Medical Renewal Summary
As you may recall, Principal Financial Group is no longer offering medical plans for purchase. Therefore, we are pleased to announce that we will be moving to United HealthCare on January 1, 2012. There are important changes to the medical plan offerings in 2012, so we strongly recommend you attend a webinar to help you decide your elections for coverage to be effective January 1, 2012.
You will have the option of enrolling in a Qualified High Deductible Health plan and contributing to a Health Savings Account (HSA). Many banks offer HSAs, but the bank we chose to partner with is Optum. Although you may open the account prior to 2012, you may only contribute to the HSA beginning January 1, 2012 when you become covered by the QHDHP. HSA’s are available at a lower premium because medical costs can be controlled by your involvement in your health decisions.
The traditional Co-pay Plan will still be available, but because of the co-pays these types of plans are more expensive than the HSA plan. The deductible reimbursement plan (DRP) no longer exists. Both plans cover preventive care at 100%.
Please see the attached cost comparison for the 2012 premium rates. You may want to consider investing your premium cost savings into your personal HSA. The HSA is an excellent way to fund your medical expenses with tax free dollars via payroll deductions. You may change the amount of your contributions on a monthly basis according to your health needs. The HSA is not a “use it or lose it” account like the flexible spending account. The money in your HSA account rolls over from year to year and is portable.
If you are age 65 or older you are eligible for the health coverage, but not the Health Savings Account. Because of this federal restriction, Arrow will contribute money to your Flexible Spending Account. Stay tuned for more important information to learn about the QHDHP with HSA option!
Medical Open Enrollment
The Open Enrollment period is November 1 – November 18. IMPORTANT: Every employee must elect or waive medical coverage using the online enrollment system. If you are currently enrolled in a health plan and you do not go online to make your selections you will default to the HSA Plan. Also, this is your annual opportunity to make changes to your health plan elections without having a special enrollment event or answering health questions. If you do not make changes during this annual enrollment, you will not be allowed to change your health plan election without a qualifying status change.
Dental Renewal Summary
We are renewing our voluntary dental coverage with United Concordia. You may use any dentist you choose. However, if you use a United Concordia Advantage Plus dentist, you will not have to pay over the contracted amount. If you do not use a participating dentist, you may be balance billed for the difference in what the dentist charges and what United Concordia pays. There will be no change in coverage or premium rates for 2012.
Current/Renewal
Employee Only $14.38 per pay period Employee & Children $26.77 per pay period
Employee & Spouse $28.34 per pay period Family $44.33 per pay period
Vision Renewal Summary
We are renewing our voluntary vision coverage with EyeMed. You may use any vision provider you choose. However, if you use an EyeMed Select network provider, you will maximize your vision benefits. If you do not use a participating vision provider, your benefits will be limited to the Out-Of-Network Reimbursement listed on the Benefit Summary, and you will have to submit the claim to EyeMed. Participating providers will submit claims on your behalf. There will be no change in coverage or premium rates for 2012.
Current/Renewal
Employee Only $2.50 per pay period Employee & Children $4.98 per pay period
Employee & Spouse $4.74 per pay period Family $7.32 per pay period
Flexible Spending Account (FSA) Renewal Summary
Now is the time for you to make your election for the spending accounts effective January 1, 2012. Be aware that if you contribute to a Health Savings Account, and still want a flexible spending account, only vision and dental charges are reimbursable. If you are 65 years or older, or you are enrolled in the Co-Pay Plan, you will have a full flexible spending account. The maximum elections for 2012 are as follows:
Health Care Spending Account: $5,000 Dependent Day Care Spending Account: $5,000
Health Care Reform regulation will limit the health care spending account maximum contribution to $2,500 in 2013. Plan your elections carefully, because if you do not use it, you lose it!
Life Insurance
Busco will continue to provide $15,000 life insurance to all full time employees.
Voluntary Life
You may increase your voluntary life insurance amount at any time, provided you answer health questions. Additional amounts are subject to approval by Lincoln Financial Group.
IMPORTANT DEADLINE: All employees must elect which medical option or waive medical coverage by November 18th for coverage to be effective January 1, 2012. If you are currently enrolled in a health plan and do not go online to make your new selection for health coverage, you and your dependents will be enrolled in the default coverage, QHDHP with HSA Plan. All other benefit offerings will remain the same unless you make a change.