Transcript Template 5

Summit Consolidated
Group
2011 Benefits Renewal
December 21, 2010
Committee Evaluation
Our company’s benefit plans represent all employees
of Summit Financial Group, ResourceOne
Administrators and other companies.
SCG
ROA
To best represent the needs of all employees, a
committee of representatives from each division
evaluated the coverage options available.
SFG
Benefits Renewal
Summit Employee Benefits Spectrum
MEDICAL
WELLNESS
DENTAL
EAP
VISION
LIFE/
AD&D
401(k)
BENEFITS
PREPAID
LEGAL
STD
LIFELOCK
LTD
FLEX
VOL.
LIFE
VOL.
CANCER
Benefits Update
Commitment to Employee Benefits
According to the Society for Human Resource Management
(SHRM), the average total health benefit cost per employee
rose 6.9% in 2010.
Client increases have been more than double that, and often
triple that and our plan is no exception.
Impact on Summit Consolidated Group
Despite challenges, continuing to offer a comprehensive
benefits package remains a top priority.
Benefits Renewal
Medical
Medical insurance is renewing with BlueCross BlueShield
High plan utilization
High claims and other factors resulted in a significant increase.
We performed a complete evaluation of alternate carriers and plans.
BCBS continues to provide the most affordable, comprehensive
coverage and network to all employees.
Summit is picking up a significant cost of the increase, however plan
changes are necessary to minimize the financial impact both on the
company and the employees.
Benefits Renewal
Medical
Medical insurance is renewing with BlueCross BlueShield
We are offering two different yet still comprehensive PPO plan options.
We will continue to offer a base plan and buy up plan. Employees
seeking a higher level of coverage can choose to buy up to a plan similar to
our current with lower out-of-pocket exposure than the base plan.
Since neither current plan is remaining, a selection of one of the new plans
will be required, unless you waive coverage. Changing plans is only
allowed during this open enrollment period.
Medical Plan Options
BlueOptimize
BlueOptions
Base Plan
Buy Up Plan
Deductible
$1,000
$1,500
Family Deductible
$3,000
$4,500
$7,000- $11,000
$3,500- $6,500
70%/60%/50%/50%
80%/70%/60%/50%
Plan
Individual Out-of-Pocket
Maximum
Coinsurance
Prescriptions:
Generic
30% with $12 minimum
Preferred
$25 copay
Non-Preferred Brand
Some prescriptions may require precertification.
30% with $25 minimum
Plan:
Office Visit Copay
BlueOptimize
BlueOptions
$30
$20
Includes certain lab work performed in conjunction with the office visit.
Ded. & Coins. waived for children’s visits and 1st 6 visits for adults
Preventive Care
Covered at 100% in-network and Copay +
70% coinsurance out-of-network
Includes but is not limited to routine physicals, PSA test, Pap Smear, Bone Density & Colonoscopy.
Outpatient Surgery
Outpatient Hospitalization
Inpatient Hospitalization
Emergency Care
Deductible and Coinsurance
$200 deductible then Ded. & Coins.
$500 ded. then D & C
$750 ded. then D & C
$100 deductible then Ded. & Coins.
Deductible is waived if admitted.
Occupational or Physical
Therapy
D & C with 15 annual visit max
D & C with 25 annual visit max
Copays and additional deductibles do not count towards satisfying your OOP Max. Most benefits are reduced
when received by a non-network provider. Out-of-network out of pocket costs are unlimited due to balance billing.
Benefits Update
Health Care Reform Provisions Eff. 1/1/11
Pre-existing conditions:
Plans cannot exclude coverage for pre-existing conditions of children under 19
years old
Dependent Coverage for Young Adults:
Dependent children are eligible for coverage until age 26. This includes married
dependents but not grandchildren.
No Cost Sharing on Preventive Services:
Requires health plans to provide a minimum of coverage without cost sharing for
preventative services, immunizations recommended by the CDC, and preventive
screenings for infants, children, adolescents and women. Preventive services
covered are those classified into either the A or B category of services, but will be
dependent upon age and type of condition.
Lifetime Limits:
No lifetime dollar limits may be placed on coverage
Benefits Update
Health Care Reform Provisions Eff. 1/1/11
• Annual Limits:
Annual dollar limits are restricted on specific “essential health benefits” prior to
2014. After 2014, all annual dollar limits are prohibited.
• Over-the-counter Drugs Exclusion:
Over-the-counter drugs not prescribed by a doctor are excluded from being
reimbursed through a Flexible Spending Account (FSA) after 12/31/10.
• Plan Rescission:
Plans cannot rescind coverage when an individual files a claim unless there is fraud
or misrepresentation of material facts.
• HSA Tax Increase:
Increases the tax on non-qualified distributions from an HSA from 10% to 20%.
Benefits Update
Health Care Reform Notices
Notices regarding the following provisions and any other notices that
become published will be located at www.yoursummit.com/benefits
• Dependent Coverage to Age 26
• Pre-existing Condition Exclusions, Lifetime and Annual Limits, Rescissions, and
Patient Protections
• Interim Final Rules on Internal Claims and Appeals and External Review Process
• Recommended Preventive Services and Complete List of USPSTF Grade A and B
Recommendations
• Lifetime Limits model Notice and Enrollment Opportunity
• Break Time for Nursing Mothers
Medical Payroll Deductions
PLAN
EE
ES
EC
FF
CURRENT $2500 BASE
$39.62
$110.62
$85.78
$143.24
CURRENT $1000 BUY UP
$49.62
$128.62
$100.78
$168.24
RENEWAL $1000 BASE
$51.50
$136.91
$107.27
$175.01
RENEWAL $1500 BUY UP
$65.95
$166.71
$130.92
$213.96
Benefits Renewal
Medical (continued)
Other benefits and considerations:
Request in-network providers
Follow up on pre-treatment verifications
Utilize BCBS Online Tools and Other Resources
You will receive new ID cards
BlueCross Representative: LouAnne Hale
Tips for Employees
Assess Your Needs
Review your expenses and treatment this year.
Compare whether your expenses were primarily copays or
if they included deductible and coinsurance charges.
Determine what treatment do you and your family expect
next year?
Tips for Employees
Take Advantage of Cost Savings Opportunities
Evaluate other coverage options you and your dependents
have available.
Take advantage of our FSA plan which allows you to pay for health care
expenses on a pre-tax basis. You may want to select a less costly medical
plan options and use the FSA to offset out-of-pocket costs.
Take advantage of medical and dental preventative services to prevent more
serious and costly treatment.
Benefits Renewal
Dental
Renewing with Delta Dental
High plan utilization resulted in a renewal increase
Plan change was necessary to minimize costs
Keeping: $50 deductible, $2000 annual plan maximum, $1500 ortho. max.
Two networks available: PPO & Premier – PPO pays higher coinsurance and can
provide deeper discounts
They have the largest national network of providers which will minimize your costs.
Class 1 (Preventative):
Class 2 (Basic):
Class 3 (Major):
Class 4 (Ortho.):
PPO
100%
80%
50%
50%
Premier
100%
80%
50%
50%
Vision Plan Discount through EyeMed is available
Benefits are limited to Class 1 services for 12 months if you or a family member
enrolls and is not coming off another dental plan at this time.
Out-of-Network
90%
70%
40%
40%
Dental Payroll Deductions
PAYROLL DEDUCTIONS
EE
ES
EC
FF
CURRENT
$3.90
$15.90
$20.90
$37.90
RENEWAL
$4.60
$16.96
$23.07
$40.40
Benefits Renewal
Dental (continued)
Find a participating dentist (PDP) at www.deltadentalok.org
Choose PPO or Premier Network
Online Services available through Spotlight™ (/spotlight)
Check claims status and access EOB’s
Check available benefits
Print ID cards
Oral health and wellness education
Benefits Renewal
Vision and Ancillary
The Vision insurance with VSP renews in April
Exam: $10/ Glasses (or Contacts): $25 & discounts on additional services
Frequency: Exam and Lenses every 12 months/Frames every 24 months
You can make enrollment changes during March
Group Life/AD&D, STD & LTD provided by Summit
No change in benefits
Life: $50,000 (w/ age reduction starting at age 70)
AD&D: pays an additional benefit if you die as the result of an accident
or become dismembered
STD: 60% of weekly salary to $1000 weekly maximum
LTD: 60% of monthly salary to a $6,000* monthly maximum benefit
* Some associates may be eligible for an enhanced LTD benefit
Benefits Renewal
Flex Plan
Set aside on a pre-tax basis up to $5000 in anticipated and qualified health
expenses and up to $5000 in dependent care costs through your flex plan on
an annual basis.
You and your dependents do not need to be enrolled in Summit’s benefits to
be reimbursed for qualified expenses under our FSA. However, you cannot
claim the same expenses that are reimbursed through another plan, such as a
spouse’s flex or HSA account.
Dependent care expenses will be reimbursed once you have accumulated the
money in your account to cover that expense/ claim for reimbursement.
You have until March 31st of the following calendar year to turn in your
receipts for qualified expenses incurred between January 1st through
December 31st. Money accumulated in your account but not reimbursed in
time will be forfeited.
Benefits Renewal
Flex Plan (continued)
Advantages:
The “Unreimbursed Medical” acts like an interest free loan. You can
incur and be reimbursed for the expenses in January, for example, but
only make small payments throughout the year through payroll
deductions to cover that expense.
Your payroll deducted flex elections and insurance premiums are
deducted pre-tax to save you money. Be advised that you cannot
make plan changes throughout the year unless you have a qualifying
event.
Expenses you pay out in prescriptions, copays, deductibles,
coinsurance etc. on your medical, dental, and vision plans are qualified
expenses to be reimbursed through your flex.
Benefits Renewal
Worksite Products
TRANSAMERICA LIFE INSURANCE COMPANY
TransLegacy Universal Life Insurance
Conditional Guarantee Issue up to $75,000 at initial enrollment.
Portable when you leave employment
Includes Accidental Death and Dismemberment, Waiver of premium layoff rider &
Terminal Illness Rider
Coverage available for employee, spouse (CGI $25,000), children & grandchildren
Benefits Renewal
Worksite Products (continued)
PRUDENTIAL
Voluntary Group Term Life/AD&D
Guarantee Issue up to $100,000 (medical approval required after initial eligibility)
Current enrollees can increase life amount up to $40,000 without medical
approval, whether you are currently under or over the GI amount.
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Maximum Coverage Available – Lesser of 5X Earnings or $500,000
Age Reduction Schedule – 35% @ age 65; 50% @ age 70
Spouse Guarantee Issue up to $20,000
Child(ren) – Up to $10,000 until 19 years of age, 25 if full-time student
Policy terminates at retirement
Portability is available
Benefits Renewal
Worksite Products (continued)
ALLSTATE FINANCIAL
Cancer and Specified Disease Coverage
Pays directly to you unless you assign the benefit
Portable (Can be continued if no longer employed)
20 specified diseases covered in addition to cancer
Hospital Confinement – Pays up to $400 for each of the first 70 days of each period
of confinement
Radiation, Radio-active isotopes, chemotherapy and immunotherapy – pays up to
$20,000 each 12 months
Blood, plasma and platelets – Pays up to $20,000 each 12 months
Pays up to $100 per calendar year for each insured to have cancer screening tests
such as a mammography, pap smear, PSA and CA125
Pays up to $5,000 upon Initial Diagnosis
Benefits Renewal
Worksite Products (continued)
ALLSTATE FINANCIAL (continued)
Cancer and Specified Disease Coverage
Semi-monthly cost:
Individual
Family
Base Plan
$ 10.48
$ 17.31
Enhanced Plan
$ 13.74
$ 23.15
Premier Plan
$ 17.88
$ 30.72
Benefits Renewal
LifeLock Identity Protection
Provides the following services:
They obtain a current credit report and monitor it every 90 days
They send you one annually from all credit bureaus
They request that you be removed from junk mailings
They provide WalletLock service to help you cancel and reopen new accounts if your
wallet is lost or stolen
eRecon and TrueAddress will search internet websites for unauthorized use of your
personal information and notify you if your address is changed online
They call you to approve big purchases
They will spend up to $1 million doing whatever is necessary to repair your credit if you
become a victim of identity theft
Teenagers are now being targeted because their credit won’t be searched until they are at
least 18
Employees covered for $66 per year/ children under 16 are $25/ year- enroll by mid Jan.
Just use the promotional code SFG40 at www.lifelock.com to obtain your discount
Benefits Renewal
Prepaid Legal
Provides the following services:
Legal consultation and advice
Write letters and make calls on your behalf
Reviews contracts and documents for you
Will preparation service with annual review, plus Living Will and Power of
Attorney preparation
Major an Minor Motor Vehicle legal services
Trial defense services, start at 60 hours and increase with each renewal
IRS Audit Legal Services
Legal Shield card provided to use in immediate situations
Cost is $15.95 per month for the entire family for the standard plan
Benefits Renewal
Employee Assistance Programs
An Employee Assistance Program provides counseling for common issues such as:
Depression and Stress Management
Marital Conflicts
Parenting, Child Care and Elder Care Concerns
Emotional Problems and Crisis
Financial and Legal Concerns
Alcohol and Drug-Related Addictions
All employees have access to the EAP through Lincoln Financial. Tulsa area employees also
have access to our initial EAP service through Community Care.
Advantages:
Improved health through counseling
Contact to the EAP is anonymous
Counselors are available 24/7 via phone and internet, and you can schedule appointments
for one on one counseling sessions. Situations that require further treatment will be
referred to an outside counselor.
Benefits Renewal
Wellness
In addition to addressing stress-related and emotional concerns through
the EAP, you can further manage your health and help prevent medical
conditions through the numerous wellness tools provided to you by:
BlueCross BlueShield website: www.bcbsok.com Register for BlueAccess
Delta Dental website: www.deltadentalok.org Register for Spotlight
ActivHealth website: www.activhealth.com
Summit Financial Group
401(k) Plan Summary
PARTICIPANT ELGIBILITY:
Minimum Age: 21, Waiting Period: 6 consecutive month period. Those eligible but not in
the plan will be automatically enrolled at 3% of pay unless you opt out or select a
different percentage.
Contributions will be increased 1% per year to a cap of 6%.
PLAN ENTRY DATES:
January 1, April 1, July 1, Oct. 1 (after meeting eligibility requirements)
DISCRETIONARY MATCH:
Summit has a discretionary match, historically 25% on the dollar up to 4%. A
discretionary profit sharing contribution may be made.
VESTING:*
All Company contributions subject to the following schedule:
Years of Service
Ownership Percentage
0-1
0%
2
20%
3
40%
4
60%
5
80%
6
100%
*All accounts are fully vested at
Normal Retirement Age 65.
DISTRIBUTIONS:
Funds are available upon retirement, death, disability, or termination of employment.
In-service withdrawals are allowed at age 59 ½ Loans are allowed under the plan.
Benefits Renewal
For More 401(k) Information
Kristina Humphrey: Call regarding enrollment for 2011
Tuesday, Dec. 28th
For a salary deferral form contact Kristina at x411.
•
http://retirement.standard.com
Or call INFOLINE at 800.858.5420
All forms are due to Thelma no later than January 5th.
Benefits Renewal
Information Needed
Required Forms:
Comprehensive Benefits Election Form
Flex election form (whether enrolling or declining)
• Optional Forms:
Medical application - for enrollment changes only
Dental application – for enrollment changes only
Life insurance beneficiary form- for updates only
401(k) election form- for changes only –turn in to Thelma
Voluntary/ Worksite coverage forms
Forms due by Monday, Dec. 27th; 401(k) due Jan. 5th
Benefits Renewal
Questions & Answers
Questions will be addressed at this time. Those that
are only relative to an individual should be addressed
to [email protected] after the call.
Thank you