Retiree Medical Study
Leadership Update
October 2015
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Retiree Medical Study Objectives
Ensure retirees and university are getting the
most for their dollar
 Affordable, accessible retiree medical plans are now available in the market
 Taking advantage of options such as Medicare subsidies could lower costs
Ensure university can continue insurance benefits
(medical, dental, life) for current retirees
 By 2019 the liability for current and future retiree medical benefits will be
over $1 billion, increasing to $4.5 billion in 30 years
 Recent finalized Governmental Accounting Standards Board (GASB) ruling
means the university will need to begin to fund the liability
 This is additional money that will increase the benefit rate 3
2
Our challenge: Current liability projection
5,000.0
$4.5B in 2045
4,500.0
4,000.0
3,500.0
3,000.0
2,500.0
2,000.0
1,500.0
1,000.0
$808M
500.0
2015
2020
2025
2030
2035
2040
2045
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5
Project timeline
Progress to Date
Announce Study
@
Launch Dedicated Website
Conduct
Listening
Tour
Jan 2015
Feb
Mar
Develop
Potential
Designs
Apr
Review Current Plan
Finalize Plan
Analysis
May
Jun
Jul
Aug
Develop Implementation/
Communication Strategy
Sept
Oct
TRAC
Review
Conduct
Focus Group
Testing
Nov
Dec
Jan 2017
Announce
Direction
Retiree plan
implemented
Conduct Benchmarking
and Marketplace Review
Guiding Coalition Meetings
@
Website Updates
Educational Resources
4
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Current Retiree Insurance Program
Eligibility for insurance benefits
Age 55 and at least 10 years of service, or age
60 with at least 5 years of service
Generally, spouses are eligible for lifetime
coverage
Same eligibility applies
to retiree dental and life
Must have UM benefits
prior to retirement
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Current retiree medical plans
Pre Medicare retirees
PPO Plan
Healthy Savings Plan
Post-Medicare retirees
myRetiree Health Plan
Healthy Savings Plan
Subsidy – UM subsidy varies based on age and
years of service at retirement but averages 50%
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Changes outside the university
Only 6 million of 45 million Medicare retirees have
coverage through an employer plan
Market plans for Medicare-eligible are robust and
offer universal access
Significant federal subsidies are available to
complement or replace Medicare
Enhanced Medicare pharmacy benefit by 2020
(provided through Affordable Care Act)
Pre-65 options are developing
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The “levers” for Retiree Medical Program
Eligibility and/or vesting (who gets benefits?)
Who receives the benefit (and for how long)?
How much of a benefit do they receive?
Are spouses covered; what about widow(er)s?
Plan design (what do they get?)
Cost sharing for medical expenses
Coinsurance, copays, deductible
Employer funding (how much does UM pay?)
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Current retiree recommendations
Preserve plans (medical, dental, life)
Continue current UM subsidy of premiums
Take advantage of market options to increase
value / lower cost
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Status of future retiree medical benefits
for active employees
Plan will likely close to new hires
Multiple options developed
Being reviewed by the Total Rewards Advisory
Committee (TRAC), who will make recommendation(s)
to VP of HR
Targeting December 2015 or February 2016
recommendations to Board of Curators
Ample time and support resources will be provided to
faculty and staff to consider any changes
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2016
Annual
Enrollment
HRC August 2015
Subhead goes here
Your role as a leader
 Make sure you’re informed
— Understand generally the when and what of Annual Enrollment so you can help
inform your faculty and staff
— Know that active enrollment could result in defaults if your employees do not take
action
 We need your buy-in and support for your employees during the process
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Important dates to take action
 Before enrollment: Choose insurance that is right for you
Benefits guide
Meetings & one-on-ones
Plan comparator
Campus Benefits Reps. / HR Service Center
Be tobacco free
http://umurl.us/enrollment
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Important dates to take action
 During enrollment: Select your plans
Log into myHR
Make your selections
You’re not done until you click “Submit”
Don’t default!
https://myhr.umsystem.edu
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Important dates to take action
 After enrollment: Make the most of your benefits
Review your confirmation
Complete your HSA paperwork
Keep an eye out for new cards
Consider investing your premium savings
http://umurl.us/enrollment
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 SECTION TWO:
Insurance options
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Medical options
Plan
Employee monthly premium
Healthy Savings




Lowest premium
HSA w/ university contributions
Combined medical and ℞
deductible
Broad network
Tobacco-free
discount
No
discount
Tobacco-free
discount
No discount
Self
$35
$85
$390
$340
& spouse
$120
$170
$730
$680
& child(ren)
$95
$145
$628
$578
& family
$188
$238
$1002
$952
Tobacco-free
discount
No
discount
Tobacco-free
discount
No discount
Self
$65
$115
$413
$363
& spouse
$179
$229
$777
$727
& child(ren)
$146
$196
$668
$618
& family
$272
$322
$1068
$1018
Tobacco-free
discount
No
discount
Tobacco-free
discount
No discount
Self
$123
$173
$517
$467
& spouse
$296
$346
$984
$934
& child(ren)
$244
$294
$844
$794
& family
$434
$484
$1358
$1308
Custom Network Plan



Mid-level premium
$0 medical deductible; separate
$50 retail ℞ deductible
In-network providers from MUHC
+ a few others
PPO



Highest premium
$350 medical deductible;
separate $75 ℞ deductible
Broad network
UM monthly premium
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Medical options, cont’d.
What’s different
What’s the same
 Premiums
 HSA contributions
 Tobacco discount & attestation
Self
$400
& spouse
$800
 New medical plan administrator:
United Healthcare
& child(ren)
$800
& family
$1,200
 New HSA administrator:
Optum Bank
 Same prescription administrator, Express
Scripts, for all plans
Amounts prorated after 1st quarter
 Custom Network remains in Columbia only
 Active enrollment
 RX Deductible on the custom network plan
 Out of pocket maximum changes
 Check provider lists – may have changed.
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Other insurance plans
 Dental, vision, life, and accidental death & dismemberment
— No change in plan structure
— Premiums – no change
 Long Term Disability (LTD)
— During the two-week period of Annual Enrollment only, faculty and staff have a
unique opportunity to enroll in Option A or Option B Long Term Disability (LTD)
without providing evidence of insurability or otherwise going through underwriting
— Those who currently have LTD coverage, will default to the same coverage but can
make changes
— Those who waived in previous years, will automatically be enrolled in university
paid Option A
 Privacy notices
— We will be ensuring that all employees are alerted to our privacy notices
— Always available at http://umurl.us/notices
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 SECTION THREE:
Wellness
Incentive
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$450 incentive program
Tier 1: $100 *

50 points
Take the Wellness Pledge in
myHR with Annual Enrollment

50 points
Take an online Personal Health
Assessment
Tier 2: $350 *

350 points
Choose healthy habits and
activities that work for your lifestyle.
Examples:
— Healthy eating
— Join a Weight Watchers program
— Mindful-based stress reduction classes
— Participate in daily exercise
* Taxable income. Voluntary retirement plan savings are also deducted. Must pay premiums for medical insurance to be
eligible. Must be actively employed at time of payout to earn the incentive.
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$450 incentive program, cont’d.
What’s different
What’s the same
 Rest of incentive program begins
November 1, after taking the pledge during
Annual Enrollment

Must be a primary subscriber to university
medical insurance to be eligible

Must be an active employee at the time of
payouts

Must earn the initial 100 points by April
30 to receive $100 in your May paycheck;
and the remaining 350 points by
September 30 to receive $350 in your
October paycheck
 No biometric health screening
 Expanded activities
 Either incentive points or prizes under the
Million Step Pedometer Program; not both
 Tobacco-free / tobacco cessation program
no longer earn incentive points—replaced
by premium discount
* Taxable income. Voluntary retirement plan savings are also deducted.
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