Open Enrollment

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NORTHERN ARIZONA PUBLIC EMPLOYEES BENEFIT TRUST

Open

Enrollment

Plan Year

July 1, 2011 – June 30, 2012

May 2 – 31

2011

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Retirement System

RETIREMENT Contribution Rates Effective JULY 1, 2011

Arizona State Retirement System Effective July 1, 2011, employee will pay 57% of the

contribution rate for both the pension plan and long term disability plan. Contribution rate still to be determined by ASRS.

Effective July 1, 2011, employer will contribute 47% of the contribution rate for both the pension plan and long term disability plan. Contribution rate still to be determined by ASRS.

Employees hired on or after July 1, 2011 who are regularly scheduled to work must wait at least 6 months before being eligible for and enrolled in the Arizona State Retirement System.

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NAPEBT Medical Plans

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NAPEBT – TrendsNAPEBT Health PremiumTrend versus National Health Premium Trend

$0

$100

$200

$300

$400

$500

$600

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11

Plan Year

Mo

nth

ly E

mp

loye

e R

ate

NationalTrendNAPEBT

National health premium trend data is from the Hay Benefits Reports (Hay Group) adjusted from a calendar year basis to correspond with NAPEBT's fiscal year. The 2010 trend data was not available from Hay, therefore, the 2009 trend increase percentage was used. For the 2006-2007 plan year the NAPEBT contribution rates are a blend of the one plan offered (7/1/06-12/31/06) and three plans offered (1/1/07-6/30/07) weighted by enrollment. For the 2008-2009 and 2009-2010 plan years the NAPEBT rates are a blend of all three plans weighted by enrollment.

5

NAPEBT – Large Medical Claims Paid

Claims per Employee per Month

$476.41

$450.30

$525.59

$400.00

$420.00

$440.00

$460.00

$480.00

$500.00

$520.00

$540.00

FY08 FY09 FY10

Fiscal Year Total ClaimsAverage # of Employees

Claims per Employee per Month

FY08 $19,499,142 3,609 $450.30

FY09 $21,078,317 3,687 $476.41

FY10 $22,797,920 3,615 $525.59

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NAPEBT – Total Claims Paid

Northern Arizona Public Employees Benefit TrustPaid Claims > $75,000

6

1

7

1417

6 6

2

31

12

7

3

86

36

21

11

5 5 4

46

0

5

10

15

20

25

30

35

40

45

50

$75,000-$99,999

$100,000-$124,999

$125,000-$149,999

$150,000-$199,999

$200,000+ TOTAL

Num

ber

of C

laim

s

7/1/2006-6/30/2007 7/1/2007-6/30/20087/1/2008-6/30/2009 7/1/2009-6/30/2010

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NAPEBT Medical PlansBlue Cross Blue Shield of ArizonaGroup # 19676

NAPEBT Rx PlansCVS Caremark

Plan Year

July 1, 2011 – June 30, 2012

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NAPEBTNorthern Arizona Public Employees Benefit Trust

• Coconino County

• City of Flagstaff

• Coconino Community College

• Flagstaff Unified School District

• NAIPTA

Northern Arizona Intergovernmental Public Transit Authority

• Housing Authority

• Accommodation Schools

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MEDICAL PLAN EFFECTIVE July 1, 2011

In-Network Base Plan Buy-Up Plan HDHPCalendar Year Deductible: Per person Per family

$750$1,500

$500$1,000

$1,250**$2,500**

PCP Copay – Per visit $35 $25 80%/20%

Specialist Copay – Per visit $45 $35 80%/20%

Chiropractic Copay $45 $35 80%/20%

Urgent Care Copay $75 $50 80%/20%

Emergency Room Access Fee $150* $100* $100*

Inpatient Hospital Access Fee $100* $100* Does not apply

Member Coinsurance 20% after ded 20% after ded 20% after ded

Out of Pocket Maximum: Per person Per family

$3,000

$6,000

$3,000

$6,000

$4,000

$8,000

Rx Retail Copay $5/$35/$55/$105 $5/$35/$55/$105 After ded – 20% or $5

Rx Retail 90 day Copay 2.5x Copay 2.5x Copay After ded – 20% or $5

Rx Mail Order 90 day Copay (CVS Caremark) 2x Copay 2x Copay After ded – 20% or $5

Out-of-NetworkCalendar Year Deductible: Per person Per family

$1,500$3,000

$1,000$2,000

$1,250**$2,500**

Member Coinsurance 40% after ded 40% after ded 40% after ded*Access Payment and Deductible applied prior to 80%/20% coinsurance **The In and Out-of-Network deductibles are combined for HDHP.

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Medical Plan FY12Previous Rates

07/01/10 – 06/30/11

Original Proposal

9.7% Increase

Including $20

Employee Cost Share

Final Rates

8.1% Increase

Including $20 Employee Cost Share

Base PlanEmployeeDependentTotal for Family

$ 437.38$ 676.30$1,113.68

$ 479.80$ 741.88$1,221.68

$ 472.78$ 731.04$1,203.82

Buy-Up PlanEmployeeDependent Total for Family

$ 476.04$ 736.12$1,212.16

$ 522.20$ 807.50$1,329.70

$ 514.58$ 795.70$1,310.28

HDHPEmployeeDependentTotal for Family

$ 393.26$ 608.08$1,001.34

$ 431.40$ 667.06$1,098.46

$ 425.10$ 657.30$1,082.40


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Employee Cost SharingApproved & Adopted by NAPEBT

July 2011 – June 2012

FUSD#1 is waiving cost share for this year only

• Historically, NAPEBT Employers funded 100% of employee base level premium

• NAPEBT Employers cannot continue to shoulder full cost

• $20 cost to be passed on to employees to contribute

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Employee Premium Holiday

FUSD#1 will pay for 1 month of dependent/buy-up premium.

Employee will pay for 11 months of dependent/buy-up premium.


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Medical Plan FY12 MonthlyPremium

FUSD Cost

Employee Cost Share Waived by

FUSD

Employee Cost per Month

Base Plan - $750 Deductible

Employee $ 472.78 $ 452.78 $ 20.00 $ 0.00

Dependent $ 731.04 $ 0.00 $ 0.00 *$ 731.04

Total for Family $1,203.82 $ 452.78 $ 0.00 $ 731.04Buy-Up Plan - $500 Deductible

Employee $ 514.58 $ 452.78 $ 0.00 *$ 61.80

Dependent $ 795.70 $ 0.00 $ 0.00 *$ 795.70

Total for Family $1,310.28 $ 452.78 $ 0.00 $ 857.50HDHP/HSA - $1,250 Deductible * $27.68 per month employer contribution to HSA or FSA

Employee $ 425.10 $ 452.78 $ 0.00 $ 0.00

Dependent $ 657.30 $ 0.00 $ 0.00 *$ 657.30

Total for Family $1082.40 $ 452.78 $ 0.00 $ 657.30

* FUSD will pay one month premium and Employee will pay 11 months.

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• $27.68 per month ($332.16 per year)

• Health Savings Account if Eligible

• Who is NOT eligible for an HSA? Individuals entitled to Medicare (eligible & Individuals entitled to Medicare (eligible &

enrolled)enrolled)

Individuals covered under another non-HDHPIndividuals covered under another non-HDHP

Individuals enrolled in AHCCCS or Medicaid or Individuals enrolled in AHCCCS or Medicaid or have used IHShave used IHS

• Flexible Spending Account if NOT Eligible for HSA

HDHP Employer Contribution


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Medial Plan FY12

Previous

Cost

Per Month

Effective July 1, 2011

Cost

Per Month

Difference

Cost

Per Month

Base PlanEmployeeDependent

$ 0.00$ 676.30

$ 0.00$ 731.04

$ 0.00$ 54.74

Buy-Up PlanEmployeeDependent

$ 38.66$ 774.78

$ 61.80$ 857.50

$ 23.14$ 82.72

HDHPEmployeeDependent

$ 0.00$ 608.08

$ 0.00$ 657.30

$ 0.00$ 49.22

So what’s the bottom line? Change in Cost Per Month


1616

Two ID cards– Medical and Rx –Continue to use same pharmacies

Mail Order

–Will need a new prescription

–Fast Start program

90 days at Retail for 2-1/2 times copay

Grandfathering of drugs – first 6 months

– A small percentage of drugs will change tiers after 6 months (January 1, 2012)

– Will receive a letter if your drug is changing

Register at Caremark.com

– Check drug costs– Compare prices of Generic vs. Retail

CVS/Caremark New Rx Vendor


1717

Mayo Clinic in Arizona- Is an in-network Provider on all plans- Includes Mayo Clinic and Mayo Clinic Hospital Services- Identify as member of NAPEBT

Waivers of Medical Coverage

- Other coverage under a qualified group plan other than another NAPEBT employer - Must provide enrollment confirmation

FYI… Useful Information


1818

Deductibles run on calendar year

- January 1st – December 31st

Dual-spouse Deductible Coordination- Husband and wife employed by a NAPEBT employer.- Base and buy-up plans only.- One spouse must have family coverage. - Indicate on the Blue Cross enrollment form that your spouse works for NAPEBT and provide the spouse’s ID number.



Member ID Cards

- Have available at every appointment!

1919

Patient Protection and Affordable Care Act Healthcare Reform

Pre-existing Condition Restrictions

- Removed for children younger than age 19

- Still applies for adults until 2014

Preventative Services

- No office visit co-pay for recommended screenings, general physicals and vaccinations

Eligible Dependents to Age 26- Without regard to

- Student Status- Marital Status- Financial Dependence

- Only applies to legal child of employee- Does not extend to the spouse or child(ren) of the adult child - Applies ONLY to Medical plan and Flexible Spending Accounts


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Wellness Incentive Program

July 2012 – June 2013

NAPEBT – Self-funded Plan• Rates driven by claims experience

• Increase of large claims

• Increased frequency of in-patient hospitalization

Improved Health of Employees• Long-term results

Return on Investment• Studies show a $4 return for every dollar spent on Wellness programs.

• Lower costs for everyone

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Wellness Incentive Program

July 2012 – June 2013

$20 Cost Share with Employee• $20 per month added to employee cost for Base and Buy-Up plans

• $20 decrease to HSA / FSA contribution on HDHP.

Opportunity to Waive $20• Employee participates in Wellness Program

• Complete Biometric Testing

• Fall 2011 Health Fair

• Jan – May 2012

• Complete My Blueprint Health Assessment

• www.azblue.com

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NAPEBT Dental PlansDelta Dental of ArizonaGroup # 1505-0001

Plan Year

July 1, 2011 – June 30, 2012

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DENTAL PLAN EFFECTIVE JULY 1, 2011

Dental Plan FY12 Base Plan

Annual Maximum Benefit per Person

$1,000

Routine Services 100%

Basic Services 80%

Major Services 50%

Calendar Year Deductible $50 per person

$150 per family

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Dental Plan FY12Monthly Premium

FUSD CostEmployee Cost

per Month

Base Plan$1,000 Annual Benefit

Employee $ 30.60 $ 30.60 $ 0.00

Dependent $ 51.52 $ 0.00 $ 51.52

Total for Family $ 82.12 $ 30.60 $ 51.52


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So what’s the bottom line? Change in Cost Per Month

Dental Plan FY12

Previous

Cost

Per Month

Effective

July 1, 2011

Cost

Per Month

Difference

Cost

Per Month

Base PlanEmployeeDependentTotal for Family

$ 30.16$ 50.82$ 80.98

$ 30.60$ 51.52$ 51.52

$ 0.44$ 0.70$ 1.14


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NAPEBT Vision Plans

VSP Group # 12239817

Core #0003 Buy Up #0004

Plan Year

July 1, 2011 – June 30, 2012

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VISION PLAN EFFECTIVE JULY 1, 2011

Vision Plan FY12 Core PlanEmployee Only

Eye ExamOnce every 12 months

$15.00 Co-pay

Prescription LensesOnce every 12 months

20% Discount on a complete pair of glasses.

FramesOnce every 24 months

ContactsInstead of Glasses

15% Discount on Contact Lens Exam

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VISION PLAN EFFECTIVE JULY 1, 2011

Vision Plan FY12Monthly Premium FUSD Cost Employee Cost

per Month

VSP

Family Exam $ 1.37 $ 1.37 $ 0.00

Employee Buy Up $ 6.97 $ 1.37 $ 5.60

Family Buy Up $ 14.97 $1.37 $ 13.60

So what’s the bottom line? There is no change to employee payroll deductions for

vision coverage for 2011-2012.

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NAPEBT Life Insurance Plans

Minnesota LifePolicy # 33585 Division 5

Plan Year

July 1, 2011 – June 30, 2012

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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011

Basic Term Life & Accidental Death & Dismemberment InsuranceBased on position and salary

• Provided by FUSD at no cost to the employee

• May convert to an individual policy upon separation of employment

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Voluntary Term Life Insurance• Employee may increase elected coverage amount by $10,000 at Open Enrollment without underwriting (up to the Guaranteed Issue limit of $100,000)

• $100,000 guaranteed issue at original enrollment

• Maximum coverage amount = 5x annual salary up to $500,000

• Insure spouse up to half of employee’s voluntary coverage election

• Insure children @ $10,000


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Voluntary Term Life Insurance• Rate Change

• % of Increase Varied by Age Bracket

• Child Rate – No Change

Previous Monthly Rate Effective July 1, 2011

Employee – Age 36

$80,000 Coverage

$ 5.60 $ 7.20

Employee – Age 52

$100,000 Coverage

$ 19.00 $ 23.00

Spouse – Age 47

$25,000 Coverage

$ 3.25 $ 4.75

Spouse – Age 59

$40,000 Coverage

$ 14.40 $ 21.20

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Flexible Spending Accounts

ASI Flex

Plan Year

July 1, 2011 – June 30, 2012

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Flexible Spending Accounts

Reduce Tax Liability

Health Care FSA (HCFSA) – allows you to set aside pre-tax dollars to pay for eligible health care expenses not covered by insurance or reimbursed from any other source.• Limited Purpose Health Care FSA (use with a High Deductible

Health Plan (HDHP) and Health Savings Account (HSA)

(dental, vision and preventive care expenses only)• General Purpose Health Care FSA (qualified health care

expenses)

Dependent Care FSA (DCFSA) – allows you to set aside pre-tax dollars to pay for eligible day care expenses for children up to the age of 13, disabled children over age 13, and elder care.

FSA PLAN EFFECTIVE JULY 1, 2011

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FSA – Medical• Unreimbursed Medical, Prescription, Dental, & Vision expenses

• Up to $3,000 Per Year

• Debit Card

• Reimbursement by Check or Direct Deposit

• Full Amount Elected Available Immediately

• MUST RE-ENROLL EACH YEAR!

• Use or Lose – Be Conservative!


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Ineligible Health Care Expenses• Cosmetic Expenses

• Rogaine, bleaching of teeth, cosmetic surgery (other than reconstructive surgery following a mastectomy for cancer)

• Dietary Supplements such as Vitamins

• Personal Use Items

• Health Club Memberships

• Tanning Salon

• Over-the-Counter Medications Unless Prescribed by a Doctor


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FSA – Dependent Care• Up to $5,000 per year

• Reimbursement by Check or Direct Deposit

• Funds Available as Contributed

• MUST RE-ENROLL EACH YEAR!

• Use or Lose – Be Conservative!


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Ineligible Dependent Care Expenses• School Expenses for Children in Kindergarten or Older

• Overnight Camping

• Expenses for a Child Age 13 or older (unless disabled)

• Expenses for Nighttime Babysitting

• Daycare Expenses During an Extended Leave of Absence

• When a Dependent is Providing Child Care

• Expenses Paid to Your Child Under the Age of 19

(even if child is not your dependent)


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Health Savings Accounts

Health Equity

Plan Year

July 1, 2011 – June 30, 2012

40

HSA PLAN EFFECTIVE JULY 1, 2010

Health Savings Accounts

Only available with election of HDHP Reduce Tax Liability Use like flexible spending account for Medical,

Prescription, Dental and Vision Unspent money rolls over year after year; NOT use it or

lose it

Take it with you when you leave or retire• Pay for COBRA, Medicare or Long Term Care

Premiums• Never pay taxes as long as used for qualified

expenses

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• Health Equity and Blue Cross Blue Shield of Arizona have created an integrated Health Savings Account (HSA) solution.

• Your claims information will now be available with your HSA account information for easier management of claims payment and review.

• When you login to the Blue Cross web site (www.blueaz.com) you can click on a link to take you to the Health Equity portal where you can view your claims, see how much you owe, and process payment (pay a provider, or yourself) – all from the same website.


HSA PLAN EFFECTIVE JULY 1, 2010

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Questions?

Open Enrollment 2011

Open Enrollment

Documents

Transcript of Open Enrollment