Palmer College of Chiropractic

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Palmer College of Chiropractic

• 2005 Benefit Meeting

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Presented by

• Tracey Kmetz Human Resources
• Tom Tiemeier Chief Financial Officer
• Diana Seymour Gallagher Benefit Services
• Becky Paul Wausau Benefits

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Whats Happening to Health Care Costs?

• Industry Wide Increases Average 10 -18 overall
• Employers struggle to balance increasing costs
  and maintain benefit levels
• Some ways that Employers cope include
• Cost Sharing
• Lowering Benefit Levels
• Limiting Networks
• Risk Management Programs
• Predictive Modeling

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Why are my costs increasing?

• Medical Inflation
• Prescription Inflation
• Research and development of new drugs
• Availability and use of expensive drug therapies
• Advertising to encourage use of newer drugs
• Aging Population
• Consumer Demand
• Technological Advances in Medical Treatment

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Why are my costs increasing?

• Litigious Environment
• Government-mandated Benefits and Legislative
  Changes (i.e. COBRA, HIPAA, Section 125)
• Lifestyle Issues
• Sedentary Lifestyles
• Obesity
• Stress
• Smoking

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Cost Projections 2004 - 2007

• Palmer College Medical Dental Projected Costs
• 2004 641.24 PEPM
• 2005 754.28 PEPM
• 2006 861.81 PEPM
• 2007 985.58 PEPM
• Palmers 2004 Annual Projected cost is
  3,224,150.00

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Average Employee Contribution Comparison
Mercer 2003 Survey of Employer Sponsored Health
Plans
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Contribution Benchmarks
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2005 Plan Overview

• No change to PPO Benefits for 2005 plan year
• Wausau Benefits remains Third Party Administrator
• Costs are being managed through Network Discounts
  and Utilization Management
• Technological Capabilities
• Electronic claims submission
• Internet access to your claims history
• Reduce compensation tiers for employee premiums

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2005 Employee Contributions
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HIPAA Administration Simplification

• HIPAA Privacy Rules became effective April 14,
  2004 requiring protection of Private Health
  Information (PHI)
• Requires protection of individually identifiable
  health information
• Restricts the flow of information from the health
  plan to the employer and the employers use of
  that information

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HIPAA Privacy What does that mean to me?

• Restricts the communication of Private Health
  Information to anyone except the member
• Requires written authorization from the member
  for another person to obtain Private Health
  Information, even at the members request
• Wausau online will help you manage your Private
  Health Information efficiently and securely

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Section 125 Lifestyle Events and Deadlines

• Lifestyle events allow you to make changes to
  your health plan enrollment within 30 days of the
  event for the following reasons
• Legal Marital Change
• Number of Dependents
• Employment Status
• Work Schedule (Reduction in hours)
• Change in Eligibility of a Dependent
• Loss of Health Plan Coverage of a dependent
• You must notify your Human Resources Department
  of any lifestyle event.

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Your Flexible Spending Account

• A Benefit that Saves You Money!

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Convenience No More Shoebox!

• Automatic reimbursement of deductibles and
  co-payments for medical, dental and pharmacy
  coverage
• No claim form necessary! No receipts to save!
• You must opt-out if you do not want this feature
• You usually receive your payment before your
  provider or credit card bill is due

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How to Enroll

• Fill out your election form by 12/10/04
• Contributions to the FSA are pre-tax, reducing
  your taxable income
• Expenses must be incurred during the plan year to
  be eligible for reimbursement
• Plan carefully, as any unused balance at the end
  of the plan year is lost to you

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How does it work?

• Health Spending Account
• Deposits (Reduction in Taxable Income) 1,000
• Federal Income Tax Savings 200
• FICA Savings 76
• Yearly Tax Savings, More Take-Home Pay 276
• Assumes Federal Income tax rate of 20
• Includes Social Security tax rate of 6.25 and
  Medicare tax rate of 1.45

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Health Care Expenses Covered

• Up to 3000 per year for eligible expenses
• Health insurance deductibles, co-payments
• Vision, including glasses, contacts, contact
  solution, laser eye surgery
• Dental, including braces
• Provider visits, lab fees
• Prescription drug co-payments
• Non-prescription medications
• Claims processed within 5 days of receipt

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Non-prescription medications

• Must be a medication used for treatment of a
  medical condition
• Examples include antacids, pain relievers, cough
  medicines and allergy medications
• Does not include medications merely beneficial to
  health
• Examples include dietary supplements and
  vitamins
• Claims must be substantiated
• You must send in your signed claim form and a
  cash register receipt containing the merchant
  name, medication name and date purchased

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Dependent Care Expenses Covered

• Up to 5000 per year for work-related expenses,
  including
• Day care for children under age 13
• In-home services by a full-time, live-in
  housekeeper caring for a qualified individual
• Services for other dependents who cannot care
  for themselves
• Claims processed within 48 hours of receipt

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Plan Carefully!

• Use it or lose it
• Use the worksheets in your folder
• Refer to plan document and eligible expense lists
  at www.wausaubenefits.com

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Internet Capabilitieswww.wausaubenefits.com

• Everything you need all in one spot!

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www.wausaubenefits.com Where members go to
access a wealth of online services.
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With online self-registration, you are able to
select a unique username and password. To do
this, simply enter your group number and Member
ID as shown on your ID card.
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Once you have registered, you will simply need to
enter your username and password to access all
online member services
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You will see portlets, or small windows of
information, as soon as you login. If more
detailed information is needed, you can click
View More or choose an option from the links on
the left side of the screen.
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• There are two levels of claim detail
• Service dates
• Charged amount
• Allowed amount
• Patient responsibility

This view represents the first level of claim
information displayed.
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• Eligibility Inquiry displays information such as
  
• Your demographic data
• Coverage information
• Plan selections

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Medical Benefits Inquiry

• Medical Benefits displays
• Network links
• Copays, if applicable
• Major medical benefits
• Routine benefits
• Therapy benefits
• Mental, alcohol and drug benefits

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Deductible Status Inquiry

• Deductible Status displays benefits levels and
  current amounts applied to date for
• Lifetime Maximum
• Individual Deductible
• Family Deductible
• Individual Out-of- Pocket
• Family Out-of-Pocket

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• You can contact us with this form
• Request is automatically routed to the individual
  best able to respond to your question
• You will receive an auto reply confirmation that
  the E-mail was received.
• Response standard Reply in 24 to 48 hours.

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Flexible Spending Account Resources

• Gives you the tools needed to make educated
  decisions about your FSA account
• Health Dependent Care Calculators
• Eligible and ineligible expense listings
• Links to IRS publications on recent
  legislation relating to FSA

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myTools

• On the myTools tab, you can
• Order ID cards
• Access commonly requested forms
• Update your online profile
• Access provider directories

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You can order ID cards quickly and conveniently.
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myHealthCenter
The tools found on the myHealthCenter tab provide
you with a wealth of information and services to
help you live a healthier lifestyle.
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Disease Management Condition Centers

• Use online tools to help manage the following
  conditions
• Diabetes
• Heart Disease
• Asthma
• Chronic Obstructive Pulmonary Disease
• High Blood Pressure
• Depression
• Congestive Heart Failure

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Everything you need all in one spot
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iVantage Connect

• Your Benefits Information Resource
• http//hris.palmer.edu
• Username firstname.lastname
• Password SSN (no dashes)

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iVantage Connect
Benefits and Absences
These are direct links to the website!
All of your current benefits will be listed here,
along with your cost and what Palmer pays for the
benefit.