Palmer College of Chiropractic-Florida

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• Palmer College of Chiropractic-Florida
• 2009 Employee Benefit Meeting

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Presented by

• Palmer Human Resources Michelle Walker
• Gallagher Benefit Services Lindsey Staniszeski
• UMR Account Management Joyce Dort

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The Current Benefits Marketplace

• Whats Happening to Health Care Costs?
• Industry Wide Increases Average 10 12
• Employers struggle to balance increasing costs
  and maintain benefit levels
• Why are our Health Care costs increasing?
• Medical and Rx Inflation
• Aging Population
• Consumer Demand
• Technological Advances in Medical Treatment
• You can help lower these costs by practicing
  healthy lifestyle behaviors and by being a wise
  consumer!

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Cost Projections 2008 - 2010

• Palmer College Medical Projected Costs
• 2008 871.71 PEPM
• 2009 887.69 PEPM
• 2010 976.45 PEPM
• Palmer College Expected 2009 Medical Programs
  Cost
• 4,857,439

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Average Employee Contribution Comparison
2009 Single Coverage Family Coverage
Palmer College 17 19
Regional South 24 South 39 South
National 30 54
Mercer 2007 Survey of Employer Sponsored
Health Plans
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2009 Monthly Employee Contributions
Palmer College 2009 Employee Contribution Employee Only Employee 1 Family
Palmer College 2009 Employee Contribution 95.00 190.00 283.50 5 increase from last year
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Qualifying Events and Deadlines

• Qualifying Events allow you to make changes to
  your health plan enrollment flexible spending
  plans 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

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2009 Update

• Life and Disability benefits will remain the same
• Medical benefit plan design will remain the same
• UMR - New third party administrator beginning
  January 1st
• Medical
• Prescription Drugs (Innoviant)
• Dental
• FSA
• Care Management and Utilization Review
• Change in provider network from Midlands Choice
  to UnitedHealthcare Options PPO
• New network offers substantial savings with
  minimal disruption

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Who Is UMR?

• New Third Party Administrator UMR for 2009 plan
  year
• A UnitedHealthcare company
• The largest third-party benefits administrator in
  the United States!
• Just how large is UMR?
• Employs nearly 4,000 associates
• Services more than 1,260 customers and their 2.8
  million members
• Handles 4 million phone calls and processes more
  than 39 million claims a year

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What Will UMR Do for You?
Arm you with information to
make wise decisions
Become your personal health
plan advocate
You and your family
Help you and your family live
healthier lives
Offer you options to
meet your needs
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Information Around the Clock

• 24/7 interactive voice response
• More claims and benefit information online at
  www.umr.com
• UMR representatives availableMonday through
  Friday 7am 9pm CST
• Toll-free number1-866-868-7241

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About Your PPO NetworkUnited Healthcare Options
PPO

• Advantages of UnitedHealthcare Options include
• Benefits applied the same across the country
• Direct access to specialists-never need a
  referral
• Freedom to make your own choices about which
  physicians to see
• You can access the most current PPO network
  provider listing by logging on www.umr.com,
  clicking on Find a Provider then under Network
  choose UnitedHealthcare Options PPO
• Provider participation status is also available
  by calling the toll-free number on the back of
  your ID card (1-866-868-7241).

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Innoviant Pharmacy Benefits

• More than 59,000 participating pharmacies
• Customer Service Center toll-free number
  1-877-559-2955
• Customer Service Center Available 24/day 7
  days/week
• Web site www.innoviant.com
• Online preferred product listing and pharmacy
  network listing

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Innoviant Rx - Mail Order

• Mail order co-payments apply for a 90 day supply
• Request your doctor to write a prescription for
  90 days with 3 refills (this allows a
  prescription for 1 year).
• Complete mail order registration form available
  by calling Innoviant customer service or visiting
  www.innoviant.com
• Send in your prescription, mail order
  registration form and co-payment to Innoviant
  Pharmacy

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Wise Choice

• Helps you identify and use the money saving
  options in your prescription benefits program
• Call our Certified Pharmacy Technicians to set up
  a consultation at 877-809-6996

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Member Information Center Everything you need.

• WWW.UMR.COM

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Flexible Spending Accounts

• Flexible spending accounts
• These accounts allow employees to pay for certain
  expensesmedical, dental, vision, or dependent
  care expenseswith pretax dollars.
• Annual elections
• Before the start of this plan year, employees
  must choose the amount of money they wish to set
  aside on a pre-tax basis for eligible expenses
  incurred between January 1 and December 31, 2009
  (up to 5,000 for medical expenses and 5,000 for
  dependent care expenses).
• New this year - Direct Deposit option
• Refer to your handout or plan document for a list
  of eligible expenses (or view online at
  www.fhs.umr.com then click on forms)

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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
• That is a 27.6 Savings!
• 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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Flexible Spending Accounts

• Plan Carefully - Any unused balance at the end of
  the plan year is forfeited.
• Employees can change benefit elections during the
  plan year ONLY under certain circumstances, such
  as a change in the employee's family or lifestyle
  event.
• Fill out your election form by November 18, 2008
  to participate.

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Coordination of Benefits

• Each year employees enrolled in family coverage
  will receive a form letter from UMR(the claims
  administrator) asking if the dependents are
  enrolled in other health insurance coverage.
• Please be sure to complete this form, even if
  your dependents are not enrolled in any other
  insurance
• If your dependents are enrolled in another health
  insurance plan, please provide all specifics
  requested and return the letter to UMR
• Compliance with this request ensures that claim
  payments will not be delayed.
• Student status verification is confirmed by URM
  twice annually

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Retirement Plan

• Increased IRS employee contribution limits
  effective January 1, 2009
• Under age 50 - 16,500
• Age 50 and over - 22,000
• Due to IRS regulations, Principal will be the
  only vendor for Employee 403(b) contributions
• Consider increasing your contribution if you are
  currently contributing. If you are not currently
  contributing, consider enrolling.

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Medicare Part D

• For all Medicare Eligible Employees
• Each year Palmer distributes Part D Certificates
  of Creditable Coverage (COCC) to all employees,
  so those eligible to join Part D can do so
  without penalty. These certificates can be found
  in your packets.
• Please note that if you drop Palmers Coverage
  you will not be able to re-enroll at a later
  date.

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Transition Reminders

• If you incur a claim before 12/31/08, you will
  receive an Explanation of Benefits (EOB) from the
  prior administrator - PBA
• Any claim after 1/1/09 an EOB will come from the
  new administrator - UMR
• Notify your Doctor and Pharmacy at your first
  visit after January 1
• Verify your providers are in network prior to
  your first visit by going to www.umr.com

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Reminders

• Forms to complete by November 18, 2008
• Flexible Spending enrollment/waiver form
• Look for communication in early January on
  Palmers New Business Portal. This new tool will
  allow you to view your benefit deductions and pay
  stubs online for calendar year 2009.
• To view your 2008 pay stubs or benefit
  deductions, visit the Ceridian website at
  http//sss2.ceridian.com/palmer
• Keep Human Resources informed of any personal
  information changes to ensure accurate records.

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Questions?

• Remember the Deadline for forms to be submitted
  to Human Resources is
• November 18, 2008