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1 NORTHERN ARIZONA PUBLIC EMPLOYEES BENEFIT TRUST Open Enrollment Plan Year July 1, 2011 – June 30, 2012 May 2 – 31 2011

Open Enrollment 2011

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Page 1: Open Enrollment 2011

1

NORTHERN ARIZONA PUBLIC EMPLOYEES BENEFIT TRUST

Open

Enrollment

Plan Year

July 1, 2011 – June 30, 2012

May 2 – 31

2011

Page 2: Open Enrollment 2011

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OPEN ENROLLMENT OBJECTIVES

•NAPEBT Trends and History•Medical Plans •Dental Plans •Vision Plans •Life Insurance Plans •Flexible Spending Accounts•Health Savings Account•Considering Retirement?

Page 3: Open Enrollment 2011

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NAPEBT Medical PlansTrends & History

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NAPEBTNorthern Arizona Public Employees Benefit Trust

• Coconino County

• City of Flagstaff

• Coconino Community College

• Flagstaff Unified School District

• NAIPTA

Northern Arizona Intergovernmental Public Transit Authority

• Housing Authority

• Accommodation Schools

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NAPEBT – TrendsNAPEBT Health PremiumTrend versus National Health Premium Trend

$0

$100

$200

$300

$400

$500

$600

95-96

96-97

97-98

98-99

99-00

00-01

01-02

02-03

03-04

04-05

05-06

06-07

07-08

08-09

09-10

10-11

Plan Year

Mo

nth

ly E

mp

loye

e R

ate

NationalTrendNAPEBT

National health premium trend data is from the Hay Benefits Reports (Hay Group) adjusted from a calendar year basis to correspond with NAPEBT's fiscal year. The 2010 trend data was not available from Hay, therefore, the 2009 trend increase percentage was used. For the 2006-2007 plan year the NAPEBT contribution rates are a blend of the one plan offered (7/1/06-12/31/06) and three plans offered (1/1/07-6/30/07) weighted by enrollment. For the 2008-2009 and 2009-2010 plan years the NAPEBT rates are a blend of all three plans weighted by enrollment.

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NAPEBT – Total Medical Claims Paid

Claims per Employee per Month

$476.41$482.60

$525.59

$450.30

$400.00

$420.00

$440.00

$460.00

$480.00

$500.00

$520.00

$540.00

FY08 FY09 FY10 7/10-12/10

Fiscal Year Total Claims

Average # of

EmployeesClaims per Employee per

Month

FY08 $19,499,142 3,609 $450.30

FY09 $21,078,317 3,687 $476.41

FY10

7/10-12/10

$22,797,920

$ 9,967,061

3,615

3,442

$525.59

$ 482.60

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NAPEBT – Large Medical Claims PaidNorthern Arizona Public Employees Benefit Trust

Paid Claims > $75,000

6

1

7

14

17

6 6

2

31

12

7

3

86

36

21

11

5 54

46

7

4

01 1

13

0

5

10

15

20

25

30

35

40

45

50

$75,000-$99,999 $100,000-$124,999 $125,000-$149,999 $150,000-$199,999 $200,000+ TOTAL

Num

ber o

f Cla

ims

7/1/2006-6/30/2007 7/1/2007-6/30/2008 7/1/2008-6/30/20097/1/2009-6/30/2010 7/1/2010-12/30/2010

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NAPEBT Medical PlansBlue Cross Blue Shield of ArizonaGroup # 19676

NAPEBT Rx PlansCVS/Caremark#31

72 Plan Year

July 1, 2011 – June 30, 2012

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MEDICAL PLAN EFFECTIVE July 1, 2011

In-Network Buy-Up Plan Base Plan HDHPCalendar Year Deductible: Per person Per family

$500$1,000

$750$1,500

$1,250**$2,500**

PCP Copay – Per visit $25 $35 80%/20%

Specialist Copay – Per visit $35 $45 80%/20%

Chiropractic Copay $35 $45 80%/20%

Urgent Care Copay $50 $75 80%/20%

Emergency Room Access Fee $100* $150* $100*

Inpatient Hospital Admit Fee $100* $100* 20% after ded

Member Coinsurance 20% after ded 20% after ded 20% after ded

Out of Pocket Maximum: Per person Per family

$3,000

$6,000

$3,000

$6,000

$4,000

$8,000

Rx Retail Copay $5/$35/$55/$105 $5/$35/$55/$105 After ded – 20%/$5 min

Rx Retail 90 day Copay 2.5x Copay 2.5x Copay After ded – 20%/$5 min

Rx Mail Order 90 day Copay 2x Copay 2x Copay After ded – 20%/$5 min

Out-of-NetworkCalendar Year Deductible: Per person Per family

$1,000$2,000

$1,500$3,000

$1,250**$2,500**

Member Coinsurance 40% after ded 40% after ded 40% after ded*Access/Admit Payment and Deductible applied prior to 80%/20% coinsurance **The In and Out-of-Network deductibles are combined for HDHP.

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1010

Two ID cards– Medical and Rx –Continue to use same pharmacies

Mail Order

–Will need a new prescription

–Fast Start program

90 days at Retail for 2-1/2 times copay

Grandfathering of drugs – first 6 months

– A small percentage of drugs will change tiers after 6 months (January 1, 2012)

– Will receive a letter if your drug is changing

Register at Caremark.com

– Check drug costs– Compare prices of Generic vs. Retail

CVS/Caremark New Rx Vendor

MEDICAL PLAN EFFECTIVE July 1, 2011

Dedicated NAPEBT

phone line available

on 6/13/11

877-456-0109

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MEDICAL PLAN EFFECTIVE July 1, 2011

Employee Cost SharingApproved & Adopted by NAPEBT

The Board of Supervisors has approved the payment of the $20 cost share on behalf of County employees for FY 12 only

• Historically, NAPEBT Employers funded 100% of employee base level premium

• NAPEBT Employers cannot continue to shoulder full cost

• $20 per month cost share applied to all medical plans offered by the Trust

•$240 savings for employees enrolled in medical plan

•County contribution - $20 per employee per month (1,042) =$229,240

•Trust Reserves – One month at $20 per employee (1,042) employees = $20,840

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Wellness Incentive Program July 2012 – June 2013

NAPEBT – Self-funded Plan• Rates driven by claims experience

• Increase of large claims

• Increased frequency of in-patient hospitalization

Improved Health of Employees• Long-term results

Return on Investment• Studies show a $4 return for every dollar spent on Wellness programs.

• Lower costs for everyone

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Wellness Incentive Program July 2012 – June 2013

Opportunity to Waive $20• Employee participates in Wellness Program

• Complete Biometric Testing

• Fall 2011 Health Fair

• Wellness participation Jan – May 2012

• Complete MyBluePrint Health Assessment

• www.azblue.com $20 Employee Cost Share

• $20 per month added to employee cost for Base and Buy-Up plans

• $20 decrease to HSA / FSA contribution on HDHP.

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MEDICAL PLAN EFFECTIVE July 1, 2011

Medical Plan FY12 Monthly Premium

County Contribution

FY12 Employee Cost Share

CountyContribution

Employee Cost

per Month

Effective

July 1, 2011

Employee

Cost

Per

Paycheck

Difference

Employee

Cost

Per

Paycheck

Buy-Up Plan - $500 Deductible

Employee $ 514.58 $ 452.78 $ 20.00 $ 41.80 $ 20.90 $ 1.57

Dependent $ 795.70 $ 402.07 $ 0.00 $ 393.63 $ 196.82 $ 14.74

Total for Family $1,310.28 $ 854.85 $ 20.00 $ 435.43 $ 217.72 $ 16.31

Base Plan - $750 Deductible

Employee $ 472.78 $ 452.78 $ 20.00 $ 0.00 $ 0.00 $ 0.00

Dependent $ 731.04 $ 402.07 $ 0.00 $ 328.97 $ 164.48 $ 12.31

HDHP/HSA - $1,250 Deductible * $47.68 per month/$572.15 per year employer contribution to HSA or FSA

Employee $ 425.10 $ 452.78* $ 20.00* $ 0.00 $ 0.00 $ 0.00

Dependent $ 657.30 $ 402.07 $ 0.00 $255.23 $ 127.62 $ 9.56

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Medical Plan FY12 Savings

Per Paycheck

Savings

For Month

Buy-Up PlanEmployeeDependent

Total for Family

$ 1.57$ 14.74$ 16.31

$ 3.14$ 29.48$ 32.62

Base PlanEmployeeDependent

$ 0.00$ 12.31

$ 0.00$ 24.62

HDHPEmployeeDependent

$ 0.00$ 9.56

$ 0.00$ 19.12

Employee Premium Holiday

The Month of December at Last Year’s Rates!

Total Cost to NAPEBT for Employee Premium Increase Holiday: $ 75,100

MEDICAL PLAN EFFECTIVE July 1, 2011

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Mayo Clinic in Arizona- Is an in-network Provider on all plans- Includes Mayo Clinic and Mayo Clinic Hospital Services- Identify as member of NAPEBT

Waivers of Medical Coverage

- other coverage under a qualified group employer’s plan that is not through another NAPEBT employer, under Medicare or a qualified public health plan such as AHCCCS

- Must provide enrollment confirmation

FYI… Useful Information

MEDICAL PLAN EFFECTIVE July 1, 2011

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Deductibles run on calendar year

- January 1st – December 31st

Dual-spouse Deductible Coordination- Husband and wife employed by a NAPEBT employer.- Base and buy-up plans only.- One spouse must have family coverage. - Indicate on the Blue Cross enrollment form that your spouse works for NAPEBT and provide the spouse’s ID number.

FYI… Useful Information

MEDICAL PLAN EFFECTIVE July 1, 2011

Member ID Cards

- Have available at every appointment!

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Patient Protection and Affordable Care Act Healthcare Reform

Pre-existing Condition Restrictions

- Removed for children younger than age 19

- Still applies for adults until 2014 Preventive Services

- No office visit co-pay for recommended screenings, general physicals and vaccinations

Lifetime Benefit Maximum

-Lifetime benefit limits removed

Eligible Dependents to Age 26

-Without regard to- Student Status- Marital Status- Financial Dependence

- Only applies to legal child of employee- Does not extend to the spouse or child(ren) of the adult child - Applies ONLY to Medical plan and Flexible Spending Accounts

MEDICAL PLAN EFFECTIVE July 1, 2011

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NAPEBT Dental PlansDelta Dental of ArizonaGroup # 1331

Plan Year

July 1, 2011 – June 30, 2012

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DENTAL PLAN EFFECTIVE JULY 1, 2011

Dental Plan FY12 Buy- Up Plan

Annual Maximum Benefit per Person

$2,000

Routine Services 100%

Basic Services 80%

Major Services 50%

Orthodontia

(Age 8 – 19)

50%

$1,000 Maximum Lifetime Benefit

Calendar Year Deductible $50 per person

$150 per family

Base Plan

$1,000

100%

80%

50%

50%

$1,000 Maximum Lifetime Benefit

$50 per person

$150 per family

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DENTAL PLAN EFFECTIVE JULY 1, 2011

Dental Plan FY12

Monthly Premium

County Contribution

Employee Cost per

Month

Effective

July 1, 2011

Employee Cost

Per Paycheck

Difference

Employee Cost

Per Paycheck

Buy-Up Plan - $2,000 Annual Benefit

Employee $ 48.58 $ 31.08 $ 17.50 $ 8.75 $ 0.25

Dependent $ 62.66 $ 0.00 $ 62.66 $ 31.33 $ 1.31

Total for Family

$ 111.24 $ 31.08 $ 80.16 $ 40.08 $ 1.56

Base Plan - $1,000 Annual Benefit

Employee $ 31.08 $ 31.08 $ 0.00 $ 0.00 $ 0.00

Dependent $ 40.12 $ 0.00 $ 40.12 $ 20.06 $ 0.97

Total for Family

$ 71.20 $ 31.08 $ 40.12$ 20.06 $ 0.97

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NAPEBT Vision PlansVSPGroup # 12239817

Plan Year

July 1, 2011 – June 30, 2012

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VISION PLAN EFFECTIVE JULY 1, 2011

Vision Plan FY12 Buy-Up PlanCore Plan

Employee OnlyIn-Network

Eye ExamOnce every 12 months

$15.00 Co-pay $15.00 Co-pay

Prescription LensesOnce every 12 months

$25 Material Co-payLenses and/or Frames

20% Discount on a complete pair of glasses.Frames

Once every 24 months

$25 Material Co-pay Lenses and/or Frames

$120 Allowance

20% off additional cost

ContactsInstead of Glasses

15% discount off contact lens exam

$120 allowance for exam & contacts

15% Discount on Contact Lens

Exam

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VISION PLAN EFFECTIVE JULY 1, 2011

Vision Plan FY12Monthly Premium County Cost Employee Cost

per MonthEmployee Cost per Paycheck

Buy-Up Plan

Employee $ 6.97 $ 0.77 $ 6.20 $ 3.10

Dependent $ 8.00 $ 0.00 $ 8.00 $ 4.00

Total for Family $ 14.97 $ 0.77 $ 14.20 $ 7.10

Core Plan -Employee ONLY

Employee $ 0.77 $ 0.77 $ 0.00 $ 0.00

So what’s the bottom line? There is no change to employee payroll deductions for

vision coverage for 2011-2012.

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NAPEBT Life Insurance PlansMinnesota LifePolicy # 33585

Plan Year

July 1, 2011 – June 30, 2012

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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011

Basic Term Life & Accidental Death & Dismemberment Insurance$40,000 coverage

• Provided by Coconino County at no cost to the employee ($7.40 x 1,042 = $92,530/annual cost to County)

• May convert to an individual policy upon separation of employment

• Remember to keep Beneficiary information up to date

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Voluntary Term Life Insurance• Employee may increase elected coverage amount by $10,000 at Open Enrollment without underwriting (up to the Guaranteed Issue limit of $100,000)

•Insure spouse up to half of employee’s voluntary coverage election

• Insure children @ $10,000

LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011

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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011

Voluntary Term Life Insurance• Rate Change

• % of Increase Varied by Age Bracket

• Child Rate – No Change

Previous Monthly Rate Effective July 1, 2011

Employee – Age 36

$80,000 Coverage

$ 5.60 $ 7.20

Employee – Age 52

$100,000 Coverage

$ 19.00 $ 23.00

Spouse – Age 47

$25,000 Coverage

$ 3.25 $ 4.75

Spouse – Age 59

$40,000 Coverage

$ 14.40 $ 21.20

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Flexible Spending Accounts

ASI Flex

Plan Year

July 1, 2011 – June 30, 2012

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Flexible Spending Accounts

Reduce Tax Liability

Health Care FSA (HCFSA) – allows you to set aside pre-tax dollars to pay for eligible health care expenses not covered by insurance or reimbursed from any other source.• Limited Purpose Health Care FSA (use with a High Deductible

Health Plan (HDHP) and Health Savings Account (HSA)

(dental, vision and preventive care expenses only)• General Purpose Health Care FSA (qualified health care

expenses)

Dependent Care FSA (DCFSA) – allows you to set aside pre-tax dollars to pay for eligible day care expenses for children up to the age of 13, disabled children over age 13, and elder care.

FSA PLAN EFFECTIVE JULY 1, 2011

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FSA – Medical• Unreimbursed Medical, Prescription, Dental, & Vision expenses

• Up to $3,000 Per Year

• Debit Card

• Reimbursement by Check or Direct Deposit

• Full Amount Elected Available Immediately

• MUST RE-ENROLL EACH YEAR!

• Use or Lose – Be Conservative!

FSA PLAN EFFECTIVE JULY 1, 2011

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Ineligible Health Care Expenses• Cosmetic Expenses

• Rogaine, bleaching of teeth, cosmetic surgery (other than reconstructive surgery following a mastectomy for cancer)

• Dietary Supplements such as Vitamins

• Personal Use Items

• Health Club Memberships

• Tanning Salon

• Over-the-Counter Medications Unless Prescribed by a Doctor

FSA PLAN EFFECTIVE JULY 1, 2011

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FSA – Dependent Care• Up to $5,000 per year

• Reimbursement by Check or Direct Deposit

• Funds Available as Contributed

• MUST RE-ENROLL EACH YEAR!

• Use or Lose – Be Conservative!

FSA PLAN EFFECTIVE JULY 1, 2011

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Ineligible Dependent Care Expenses• School Expenses for Children in Kindergarten or Older

• Overnight Camping

• Expenses for a Child Age 13 or older (unless disabled)

• Expenses for Nighttime Babysitting

• Daycare Expenses During an Extended Leave of Absence

• When a Dependent is Providing Child Care

• Expenses Paid to Your Child Under the Age of 19

(even if child is not your dependent)

FSA PLAN EFFECTIVE JULY 1, 2011

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Health Savings Accounts

HealthEquity

Plan Year

July 1, 2011 – June 30, 2012

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• $47.68 per month ($572.16 per year)

• Health Savings Account if Eligible

• Who is NOT eligible for an HSA? Individuals entitled to Medicare (eligible & Individuals entitled to Medicare (eligible &

enrolled)enrolled)

Individuals covered under another non-HDHPIndividuals covered under another non-HDHP

Individuals enrolled in AHCCCS or Medicaid or Individuals enrolled in AHCCCS or Medicaid or have used IHShave used IHS

• If NOT Eligible for HSA you will be enrolled in Flexible Spending Account (Health)

HDHP Employer Contribution

HSA PLAN EFFECTIVE July 1, 2011

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HSA PLAN EFFECTIVE JULY 1, 2011

Health Savings Accounts

Only available with election of HDHP Reduce Tax Liability Use like flexible spending account for Medical,

Prescription, Dental and Vision Unspent money rolls over year after year; NOT use it or

lose it

Take it with you when you leave or retire• Pay for COBRA, Medicare or Long Term Care Premiums• Never pay taxes as long as used for qualified expenses

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• HealthEquity and Blue Cross Blue Shield of Arizona have created an integrated Health Savings Account (HSA) solution.

• Your claims information will now be available with your HSA account information for easier management of claims payment and review.

• When you login to the Blue Cross web site (www.blueaz.com) you can click on a link to take you to the HealthEquity portal where you can view your claims, see how much you owe, and process payment (pay a provider, or yourself) – all from the same website.

FYI… Useful Information

HSA PLAN EFFECTIVE JULY 1, 2011

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Considering Retirement?Coconino County Retiree Benefits

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Considering Retirement?• 10 Years of Continuous Service with Coconino County

• Retiring with a Pension through an AZ State Retirement System

• Medical, Dental and Vision Benefits end at age 65

•Life Insurance Reduces to ½ Face Value at Age 65; End at Age 70

• Contact Human Resources with retirement questions

RETIREMENT EFFECTIVE JULY 1, 2011

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Questions?

OPEN ENROLLMENT 2011