Regent University

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Regent University

• Open Enrollment 2006

This changes everything!
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The Review Process FY07

• Assessment
• Based on the cost and utilization of services,
  plan design and contribution changes were
  identified and evaluated.
• A formal RFP was developed and presented to
  potential vendors.
• Proposals were evaluated according to 6
  pre-defined criteria
• Company commitment to engaging, empowering,
  educating equipping employees
• Broad provider network minimal physician-patient
  dislocation
• Reasonably competitive pricing
• Strong support for those in greatest need
• Patient-focused disease management programs
• Dual medical options from a single vendor
• Result
• CIGNA selected as network manager claims
  administrator for FY07.
• Additional CIGNA capabilities led to their
  assumption of ancillary benefits.

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Why doesnt the insurance company pay for it?

• Its not their job.
• They pay claims
• They manage the network
• They provide tools
• Its not their money.
• Its ours

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Where does the money go?
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How much are we talking about?
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Employee Family Medical Cost Distribution -- 2005
Total number of employees covered during the
year 511
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Whats not changing?

• Commitment to supporting financial security for
  faculty staff
• Commitment to good stewardship of our resources
• Commitment to education empowerment
• Commitment to wellness, prevention health
• Commitment to care for those in greatest need

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The New Benefits Vocabulary
Note The CIGNA medical provider network is
called the Open Access Plus Network
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High Level the Options

• Open Access Plus In-Network
• No PCP referrals required
• Office Visits 20 PCP/40 Specialist
• Enhanced maximums
• Lifetime -- 2 million
• Visit limits
• PT, OT, ST
• Mental Health
• Chiropractors included

• Choice Fund HSA
• Health Savings Account
• IRS-qualified High Deductible Health Plan
• 100 coverage of preventive care
• Enhanced maximums
• Lifetime -- 2 million
• Visit limits
• PT, OT, ST
• Mental Health
• Chiropractors included

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The Health Savings Account HSA

• Think IRA for medical expenses
• You own it
• Triple tax-free
• Tax-free contributions
• Tax-free investment earnings
• Tax-free distributions (for medical purposes)
• Youre eligible if
• Youre not on Medicare
• You have an IRS-qualified HDHP

• Regent University will make a starter
  contribution on your behalf for FY07
• 500 for Employee Only
• 1,000 for other tiers
• Regent University will match 50 of your
  voluntary monthly payroll contributions
• Maximum voluntary monthly payroll contribution
• 55.58 for Employee Only
• 111.08 for other tiers

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The IRS-qualified High Deductible Health Plan
(HDHP)

• 1,500 Deductible for Employee Only 3,000 for
  all dependent coverage tiers (EmployeeChild(ren),
  EmployeeSpouse, EmployeeFamily)
• The 3,000 Deductible for coverage with
  dependents is an Aggregate Deductible
• Prescription drug expenses must count towards the
  Deductible
• Preventive care (including preventive drugs) is
  excluded from the Deductible

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And now the details
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Case Study -- Mary
Female, age 29
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Marys Alternatives
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Case Study Hubert Hortense
Male, age 62 Female, age 62
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Hubert Hortenses Alternatives
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Case Study Sam Sarah
Male, age 50 Female, age 49
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Sam Sarahs Alternatives
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Case Study Mark Micki
Male, age 36 Female, age 36 Children, ages 4,
8, 11
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Case Study Mark Micki
Male, age 36 Female, age 36 Children, ages 4,
8, 11
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Case Study Mark Micki
Male, age 36 Female, age 36 Children, ages 4,
8, 11
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Mark Mickis Alternatives
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Case Study Gustav Gertrude
Male, age 56 Female, age 47
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Gustav Gertrudes Alternatives