Open Enrollment Kick

Open Enrollment Kickoff
Group Health Insurance Changes Effective January 1, 2015
Office of Human Resources & Payroll
508-831-5470
[email protected]
http://www.wpi.edu/offices/hr/benefits-policies.html
Welcome to the Open Enrollment Kickoff
Sponsored by:
• FAP
• FBC
• Office of Human Resources & Payroll
• Accompanied by:
• Protector Group
• Harvard Pilgrim
• Benefit Strategies
Members
• FBC
David Spanagel, Chairman
Ravindra Datta
William Grudzinski
Michelle Ephraim
Michael Hamilton
Huong Higgins
Lori Willens
Lisa Wall
Hugh Lauer
Aaron Deskins
Monika Maslen
Kenneth Stafford
• FAP
Robert Kinicki, Chairman
David Spanagel
Hossein Hakim
A. Tracy Hassett
Jeffrey Solomon
Agenda
• Discuss changes to plan designs
• General overview of the new options available
• New Rates
• Flexible Spending and Vision provider changes
• Where to find more information and assistance
Open Enrollment
• We are moving to a calendar year for health and welfare and
retirement plan benefits.
• Open Enrollment is from October 1st – October 31st
• Benefits in effect from January 1st – December 31st
• Going forward Open Enrollment will be the month of October.
• The Health & Wellness Fair will be October 28th in the Odeum.
Health Insurance Plan Design Changes
• Based on the recommendation of the Fringe Benefits Committee
(FBC) and the Committee on Administrative and Financial Policy
(FAP), the Administration has approved changes to WPI’s health
insurance plan design.
• WPI will be adding a High Deductible HMO plan option with an
associated Health Savings Account (HSA)
• The 20A plan will no longer be available as an option due to its
similarity with the 20B plan
• Co-payments adjusted to make all plans consistent
Health Insurance Plan Design Changes
• All plan designs will have a $25 office copayment
• The PPO Out of Network deductible is increasing
• The PPO will have an Inpatient Hospital Copay and Day Surgery
Copay
Health Insurance Plan Design Changes
2015 Plan Designs
HMO $1,000
20B
High Ded HMO
PPO
Office Copay
$25
$25
$0 after ded.
$25
Wellness Visit Copay
$0
$0
$0
$0
Specialist Copay
$25
$25
$0 after ded.
$25
Emergency Room Copay
$100
$100
$0 after ded.
$100
$1,000 / $2,000
N/A
$1,500/$3,000
$500 / $1,000 (OON)
Inpatient Hospital Copay
$0 After Deductible
$500
$0 after ded.
$500
Outpatient Copay
$0 After Deductible
$250
$0 after ded.
$250
MRI/PET/CT Scan
$75 (No Deductible)
$75
$0 after ded.
$75
Prescription Drug Co-Pay
$15 / $30 / $50
$15 / $30 / $50
co-pay after ded.
$15 / $30 / $50
Mail Order Co-Pay
$30 / $60 / $150
$30 / $60 / $150
co-pay after ded.
$30 / $60 / $150
Plan Design
Deductible
High Deductible HMO – NEW PLAN
• The High Deductible plan will have a $1,500 deductible for an
individual plan and a $3,000 deductible for a family plan and
qualifies for the Health Savings Account (HSA)
• The HSA bank account is employee owned and is optional
• If chosen, WPI will contribute $500 towards an individual’s HSA
or $1,000 for a family’s HSA.
• HSA accounts are available only if you elect the High Deductible
plan. (IRS Regulation)
Health Savings Accounts (HSA)
• An HSA is a fund established to pay for qualified medical
expenses associated with a High Deductible Health Plan and/or
to invest in your future health care needs.
• HSA monies can be invested in accounts held by Healthcare
Bank, a division of Bell State Bank & Trust.
• You may also use the HSA to help pay for eligible eye care or
dental expenses.
• You can only open an HSA if you are enrolled in the High
Deductible Health Plan.
• Deductions are made on a pre-tax basis, and withdrawals for
qualified health care expenses are tax free.
• Any unused amounts in your HSA carry over from year
to year.
• You own your HSA - if you change jobs or retire the
money stays with you.
Limited Purpose Flexible Spending Account
• If electing an HSA, a standard FSA cannot be opened.
• You can, however, open a limited purpose flexible spending
account.
• This can only be used for non-medical health care expenses, such
as eligible vision and dental costs.
• A Limited Purpose FSA can be used for you, your
spouse/partner, and your dependents up to age 26.
Important Facts About Opening an HSA
• If electing an HSA for 2015, all medical flexible spending monies
for the current short plan year must be used by December 31,
2014.
• You must open your HSA account with Benefit Strategies before
you can use your HSA for expenses. WPI cannot open it for you.
• Unlike a standard FSA, money that is not used is rolled over
from year to year. There is no limit to how much you can
accumulate.
• A Medical Flexible Spending Account (FSA) cannot be opened if
you are electing to open an HSA.
• A Limited Purpose FSA can be opened with an HSA but it can
only be used for dental and vision expenses.
• Unlike a standard FSA, money elected to be in an HSA cannot be
used until the money is contributed and is in the HSA account.
Health Insurance Rates – GREAT NEWS!
• Due to an overall decrease in rates, WPI will keep employer
contributions the same and will pass the savings on to
employees.
• The amount of the decrease will depend on the plan you have
now and the plan you select for 2015.
• The slight adjustments to plan designs have resulted in higher
decreases in those respective plans.
Vision Coverage – New Carrier
• Effective January 1, 2015 coverage through the
supplemental vision plan will no longer be through
Guardian
• Coverage will be through VSP directly
• VSP provides a more expansive network
New FSA and HSA Provider – Benefit Strategies
• We are happy to announce our new FSA and HSA provider is
Benefit Strategies
• Benefit Strategies will take over the FSA plan on 12/1/2014
• Employees will receive new debit cards in November
• There will be a blackout period the week of November 24th
• All claims for that week should be submitted to Benefit
Strategies
• Benefit Strategies will have employee’s balances, and the grace
period will still be available (January 1, 2015 – March 15, 2015).
Anyone who renews their FSA during open enrollment will have
their Benefit Strategies cards reloaded with the new elected
amounts for 2015.
Where to find more information
• Visit the Human Resources Open Enrollment website at
http://www.wpi.edu/offices/hr/open-enrollment.html
• Join Benefit Strategies in the Hagglund Room for HSA
informational sessions on these dates:
• October 7th -10am
October 22nd -10am
• October 9th -2pm
October 24th -12pm
• October 15th -2pm
October 30th -12pm
• Join Benefit Strategies at Gateway Park 1002 on October 20th
at 12pm
• To attend, please sign up via Regi
• Health & Wellness Fair on October 28th from 11am – 3pm
• Benefit Strategies’ website for the Tax Savings Calculator & Eligible
Expenses Worksheet: https://www.benstrat.com/participants_fsa.php
Human Resources Website
THANK YOU!
Frequently Asked Questions
Q: Is Altus Dental staying the same?
A: Yes, Altus will still be our dental insurance carrier.
Q: Is Hyatt Legal staying the same?
A: Yes, there are no changes to the legal plan.
Q: If I am currently on the vision or legal plan, do I need to
complete an enrollment form to renew?
A: Yes, all supplemental benefits including FSA, vision,
and legal need to be renewed.
Q: When do I need to submit my forms by?
A: October 31, 2014, to the Office of Human Resources
Frequently Asked Questions
Q: If I’m not making any changes do I need to complete a form?
A: You only need to complete an enrollment form if you are
making a change to health or dental, or if you would like FSA,
vision, and/or legal for 2015.
Q: Where do I get an enrollment form?
A: Forms are available on the HR website.
Q: What will happen to my coverage if I don’t make an election
and I am on the 20A plan?
A: If you are on the 20A plan and you do not complete an
enrollment for with a new election, your coverage will end
December 31, 2014.
Frequently Asked Questions – HSA’s
Q: What is an HSA?
A: A health savings account (HSA) is a tax-favored
savings account created for the purpose of paying
medical expenses.
Q: What are the annual limits of employer and employee
funds that can go into an HSA for 2014?
A: For an employee under age 55 it is $3,350 for
individual coverage and $6,550 for family coverage.
Employees over age 55, not enrolled in Medicare, can
make a contribution of an additional $1,000 per year.
Frequently Asked Questions – HSA’s
Q: How does an HSA plan work?
A: An HSA works in conjunction with a high deductible
health insurance plan. Your HSA dollars can be used to
help pay the health insurance deductible and any
qualified medical expenses, including those not covered
by the health insurance, like dental and vision care.
Q: Who can have an HSA?
A: You must be: covered by a qualified high deductible
health insurance plan; not covered under other health
insurance; not enrolled in Medicare; and not another
person’s dependent.
Frequently Asked Questions – HSA’s
Q: Who does Benefit Strategies use for the investment of
HSA funds?
A: Healthcare Bank, a division of Bell State Bank & Trust
Q: What is a limited purpose FSA?
A: A limited purpose FSA is only for dental and vision
expenses, and is offered only to those who elect an HSA.
Q: What are maximum amounts you can elect for a
limited purpose FSA?
A: The contribution maximums are $2,500 per calendar
year.
Frequently Asked Questions – HSA’s
Q: Are there income limits affecting eligibility to
participate in an HSA?
A: No, everyone who has a high deductible plan is
eligible.
Q: How do I fund my HSA?
A: The annual amount you elect will be taken out of
your paycheck throughout the year as a pre-tax
deduction. In addition, WPI will contribute $500 to an
individual plan and $1,000 to a family plan for 2015.
Frequently Asked Questions – HSA’s
Q: Are my funds in my HSA available immediately like they
were in my FSA?
A: No, unlike an FSA you only have access to the funds
that have been deposited in your HSA account .
Q: Can I withdraw the funds from my HSA account at any
time?
A: Yes, however, if the funds are withdrawn for any
expense other than a qualified medical expense, the IRS
will impose a 20% penalty tax. After you reach age 65 you
can withdraw the funds without penalty but the amounts
withdrawn will be taxable as ordinary income if they are
not used for qualified medical expenses.
Frequently Asked Questions – HSA’s
Q: Can I open an HSA if my spouse has a medical Flexible
Spending Account?
A: No, due to IRS guidelines you cannot open an HSA if
you or your spouse have a flexible spending account.
Q: Can I open an HSA if I am enrolled in Medicare Part A?
A: No, you cannot enroll in an HSA if you are enrolled in
any part of Medicare.
Q: If my child is not a tax dependent but is not yet 26, can
they still submit expenses to my HSA?
A: No, dependents must be a tax dependent to submit
expenses under an HSA, but they can still be covered
under your high deductible health plan.

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