Open Enrollment

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• Open Enrollment
• Plan Year 2008

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Todays Agenda

• Open Enrollment
• Health Care
• Web Enrollment Health
• Health Contributions
• Employee Resources
• Wellness
• Dental

• Flexible Spending Account (FSA)
• Health Reimbursement Account (HRA)
• FSA vs. HRA
• Web Enrollment FSA/HRA
• 50 Benefit Allowance

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2008 Open Enrollment

• 2007 Health Insurance Open Enrollment- October
  15th-26th
• Passive enrollment
• KCTCS employees MUST enroll if they
• Wish to change their current coverage
• Wish to add or drop dependents
• KCTCS Employees should have already received a
  letter at home with
• State Benefit Fair information
• Employee ID Password for web enrollment

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2008 Open Enrollment

• KCTCS Open Enrollment
• KCTCS employees MUST enroll if they
• Wish to enroll in Flexible Spending Account (FSA)
• Wish to enroll in the Health Reimbursement
  Account (HRA) for health waivers
• Wish to enroll in the 50 Benefit Allowance
• Wish to change their Dental coverage including
  adding or dropping dependents

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2008 Open Enrollment

• There are no health benefit changes for Plan Year
  2008
• Same four plans available
• Please see the 2008 Plan year KEHP Handbook for
  further details
• All 4 plans contain the same covered services,
  exclusions and limitations
• Benefit payment levels and premiums will differ

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Health Insurance Plan Selections

• The Kentucky Employees Health Plan (KEHP)
  contains the same 3 Preferred Provider
  Organization (PPO) Options and a High Deductible
  Health Plan (HDHP) with an embedded HRA that are
  currently offered in 2007
• Commonwealth Essential (PPO)
• Commonwealth Enhanced (PPO)
• Commonwealth Premier (PPO)
• Commonwealth Select (HDHP)

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UCR/Eligible Expense

• Expenses used to satisfy the deductible and
  co-insurance limit for Preferred Provider
  Organizations (PPO), including the Commonwealth
  Select Plan, are the UCR and/or eligible expenses
  for that particular service
• Usual, Customary and Reasonable (UCR)/Eligible
  Expense
• A providers fee which
• Is the providers usual charge for a given
  service under the covered plan
• Is within the range of fees charged by providers
  of similar training and experience for the same
  or similar service or supply within the same or
  similar limited geographical area
• Does not exceed the fee schedule developed by the
  insurance carrier or TPA (Humana)

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2008 Open Enrollment

• Employees hired during or after OE
• MUST complete two health applications, UNLESS
  they want their New Employee elections to roll
  to the 2008 Plan Year
• MUST complete HRA applications for the remainder
  of 2007 and a new one for 2008 if they waive
  health coverage or enroll in a FSA 2007 and wish
  to enroll in a FSA for PY 2008

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2008 Open Enrollment

• Plan Year 2008 will NOT be a total health
  re-enrollment.
• Employees wishing to make changes may
• Web enroll, or
• Complete paper application
• Paper applications will be included in the
  handbook or available on the DEI web-site
• Employees wishing to keep same coverage and
  elections for health coverage and/or waiver, DO
  NOT NEED TO RE-ENROLL

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2008 Open Enrollment

• Open Enrollment is October 15-26, 2007
• For Active employees, COBRA participants and
  Early Retirees (under age 65)
• Employee must be in GHI ( group health insurance)
  system by October 5, 2007 to be eligible to web
  enroll, if not they must complete paper
  application
• Paper application must be signed by 10/26/07
• Paper application or web confirmation must be
  turned into college Human Resources Department

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Reminder

• Dependent Coverage
• Dependents Turning 24 during 2008
• Not eligible to be enrolled for 2008
• Enrollment will end 12/31/07
• Applicable dependents will be eligible for
  continuation through COBRA will automatically
  receive notice
• If dependent drop results in eligibility for
  single coverage, coverage will be changed
  automatically
• Any new forms required (50 benefit, FSA) from
  this change must be completed

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Web Enrollment Health Insurance

• Web Enrollment
• What is it?
• Using the internet to make health insurance
  elections
• May enroll from work or from public
• access
• Web-site for health insurance access
• www.openenroll.ky.gov/

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Web Enrollment Health Insurance

• Web Enrollment
• Who can enroll on the internet?
• Anyone who is a plan-holder in the GHI system by
  October 5, 2007
• Employees not eligible to enroll on the internet
  are
• New hires
• KRS, KTRS and KCTCS 403(b) retirees
• Employee cross-referencing with KRS or KTRS
  retiree
• Spouse or children of retirees who are not
  actually the retiree
• Cross-referenced employees who want to switch
  primary plan-holders for 2008

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Web Enrollment Health Insurance

• Web Enrollment Cross Reference
• If you are currently cross-referenced and do not
  wish to change your plan, level of coverage or
  primary policyholder, you will not need to web
  enroll. Your coverage will remain the same
• You cannot change the primary policy holder
  through the web, you will have to complete a
  paper application
• If you wish to begin cross reference, you may do
  so on the web as long as you have your password
  and your spouses password

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Web Enrollment Health Insurance

• Your KEHP Online Access will be available for
  fast, accurate and secure enrollment!
• Employees will need EmpID Password to log in
• EmpIDs were mailed during the first week of
  September
• Passwords were mailed during the last week of
  September

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Web Enrollment Health Insurance

• Web Enrollment
• Confirmation Process
• Confirmation number will be provided at the end
  of a correct enrollment
• You will have clicked on enrollment complete
• You will have reviewed your elections
• You will have hit the Accept button
• Print confirmation statement and give to your
  college Human Resources Department

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Web Enrollment Health Insurance

• Waivers
• If you currently waive you Do NOT Need to
  Re-Enroll, election will roll-over
• If newly waiving for 2008
• Click on waive on the main menu
• You will NOT elect the HRA
• HRA Selection will be through Chard-Snyder
• Print confirmation and give to your college Human
  Resources Department
• For paper applications, complete section I,
  Section V, section VIII and give to your college
  Human Resources Department. DO NOT MARK HRA BOX!

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Waiving Coverage

• HRA
• Employees in either the 18A/151B or the KCTCS
  personnel system who waive their health insurance
  will receive an employer contribution of 175 per
  month to direct to a Health Reimbursement Account
  administered by Chard-Snyder

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KCTCS Health Insurance Employee Contributions

• 2008 Employee Contributions
• 18A/151B employees will use the state established
  employee contributions based upon smoker or
  non-smoker status. There is an incentive for
  non-smoking
• KCTCS will offer only one employee contribution
  schedule which is based upon a 25 reduction of
  the lower state non-smoking schedule

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Employee Health Contributions KCTCS personnel
system
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Employee Health Contributions 18A/151B Non-Smoker
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Employee Health Contributions 18A/151B -Smoker
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Health Insurance Cross-Referencing

• Cross-referencing will continue to be an option
  for married employees who are eligible to
  participate in the Kentucky Employees Health Plan
  (KEHP)
• For two 18A/151B employees covered under one
  family health benefit plan, they each will pay
  the family cross reference rate reflected in the
  contribution schedule for state employees

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Health Insurance Cross-Referencing

• For two KCTCS employees covered under one family
  health benefit plan, they each will pay the
  family cross reference rate reflected in the
  contribution schedule for the KCTCS Personnel
  System
• For a KCTCS employee who cross-references with
  their spouse employed by another state agency,
  they each will pay the family cross reference
  rate reflected in their respective contribution
  schedule

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ReminderDouble Dipping

• KRS 18A.225 (13)
• Any employee who is eligible for and elects to
  participate in the state health insurance program
  as a retiree, or the spouse or beneficiary of a
  retiree, under any one (1) of the state-sponsored
  retirement systems shall not be eligible to
  receive the state health insurance contribution
  toward health care coverage as a result of any
  other employment for which there is a public
  employer contribution. This does not preclude a
  retiree and an active employee spouse from using
  both contributions to the extent needed for
  purchase of one (1) state sponsored health
  insurance policy for that plan year.

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ReminderDouble Dipping

• KTRS Retiree
• KTRS Retirees that have returned to active
  employment MUST select coverage through the
  active employer (KCTCS)
• KERS Retiree
• KRS retirees that have returned to active
  employment have the option to select coverage
  either through KRS or the active employer (KCTCS)

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Major Considerations for Health Plan Selection

• Employee and dependents projected medical
  expenses
• Plan deductibles
• Out-of-pocket maximums
• Prescription Drugs
• Employee Premium contribution
• Pre-tax consideration
• You can go on your MyHumana web-site and use
  their Decision Tools

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Employee Resources MyHumana

• MyHumana helps you find information you need, 24
  hours a day, 7 days a week
• Contains a myriad of resources
• Easy access through kyhealthplan.humana.com

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KEHP Wellness Programs

• A variety of programs exist for participants in
  the KEHP
• Smoking Cessation
• Cooper Clayton
• Kentucky Tobacco Quit Line
• Maternity Program
• Personal Health Assessment (PHA)
• Why Weight Kentucky
• Informed Care Management
• Further information can be found in the KEHP 2008
  booklet, on the Humana KEHP web-site
  (www.kyhealthplan.humana.com) and on the KEHP
  web-site http//www.personnel.ky.gov/benefits/dei/
  08planyear/

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Dental Open Enrollment

• Dental open enrollment is October 15- October 26,
  2007
• Dental choices
• Dental Care Plus
• Delta Dental
• Compdent
• HealthResources
• Dental coverage will rollover from 2007 to 2008
• If you wish to add or drop family members or
  change carriers you will need to complete a new
  dental application
• To cancel dental coverage, employee must fill out
  dental application and write Cancel Coverage
  Effective 1-1-08

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Dental Open Enrollment

• Reminder
• If your covered dependent is over age 19, you
  will need to submit a proof of student status to
  the dental carrier before claims are paid.
• Dependents are not covered over the age of 23.
  They will automatically be dropped from the plan.
  You will need to notify your college Human
  Resources Office when this occurs.

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Flexible Spending Accounts (FSA)

• Federal regulations require that employees that
  wish to enroll in a FSA do so every year
• Re-enrollment is necessary to participate in a
  FSA account either with employee contributions or
  employer contributions due to the 50 Benefit
• The carrier for 2008 will continue to be Chard
  Snyder and Associates
• There are two kinds of FSAs
• Health Care Spending Account for medical
  expenses
• Minimum 5 per paycheck( including 50
  benefit) total annual maximum 5,004 (208.50
  per paycheck)
• Dependent Day Care Account for Dependent care
  expenses
• Minimum 5 per paycheck total annual maximum
  4,992
• Please refer to the FSA booklet for further
  information

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Flexible Spending AccountGrace Period

• Use left over money from 2007 plan year until
  March 15, 2008
• (applies to KCTCS personnel system employees
  only)
• Will also apply to 2008 Plan Year (2 ½ monthly
  grace period will be January 1 March 15, 2009)
• Will apply to all enrolled employees regardless
  of personnel system

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Flexible Spending AccountGrace Period
Illustration

• Jan 1 March 15 continue to incur claims during
  this period (may choose bucket of money)

January 1, 2007 Allocated 1,200 for Healthcare
Spending Account
December 31, 2007 300 remaining in Healthcare
Spending Account for 2007
March. 15, 2008
October 16 October 27, 2007 Allocated 1,000
for 2008 Plan Year Healthcare Spending Account
January 1, 2008 Total of 1,300 in Healthcare
Spending Account for 2008 (300 must be used by
March 15)
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Flexible Spending AccountGrace Period

• Reminder
• You may use your FSA Benny Prepaid Benefits card
  for grace period expenses. The Reimbursements
  will automatically be applied to the correct year
• Or, you may also pay for these expenses and then
  file for reimbursement from Chard-Snyder by mail
  or fax

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HRA

• Two Separate Health Reimbursement Accounts
• Embedded HRA
• Offered in conjunction with Commonwealth Select
• Funded with employer money only
• Administered by Humana and the DEI
• Stand alone HRA
• Available only to employees who waive health
  insurance
• Funded with employer money only
• Administered by Chard-Snyder
• (Humana materials may refer to an HRA as a
  Personal Care Account (PCA)

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FSA vs. HRA
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FSA vs. HRA

• In addition to the HRA, an employee may fund a
  Health Care FSA to reimburse unpaid qualified
  medical expenses (ex Deductible, Copays,
  Co-insurance, Dental, Vision, etc.)
• May fund with employee contributions
• If waiving or have single health coverage, may
  use all or part of the 50 Benefit for funding
• For Commonwealth Select plan participants, when
  using your HRA, only plan covered expenses will
  count towards the plan deductible and
  out-of-pocket maximum (Excludes Dental, Vision,
  Over the Counter Medications)

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FSA vs. HRA

• If you have both a Health Care Flexible Spending
  Account (FSA) and a Health Reimbursement Account
  (HRA), reimbursement will come from your FSA
  account balance first.
• The FSA balance is forfeited at the end of the
  plan year (12/31/07) and 2 ½ month grace period
  (3/15/08).
• The HRA balance will roll-over from year to year
  as long as you remain a waiver or enrolled in the
  Commonwealth Select plan.
• Will not roll-over if you change your plan
  selection.
• NOTE If you use the Benny PrePaid Benefits Card
  from Chard-Snyder, reimbursements will
  automatically be from your FSA first until that
  annual election amount is depleted. Then,
  reimbursement will be from your HRA.

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Using Benny PrePaid Benefits Card for HRA at
Pharmacies Waivers Only

• If employee is covered under spouses health
  plan, they would use that health insurance card
  first.
• Employee would then use Chard-Snyder Benny card
  for any copay or coinsurance amounts due

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Save your receipts HRA Reimbursed Expenses

• It is important to save all itemized receipts
• The IRS requires proof (substantiation) that
  expenses are qualified under your plans benefits
• For the Commonwealth Select plan -Humana
  automatically verifies transactions, in most
  cases, as they occur. However, Humana may ask
  members to submit receipts for verification of an
  expense
• For Waivers, Chard-Snyder automatically verifies
  transactions, in most cases, as they occur.
  However, Chard-Snyder may ask members to submit
  receipts for verification of an expense
• Always save all receipts and explanation of
  benefits (EOB) in case you are contacted to
  verify an expense that could not be matched
  automatically
• If a refund is needed
• Card should be credited by the provider
• If providers refund the member directly the
  member will be required to refund the card (per
  IRS guidelines)

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Web Enrollment FSA

• Flexible Spending Account FSA Coverage
• KCTCS employees will NOT be able to web-enroll
  for FSA coverage through the DEI Website
• A message will appear that states that KCTCS is
  non-participating and to contact the Insurance
  Coordinator

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Web Enrollment FSA

• FSA Coverage
• FSA Enrollment is a separate process. KCTCS
  employees will be able to web-enroll for FSA
  Coverage through the Chard-Snyder Website at
  www.chard-snyder.com
• If employees are currently enrolled in FSA, they
  will use their current password to web-enroll
• Detailed instructions will be available in the
  Chard-Snyder material available for distribution
• You will be able to sign up for your employee
  health care and/or dependent care elections and
  any 50 Benefit allocations
• NOTE If you are signing up for both a FSA and a
  HRA, you will be able to do both through the same
  screen

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Web Enrollment HRA

• HRA Coverage
• HRA Enrollment is a separate process. KCTCS
  employees will be able to web-enroll for HRA
  Coverage through the Chard-Snyder Website at
  www.chard-snyder.com
• If employees are currently enrolled in FSA, they
  will use their current password to web-enroll
• Detailed instructions will be available in the
  Chard-Snyder material available for distribution
• NOTE If you are signing up for both a FSA and a
  HRA, you will be able to do both through the same
  screen

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50 Benefit Allowance

• Eligibility is open to KCTCS personnel system
  regular, full-time employees who are enrolled in
  single healthcare coverage or who have waived
  healthcare coverage.
• You may use the 50 monthly benefit by electing
  coverage
• To pay for health insurance
• To pay for dental insurance
• To be placed in Healthcare FSA (FSA form must be
  completed)
• To purchase voluntary supplemental benefit
• You must complete a new 50 Benefit Enrollment
  Form to participate in 2008
• You may not use this benefit to purchase Group
  Life Insurance or Supplemental Long Term
  Disability

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2008 Insurance/Benefit CARDS

• Health Insurance and Prescription Drugs
• If you do not switch coverage, you will continue
  to use your current Humana ID card
• If you switch to the Commonwealth Select Plan,
  you will receive a Health ID card and a
  HumanaAccess visa card
• Dental
• You will only receive a new ID card if you change
  coverage
• Waivers
• You will receive a Chard-Snyder Benny PrePaid
  Benefits card for your HRA if you are a new
  enrollee,
• If you have a 2007 HRA and Benny card, your new
  2008 election will be loaded onto it
• FSA
• You will only receive a Benny Prepaid if you are
  a new enrollee
• If you have a 2007 FSA and Benny card, your new
  2008 election will be loaded onto it
• If you have both a HRA and a FSA, you will use
  the same Benny card

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For Active Employees Age 65 and Older

• The KCTCS Health Plan is considered primary over
  Medicare
• You do not need to sign up for Medicare Part B
  until you cease employment. You will then enroll
  for this coverage under a Special Enrollment
  Period
• The prescription drug plan offered through the
  KEHP is considered Creditable Coverage. You do
  NOT need to sign up for a Medicare part D plan

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Contacts

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Deadlines

• Open enrollment
• October 15th through October 26th
• Open Enrollment in Peoplesoft
• October 16th through November 2nd
• All paper applications due by
• November 2nd