AssociationJanuary 7, 2016

What’s on the Horizon for State Employee Benefits?

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Legislative Updates

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HB 1 State contribution: 9.5%, up from 7.5%; continued agency contribution: 0.5%HB 9Employee contribution: 9.5%, up from 6.9%

Offset by 2.5% pay increaseElimination of 90-day waiting period for new employees

Retirement Contribution increases for better financial health

Changes achieve near actuarial soundness with no

additional reduction in benefits.

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ERS Retirement Trust Fund ProjectionsFY14 to FY63

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HB 1 Full funding for insurance programs in FY16-17

Increase in Plan Year 2016 premiums, to offset rising health costs No plan design changes

Health Insurance Full funding

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HB 3307TRICARE supplemental plan, available now through Discount Purchase Program

Not administered by ERSHB 966Consumer-directed health plan, available Sept. 1, 2016

Optional alternative to HealthSelect of Texas and HMOs Lower premium Much higher deductibles Education campaign on the way

Health Insurance More choice

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Consumer-Directed Health Plan (CDHP)Two Components

Consumer-Directed Health PlanMore member responsibility

High-deductible Health Plan (HDHP)High deductiblePossibly lower premium contributions

Still paid 100% / 50% by the statePreventive services paid at 100%

Not including RxPPO plan administered by

UnitedHealthcare in PY17In-network benefits

Health Savings Account (HSA)Funds for eligible health expenses only

Including dental and visionTax benefitsInvestment options for someContribute only when enrolled in HDHPPortableState contributionAdministrator TBD

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Federal Mandates

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ACA Health Coverage Reporting Forms 1095-B and 1095-C

Form 1095-B: verification of member’s medical coverageERS communicating with members about form and reportingNon-MA health plans mailing forms by January 31Members report information on 2015 tax filings

Form 1095-C: verification of employer’s offer of medical coverageEmployers are responsible for Form 1095-CEmployers can designate ERS as Designated Governmental Entity (DGE) for

reporting one part; ERS reports this part on Form 1095-B, Part IV

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Other Updates

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Qualified transportation fringe benefit, regulated by IRS Two types of pre-tax accounts

Parking, at/near work/transit for qualified transit or vanpool ­ $15 - $250 monthly, debit card or claims filing

Transit, for eligible mass transit (bus, train, subway) or vanpool expenses ­ $15 - $130 monthly, debit card only

Enrollment began January 1, 2016 Month-to-month benefit Administered by ADP

Commuter Spending Accounts (CSAs)Tax savings on qualified commuting expenses

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Bid for providers underwayExpect to offer it Sept. 1, 2016 (enrollment this summer)

Until then, discounts available through HealthSelect of Texas and HumanaDental plans

Vision InsuranceFrequently requested by members

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ERS supports the state workforce

by offering competitive benefits at a

reasonable cost.