As part of the County’s ongoing effort to review and enhance employee benefits offerings, the County is rolling out new voluntary benefit options. In response to employee answers on the Benefits Survey and discussions with the Benefits Committee, Short-Term Disability Insurance and Long-Term Disability Buy-Up Insurance will be offered during Open Enrollment. The County also intends to offer Long-Term Care Insurance later in the year. These new plans will give employees the option to build a benefits package that gives them peace of mind without breaking their checkbooks. By offering this coverage as a County sponsored plan, employees receive the benefit of group rates and, in the case of the Long-Term Disability Buy-Up plan, a guaranteed issue window.

Please take this opportunity to review the materials and determine if these new offerings can help you and your family. Please see the table on page 2 for your opportunities to attend an informational session and have your questions answered. If you decide to change your benefit elections, your change request forms must be received in Human Resources on or before

June 17, 2011.

NEW Voluntary Benefits The County is rolling out the following voluntary benefits to help you plan for some of life’s difficult times. These voluntary benefits are available on a self-pay basis. Restrictions apply.

Long-Term Disability Buy-up(page 3) This benefit will allow eligible employees to purchase buy-up LTD coverage, which will increase the amount of monthly benefit during a qualifying long-term disability. This can supplement the County-paid LTD benefit, which replaces up to 60% of salary or $2500, whichever is less.

Individual Short-Term Disability (pages 4-5) ISTD can replace some of your income if you experience a qualifying short term disability. As an individual plan, this benefit can be taken with you if you leave County service.

Kaiser Health Plan (page 6) Prescription copays will increase effective July 1, 2011.

Providence Health Plan (page 6) There will be a few plan changes effective July 1, 2011:

• Increased Emergency Room copay; and

• Change to the Urgent Care services benefit.

The information in this publication is only a brief description of some Washington County benefits. The controlling provisions of these plans are outlined in the group policies or plan documents, which can be requested by contacting the Benefits Team at 503-846-8686. This is not a guarantee of benefits.

ODS Dental (page 6)

There have been changes to the following:

• X-ray frequency;

• Fluoride treatment; and

• Athletic mouthguards.

Willamette Dental (page 6)

There will be no benefit plan changes; but is now offering “Advanced Access” scheduling.

Health Care Reform

Dependents up to age 26 (page 7) Eligibility under the plans has been expanded to include dependents up to age 26 regardless of student or marital status. Open Enrollment is your opportunity to enroll eligible dependents.

Expansion of preventive care (page 8)

Preventive care services have been expanded in accordance with Health Care Reform requirements. In addition, copayments and coinsurance for eligible preventive services have been eliminated.

No life-time maximums (page 8)

The life-time maximum of $2 million dollars has been eliminated. Employees or eligible dependents that have previously lost coverage because of this maximum can re-enroll during open enrollment for coverage effective July 1, 2011.

What’s New & Different

Employee Benefits Open Enrollment

May 16-June 17, 2011

P A G E 2

Make sure

you get all

of your

questions

answered

and all of

your

enrollments

submitted

to the HR

office by

end of day

June 17th,

2011.

Calendar of Significant Dates

E M P L O Y E E B E N E F I T S

Open Enrollment Begins May 16, 2011

Information Sessions Presentation of plan changes and new benefit options, followed by an opportunity for questions and answers

May 18 9:00-10:30 a.m. PSB Auditorium

May 18 5:30-7:00 p.m. PSB Auditorium

May 19 9:00-10:30 a.m. PSB Auditorium

May 19 2:00-4:00 p.m. Walnut Street Facility

May 25 11:00 a.m.-noon PSB Auditorium

June 1 1:00-3:00 p.m. Service Center East Rm. 195

June 2 11:00a.m.-noon PSB Auditorium

June 6 1:30-3:00 p.m. PSB Auditorium

June 7 11:30 a.m-1:30 p.m. Sheriff’s Office Training Rm. A

Benefit Fairs Opportunity to stop by and visit with benefit plan providers

May 24 2:00-4 p.m. Walnut Street Facility

May 25 9:00 a.m.-3:00 p.m. PSB Cafeteria

May 26 1:00-3:00 p.m. Service Center East Rm. 195

Q&A Sessions Drop-in session for questions

May 18 6:30-8:30 a.m. Sheriff’s Office Training Rm. A

June 8 1:00-3:00 p.m. Service Center East Rm. 195

June 9 4:30-6:30 p.m. Sheriff’s Office Training Rm. B

June 14 10:00 a.m.-noon PSB Suite 270 Sequoia Room

June 17 1:00-3:00 p.m. PSB Suite 270 Sequoia Room

Open Enrollment Ends June 17, 2011 FINAL DAY TO SUBMIT ENROLLMENTS

Effective Date of Health and Dental Coverage

July 1, 2011

Effective Date of NEW Voluntary Disability Benefits

Aug. 1, 2011 1st deduction Aug. 12th check

Unum Enrollment meetings

Short-term Disability Benefit May 31-June 3 By appointment only

June 2 2:00-4:00 p.m. Walnut Street Facility

P A G E 3 Long-Term Disability Buy-up Plan We are pleased to announce that we will be offering employees an Enhanced Long-Term Disability (LTD) Insurance Buy-up option from The Standard Insurance Company. As you may know, the County provides eligible employees with a Base LTD Plan, which provides a limited benefit during qualifying long-term disabilities. Employees will now have the opportunity to apply for the Enhanced LTD Buy-Up Plan, which will replace a greater amount of your earnings if you become disabled and are eligible for benefits. Coverage elected during Open Enrollment, May 16th-June 17th, 2011, is Guaranteed Issue, which means no Health Statement requirement. Pre-existing condition exclusions apply (see the bottom of page 9.) What you should know about LTD Benefits LTD insurance pays a benefit in the event that you cannot work because of illness or injury. After you have satisfied the plan’s elimination period (90 days or exhaustion of sick leave, whichever is greater) the LTD benefit replaces a portion of your base monthly income, providing funds directly to you. What does this mean to you? The following are a few scenarios that demonstrate the difference in benefits between the County-paid Base Plan and the Employee-paid Enhanced Buy-up plan. Employees electing the Buy-up Option are purchasing the DIFFERENCE in benefit between the two plans. The Buy-Up Benefit amounts shown are not in addition to the Base benefit amounts; it is the total amount received. The following scenarios assume the employee is disabled, as defined by the plan, has satisfied the elimination period and has no deductible income from other sources.

Things to Consider Would you be able to meet your financial obligations if you were disabled, could not work for an extended period of time and were relying solely on the County-paid LTD benefit? For some, this might be enough to get by. For many others, the answer is no and the risk of disability may be greater than you may think. • 21.3 million or 11.9 percent of all Americans aged 16 to 65 have a disabling condition that affect their

ability to work at a job or business. (US Census Bureau, Disability Status: 2000, March 2003) • Nearly one person in five, about 49.7 million Americans, has some type of long lasting condition or

disability. (US Census Bureau, Disability Status: 2000, March 2003) • About one in seven Americans can expect to become disabled for five or more years. (Health Insurance

Association of America; The New York Times, February 2000)

Base Plan (County paid) Enhanced Buy-Up Plan

(Employee paid)

Monthly LTD Benefit Amount

60 percent the first $4,167 of your insured predisability (monthly) base earnings reduced by deductible income from other sources

66 2/3 percent of the first $12,000 of your insured predisability (monthly) base earnings reduced by deductible income from other sources

Maximum Monthly Benefit

$2,500 $8,000

Benefit Waiting Period

90 days 90 days

Maximum Benefit Period

To age 65 To age 65

Base earnings Base plan Benefit Buy-up plan

Benefit Approx. cost for

Buy-up

$3,500/mo. ($42k/yr) $2,100/mo. $2,333/mo. $8.75/mo.

$5,420/mo. ($65k/yr) $2,500/mo. $3,613/mo. $13.55/mo.

$8,000/mo. ($96k/yr.) $2,500/mo. $5,333/mo. $20.00/mo.

$12,500/mo. ($150k/yr.) $2,500/mo. $8,000/mo.

(capped at

max.)

$30.00/mo.

More detailed information regarding this coverage is available in Human Resources or by selecting the Open Enrollment link at www.co.washington.or.us/benefits. You can also contact the Benefits Information Line at 503-846-8686 (x8686) with questions.

NOTE: This coverage is subject to group minimum participation requirements. The cost or availability of this benefit may change

if these minimums are not satisfied. Enrollees will be notified of any such changes before it impacts their paychecks.

EN-1146 (12-10)

Message from the County

How to Apply for Short Term Disability: Please, take time to meet with a Unum Benefit Counselor at any of the benefit fair locations. They will have sign-up sheets available for individual meetings with the counselor to discuss your Short Term disability needs. The individual meetings will be held 5/31/11 through 6/3/11. You may also call 503-846-8686 (x8686) to schedule a time to meet with the benefit counselor.

Please note that minimum participation requirements apply to this offering. The County will need a minimum of 10

approved applications during the Annual Enrollment Period (May 16-June 17th), otherwise coverage will not go into

effect.

P A G E 4 Individual Short Term Disability

P A G E 5 M A Y 2 0 1 1

Maximum Monthly Benefit

7 Days Accident / 7 Days Sickness / 3 Months Benefit

14 Days Accident / 14 Days Sickness / 3 Months Benefit

Issue ages 17-49 Sickness & Off Job

Accident

Issue Ages 50-69 Sickness & Off Job

Accident

Issue Ages 17-49 Sickness & Off Job

Accident

Issue Ages 50-69 Sickness & Off Job

Accident

$ 800.00 $ 13.50 $ 16.34 $ 10.01 $ 12.05

$ 1,200.00 $ 20.24 $ 24.49 $ 15.02 $ 18.07

$ 1,600.00 $ 26.98 $ 32.66 $ 20.00 $ 24.10

Rates indicated above are Semi-monthly. Premiums will be after-tax deductions from

the first two checks of the month.

The following changes will be effective for the 2011-12 Plan Year, which begins July 1, 2011. See Page 7 for additional changes related to Health Care Reform.

The County is currently in discussions with union groups regarding some of these changes.

P A G E 6

E M P L O Y E E B E N E F I T S

ODS Dental changes New Coverage Old Coverage

Cover complete series x-ray or a panoramic film once every 5 years. Covered every 3 years.

Cover supplementary bitewing x-rays once every 12 months. Covered every 6 months.

Fluoride is covered once every 6 months for members 18 and under. Members age 19 and older could have fluoride covered at the above frequency if there is recent history of periodontal surgery or high risk of decay due to medical disease or chemotherapy or similar type of treatment (poor diet or oral hygiene does not constitute a medical disease).

Topical application of fluoride is covered once in any 6-month period for all ages.

Cover athletic mouthguards at 50% once per year for members age 15 and under and once every 2 years for age 16 and over.

Not Covered.

Kaiser Permanente changes Prescription Coverage NEW Rx Coverage Old Rx Coverage

Generic Drug $15/up to a 30-day supply $10/up to a 30 day supply

Brand Name Drug $30/up to a 30-day supply $20/up to a 30-day supply

Mail Order Drugs (up to a 90-day supply)

2 times the applicable copay 2 times the applicable copay

Emergency Room Copay

A $250 copay applies to Emergency Room services. The copay is waived if admitted to the hospital.

This is an increase from the $125 copay for the 2010-11 plan year.

Urgent Care Services

The Urgent Care services benefit will be the same as any other in-plan and out-of-plan office visit; a $15

copay or 40% coinsurance will apply. Any ancillary services such as x-ray or lab work received during the

visit will be subject to the applicable coinsurance and/or deductible.

Providence changes

Willamette Dental changes There have been NO plan design or benefit changes to the Willamette Dental plan. However, Willamette Dental now offers “Advanced Access,” a scheduling practice that aims to provide timelier appointments by: • Offering every type of appointment every day, where previously certain procedures were only

scheduled on specific days. • Providing quality care in fewer visits.

P A G E 7 M A Y 2 0 1 1

Did your child lose coverage under the County health plans? Is he or she still under age 26? If so, he or she may be eligible for coverage.

Patient Protection and Affordable Care Act (PPACA)

Health Care Reform

Dependents whose coverage ended, or who were denied coverage (or were not eligible for coverage), because the availability of dependent coverage of children ended before attainment of age 26 are eligible to enroll in Kaiser Permanente and Providence Health Plan medical insurance coverage; as well as Willamette Dental and ODS dental insurance coverage during this Open Enrollment period. Employees may request enrollment for such children during Open Enrollment, May 16th-June 17th (30 days). Enrollment will be effective July 1, 2011. For more information contact the Benefits Information line at 503-846-8686 (x8686).

1. Confirm eligibility. 2. Complete Medical/Dental/Vision

enrollment form to request enrollment for desired coverages.

3. Return completed forms to Human Resources by June 17th.

4. Additional questions? Call the Benefits Information Line, 503-846-8686 (x8686).

Steps to Add Dependents to County Coverage:

The Patient Protection and Affordable Care Act (“PPACA”), often referred to as Health Care Reform, expands eligibility for dependents through the end of the month in which they turn age 26. Eligibility for these dependents applies regardless of student status, and regardless of marital status.

Dependents up to age 26 years

P A G E 8

E M P L O Y E E B E N E F I T S

Did you or

your

dependent

lose coverage

due to the

health plans

lifetime

maximum?

Open

Enrollment is

the time to

re-enroll them.

No Lifetime Limits Health Care Reform has also removed lifetime dollar limits and maximums. The lifetime limits on the dollar value of benefits under Kaiser Permanente and Providence Health Plan no longer apply. Individuals whose coverage ended by reason of reaching a lifetime limit under the plan are eligible to enroll in either plan. Employees have from May 16th-June 17th (30 days) to request enrollment. For more information contact the Benefits Information Line at 503-846-8686 (x8686).

Preventive Care Health Care Reform provides expanded eligibility of Preventive Care services to eliminate copayments and coinsurance for certain Preventive Care services.

Examples of services covered under preventive care by Kaiser and Providence are listed below:

Immunizations For Adults/Children:

• Hepatitis A • Hepatitis B • Human Papillomavirus • Influenza • Measles, Mumps, Rubella • Meningococcal • Pneumococcal • Tetanus, Diptheria, Pertussis • Varicella

For Children Only:

• Haemophilus influenzae type B • Inactivated poliovirus • Rotavirus

For Adults Only:

• Zostavax

Screenings/Exams for the following: • Abdominal aortic aneurysm • Bone density testing • Sexually transmitted diseases • Colorectal cancer • Depression • Type 2 Diabetes • Cholesterol • High Blood Pressure

• Prostate cancer • Cervical cancer • Prenatal/Postpartum visits • Thyroid • Tobacco cessation services • Sickle cell disease • Alcohol misuse screening and

counseling intervention

Preventive care services that are covered without copayment or coinsurance can vary between insurance providers. Contact Kaiser or Providence for details regarding preventive care services. Coverage guidelines apply. Deductibles, copayments and coinsurance may apply to other preventive services that are covered by medical insurance, but are not part of the new law.

Patient Protection and Affordable Care Act (PPACA)

Health Care Reform

Frequently Asked Questions General Q: Where can I find the forms I need to make new elections or plan changes this Open Enrollment? A: All necessary forms and additional information are available on the County website: www.co.washington.or.us/benefits under the Open Enrollment link. Employees who are interested in the Unum Individual Short-Term Disability Plan will need to meet with a Unum representative. You can contact the Benefits Information Line if you have questions or need to schedule a Unum appointment, 503-846-8686 (x8686). All forms for benefit changes or new elections are due by 5pm on Friday, June 17, 2011. Q: When will my changes go into effect? A: As long as all requirements are satisfied, enrollment in Short Term and Long Term Disability plans will be effective August 1, 2011. Changes to your Health and Dental coverage will be effective July 1, 2011. Q. Do I have to complete a new Enrollment Form if I do not want to make any changes? A. No. You are not required to complete any Enrollment Forms if you are not planning on making any changes to your healthcare coverage or don’t plan to elect coverage with the new voluntary plans. You will continue to be enrolled with current providers for the plan year effective July 1, 2011.

Health Plans Q: What are the health care benefit changes for this year? A: There are minimal plan changes to both Kaiser and Providence this year. Changes were made to maintain standard plans with each provider. Detailed information about the changes is on pages 6-8. Q: What are the required changes to the health care plans associated with Health Care Reform? A: There are a few changes taking effect July 1, as a result of the Patient Protection and Affordable Care Act (PPACA). Dependents can be enrolled on County plans, up to age 26. In addition, certain preventive care services will be available without copayment or coinsurance costs (see page 8 for examples). And, lifetime limit on the dollar value of benefits no longer applies to either County medical plan.

Long Term Disability Buy-Up Q: What is the additional benefit to electing and purchasing the Long Term Disability (LTD) Buy-Up option through payroll deductions? A: In the event you meet the definition of a qualifying disability, this additional benefit increases the percentage of income replacement from 60% to 66 2/3%, as well as increases the maximum cap for your monthly benefit payment from $2,500 to up to $8,000, depending on your base salary. See page 3. Q: I am interested in electing the Long Term Disability Buy-Up. What do I need to do? A: Complete the Standard Enrollment and Change form. Completed elections must be received in Human Resources by 5:00 p.m. June 17, 2011. Q: Do I have to complete a Health History Statement to qualify for Long Term Disability Buy-up coverage? A: Not during this initial enrollment period. The Standard has opened a Guaranteed Issue window during Open Enrollment, May 16-June 17, 2011. Some exclusions and limitations apply. After this guaranteed issue window, employees will need to submit a Health History Statement along with their application, which will be subject to underwriting and may be denied.

Q: What is a pre-existing condition for the LTD buy-up plan and what does that mean to me? A: A pre-existing condition exclusion (pre-ex) is intended to exclude or limit disabilities that are known to exist on the effective date of an in individual’s insurance coverage. This provision stipulates that insured members must be insured for 12 months (in the Buy-Up program) to be covered for disabilities treated within the stated 3 months (Preexisting Condition Period) prior to the individual’s effective date of enrolling in the Buy-Up program.

P A G E 9

P A G E 1 0 M A Y 2 0 1 1

Short Term Disability Q: I am interested in electing the Short Term Disability Plan through Unum. What do I need to do? A: Contact the Benefits Information line (x8686) to set up a one-on-one appointment with an Enrollment Professional. You can discuss your benefit options and desired coverage. If you are interested, the Enrollment Professional will then enroll you online. Q: Are there any exclusions? A: Yes, pre-existing condition and 9-month pregnancy exclusion. Please see page 5 of the Employee Benefits guide for definitions. Q: What is the cost? A: See sample rates included in the Employee Benefits guide. Actual premiums will be based on specific age and desired benefit amount. Q: How is benefit paid for? A: Premiums will be payroll deducted. Q: What happens if I leave Washington County? A: Policies are portable, and coverage may be continued on a direct-bill basis with Unum.

Q: How much benefit can I buy? A: $400 minimum, in increments of $100, up to 60% of monthly income.

Other Q: Will the premiums for the Short Term and/or the Long Term buy-up deducted from my check on a pre-tax basis? A: No. In general, the IRS requires that employees either pay tax on the premiums or tax on the benefit. By paying a slightly higher premium while they are at work and healthy, employees avoid having taxes deducted from their voluntary disability benefit. Keep in mind that any benefit received under the County-paid LTD policy will be subject to taxes since no taxes were paid on the premium. Q: When can I terminate the Short Term and the Long Term coverage? A: You can terminate either coverage at any time, provided it is within payroll deadlines. Please keep in mind that you will be subject to a health statement and underwriting if you want to restart coverage under either of these plans at a later date.

Required Notices

The Health Insurance Portability and Accountability Act of 1996 (HIPAA) requires us to inform plan participants of your rights to Special Enrollment under this plan when you and/or your eligible dependents decline coverage during the initial enrollment period or during Open Enrollment. If you decline enrollment for medical benefits for yourself or your eligible dependents because of other health insurance or group health plan coverage, you may be able to enroll yourself and your eligible dependents in the Medical benefits provided under the Washington County Plans if you or your eligible dependents lose eligibility for that other coverage (or if the other employer stops contributing towards your or your dependents’ other coverage). However, you must request enrollment in the Washington County Plan within 30 days after you or your eligible dependents’ other coverage ends (or after the other employer stops contributing toward the other coverage). In addition, if you have a new dependent as a result of marriage, birth, adoption, or placement for adoption, you may be able to enroll yourself, your spouse and your newly eligible dependent children. However, you must request enrollment within 30 days after the marriage, birth, adoption, or placement for adoption. If you request a change due to a special enrollment event within the 30 day timeframe, coverage will be effective the date of birth, adoption or placement for adoption. For all other events, coverage is effective as of the event date that makes you eligible.

The Washington County Plan must allow a HIPAA special enrollment for employees and dependents who are eligible but not enrolled if they lose Medicaid or CHIP coverage because they are no longer eligible, or if they become eligible for a state’s premium assistance program. Employees have 60 days from the date of the Medicaid/CHIP event to request enrollment under the Washington County Plan. If you request this change, coverage is effective as of the event date that makes you eligible. Specific restrictions may apply, depending on federal and state law. To request special enrollment or obtain more information, contact Tracy Kittler, Benefits Specialist, at (503) 846-4523 or by mail at Washington County, Attn: Employee Benefits, 155 N. First Ave., Suite 270, Hillsboro, OR 97124.

Women’s Health and Cancer Rights Act of 1998 THIS NOTICE CONTAINS VALUABLE INFORMATION ABOUT YOUR EMPLOYEE HEALTH INSURANCE COVERAGE. Please read it carefully to assure that you are able to obtain the maximum benefit from your coverage. On October 21, 1998 the Women’s Health and Cancer Rights Act of 1998 became law. In accordance with this law, if you are receiving or receive benefits under your employee health insurance in connection with a mastectomy, coverage will be provided as determined in consultation with your attending physician for the following procedures:

• reconstructive surgery for the affected breast;

• surgery on the other breast to achieve symmetry;

• prostheses; and

• treatment for complications from the mastectomy, including lymphedema.

Newborn and Mothers’ Health Protection Act

Benefits for the above medical services and supplies are subject to the same deductible and coinsurance limitations as for other services, supplies and procedures that apply under your employee health insurance.

Group health plans and health insurance issuers generally may not, under Federal law, restrict benefits for any hospital length of stay in connection with childbirth for the mother or newborn child to less than 48 hours following a vaginal delivery, or less than 96 hours following a cesarean section. However, Federal law generally does not prohibit the mother’s or newborn’s attending provider, after consulting with the mother, from discharging the mother or her newborn earlier than 48 hours (or 96 hours as applicable). In any case, plans and issuers may not, under Federal law, require that a provider obtain authorization from the plan or the insurance issuer for prescribing a length of stay not in excess of 48 hours (or 96 hours).

P A G E 1 1

Open Enrollment May 16-June 17, 2011

What to do during Open Enrollment 1. Review the materials and determine which plan(s) best meet your

needs. 2. Complete a Medical/Dental/Vision Election Form if you want to

change your plan provider or your covered dependents. 3. Add eligible dependents or delete ineligible dependents. 4. Submit your enrollment for the new Disability Insurance options if

you are interested. The Standard is offering a Guaranteed Issue window during Open Enrollment for the Long-Term Disability Buy-Up Plan.

5. All change request forms must be received by the Washington County Human Resources office by end of day Friday, June 17, 2011.

Where to find more Open Enrollment information 1. All Open Enrollment materials, forms, policies, complete plan

summaries are available in Human Resources. 2. Electronic versions of most materials can be found on the Employee

Benefits website, www.co.washington.or.us/benefits under the Open Enrollment link.

3. You can review the Employee Benefit Committee minutes at Employee Benefits website, www.co.washington.or.us/benefits under the Employee Benefits Committee link.

4. Attend one of the informational sessions or benefits fairs.

5. You can call the Benefits Information Line at (503) 846-8686.

Employee Benefits