Important Information About Your 2013 Benefits Enroll or make changes November 2 16, 2012

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1 To print this information, click on the printer icon in the toolbar above or click on File in the upper left-hand corner and select Print from the drop-down box. Important Information About Your 2013 Benefits Enroll or make changes November 2 16, 2012 Cost of Coverage in 2013 You may see a change in your health plan contributions in To see what you will pay in 2013, you have two options: 1. Click on the Compare Paycheck Costs for Next Year link in the Review Your Health Care Costs step on this enrollment website; or 2. Click on Enroll Now (View Coverage/Make Changes) link in the Enroll in Your Benefits step on this enrollment website. Save money through wellness activities Remember, you can lower your 2013 medical plan contributions by $200 if you completed at least three of the eligible wellness activities in the Healthy Spirit Dash by September 30. If you completed three of five wellness activities by September 30 and do not enroll in the medical plan for 2013, you will be eligible for a $50 taxable gift card*. * You must be an employee on January 1, 2013 to receive the gift card. Table of Contents Click on the links below to go directly to each section. Cost of Coverage in 2013 Must Elect 2013 Disability Plan New Limits for Highly Compensated Employees Medco and Express Scripts Paid Time Off Cash Out New Limit for Health Care Flexible Spending Account Employee Assistance Program Things to Consider About Your Benefits in 2013 Tools and Resources If you don t take action, your current coverage will continue for most of your benefits but at the 2013 rates. You must re-enroll in some benefits if you wish to have coverage in 2013, such as flexible spending accounts. 1

2 Must Elect 2013 Disability Plan Take Action For 2013, non-executive employees with an extended illness bank (EIB) balance greater than 10 days (80 hours) will be given a choice to enroll in either the extended illness bank or the short-term disability plan. Both plans provide you with replacement income if sickness or injury prevents you from working your regularly scheduled hours. Short-term disability: provides non-executive employees up to 80 percent of your base pay for the first five weeks of your disability, then you receive 60 percent of your base pay for the duration of the 26 weeks, if approved. Extended illness bank: provides up to 100 percent of your base pay for up to the maximum hours accrued in your bank, if approved. If you select to continue with your extended illness bank, you will no longer accrue additional hours and you will not have the opportunity to switch to the short-term disability plan until Once your extended illness bank hours are all used, you will be on an unpaid leave. If you do not make an election or you have less than 10 days in your current extended illness bank, you will be automatically enrolled in the short-term disability plan for New Limits for Highly Compensated Employees For 2013, the IRS has increased the limit of a highly compensated employee from $110,000 to $115,000. Below is a summary of how this increase may impact your benefits. If you make $172,500 or more in base pay... Highly compensated employees will pay more to participate in the CHI Medical Plan in The High Deductible with Health Savings Account (HD/HSA) medical plan is only offered to these employees. To be eligible for the HD/HSA plan, you must make $172,500 or more in base pay. This salary limit is an increase from previous years. If you enroll in the HD/HSA plan for 2013, you will notice new limits, per the IRS, on the amount you can contribute to the HSA: $3,250 for single coverage $6,450 for family coverage If you are eligible for the HD/HSA medical plan option and would like to learn more about the plan, contact the HR/Payroll Connection Support Center at If you make $115,000 or more in base pay... Dependent day care flexible spending account: If you make $115,000 or more in base pay, the amount you can contribute to a dependent day care flexible spending account will be limited to $3,000 in 2013 to remain in compliance with IRS guidelines and ensure your contributions remain tax free. 457(b) plan: You may be eligible for the Catholic Health Initiatives 457(b) plan. The salary limit for eligibility in the 457(b) plan has increased to $115,000. If you are currently enrolled in the 457(b) plan but do not meet the new limit, you will remain in the 457(b) plan. 2

3 Medco and Express Scripts Express Scripts and Medco Health Solutions, Inc. have come together as one company to manage the CHI prescription benefit. The website, phone number and claims process will remain the same. Express Scripts (Medco) Paid Time Off Cash Out Paid time off (PTO) gives you time away from work for relaxation, short-term illnesses, to care for your family or to fulfill other personal commitments. Each pay period, you accrue a certain amount of PTO based on hours paid. Your PTO bank can only hold a specific number of hours, known as your maximum PTO accrual. If you reach your maximum PTO accrual at any time, you will stop accruing PTO until your PTO balance is reduced. Non-exempt employees and exempt patient care employees may be eligible to cash out up to 80 hours of their paid time off (PTO) for To learn more about paid time off, refer to the PTO cash out policy after January 1 on My Handbook. Plus, for 2013, all employees can request up to an additional 40 hours of emergency paid time off (PTO) cash out above what employees may be eligible to cash out at annual enrollment. Employees requesting emergency PTO cash out will be required to sign an affidavit stating financial hardship. For details about how to request an emergency PTO cash out payment, refer to the PTO cash out policy after January 1 on My Handbook. New Limit for Health Care Flexible Spending Account Due to the Affordable Care Act (also known as Health Care Reform), the annual maximum amount you can contribute to a health care flexible spending account in 2013 is decreasing to $2,500. The maximum you can contribute to a dependent day care flexible spending account will remain at $5,000 for 2013 (certain limits may apply for highly compensated employees). To learn more about the flexible spending accounts, click on the My Benefits tab of HR/Payroll Connection and click on the Your Spending Account link. Employee Assistance Program For 2013, our employee assistance program is increasing the number of free in-person visits from three visits to five visits. For more information about our employee assistance program provided by ValueOptions, go to or call

4 Things to Consider About Your Benefits in 2013 Most benefits remain the same For 2013, while there may be changes in contributions, the following benefits have no plan changes: Medical Dental Vision Life Insurance Other programs, such as adoption assistance and tuition reimbursement To find legally required compliance materials and plan documents, such as Summary Plan Descriptions, visit our new Plan Information page by logging into Inside CHI at and: Go to HR/Payroll Connection; Select the My Benefits tab and click on the View Current Coverage link; and Then select Plan Information from the Health and Insurance tab or from the Knowledge Center tab. Major life events in 2013 After you enroll, your benefit elections will remain in place throughout If you have a major life change, such as a birth of a child, you may change some of your benefit elections within 31 days after the event occurs. Dependent eligibility audit Be sure to review who is enrolled in your plans to ensure your dependents are eligible for coverage and enrolled correctly. If you add any dependents to the CHI medical, dental or vision plans, you will receive a dependent verification notice and must return the appropriate documentation by the due date. Unverified dependents will lose coverage in these plans. Health Care Assistance Program If you apply for the Health Care Assistance Program and you are approved for 2013, you will be automatically enrolled in the medical plan option with the lowest employee payroll contributions. If you choose to enroll in a different medical plan option, you will not receive assistance from the program. Preparing for a financially healthy retirement Annual enrollment is a great time to review your CHI Employee Savings Plan. While you re considering your other benefits coverage for next year, you should also review what adjustments, if any, you d like to make to your CHI Employee Savings Plan account. Continuing your participation in the CHI Employee Savings Plan is a smart, convenient way to save. Since your contributions are deducted from your pay on a pre-tax basis, saving through this plan instead of a taxable account will lower your taxable income, but it may have little or no effect on your take-home pay. The pre-tax contributions and their investment earnings will grow tax-deferred, which means you won t pay taxes until you withdraw your money. Remember, the CHI Employee Savings Plan is just one of your potential sources of retirement income. As an employee in the CHI system, you could have three primary sources of retirement income available to you: Catholic Health Initiatives Retirement Plan + Catholic Health Initiatives Employee Savings Plan + Social Security = Your CHI retirement income The CHI Employee Savings Plan administrator, Fidelity, offers various online tools to help you manage your savings. Fidelity s on-demand workshops and webinars cover a variety of topics, such as: preparing for retirement; investing; and preserving your savings. 4

5 Tools and Resources Several useful resources and tools are available to help you make your benefit decisions. The following tools are available on the enrollment website: Medical Expense Estimator helps you determine your cost for each medical plan option and then compares the options to help you choose the plan that best meets your budget and coverage needs. Health Plan Comparison Charts assists you in picking the medical and dental plan with the appropriate coverage for you and your family. Questions? If you have questions about your 2013 benefits or the enrollment website, you can use the HR/Payroll Connection Live Chat feature or call the HR/Payroll Connection Support Center at Health Care Flexible Spending Account Estimator lets you calculate the amount you may want to set aside in a health care flexible spending account for Dependent Day Care Flexible Spending Account Estimator lets you calculate the amount you may want to set aside in a dependent day care flexible spending account for This Important Benefits Information is intended to be an overview. It is not meant to be all-inclusive. If there are any conflicts between the information presented in this document and the legal plan documents that govern each benefit, the legal plan documents will govern. Catholic Health Initiatives reserves the right to change or terminate any or all benefits plans at the Company s discretion. Nothing contained in these materials constitutes, or is intended to create, a promise of continued employment. 5