2015 VCA Employee Benefits
Webinar
November 2014
Your Guide to
Open Enrollment
Agenda
Summary Highlights
Key Changes: 2014 vs. 2015
Open Enrollment Preview
New Approach to Benefits
Benefits not covered in this
presentation: 401(k),
holidays, vacation, leaves,
pet care discount,
continuing education.
2015 VCA Benefit Plan Options
Enrollment Basics
Frequently Asked Questions
Contacts
This presentation is a summary only. Plan documents prevail.
VCA may change or terminate any benefit at any time
at its sole discretion.
2
Summary Highlights
BIG changes for medical plans
Aetna to Anthem (Blue Cross/Blue Shield) for all PPOs/HSAs
(no more HRA)
Kaiser HMOs offered wherever possible:
Parts of CA, CO, DC, GA, MD, OR, VA and WA
Parallel offerings in PPO/HMO
Gold
$800 deductible – FSA eligible
Silver $1,500 deductible — HSA eligible
Bronze $2,500 deductible — HSA eligible
More voluntary benefits, including FSAs
3
Summary Highlights
(continued)
Open Enrollment is from Monday November 24th to Monday
December 8th.
Enrollment is REQUIRED for all benefits
Employees who do not enroll will NOT have VCA benefits coverage
after December 31, 2014
Dependent and beneficiary details will be recollected
New administrative partner
Mercer Marketplace replaces Ceridian & CareCounsel
More choice
Better experience enrolling in & managing your benefits
4
Summary Highlights
(continued)
Eligible employees will receive open enrollment materials at
home a few days before enrollment starts on Monday
November 24th
Primary source of information is the enrollment website:
www.mercermarketplace.com/VCAInc
From 11/17 most key information will also be available at
www.myvcabenefits.com
5
Key Changes: 2014 vs. 2015
Category
2014
Open Enrollment You must enroll/re-enroll in
medical, dental & vision if you
want to keep them
Medical Plans
• Aetna HRA $2,500
• Aetna HSA $3,000
• Aetna HMO $500 (CA only)
• Kaiser HMO $500 (CA only)
Dental Plans
•
•
Cigna DPO
Cigna DMO
Vision Plans
•
•
VSP Standard
VSP Premium
2015
You must enroll/re-enroll in all
benefits that you want to keep.
Only 401(k) is excluded.
• Anthem* PPO $800
• Anthem* HSA $1500
• Anthem* HSA $2,500
• Kaiser HMO $800**
• Kaiser HMO $1,500**
• Kaiser HMO $2,500**
**Parts of CA, CO, DC, GA, MD,
OR, VA, WA
• Cigna DPO – Standard
• Cigna DPO – Premium
• Cigna DHMO
• VSP Standard
• VSP Premium
6
Key Changes: 2014 vs. 2015
Category
2014
(continued)
2015
Enrollment website
www.benefitenroll.com
www.mercermarketplace.com/VCAInc
Call Center
CareCounsel
Mercer: 844-801-WOOF (9663)
Voluntary Life
Cigna
Insurance, STD and LTD
Cigna
Other voluntary benefits Not available
•
•
•
•
Life Assistance Program Cigna
Cigna
HSA – Health Savings
Wells Fargo
Account
HRA – Health
Aetna
Reimbursement Account
Discovery Benefits
Critical Illness
Accident
Hospital Indemnity
Homeowners (April)
•
•
•
•
•
Auto (April)
Permanent Life
Legal
Identity Protection
Discount Mall
Not available
Flexible Spending
Not available
• Dependent Care- Discovery Benefits
Accounts
(FSA) has different medical offerings through• HMSA.
Health Care - Discovery Benefits
NOTE: Hawaii
• Transportation- Discovery Benefits
7
Employee Contributions
Your rates shown in enrollment website
Contributions for new $2,500 PPO/HSA are very close
to 2014 rates for $3,000 PPO/HSA
Kaiser employee-only is only $20 bi-weekly
8
New Approach
to Benefits:
Introducing Mercer Marketplace – A private exchange
Offers traditional benefits (health care and life insurance) and
additional benefits (accident and critical illness coverage)
You have the choice and flexibility to create a personalized
benefits package
Online benefits site that lets you shop for benefits and choose
the plans that make sense for you and your family
Online shopping support with variety of tools, educational
videos, and reference documents
Call center support available from licensed benefit consultants
9
2015 VCA Benefit
Plan Options
2015 Benefit Plan Options
Plan
Benefit Option Available
Paid by
Medical
• Anthem PPO $800 Deductible Plan
• Anthem PPO $1,500 Deductible Plan
w/HSA
• Anthem PPO $2,500 Deductible Plan
w/HSA
• Kaiser HMO $800 Deductible Plan
• Kaiser HMO $1,500 Deductible Plan w/HSA
• Kaiser HMO $2,500 Deductible Plan w/HSA
VCA +
Employee
Health Savings
Account (HSA)
• Compatible with $1,500 & $2,500
Deductible plans only
Employee
contributions
*NEW* Supplemental
*Accident
Medical Insurance
Indemnity
*Critical Illness *Hospital
Employee
Dental
• Cigna PPO Plans (Premier and Standard)
• Cigna DHMO
VCA +
Employee
Vision
VSP (Exam Only and Standard)
Employee
•
Hawaii has different medical and dental offerings through HMSA
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2015 Benefit Plan Options
Plan
Benefit Option Available
Paid by
Basic Life and
AD&D
Employee
VCA
Supplemental Life
and AD&D
Employee, Spouse/Domestic Partner,
Children
Employee
Disability
• Short Term Disability (STD)
• Long Term Disability (LTD
Employee
Other Coverage
• Flexible Spending Accounts (FSA)
• Transportation Reimb. Incentive
Program (TRIP)
• Life Assistance Program (LAP)
• Identity Theft Protection Coverage
• Auto and Home Insurance (April)
• Legal Assistance
• Discount Mall
Employee
Employee
Employee
VCA
Employee
Employee
Employee
No charge!
12
•
Hawaii has different medical and dental offerings through HMSA
Medical Plans: Anthem or Kaiser
1. You pay until you meet the deductible (except for select
preventative and maintenance services and prescriptions)
2. After you meet the deductible you and VCA share costs — your
portion is called coinsurance
3. The plan pays 100% if you reach a certain amount of expenses
during the year — out-of-pocket maximum
If you choose...
Anthem PPO: You have flexibility to use
any provider, but the plan pays higher benefits
when you use PPO network providers
Kaiser HMO (select areas only):
No out of network benefits
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Medical Plan Accounts
(Either Anthem or Kaiser)
$1,500 Deductible Plan and $2,500 Deductible Plan are eligible to
open a Health Savings Account (HSA) – not automatic
$800 Deductible Plan is eligible to open a Healthcare Flexible
Spending Account (FSA)
2015 Limit EE/Family
“Catch Up” contribution age 55
Balance at end of year
When can you be reimbursed
HSA
FSA
$3,350/$6,650
$2,500
$1,000
None
Rolls over
Lost
Expense
incurred and
account funded
Expense
incurred
14
How a Health Savings Account (HSA) Works
KEEP IT
• All money in the HSA is
yours to keep, including
interest and other
investment earnings
• You can take the account
with you if you leave VCA
GROW IT
• Unused HSA money rolls
over year to year
• Money in an HSA earns
interest and grows over time
BUILD IT
• You can add money to the HSA
• There is a limit to the pre-tax amount you can contribute each
year:
- $3,350 for single coverage
- $6,650 for those with family coverage
• Your contributions are made before-tax through payroll
contributions
• You can also make after-tax contributions directly to HSA
• If you are age 55 or over, you may contribute an additional
$1,000 “catch-up contribution” each year
USE IT
• Use money in
your HSA to
pay for health
care expenses
• Or, you can pay
for services
directly and
save the money
in your HSA for
future medical
needs
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How the Pieces Work Together
You can use the money in your HSA to
help cover the costs you pay toward
your deductible or coinsurance
Preventive Care
The plan pays 100% of
preventive care
expenses received
from in-network
providers.
Annual
Deductible
You pay 100% of the
deductible. Once
you meet the
deductible, the plan
begins to pay a
portion of the cost
of services.
Coinsurance
You and the plan
share the cost of
services. The plan
pays a large
percentage, and
you pay the
remaining amount.
Out-of-Pocket
Maximum
Once you reach the
out-of-pocket maximum,
the plan begins to pay
100% of in-network
costs.
16
$800 Deductible
Plan (Anthem)
$1,500 Deductible Plan
$2,500 Deductible Plan
In-Network
Anthem or Kaiser
In-Network Anthem or
Kaiser
In-Network Anthem or
Kaiser
$800 / $1,600
$1,500 / $3,000
$2,500 / $5,000
$3,800 / $7,600
$5,200 / $10,400
$6,200 / $12,400
No charge
No charge
No charge
Primary care
You pay 20% after
deductible
pay 30% after
You pay 20% after deductible You
deductible
Specialist
You pay 20% after
deductible
pay 30% after
You pay 20% after deductible You
deductible
You pay 20% after
deductible
pay 30% after
You pay 20% after deductible You
deductible
Benefits
In-Network Only
Plan Features
Deductible1
Individual/Family
Out-of-pocket
maximum2
Individual/Family
Preventive Care
Routine physician visit
Office Visits
Hospital Facility
Emergency room
(waived if admitted)
1 All copays and coinsurance (for medical and prescription services), apply to the deductible apply to the out-of-pocket maximum.
2 All copays, coinsurance, and deductible apply to the out-of-pocket maximum.
17
$800 Deductible
Plan (Anthem)
In-Network
Anthem or Kaiser
$1,500 Deductible
Plan
In-Network Anthem
or Kaiser
$2,500 Deductible Plan
$800 / $1,600
$1,500 / $3,000
$2,500 / $5,000
$3,800 / $7,600
$5,200 / $10,400
$6,200 / $12,400
Generic
30% ($10
minimum/$20
maximum)
You pay 20% after
deductible
You pay 30% after deductible
Brand formulary
30% ($25 minimum
/$50 maximum)
You pay 20% after
deductible
You pay 30% after deductible
Brand non-formulary
45% ($40 minimum
/$80 maximum)
You pay 20% after
deductible
20%
You pay 30% after deductible
30% ($25 minimum
/$50 maximum)
30% ($62.50
minimum /$125
maximum)
45% ($100
minimum /$200
maximum)
You pay 20% after
deductible
You pay 30% after deductible
You pay 20% after
deductible
You pay 30% after deductible
You pay 20% after
deductible
You pay 30% after deductible
0%
Benefits
Plan Features
Deductible1
Individual/Family
Out-of-pocket
maximum2
Individual/Family
Retail Prescriptions3
In-Network Anthem or Kaiser
Mail-Order Prescriptions3
Generic
Brand formulary
Brand non-formulary
.
3
Preventive prescriptions (as defined under HSA regulations for the $1,500 and $2,500 plans is covered at the in-network
coinsurance level prior to meeting the deductible.
18
Need Help Choosing?
Do You...
Then Consider...
$800 Deductible
Plan*
$1,500 Deductible
Plan*
$2,500 Deductible
Plan*
Want to lower your taxable
income while saving for future
health care expenses?
Value flexibility more than
paying lower
out-of-pocket costs?
Want to pay lowest
contributions possible?
* The $800, $1,500 and $2,500 Deductible Plans are available through Anthem or Kaiser where
Kaiser is offered.
19
Which Healthcare Carrier is Right for You?
It depends on where you live...
Anthem
Kaiser
•
•
Available in all areas.
Available in certain parts of CA, CO
DC, GA, MD, OR, VA and WA.
Anthem provides PPO plans, meaning you
Kaiser is a Health Maintenance
can use either network or non-network
Organization (HMO), meaning it offers one
providers. Benefits are paid at a higher level
network of health care providers you must
for network providers.
use to receive covered care (except in an
emergency).
To find out more, including participating
providers, visit www.anthem.com/ca. When
To find out more, including whether Kaiser
asked to select a plan choose “National
is available where you live visit
PPO (BlueCard PPO)”
www.kp.org.
20
Supplemental Medical Insurance
Accident: Provides cash benefits for uncovered medical expenses
accident related (deductible or coinsurance) or for ongoing living
expenses (mortgage or rent)
Critical Illness: Provides a lump-sum benefit to help pay for certain
illnesses, such as heart attack, cancer, and more
Hospital Indemnity: Provides supplemental payments to cover
expenses that your medical plan may not cover for hospital stays
Supplemental medical insurance provides
complimentary coverage to your medical
plan. They are not full health plans.
If you choose a higher deductible plan, this
insurance can help protect against the cost
of a catastrophic illness or injury.
21
Dental Plans (Cigna)
Dental Maintenance Organization (DHMO) — Select Locations Only
Choose a primary dentist
Stay in-network
Schedule of copays based on procedures
Preventive services covered at no copay
Two Dental Preferred Provider Organizations (DPPOs) - Standard & Premier
Visit any licensed provider
Does not require a primary dentist
Higher level of benefits when utilizing
in-network providers
Preventive services not subject to
deductible or coinsurance
Difference between Standard & Premier is primarily orthodontics.
22
Vision Plan (VSP)
Exam Only Plan
Exam: $10 copay every 12 months
Standard Plan
Increased coverage, more cost
Exam: $10 copay every 12 months
Lenses: $25 copay every 12 months Frames: Retail up to $130
allowance, 20% for any amount over, every 24 months
Contact lenses: Up to $130 allowance,
fitting covered in full (copay not to exceed $60),
every 12 months in lieu of frame and lenses
(formerly 24 months)
23
Life Assistance Program (LAP)
Automatically enrolled – Company Paid
24/7 confidential assistance
Includes coverage for your family
Counseling Sessions – 3 face-to-face visits per year
Services for depression, work stress, marriage, bereavement, divorce,
substance abuse, and more
Referral services for children and elder care
Legal issues such as housing, family, wills, etc.
Call: 1-800-538-3543
Go to: www.cignabehavioral.com/CGI
User name: rewards
Password: savings
24
Disability Plans
Short Disability – Employee Paid
Benefits
Elimination Period
CIGNA
14 days
Benefit Percentage
60% of qualified earnings
Maximum Weekly Benefit*
Up to $1,000
Maximum Period of Payment 26 weeks
Long Term Disability – Employee Paid
Benefits
Elimination Period
CIGNA
180 days
Benefit Percentage
50% of qualified earnings
Maximum Weekly Benefit*
Up to $3,000
Maximum Period of Payment Normal Social Security retirement age
* Not taxable, but any benefit you receive under Workers’ Compensation, Social Security, or State
Disability Program will reduce your benefit under these voluntary plans.
25
Disability Plans
STD provides a benefit for the first 6 months of a disability
LTD provides a benefit after 6 months; up to a maximum of
eligibility for Social Security
Both are integrated with any state programs (e.g. CA & NY)
They are NOT additive
Do I need disability coverage?
How would I pay the bills if I was out of work for 12 weeks?
How would I pay the bills if I was out of work for 12 months?
26
Life and AD&D Insurance
Basic Life and AD&D Insurance — Company
Paid
Basic Life Insurance: $20,000
Basic AD&D Insurance: $20,000
Provided if you are eligible for
benefits, but you MUST:
Enroll and
Name a beneficiary
27
Life and AD&D Insurance
Supplemental Life and AD&D Insurance —
Employee Paid
Available to you and your dependents at group rates
Evidence of Insurability (EOI) is required for coverage
above the guarantee issue amount
If don’t enroll when you are first eligible, EOI
will be required for any purchase or increase of
coverage
28
Life and AD&D Insurance
Supplemental Life and AD&D Insurance — Employee Paid
Coverage Amounts Available
Employee
• $10,000 buy-in with increments of $25,000 (i.e., $10,000;
Coverage
$25,000; $50,000, etc.), up to the lesser of 4x base annual
salary or up to $500,000
• Guarantee issue amount*: The lesser of 4x your annual salary
or $100,000
Spouse/Domestic • Increments of $5,000, up to 100% of employee amount or
Partner Coverage
$250,000
• Guarantee issue amount*: $30,000
Child(ren)
• Age 14 days to 6 months: Increments of $1,000
Coverage
• Age 6 months and over: Increments of $5,000
• Maximum amount of coverage: $20,000
* Applies to individuals who enroll within 31 days of eligibility
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NEW: Flexible Spending Accounts
Health Care ($800 Deductible Plan Only)
Up to $2,500 per year
“Use it or lose it” — balance does NOT carry over to the next year
NOT AVAILABLE IF: you are enrolled in the $1,500 Deductible Plan
or $2,500 Deductible Plan and participate in an HSA (or if you
contribute to an HSA outside of VCA)
Use it for qualified medical expenses including deductibles, copays
and coinsurance
Dependent Care
Up to $5,000 ($2,500 if married, filing separately)
Use it for qualified dependent care expenses including eligible child
or dependent adult nursery/day care costs
30
NEW: Transportation Benefits
Lower your commuting costs!
Use pre-tax dollars to pay qualified transportation
expenses, such as:
Transit passes
Parking
Find more details
Log in at www.mercermarketplace.com/VCAInc
31
NEW: Additional Voluntary Benefits
Identity Theft Protection (InfoArmor®)
Helps assess your risk, deter theft attempts, detect fraud, and manage
the restoration process in the event of an identity theft
Legal Benefits (MetLife)
Offers you economical access to attorneys for common legal services,
such as will preparation, estate planning, family law, and more
Permanent Life Insurance
Also known as ‘whole life’ or ‘universal life’ insurance
Online Discount Mall 24/7 (PerkSpot)
Access exclusive prices, discounts, and offers from hundreds of local
and national merchants (including health clubs, movie theaters,
restaurants, retailers, and all major cellphone providers)
COMING IN 2015 — Auto & Home Insurance (MetLife)
32
Enrollment Basics
Who’s Eligible to Enroll?
Employees
Must work at least an average of 30 hours per week (i.e. full-time)
Eligibility date for everyone as of Jan. 1, 2014:
First of the month following or coinciding with 30 days of eligible
employment
Eligible dependents (must provide proof upon request)
Current spouse or registered domestic partner
Dependent children up to age 26 (coverage ends on the last day of
the month that includes the 26th birthday)
Eligible for medical, dental and vision coverage
34
Why Check Out Mercer MarketPlace
and/or Enroll?
If you don’t, you won’t have benefits!
VCA pays for basic life insurance ($20,000 for staff), but
only if you go online and enroll
You could win!
Visiting www.mercermarketplace.com/VCAInc or calling the call center
enters you in a raffle
1st prize is a $500 gift certificate
Plus 3 $250 prizes and 6 $100 prizes
Winners announced the week of December 15th
Sorry, the IRS says its taxable
35
When to Enroll
2015 Open Enrollment:
November 24–December 8, 2014
ENROLLMENT IS REQUIRED FOR ALL BENEFITS
DURING OPEN ENROLLMENT IF YOU WANT VCA
COVERAGE IN 2015
If you don’t enroll, your current VCA benefits
coverage will end after December 31, 2014
36
How to Enroll – Starting 11/24
Online: www.mercermarketplace.com/VCAInc
First-time visitors:
Select ‘Create an account’
Enter Social Security number, last name, and date
of birth to identify yourself
Next, you will prompted to select a unique user name
and password that you will use going forward
For more details, see your 2015 Benefits Guide
Call: 1-844-801-WOOF (9663)
37
Go to
www.mercermarketplace.com/VCAInc
When you first log on, select
‘Create an account’ — then
identify yourself by providing:
Social Security number
Last name
Date of birth
Then, select a unique user
name and password that you
will use going forward. From
there, click “Get Started” to
begin the enrollment process.
38
Mercer Marketplace Benefits
Counselors
Assistance with benefit questions and enrollment
Call 1-844-801-WOOF (9663)
Benefits counselors available between 7 a.m. and 10 p.m. ET, Monday
through Friday and Saturdays from 10 a.m. to 3 p.m. ET
Call: 1-844-801-WOOF (9663)
Until 12/31/14
Monday-Friday: 7 a.m. – 10 p.m. ET
Saturdays: 10 a.m. – 3 p.m. ET
Starting 1/1/1
Monday-Friday: 7 a.m. – 9 p.m. ET
39
Benefit Elections/Making Changes
Elections are effective January 1, 2015
Cannot change unless you experience an IRS-defined qualified life
event/family status change – examples are:
Marriage
Divorce
Birth or adoption of a child
Loss of medical coverage (excluding voluntary termination)
Changes must be entered within 31 days of the event
Be sure to provide any required paperwork
to the Benefits Department
40
After Enrollment
Review your online confirmation statement
If you enrolled in a medical or dental plan, you will get a new ID card
Verify the information on both your confirmation statement and your ID
card when you receive it
Are you enrolled in the correct plan?
Is your name spelled correctly?
Are your dependents listed accurately?
After January 1, use your new ID cards with your providers and
pharmacies
Temporary cards are available at www.anthem.com/ca, www.kp.org and
www.cigna.com
Check your first January paycheck to see if your deductions are what
you expect
41
FAQs about High
Deductible Plans
and HSAs
Frequently Asked Questions
QUESTION
“What about the
Wells Fargo HSA
account I already
have?”
Discovery Benefits is the new
HSA administrator
You can roll over your Wells Fargo HSA
money to Discovery Benefits, or you can just
leave it there with Wells Fargo and use
either one for your next expense. Future
payroll deductions will go to Discovery
Benefits. Additional details have been sent
to Wells Fargo HSA participants
43
Frequently Asked Questions
QUESTION
The whole family helps.
“How does the
deductible work for
a family?”
Everyone’s medical expenses count
toward the deductible. That means the
deductible could be paid by one family
member or several. It doesn’t matter
how it’s paid: once you’ve paid it, the
plan starts paying benefits for all family
members.
44
Frequently Asked Questions
QUESTION
“What’s the deal
with the Health
Savings Account
(HSA)?”
After you enroll in the $1,500 or $2,500
Deductible Plan, you simply set up
your HSA, just like you would any
other bank account.
You contribute to the HSA, manage it
and own it.
You can’t be covered under another
medical plan – even a flexible
spending account – and have an HSA,
per government rules.
45
Frequently Asked Questions
QUESTION
“Is the Health
Savings Account
(HSA) hard to
use?”
No. You have three easy ways to pay
medical bills with your HSA:
• As a debit card: Use your HSA debit
card when you purchase prescription
drugs. It works like any other debit
card.
• Online: Pay doctor’s and other bills
online from the HSA website. Just
type in your HSA debit card number.
• By check: You can write a check
(order HSA checks for an additional
charge).
46
Frequently Asked Questions
QUESTION
“How does the outof-pocket maximum
work?”
Once you pay a certain amount of
money each year on your medical
expenses, the plan pays 100 percent for
the rest of the year.
Plus, the out-of-pocket maximum
includes the deductible – it’s not in
addition to the deductible.
Keep in mind: Most people have low to
moderate medical expenses, and never
reach this limit.
47
Frequently Asked Questions
QUESTION
“How are
prescriptions
covered?”
With the $1,500 and $2,500 Deductible
Plans, you will pay the full cost of most
prescriptions until you have paid the
deductible. Then, the plan pays most of the
cost of your prescriptions and you pay the
rest.
Remember: You can use your HSA to pay for
your prescriptions.
For certain preventive prescriptions, the plan
begins paying its share of the cost right away
(you don’t need to meet the deductible
first). You can see the list of preventive
medications by logging on to
www.mercermarketplace.com/VCAInc.
48
Contacts
Benefits Contact Information 1 of 3
Benefits Contact Information 2 of 3
Benefits Contact Information 3 of 3
This and other information is available at www.myvcabenefits.com
and from the Benefits Department page of the VCA intranet
Thanks for your attention
53