celebrate …2008. celebrate … your health. new principal wellness program additional resources...

Celebrate…2008

Celebrate…Your health.

New Principal Wellness program Additional resources within health plans

Your valuable benefit plans. Two new and improved consumer health plans Valuable plans at affordable cost in a market where costs

continue to rise at rapid rates from year to year

Your resources. Enhanced tools available from Anthem New Schurz Choice communication portal

Your choice. Continue year after year to have many options available

Meeting HighlightsNew or Changing for 2008

Wellness Program Medical Plan Options Flexible Spending Accounts Dental Dependent Supplemental Life Options Schurz Choice Communication portal ADP Employee Self Service portal

No Changes for 2008 Vision Group Life andAD&D Long Term Disability Employee Supplemental Life Options

2008 Benefit Overview

Benefit Administrator Change

Benefit/Plan Change

Cost Change Positive Impact vs. Negative

Impact

Wellness Program NEW- Principal NEW NEW- No Cost!

Positive

Medical No Yes Yes Positive for most

Dental No Yes Yes Positive

Vision No No No No Change

PCA (Health Reimbursement Account)

Yes Yes n/a Positive for most

Flexible Spending Accounts

Yes Yes n/a Positive

Group Life Insurance No No No No Change

Long Term Disability No No No No Change

Dependent Life Insurance

No Yes Yes Positive

Schurz ChoicePrincipal Wellness Plan

What is Wellness? Worksite wellness programs are proactive, organized

programs that provide lifestyle and medical assistance that assist employees and their family members to promote and maintain good health

Wellness doesn’t just involve your physical health, it involves emotional, spiritual, occupational, social, and intellectual dimensions too

Wellness Makes $ense Most employees (83%) are in the low and medium

cost categories of healthcare spending Each risk factor avoided (such as high cholesterol or

high blood pressure) can save a company an average of $304 per risk factor per year

By keeping these employees out of the high-cost category, employees lead better lives and employers can potentially save thousands of dollars

To better compare the cost savings, look at a low-risk employee vs. a high risk employee. The difference between low- and high-risk categories is $2,882 per year, per employee

No. of Risk Factors Average Total Cost Per Year

0-2 $1,397

5 or more $4,279

Benefits of the Wellness Program

Better health for you and your family

Reduction in health insurance premiums for participation

Increased knowledge about your health and well-being

Culture of wellness in the workplace

Lower health care costs in the future

Wellness Program

Onsite health screenings for employees that include immediate results of a cholesterol panel, glucose, blood pressure, body composition, and a health risk analysis (HRA)

Quarterly “Words of Wellness” newsletters sent

to employees’ homes

Proven health coaching to high-risk individuals through email or phone

Trusted health information available to employees through Principal’s website

Important Information about Wellness

Principal Wellness program is open to all medical plan eligible employees

Regardless of whether someone: Elects medical coverage with Schurz Choice or not Elects Core or Alternate medical plan

All components are confidential- screening process, screening results, any health coaching discussions, calls, etc.

Reduced medical plan costs of $25 per month if you participate in the wellness program

To qualify for the premium incentive credit: Must complete the Principal screening (onsite or physician

packet) and complete the health questionnaire which is included in the Principal screening packet

How do I elect to participateGo through the ADP ESS enrollment

process- elect one of the following options:

PARTICIPATING: in the Principal Wellness program for 2008.

•Reduced premiums take effect January 1, 2008 (premium incentive credit)

•As long as you complete the Principal screening process in 2008, you will pay the reduced premiums for medical coverage.

NOT PARTICIPATING: in the Principal Wellness Program for 2008.

•Increased, non-wellness premiums take effect January 1, 2008 and continue through December 31, 2008 - UNLESS

•If you choose at the time of screening to go through the Principal Wellness screening process, Schurz will retroactively credit you the reduced premiums for medical coverage.

Why Participate in Wellness

You save $300 annually in medical plan premiums!

The on-site screening is valued at over $200.

You have the opportunity to improve or maintain your health status by being engaged in your health.

In order for Schurz to continue offering valuable health plans, your participation, understanding and advocacy for your health is key

Schurz Choice Anthem Medical Plans

Medical

Both plans are PPO plans- meaning you will receive the best benefit by utilizing Anthem BC/BS network providers (same as today)

Both plans have new tools available through Anthem Lumenos

Core 1200 Plan = Lumenos 1200 Core Plan Health Reimbursement Account included

Alternate 500 Plan = Lumenos 500 Alternate Plan Health Incentive Account included

Both plans have unlimited in-network preventive care that does not apply towards the deductible or out of pocket maximum

NEW Healthy Rewards program is available on both plans Allows you to earn dollars to be used for eligible medical expenses Dollars earned either go into your HRA (core plan) or HIA (alternate plan)

Anthem Lumenos 1200 Core Plan

Core 1200 Plan- Single Coverage

$500HRA Dollars

$700Bridge

Coinsurance / Traditional Coverage

100% Preventive Care

100% Coverage

$1,200 Deductible

$2,500 In-Network Out of Pocket Maximum

Anthem Lumenos 1200 Core PlanIn Network Out of Network

HRA Allocation from Schurz $500 Individual Coverage

Individual Bridge (deductible)-applies to those with single coverage only

$700(combined deductible for in and out of network)

Member Coinsurance 20% 40%

Individual Out of Pocket Maximum-applies to those with single coverage only

$2,500 $5,000

Preventive Care 100% as outlined Deductible & Coinsurance

Colonoscopies(both preventive & diagnostic)

100% Deductible & Coinsurance

Retail /Mail Order Prescription Deductible & Coinsurance

Deductible & Coinsurance

Earn extra dollars toward your HRA

through the Healthy Rewards program

Core 1200 Plan- Employee +Dependent(s) Coverage

$1,400HRA Dollars

$1,000Bridge



100% Coverage

$2,400 Deductible

$5,000 In-Network Out of Pocket Maximum

Anthem Lumenos 1200 Core Plan

In Network Out of Network

HRA Allocation from Schurz $1,400 Family Coverage (employee plus one or more dependents)

Family Bridge (deductible)-applies to anyone electing to cover 1 or more dependents

$1,000(combined deductible for in and out of network)


Family Out of Pocket Maximum-applies to anyone electing to cover 1 or more dependents

$5,000 $10,000




Retail /Mail Order Prescription Deductible & Coinsurance

Deductible & Coinsurance

Earn extra dollars toward your HRA

through the Healthy Rewards program

What is considered Preventive Care?

School and sports physicals also covered in full

Colonoscopies will also continue to be covered in full for in-network providers whether routine or diagnostic.

Key Components of Core PlanNo Copays for any servicesTo pay for bridge and coinsurance expenses –

Use roll-over PCA credits Use HCFSA Use your own cash

All medical plan expenses go towards Out of Pocket Maximum (HRA, Bridge and Coinsurance)

Mail order no longer has the buy 2 get 1 free 90 day supply is available for 90 day price

If you have dependents on the plan – Schurz HRA allocation = $1,400 Bridge = $1,000 Out of Pocket Maximum = $5,000 There is no individual bridge or deductible.

Health Reimbursement Account Details

Annual Schurz Contribution to HRA

Employee Only Coverage

$500

Employee + One or more Dependents

$1,400

Administered by Anthem

First dollar payment No deductible to be satisfied first HRA will pay before FSA

Any unused PCA balances will transfer from WageWorks to Anthem

Unused balances are intended t0 carry over from year-to-year and intended to be available for Retiree Health Premium Fund

Direct payment to providers (hospital and physicians) vs. employees

Pharmacy will know if HRA dollars available and charge patient appropriately

Anthem’s Lumenos 1200 Core Plan

Stay healthy with Preventive Care coverage

Your employer makes an annual allocation to your account

Use your account dollars to pay for medical care and prescription drugs

Earn more dollars to your HRA through Healthy Rewards Incentive

After HRA funds are spent, you pay an out of pocket amount to satisfy your bridge

Your 2008 HRA + Bridge = Deductible

Traditional Health Coverage then covers additional expenses

Deductible + Traditional Coverage = OOPM

Meet Mary Jones – 1200 Core Plan Single Coverage

HRA

$500 funded by annual employer allocation

Plus

Additional dollars available through Healthy Rewards

Preventive Care100% In Network

Traditional Health Plan Coverage80% Network Provider

60% Non-Network Provider

$700 Bridge(Deductible equals $1,200

minus $500 HRA allocation)

Mary Jones’ Lumenos PPO Core Plan

$500 Year 1 allocation plus $50 reward for completing Health Assessment via anthem.com

$550

Expenses: Ob/Gyn visit & lab tests – $350Office Visit– $150

$500

Paid by Preventive Care benefit at 100% $350

Paid from HRA & applied to deductible $150

HRA Rollover to Year 2 $400

Meet The Smiths – 1200 Core PlanFamily Coverage

The Smiths’ Lumenos PPO Core Plan

$1,400 Year 1 allocation plus $50 reward for completing Health Assessment via anthem.com

$1,450

Expenses: Preventive visits & lab tests – $500

Physical therapy - $800

Prescription drugs – $200

$1,500


Paid from HRA & applied to deductible $1,000

HRA Rollover to Year 2 $450

HRA

$1,400 funded by annual employer

allocation

Plus

Additional dollars available through Healthy Rewards




$1,000 Bridge(Deductible equals $2,400

minus $1,400 HRA allocation)

Year 1

Meet The Smiths- 1200 Core PlanFamily Coverage

The Smiths’ Lumenos PPO Core Plan

HRA Balance: $1,400 Year 2 allocation plus $450 roll-over from Year 1 plus $50 reward for completing Health Assessment and $300 reward for enrolling and graduating from Personal Health Coach program for a diabetes condition

$2,200


Hospital and surgery - $10,000


$10,800


Deductible paid from Year 2 HRA allocation plus Year 1 Roll-over and Healthy Rewards program

$2,200

Remaining deductible to be satisfied by Smiths $200

Charges paid by Traditional Health Coverage

(80% x $8,300 = $6,640) $6,640

Smiths pay coinsurance under Traditional Health Coverage (20% x $8,300 = $1,660) $1,660

Total amount paid by HRA (applied to deductible) $2,200

Total amount Smiths pay (remaining deductible & coinsurance) $1,860

Year 2

Anthem Lumenos 500 Alternate Plan

Alternate 500 Plan- Single Coverage

$500Bridge /Deductible



100% Coverage

$1,000 Out of Pocket Maximum

OOPM does not include any prescription drug copays



Individual Deductible (Bridge)- applies to those with single coverage only

$500(combined in and out of network deductible)


Individual Out of Pocket Maximum -applies to those with single coverage only

$1,000 $2,000

Preventive Care 100% Deductible & Coinsurance



Pharmacy benefits shown on following slide

Earn dollars into a Health Incentive

Account by participating in

Healthy Rewards

What is considered Preventive Care?

School and sports physicals also covered in full

Colonoscopies will also continue to be covered in full for in-network providers whether routine or diagnostic.

Anthem Lumenos 500 Alternate PlanRetail= 30 day supply In Network Out of Network

Retail- Generic $10 Copay

Retail- Brand Name Preferred or Formulary

$25 Copay

Retail- Brand Name Non-Preferred or Non-Formulary

$50 Copay

Retail- Injectible Drugs (Tier 4) 25% Cost Share; Up to maximum of $1,000

Mail Order= 90 day supply In Network Out of Network

Mail order- Generic $20 Copay

Mail order- Brand Name Preferred or Formulary

$50 Copay

Mail order- Brand Name Non-Preferred or Non-Formulary

$100 Copay

Mail order- Injectible Drugs (Tier 4) 25% Cost Share; Up to maximum of $1,000

None of the above shown copays track towards the deductible or out-of-pocket maximum

Alternate 500 Plan- Family Coverage

$1,000Bridge /Deductible



100% Coverage

$2,000 Out of Pocket Maximum

OOPM does not include any prescription drug copays



Family Deductible (Bridge)- applies to those with famil coverage only

$1,000(combined in and out of network deductible)


Individual Out of Pocket Maximum -applies to those with family coverage only

$2,000 $4,000




Same pharmacy copays for family

Earn dollars into a Health Incentive

Account by participating in

Healthy Rewards

Key Components of Alternate PlanCopays for prescription drugs do not

apply to Out of Pocket Maximum

Mail Order copays continue to be buy 2 get 1 free

Health Incentive Account Details

Administered by Anthem

Any PCA balance will not transfer from Wage Works into HIA

Unused balances are intended t0 carry over from year-to-year but are not available for Retiree Health Premium Fund

Direct payment to providers (hospital and physicians) vs. employees

Cannot use Health Incentive Account dollars for prescription copays

Meet Mary Jones- PPO 500 Alternate PlanSingle Coverage

No HRA available

Members are eligible for Healthy Incentive Account

Program




$500 Deductible

Mary Jones’ Lumenos PPO Alternate Plan

Expenses: Ob/Gyn visit & lab tests – $350Prescription drugs – $150

$500


Copay paid by member- not applied to the deductible $50

Meet The Smiths – PPO 500 Alternate PlanFamily Coverage

The Smiths’ Lumenos PPO Alternate Plan


Physical therapy - $800


$1,500


Paid by member & applied to deductible* $800

Copays paid by member- not applied to deductible $60

No HRA available

Members are eligible for Healthy Incentive Account

Program




$1,000 Deductible

If the there are dollars available in the Healthy Incentive Account, which would be earned through the Healthy Rewards program, the HIA dollars could be used towards the deductible.

PPO 1200 Core Plan CostMONTHLY COST Wellness Participation Non-Wellness

Participation

Employee Only $37.29 $62.29

Employee + Spouse $97.34 $122.34

Employee + Child(ren) $67.13 $92.13

Employee + Family $127.17 $152.17

BI-WEEKLY COST Wellness Participation Non-Wellness Participation





WEEKLY COST Wellness Participation Non-Wellness Participation





PPO 500 Alternate Plan CostMONTHLY COST Wellness Participation Non-Wellness

Participation





BI-WEEKLY COST Wellness Participation Non-Wellness Participation





WEEKLY COST Wellness Participation Non-Wellness Participation





New Anthem Lumenos Tools

Health Advocates available to employees (888) 523-5898

Online access to health information Cost estimator tools Hospital ranking tools Health Reimbursement Account balance information Claim status

Healthy Rewards program to earn additional dollars either into Health Reimbursement Account (Core Plan) or Health Incentive Account (Alternate Plan) $50 reward for completing health questionnaire (one

per family) $100 reward for participating in health coaching

program $200 reward for successful completion of the health

coaching program $50 reward for successful completion of the smoking

cessation program and/or weight management program

Healthy Reward dollars = money into either your HRA or HIA, in turn money you can use for eligible medical plan expenses

Importance of Knowing Cost

• Will allow your dollars, whether it’s the HRA/HIA or your own money, to stay in your pocket or last longer

•Will allow you to be a good consumer of healthcare, in turn keeping costs level over time

41

Where to find additional cost info

•Call Anthem customer service

•Talk to your physician or pharmacist

•Use the Anthem Lumenos website• instructions included in your packet

Prescription Drug Cost Info

• Review prescription drug costs for retail and mail order

• View alternatives, including generics and over-the-counter

• Find information on drug interactions

Using Your Anthem Plan

When you visit a network doctor:• Show your new Lumenos ID card

• Take advantage of discounts provided

• A claim is filed for you

• Payments from your HRA (if enrolled in Core plan and have available balance) and from your Traditional Health Coverage made directly to your doctor

When you visit a doctor that is not in the network:• Show your ID card

• Pay for the services received

• File a claim

HRA applies to Core Plan Only

Anthem Reminders

•You will receive a new ID card from Anthem

•To view your 2008 plan information or claim information, you will need to re-register on the Anthem website- www.anthem.com on or after January 1st

•This is where you will view your medical plan and HRA balance

•To view your 2007 plan or claim information, continue using your current log on information

•Same network you have today

•January 1st is when the new plans take effect and you can start accessing the new programs available with Anthem Lumenos

How to decide

•Estimate your medical expenses

•Use the resources available to you

•Consider your current PCA dollars•PCA dollars only roll-over to Core Plan with HRA

•Add up the annual cost of the plans•Core plan much more affordable

46

Schurz ChoiceAnthem Flexible Spending

Account Plans

What is a flexible spending accountYour pre-tax money set aside for

healthcare or dependent care expenses

Healthcare = medical, dental, vision, prescriptions and over the counter items

Dependent care = care for a dependent up to age 13 or older if they are not able to care for themselves (could be child or spouse)

Changes to FSA plans for 2008

Anthem will be the new administrator Single point of contact for Medical, Health

Reimbursement Account, Vision and Flexible Spending Accounts

Schurz $100 matching contribution for Health Care FSA option is no longer available

No auto claims roll-over feature available Anthem & Met Life will substantiate expenses so no

receipts will need to be submitted when debit card used Employees must maintain receipts in the event Anthem or

the plan requests a copy

Annual Maximums

Increase in Health Care Maximum $3,500

Same Dependent Care Maximum $5,000 or $2,500 if married filing separately

2007 Flexible Spending ClaimsYou have until March 31st 2008 to file

claims for 2007

Any 2007 claims should continue to be submitted to Wage Works for reimbursement

Anthem Flexible Spending Debit Card

•New debit cards will be issued to all Anthem FSA participants

•You must keep your receipts according to IRS guidelines

Employee Access

To View Balance and Claim Information

Click on: Spending Accounts, Claims, and Account Balances

Direct Deposit

Employees may elect to enroll in the ACH Direct Deposit option with Anthem FSA

Log on to anthem.com once enrolled to complete the process

Schurz ChoiceMet Life Passive PPO

Dental Plan

Dental

Two year lock period removed No longer required to stay in the dental plan for

two years.

New four tier rate structure Employee only Employee + Spouse Employee + Child(ren) Employee + Family

Slight increase to dental cost for 2008

Metlife Passive PPO Dental Plan Summary

Member Out of Pocket

Individual Deductible $25

Family Maximum Deductible $100

Preventive Care 20%

Restorative 20%

Major Restorative 50%

Orthodontics 50%

Annual Maximum Benefit per Person

$1,500

Lifetime Orthodontic Maximum Benefit per Person (separate from annual maximum)

$1,500

You may continue to see the dentist of your choice. If you use a Metlife dentist, you may receive a discount.

Met Life Dental Plan CostMONTHLY

Employee Only $5.15

Employee + Spouse $10.31

Employee + Child(ren) $10.82

Employee + Family $15.98

BI-WEEKLY

Employee Only $2.38




WEEKLY

Employee Only $1.19




Schurz ChoiceSun Life Supplemental

Dependent Life Plan

Dependent Life Insurance

Spouse only benefit 10K, 20K, 40K

Child only benefit 5K, 10K, 20K Child benefit may not exceed the spouse benefit

if both are elected

If electing for the first time during open enrollment- must complete evidence of insurability on spouse

Schurz ChoiceWeb Communication Portal

Schurz Choice Communication Portal

Communication PortalDoes not replace ADP Employee Self Service

Link from ADP Employee Self Service portal Employees can link to ADP from this site- Click on

General benefit, health and wellness information posted here

Links to various administrator websites

Access to claim forms

ADP Enrollment via ESS

Open Enrollment Period October 29 – November 9

Single sign on this year through ESS

Link to current benefits elected

Link to election process

Option to request 2008 Medical Summary Plan Documents from Anthem

What Happens NextYou will receive a confirmation statement

in the mail Review the statement for errorsIf something is listed incorrectly, please

notify your local HR Representative immediately.

No Changes for 2008Vision

Remains with Anthem Blue Vision/EyeMed Must elect medical coverage in order to have vision

benefits May not use Health Reimbursement Account dollars for

vision expenses

Group Life and AD&D Hourly employees= 1 x annual earnings up to $150,000 Salary employees = 2 x annual earnings up to $150,000

Long Term Disability The benefit begins after 180 days of a continuous

disability. If you elect this coverage, Schurz will pay the premium

for the first $18,000 of covered earnings. You pay the premium on earnings above $18,000.

Employee Supplemental Life and AD&D Options

Schurz ChoiceAnthem Vision Plan

Anthem VisionIn Network Out of Network

ExamLimited to one per member every 12 months (from date of service)

$10 Copay Reimbursement up to $35

Lenses - Limited to one set of lenses per member every 12 months

Single Vision Lenses $20 Copay Reimbursement up to a maximum of $25

Bifocal Vision Lenses $20 Copay Reimbursement up to a maximum of $40

Trifocal Vision Lenses $20 Copay Reimbursement up to a maximum of $55

Lenticular Vision Lenses $20 Copay Reimbursement up to a maximum of $80

Progressive Lenses Covered up to Bifocal amount less copay

Reimbursement up to a maximum of $40

Frames - Limited to one set of frames per member every 12 months

Covered up to $120 retail value before $20 Copay


Contact Lenses – in lieu of lenses and frames

$20 Copay; $105 Plan Maximum


Employee Supplemental Life and AD&D OptionsEmployee = 1-4 x annual earningsSingle or Family CoverageEvidence of Insurability is not requiredEmployees pays all of premium via

payroll

Enrolling in Supplemental Life If you are enrolling for the first time and you

are not a new hire you will be required to complete an Evidence of Insurability form. www.schurzchoice.essbenefits.com Complete and return the form to your HR Representative

by January 22nd

What Happens NextBetween now and November 9th

You review benefit information on ADP Employee Self Service portal & Schurz Choice web communication portal

Make any benefit election changes online

Mid- December You will receive a confirmation statement in the mail

outlining the benefits you are enrolled in for 2008 If you elect:

Medical- You will receive a new Anthem Lumenos ID card

Flexible Spending- You will receive a new Anthem FSA debit card

Questions?

celebrate …2008. celebrate … your health. new principal wellness program additional resources...

Documents

wellness program better

health coaching

physical health

good health wellness

options available slide

worksite wellness programs

future slide

health insurance premiums