CIGNA Modeling Tool This is a short guide that walks you through how the CIGNA Modeling Tool (powered by WebMD) works. As you go through the tool, notice the progress bar at the top. This will tell you where you are and allow you to navigate if you need to. Step 1 Go to mycignaplans.com Choose I am not a registered user of mycigna.com. Username: mmfgroup Password: cigna Click GO You may be prompted to disable your pop-up blocker; simply follow the instructions on the screen Read the User Agreement and click Accept if you accept Select Compare Medical Plan Costs.
Step 2 Enter your information, read the Terms and Conditions and Privacy Policy, and check the box if you agree with them. Click submit, then NEXT STEP to begin using the tool. Step 3 Describe each of your covered family members. TIP: Click SAVE before adding another person or clicking NEXT STEP. 2
Repeat the process of naming, saving and adding another person until you ve added all covered dependents. Notice that the person you re modifying has a box around him/her. Step 4 Once you ve entered everyone s basic information, enter a description of each member s health care needs, then review and revise the more specific health care use, if necessary. The tool provides projected medical utilization based on the members ages and the health information you entered for them. The utilzation is based on national averages. Feel free to increase or decrease the services if the numbers seem to low or too high. If you intend to use out of network providers, you ll want to note that here as well. Step 5 Finally, add each member s prescription drug use. You can even select specific medications to add. Note: This tool uses national averages. For more specific prescription drug cost information, visit Express Preview. 3
Step 6 (optional) Skip this step, unless you want to enter a dollar amount for expenses that aren t covered by our medical, dental or vision options, but you intend to reimburse yourself for them using a health savings account or flexible spending account (e.g., the amount you d pay for your share of the cost of eyeglasses or dental services). Step 7 Next, enter whether you or your dependents use tobacco, your annual base salary range, and your coverage level. Step 8 Click on the Transition and Wellness Dollar Information link to review how much the company may contribute to your HSA, determined by your annual base salary (transition dollars) and if you complete certain health-related programs (wellness incentive dollars). Add transition and wellness incentive dollars together and enter that amount in the two HSA boxes beneath that section. TIP: Don t forget to select Option 1 and Option 2 before clicking NEXT STEP. Enter only MassMutual s contribution to your HSA here 4
Step 9 Review your total Estimated Medical Costs under each option. TIP: Select Family Total from the drop-down menu if you ve added more than one person into this online tool. Then press Enter on your keyboard. The graphs on the right side of the page show the differences in: premium (dark grey) estimated out-of-pocket costs (deductible + coinsurance light grey) and any uncovered expenses (if any, very light grey). The blue graph (left) shows Option 1 costs, and the green graph (right) shows Option 2 costs. Note: Company contributions you entered on the prior screen are subtracted out of the Total Estimated Medical Costs graph. In the Graph Key under Plans, you ll see the maximum amount you could contribute to your HSA (factoring in company contributions you entered and taking into account IRS annual limits). This graph shows the projected total retail cost of medical services and prescription drugs, based on the number and type of services you entered. That s the total non-discounted cost (what you d pay without insurance) for the various office visits, medications and other expenses you modeled for yourself and each covered dependent. Click NEXT STEP. 5
Step 10 Enter your tax filing information and your annual household income. Then, enter the amount you want to contribute to your HSA. It defaults to cover the expenses you ve entered, but you can reset to maximum contribution, or select a different amount to contribute and see how it affects other items in the chart. Step 11 Click NEXT STEP to see your total expenses plus HSA contributions, your annual and per-pay-period contributions, your total cost after your HSA reimburses you for expenses, your potential tax savings, and your unspent HSA dollars from the year. And, finally, your Net Out of Pocket Costs. A Please see the explanations for the letter boxes on the next page 6
B C D E F G A Total Expenses $6,527/$5,256 This is the total amount our sample employee (we ll call him John) has entered for estimated medical and prescription costs for the year. It s what he would pay for his doctor s office visits and prescriptions and what he would pay in premiums through payroll deduction. B HSA $1,557/$3,296 This is the amount John entered for his own HSA contributions. C Expenses Plus Account Contributions $8,084/$8,552 This is all those expenses from above plus what John contributed to his HSA. You might say that this is John s entire medical budget for the year. D If John dutifully submits reimbursements from his HSA, he ll get back $3,057/$4,796 for qualified expenses. E That leaves $5,027/$3,756 of Total Cost After Reimbursement that, at the end of the day, he paid toward medical for the year. F The tool shows that he ll pay $1,641/$1,226 less in taxes because of the before-tax nature of his HSA contributions that s Potential Tax Savings G That leaves John with $3,385/$2,530 in Net Out-of-Pocket Costs for the year. That s the estimated bottom line cost. This is an estimate of how much medical will cost John for the year under the two options. As long as John is willing to accept the risk of choosing the option with the higher potential out-of-pocket costs (if or when he receives services, and a guaranteed lower per-paycheck premium), then he can reasonably assume that the option with the lower Net Out-of-Pocket Costs will be a more cost-effective choice. TIP: The best choice can change based on whether or not John hits the Annual Deductible and/or Out of Pock Maximum; and also by whether he takes full advantage of his HSA. 7
Step 12 If you d like to see a comparison of the two medical options, select Launch Plan Compare Report, which not only shows the built-in features of the plan but also the cost information based on the medical services and prescriptions you entered for yourself and any family members. 2010 Massachusetts Mutual Life Insurance Company, Springfield, MA. All rights reserved. www.massmutual.com. MassMutual Financial Group is a marketing name for Massachusetts Mutual Life Insurance Company (MassMutual) and its affiliated companies and sales representatives. BM1048 1010 CRN000000-000000