $132.47 Family
Class 4 – All Other Associates $40.83 Associate Only $82.75 Associate +
Spouse $64.90 Associate + Child $113.86 Family
Single Coverage - $173 savings/yr
Classes 1-3 not shown here (Motorcycle Sales and Managers ) also save 11%.
OPTION 1:Anthem Traditional 2010-2011
OPTION 2:Anthem Lumenos HSA 2010-2011
Gary Unmarried Example
Meet Gary Unmarried – YEAR ONEGary Unmarried’s HSA Plan
Health Care Deduction $40.83x 26 =$1,062
HSA Contributions $173
Expenses: Preventative Exam(s) - $350
$350
Paid by Preventative Care benefit at 100%
$350
HSA Balance (Rolls to next year)
$173
Gary Unmarried’s Traditional Plan
Health Care Deduction $47.50x 26 =$1,235
Expenses: Preventative Exam(s) $350
$40 CoPay
Gary Unmarried Example
Meet Gary Unmarried – YEAR TWOGary Unmarried’s HSA Plan
HSA Balance – Roll Over YR 1 + YR 2 $173 + $10/check = $260 $606
Expenses: Preventative Exam(s) - $350Physician visit or prescription drug - $100
$450
Paid by Preventative Care benefit at 100%
$350
Paid from HSA $100
HSA Balance (Rolls to next year) $506
Emily Family Example
Meet Emily Family – YEAR ONEEmily Family HSA Plan
Health Care Deduction $113.86x 26 =$2,960
HSA Contributions $482
Expenses: Preventative Exam(s) - $500Specialist Visit - $800Prescription Drugs - $200
$1,500
Paid by Preventative Care benefit at 100% $500
Paid Out of Pocket $1,000($482 pre tax)
Emily Family Traditional Plan
Health Care Deduction $132.40x 26 =$3,442
Expenses: Preventative Exam(s) - $500Specialist Visit - $800Prescription Drugs - $200
$80 CoPay$20 CoPay$20 CoPay
Paid Out of Pocket $120
Emily Family Example
Meet Emily Family – YEAR TWOEmily Family’s HSA Plan
HSA Contributions $482
Expenses: Preventative Exam(s) - $350Inpatient Surgery - $15,950
$16,300
Paid by Preventative Care benefit at 100% $350
Paid from HSA Account $482
Remainder of Deductible Paid Out of Pocket $2,018
Remainder 100% Covered in Full $13,95
0
Emily Family’s Traditional Plan
Expenses: Preventative Exam(s) - $350Inpatient Surgery - $15,950
$16,300
Office Visit CoPayIndividual Deductible
$60$1,000
Co-Insurance – 20% $2,990
Total Out of Pocket $4,050
How Does an HSA Work?
A high-deductible health plan (HDHP) is a health care plan that charges a lower premium and has a higher deductible than traditional health care plans
• Deductible must be met before insurance pays. Then, insurance coverage is 100% (covered in full).
• There are no Co-Pays in this plan• Preventive Care covered in full• In network prescription drug and physician office
visits are charged at carrier discounted rate
How Does an HSA Work?
Preventative Care – 100% Covered in FullSome of the nationally recommended
preventive services you’ll have coverage for include:• Immunizations • Well Child / Adult Care • Preventative Exam • Prostate Exam • GYN Exam, 1 per Plan Year• Mammogram • Pap Test, 1 per Plan Year
How Does an HSA Work?
YOU own your account. Management of the account is your responsibility
Contributions to savings are made pre-tax from payroll, above and beyond your regular premium deduction
Use it to pay for qualified health care expenses on a tax free basis
The HSA can be funded and used to cover out-of-pocket costs that are not covered by or attributable to the medical plan deductible (e.g., dental, eye glasses, etc.)
How Does an HSA Work?
Allows you to save for future health care expenses (including retirement) by investing your money in various investment platforms
It is an interest bearing account that rolls over year to year
2010 HSA limits are $3,050 for single, $6,150 for employee/child, employee/spouse and family with a catch-up provision of $1,000 for employees 55 and over.
Open Enrollment
Begins May 6, 2010 Ends May 28, 2010 All full time associates are eligible All those enrolling must fill out new
forms, even if you already have coverage
Questions
Resources are available to you: Marisa, x1303 or (614) 499-3595 Kelly, x1210 McGohan Brabender
Kim Collier, Account Manager – (937) 395-4586
If you are interested in the HSA, please make an appt with Kelly or Marisa some time next week, by Friday, May 14