If you don t take action you will have no coverage for 2013. Important Information About Your 2013 Benefits Enroll or make changes November 26 December 7, 2012 Things to Know If you do nothing, you will lose coverage for medical, dental, vision and life insurance for 2013. You must take action by midnight on December 7 to receive these benefits next year. After you enroll, your benefit elections will remain in place throughout 2013. 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 verification If you enroll any dependents in the 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. Cost of Coverage in 2013 You may see a change in your medical, dental and vision plan contributions in 2013. To see what you will pay in 2013, review the rate sheet included with your enrollment materials. Save money through wellness activities Remember, you can lower your 2013 medical plan contributions by $20 per paycheck if you complete the required wellness activities. For details about our Healthy Choices wellness program, contact Onlife Health at www.onlifehealth.com or call 1-866-865-6725. 1
2013 Medical Plan Changes For 2013, you will continue to have access to the following medical plan options: High Deductible with Health Savings Account Personal Care Account (PCA) PPO Low PPO High For 2013, the PPO Low and PPO High plan options will be administered by Humana. If you enroll in any of the medical plan options for 2013, you will receive new medical/prescription ID cards. The PCA and High Deductible Health Plan with Health Savings Account (HDHP with HSA) will continue to be administered through Humana. Also, the HDHP with HSA medical plan option will have new limits, per the IRS, on the maximum amount you can contribute to the HSA: $3,150* for employee only coverage $6,350* for family coverage * Remember, we make a $100 contribution to your HSA. IRS limits the combined employee and company HSA contribution to $3,250 for employee only or $6,450 for family coverage. If you enroll in any of the medical plan options for 2013, Express Scripts and Medco Health Solutions, Inc. have come together as one company to manage the prescription benefit. The website, phone number and claims process will remain the same. Note: There are three levels of networks. The enhanced provider network includes CHI facilities and KentuckyOne Health facilities. The Humana network includes Norton physicians and other Humana providers. The out-of-network level includes Norton hospitals, Norton urgent care centers and all other non-network providers. 2013 Dental Plan Changes The Dental Plan for 2013 will be administered by MetLife. There are two options available to meet your needs the Core Plan or the PPO Plan. Both options pay 100 percent for preventive and diagnostic services. However, the PPO option also offers an enhanced benefit if you visit a dentist in the MetLife network. Dental Plan PPO Option Core Option Coverage In-network Out-of-network* In-network Out-of-network* Deductible $50 individual/$150 family $50 individual/$150 family Annual Maximum $1,500 $1,000 Preventive and Diagnostic Services $0 $0 $0 $0 Basic Restorative Services 10% 20% 50% 50% Major Restorative Services 40% 50% 50% 50% Orthodontia Services 50% 50% 50% 50% Orthodontia Lifetime Maximum (per dependent child under age 19) $1,500 $1,000 * The coinsurance for out-of-network services is applied to the reasonable and customary fee based on the community s average fees. You are responsible for any charges above and beyond the reasonable and customary fee. Additional information about the Dental Plan, including a provider directory, is located on the MetLife website at www.metlife.com. After January 1, you can log onto the MetLife website and download copies of your ID card if you haven t received a copy in the mail. 2
2013 Vision Plan Changes The Vision Plan for 2013 will be administered by EyeMed. The EyeMed network includes thousands of providers, including retail providers, across the nation. When visiting an EyeMed network provider, you ll receive: Vision Plan Coverage Exam In-Network Benefit $15 copay; limited to one exam every 12 months Contact Lens Fit and Follow-up Up to $40 Lenses (single, lined bifocal and lined trifocal) Frames Contact Lenses (allowance covers materials only) $15 copay; limited to one exam every 12 months $120 allowance, plus 20% discount available for out-of-pocket expenses; limited to once every 24 months $105 allowance, conventional or disposable contact lenses in lieu of glasses; limited to once every 12 months The plan provides discounts if you see an out-of-network provider. For additional information about the Vision Plan, including a provider directory, go to the EyeMed website at www.eyemedvisioncare.com then choose SELECT from the provider locator drop-down box. 2013 Life Insurance Plan Changes For 2013, you will continue to receive basic life insurance equal to one times your base pay at no cost to you. You will also have the option to purchase additional life insurance for yourself and your family the amounts you may elect are different for 2013: For yourself: You can elect coverage up to four times base pay. The combined plan maximum for basic and supplemental life is five times your base pay or $750,000, whichever is less. For your spouse: You can elect coverage in $10,000 increments, up to $200,000. For your child(ren): You can elect coverage in $2,000 increments, up to $20,000. During this annual enrollment, you have a one-time opportunity to elect the life insurance amounts up to what you have today without having to provide evidence of insurability. Any amounts above what you have today, will be subject to evidence of insurability. All life insurance options are administered through Prudential. Business Travel Accident Insurance You automatically receive business travel insurance and accidental death and dismemberment to help protect your loved ones from loss of income in the event of your injury or death when traveling on company business. The benefit is equal to three times your base pay, up to $750,000. 3
2013 Flexible Spending Accounts In 2013, Aon Hewitt s Your Spending Account (YSA) will administer the health care and dependent day care flexible spending accounts. Health care: enables you to pay for certain health care expenses such as deductibles, coinsurance, prescription medications, dental and vision expenses for you and your family. Dependent day care: enables you to pay for certain dependent care expenses, such as day care, babysitting and before and/or after school care relating to the care of a dependent child under age 13 or dependents of any age who are mentally or physically incapable of taking care of themselves. The flexible spending accounts let you deduct money from your paycheck and put the money into an account. Then you use the account to reimburse yourself for eligible expenses you pay out of pocket. Since the deductions are taken on a before-tax basis, you pay no federal or Social Security taxes on the money you set aside. With the move to YSA, you will notice a few changes: You will have a two-and-a-half month grace period immediately after the end of the plan year to incur eligible expenses. The grace period is designed to help you avoid forfeiting funds at the end of the year. Expenses incurred January 1, 2013 March 15, 2014 may be applied against the balance in your flexible spending account. The deadline for submitting 2013 claims is March 31, 2014. If you elect to participate in a health care flexible spending account, you will receive a YSA card and instructions in December. When you use the card to pay for eligible health care expenses at the point of purchase, the amount will automatically be deducted from your health care spending account (up to your annual contribution amount). The card eliminates the need to pay for expenses then submit claims for reimbursement. The YSA card cannot be used with dependent day care expenses. However, save your receipts because some claims require supporting documentation. As expenses are incurred, you can use the YSA card or submit your receipts via fax or mail for reimbursement to Your Spending Account. A check is then mailed to you. You can also sign up to have your reimbursements directly deposited into your bank account. Note: 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. Also, 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. 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 2013. To learn more about paid time off, contact your local HR leader. 4
Must Elect 2013 Disability Plan For 2013, 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 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 2014. 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 2013. Note: Long-term disability will continue to be offered if you are continually disabled beyond 26 weeks. The monthly payments are equal to 60 percent of an employee s base pay, up to a maximum of $10,000 per month. New Employee Savings Plan Administrator Beginning January 1, Fidelity Investments will administer our Employee Savings Plan. You will receive additional information about the transition to Fidelity with detailed information about the move and your new investment options. Annual enrollment is a great time to review your 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 Employee Savings Plan account. Continuing your participation in the 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. Watch for more information about the transition to Fidelity and the useful online tools Fidelity provides to help you manage and grow your savings. 5
Additional Benefit Changes The following benefit changes will take effect January 1; however, you do not need to take action to receive these benefits: Adoption Assistance is changing to $4,000 for a full-time employee and $2,000 for part-time employees; Employee assistance program will now be administered through ValueOptions. You can learn more by visiting www.achievesolutions.net/chi or calling 1-877-679-3819 Questions? If you have questions regarding your benefit elections for 2013, contact your local Human Resources representative. After January 1, you can find legally required compliance materials and plan documents, such as Summary Plan Descriptions, by visiting our new Plan Information Page on Inside CHI at http://home.catholichealth.net: Go to HR/Payroll Connection; Select the My Benefits tab and click on the View Current Coverage link; and Then select the Plan Information Page from the Health and Insurance tab or from the Knowledge Center tab. 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. 6