PPTX - State Employees` Insurance Board

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1

State Employees’ Insurance Board

2013 Benefits Conference

AGENDA

Registration (Wellness Nurses Available

)…………………………………………………………..……8:00 AM

Welcome…………………………………………………………………………………………………..……9:00 AM

I. SEIB and Healthcare Reform Overview (Page 3)..

……………………………………………………9:15 AM

SEIB

II. Deferred Comp Plan Options …………………………………………………………………………..10:15 AM

Great West Retirement Solutions

Break (Wellness Nurses Available)………………………………………………………………..……..10:25 AM

III. Alabama Retired State Employees’ Association (ARSEA)……………………………………….10:45 AM

IV. Supplemental and Southland (Page 24)……………………….…………………………………....10:50 AM

SEIB

V. Wellness (Page 42).……………………………………………………………………………..…….....11:20 AM

SEIB

VI. SEIB Wellness Center & Pharmacy (Millbrook Only)……………………………………………..11:40 AM

Lunch (On your own)…………………………………………………………………………….……..….12:10 PM

VII. Retirement Benefits Overview …….……………………………………………………...…………...1:25 PM

Retirement Systems of Alabama

VIII. SEHIP Online Enrollment ……………………………………………………………….…………..…2:05 PM

SEIB

IX.

Deferred Comp Plan Options………………………………………………………..………………..2:35 PM

Retirement Systems of Alabama

Break…………………………………………………………………………………………………..…….….2:45 PM

X. Alabama State Employees’ Association (ASEA)…………………………………….………………3:05 PM

XI. Retirees (Page 53).

……………………………………………………………………………………….3:10 PM

SEIB

XII. Flexible Benefits Plan (Page 68).………………………………….………………...………………..3:40 PM

SEIB

Program Concludes………………………………………………………………………...………………..4:20 PM

NEW ADDITIONS

A LIST OF INSURANCE COMPANIES

ELIGIBLE FOR PAYROLL DEDUCTION

A LIST OF PAYROLL DEDUCTION

CODES ADMINISTERED BY THE SEIB

A LIST OF NEARBY RESTAURANTS

A CERTIFICATE OF COMPLETION

2

STATE EMPLOYEES’

INSURANCE BOARD

3

B OARD M EMBERS AND

C OMMITTEES

4

SEIB BOARD MEMBERS

Appointed By

Governor

Governor

Lt. Governor

House Speaker

Ex Officio

Ex Officio

Elected

Elected

Elected

Elected

Elected

Position/ Name

Personnel Board Member

John Carroll

Personnel Board Member

Joe N. Dickson

Personnel Board Member

Joanne Randolph

Personnel Board Member

Jon Bargainer

RSA Executive Secretary

David Bronner

Finance Director

Bill Newton

Personnel Board Member

Faye Nelson

Active Employee Representative

Robert Wagstaff

Active Employee Representative

Paige Hebson

Retiree Representative

William Mellown

Retiree Representative

Robert Pickett

Term

6 year term

6 year term

6 year term

6 year term

Indefinite

Indefinite

6 year term

4 year term

4 year term

4 year term

4 year term

5

Premium and Benefit

Committee

Acting Finance Director

Bill Newton

Active Employee Representative

Paige Hebson

Retired Employee Representative

Robert Pickett

This committee recommends benefit and premium changes to the SEIB.

STATE

EMPLOYEES’

HEALTH

INSURANCE

PLAN

6

P LAN O VERVIEW

7

2005 Legislative Changes

State authorizes Board to offer supplemental coverage in lieu of the basic medical plan.

State requires retirees to take other-employee coverage, if offered.

State extends supplemental and optional coverages and provides a sliding premium scale to retirees, based on years of service.

State requires Board to provide discounted coverage for low income active and retired employees and their dependents.

State approves non-tobacco user discounts.

8

2008

Increased Dental maximum from $1000 to $1500 per covered member.

Medicare retirees enrolled in Medicare Advantage

Plan.

9

2009

Wellness Participation Discount Program adopted.

All active employees screened during 2009 received the Wellness Participation Discount of $25 per month in 2010.

10

2010

Effective October 1, 2010, timing of the

State's premium payments changed.

11

2011Plan Changes

Implemented annual wellness screenings for all active employees to receive the Wellness

Participation Discount.

12

2012 Legislative Changes

Board can adjust premiums for spouse’s eligibility for other coverage.

Retirees must have at least 10 years of creditable coverage to be eligible for retiree health coverage.

Cancellation of coverage for fraudulent claims.

FPL discount increased to 300%.

Retiree premiums increased 1% per year for every year prior to Medicare age.

Sliding scale adjusted to charge a 4% per year penalty for less than 25 years of creditable coverage.

Contribution for non-Medicare retirees cannot exceed contribution for active employees by October 1, 2016.

13

SEIB Premium Rate History

YEAR STATE

SHARE**

INDIVIDUAL

PREMIUM

DEPENDENT

PREMIUM

1975

1980

1985

1990

1995

2000

2005

2010

2012

15.70

32.43

100.00

195.00

255.00

357.00

650.00

805.00

805.00**

0.00

0.00

0.00

0.00

0.00

0.00

0.00

15.00*

15.00*

30.75

51.77

82.50

141.00

164.00

164.00

164.00

205.00*

205.00*

2013 825.00

15.00*

*Premium shown includes non-tobacco user’s discount and wellness discount.

**State share does not reflect credits returned to agencies.

***Premiums do not include dental coverage.

205.00*

14

2014 Premium Changes

Active Employee

Single

Family

Early Retiree

Single

Family

Medicare Retiree

Single

Family

Family (non-Medicare)

Surviving Spouse < 65

Single

Family

Medicare Surviving Spouse

Single

Family

Increase $5

Increase $5

Increase $15

Increase $25

Increase $5

Increase $5

Increase $15

Increase $20

Increase $25

Increase $20

Increase $25

Non-Tobacco User Discount

Dental Premium

Increase $5 to $50

Individual $3 Family $8

Implement Monthly Spousal Surcharge $50

If the spouse’s individual coverage is more than $255 per month, the SEHIP member may qualify for a waiver.

15

2014 Benefit Changes

Mandated Affordable Care Act (ACA) Benefits

Add some preventive and women’s health

Out of pocket limits

No copay

Individual $6,250

Family $12,500

Dental Offer dental coverage separate from health (BC/BS or Southland)

Urgent Care Facilities

Outpatient Surgery

Emergency Room

Major Medical Deductible

Lab Copays

Expand Wellness Program

Increase Copay $35 to $50

Increase Copay $100 - $150

Increase Copay $50 - $150

Increase Deductible $100 - $300

Lower from $10 - $7.50

Active employee their covered spouse,

Non-Medicare retiree and their covered spouse are eligible for the wellness discount

BCBS Supplemental

Health Reimbursement Account

Limit deductible amount on primary coverage – carve-out dental

Provide up to $150 reimbursement to supplement other coverage premiums

Pharmacy Copays 90-day Supply (Tier I at 1.5 x copay)

Tier II , include high cost generics

Implement Generic First Program (new prescriptions only)

16

Dental Options

Benefits BC/BS Southland

Deductible

Diagnostic/Preventive

Major/Restorative

$25

100% Coverage

50% Coverage up to

$1500 annual ($25 deductible)

$25

100% Coverage

Single – 80% Coverage up to $1250 annual (no deductible)

Family – 60% Coverage up to $1000/member annual ($25 deductible)

No Coverage Orthodontics 50% Coverage up to

$1,000 lifetime per child under age 19 ($25 deductible)

NOTE: Opt-out and/or plan change forms will be mailed directly to employees.

STATE EMPLOYEES’

HEALTH INSURANCE

PLAN

17

H EALTH C ARE R EFORM

18

Summary of Health Care Reform

Patient Protection and Affordable Care Act (PPACA)

Signed into law on March 23, 2010

“Grandfathered Plans”

Plans that were in existence on March 23, 2010

SEHIP will lose grandfathered status on January 1, 2014

Provide preventative services and women’s health with no copay

19

Summary of Health Care Reform To Date

Lifetime Coverage Limits Prohibited

SEHIP must eliminate the $1 million lifetime limit on coverage of essential benefits but can allow certain restrictive annual limits until

2014.

Pre-existing Condition Exclusions Prohibited for Dependents

SEHIP must eliminate pre-existing condition exclusions for children under the age of 19.

Dependent Coverage Expanded up to Age 26

SEHIP must provide coverage for adult dependent children up to age 26, if the child is not eligible to enroll in other employer provided coverage.

SEHIP cannot require qualified young adults to pay more than similarly situated dependents enrolled in the plan.

Health Care Reimbursement Account

Maximum contribution capped at $2,500 annually

Over-the-Counter drugs must be pre-approved

20

Health Care Reform Changes

Effective October 1, 2013

Open enrollment for Marketplace*

Coverage may become effective as early as January 1, 2014.

*For more information on the Marketplace, click here.

21

Healthcare Reform Changes

Effective January 1, 2014

Pre-existing condition exclusion for all enrollees prohibited.

SEHIP currently has a 270 waiting period less credit for time served under other group coverage.

Coverage Eligibility

Employees must be offered coverage within 90 days of employment.

Marketplace Subsidy

SEHIP members who fall between 100%-400% of the FPL may qualify to receive credit for participation in the

Marketplace.

Individual Mandate

Everyone, unless exempted by law, is required to maintain health insurance.

22

Healthcare Reform Changes

Effective January 1, 2018

Excise tax on “Cadillac” Plans

Cost of coverage exceeds $10,200 on individual and $27,500 on family coverage

SEHIP cost of coverage is currently well below these levels.

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

State Employees’

Insurance Board

24

B LUE C ROSS B LUE

S HIELD (BCBS)

S UPPLEMENTAL P LAN

25

What Is The BCBS

Supplemental?

The BCBS Supplemental coverage supplements primary health insurance plans by covering the copay, coinsurance, deductible that the primary insurance plan does not pay at 100%.

The primary coverage’s deductible cannot exceed $1,250 for individual coverage or

$2,500 for family coverage.

26

Enrollment Requirement for the

BCBS Supplemental

To be eligible, members must be able to enroll in another health insurance plan through a spouse, other, or previous employer.

Primary plans NOT eligible:

SEHIP (Group 13000)

Local Government Health Insurance Plan (Group 30000)

Public Education Employees’ Health Insurance Plan (Group 14000)

Tricare

Medicare

27

Cost of the BCBS Supplemental

Individual Coverage - $0*

Family Coverage - $0*

*The tobacco user premium will be waived and the annual wellness check is not mandatory.

28

Example

A married state employee has a spouse employed with an auto manufacturer. The spouse elects family health insurance coverage offered through his employer.

With the primary health insurance now provided through the auto manufacturer, the state employee can enroll in the BCBS Supplemental, on the first day of the following month.

The BCBS Supplemental will eliminate copays, coinsurance, and deductible (up to a maximum) not covered at 100% by the auto manufacturer’s coverage.

Remember, the BCBS supplemental is free for individual and family coverage.

29

Advantages to enrolling in the BCBS

Supplemental

 The coverage is free of charge for individual and family coverage.

 If the primary insurance does not provide dental coverage, members are eligible to enroll in the individual dental plan ($3) or the family dental plan ($8) offered through BCBS of AL or Southland National

 BCBS Supplemental will pay health and pharmacy copays, coinsurance, and deductibles (up to a maximum) that the primary plan does not pay at 100%.

 The member can move back to the BCBS basic medical plan on the first day of any month.

 Everyone covered under the supplemental is eligible for benefits offered through the SEIB Wellness Program.

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Pharmacy

Pharmacy:

To receive reimbursement on pharmacy benefits, the member should complete a BCBS Medical Expense

Claim form (available at www.alseib.org

) and attach pharmacy receipt(s).

Pharmacy claims may also be filed online at www.bcbsal.org

with reimbursements eligible to be direct deposited into the member’s personal checking or savings account.

State

Employees’

Insurance

Board

31

Southland

Optional Plan

Dental, Vision, Hospital

Indemnity, and Cancer

32

What Is The Southland

Optional Plan?

The Southland Optional Plan provides

Dental and Vision Coverage

Cancer and Hospital Indemnity Coverage

33

Cost for the Southland

Optional Plan

Individual Coverage - $0*

Family Coverage - $0*

*The tobacco user premium will be waived and the annual wellness check is not mandatory.

34

Enrollment Requirement for the

Southland Optional Plan

The SEHIP member must be eligible for primary health insurance through a spouse or other employer.*

*Primary plans not eligible:

SEHIP (Group 13000)

Tricare (SEHIP retirees are the only exception.)

Medicare

35

How is the Southland Optional

Different than the BCBS

Supplemental?

The Southland Optional Plan is not designed to pay copays/deductibles not covered at 100% by your primary health insurance.

It does however provide dental, vision, hospital indemnity, and cancer benefits.

36

The Southland Claims Process

Vision

Benefits are the same, regardless of provider.

The provider or the member can file the claim.

Dental

Any dentist can be used. However, if a provider in the DentaNet network is used, the member will save money on expenses over the allowed amount.

DentaNet is the second largest dental network in Alabama.

37

The Southland Claims Process

Hospital Indemnity and Cancer

These coverages work as a supplemental to the member’s income;

The amounts of reimbursement are determined by the procedure, admission, diagnosis, etc. The member will file the claim and reimbursement will be mailed directly to them;

Payment or coverages of the primary health insurance do not affect the reimbursement amount.

38

Advantages to enrolling in the

Southland Optional Plan

 This plan includes dental, vision, hospital indemnity and cancer coverages, all in one.

 There is no premium for individual or family coverage.

 The dental benefits exceed those offered through the SEHIP

BCBS dental plan.

 Southland is the sole dental provider for the Public Education

Employee Health Insurance Plan (PEEHIP).

 This plan can serve as the primary dental and vision benefits plan or supplement the out-of-pocket expenses th at a

 There are no pre-existing conditions for the hospital indemnity

39

Things To Remember

A minimum enrollment period of 12 months is required.

After the12-month requirement has been

*PEEHIP members are eligible to make enrollment changes during the PEEHIP Open

Enrollment period (July-August) with a

October 1 effective date.

40

Southland Vision Supplemental

Premium is $24 per month, regardless of number of dependents.

New employees may enroll within 60 days from date of employment. Existing employees should enroll during Open Enrollment (November 1-30) with a

January 1 effective date. Contract will remain in place unless cancelled by member during Open Enrollment.

This benefit will coordinate with the SEIB Discount Routine Vision Care Network .

Examination

Frames

Single Vision

Bifocals

Trifocals

Lenticular

Contacts

40.00

60.00

50.00

75.00

100.00

125.00

100.00

Note: Plan provides either contact or lenses with frames, but not both in any plan year.

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

SEIB WELLNESS

PROGRAM

W ELLNESS P REMIUM

D ISCOUNT

42

43

Wellness Premium Discount

Members are screened for the following risk factors

Blood pressure

At risk if systolic reading is 160 or higher or your diastolic reading is 100 or higher

Cholesterol

At risk if 250 or higher

Glucose

At risk if 200 or higher

Body mass index

At risk if 35 or higher

44

At-Risk Members

If determined at-risk, the member will receive a copay waiver and physician referral form for follow-up. The member may receive the monthly discount by doing one of the following:

Submit an office referral form indicating that you have been counseled by a healthcare provider for your identified risk(s), or

Submit a completed physician certification form. It’s a good idea to have your physician complete and sign your form while you are in for an office visit. Then you can mail or fax to us and have the peace of mind knowing that your discount is in place, or

Submit proof of participation in an approved exercise facility or SEIB approved program. Provide dates and location of participation, or

Provide proof that you are self-managing and have made improvement in your identified risk(s). You must provide documentation of your improvement.

45

Approved SEIB Wellness

Program Exercise Facilities

No contract agreement

Monthly dues are payroll deducted

No signing fee

All memberships should be executed directly with the facility.

The enrollment and payroll deduction information will be forwarded from the facility to the SEIB monthly.

For location and rate information, visit our website at www.alseib.org

or click here .

46

Just a Few Things You Need To

Know To Receive The Wellness

Discount

New employees, and their covered spouse, must participate in a wellness screening or submit a physician certification form within 60 days from their date of employment.

All active employees, their covered spouse, non-

Medicare retirees and their covered spouse are required to have a screening/physician certification on or before November 30 th of each year.

A State employee can participate in a screening offered by the SEIB, regardless of location.

Refunds will not be given for failure to submit appropriate information by deadline dates.

47

Verifying Discount

To ensure the discount of $25 per month has been applied to your contract you can:

Visit our website at www.alseib.org

to create and view your account information.

Call the SEIB Wellness Division at

(866) 838.3059.

48

Tobacco Cessation Program

Members and their covered spouse may receive a reimbursement of 80% of the cost of a non-covered tobacco cessation product up to $150 lifetime maximum.

49

Physician Weight

Management Program

Covered SEHIP members can receive 80%, up to $150 annually for non-covered weight management programs that are overseen by a physician.

50

Hearing Aid Benefit

The $100 reimbursement for hearing aids will no longer be available beginning

January 1, 2014.

51

Reimbursement Process

To receive reimbursements for both tobacco cessation and weight management, receipts should be:

Mailed: PO Box 304900,

Montgomery, AL 36104

Faxed: (334) 517-9980

Be sure to include name, contract number, and date of birth on all correspondence.

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

State Employees’

Health Insurance

Plan

53

RETIREE

INSURANCE

54

Enrollment / Continuation

A retiring employee may elect to continue coverage with SEIB by completing the Form 12 that is included in the RSA retirement package.

The Form 12 authorizes the RSA to deduct the monthly insurance premium from your retirement check.

If a retiree chooses not to continue coverage at retirement, they MUST wait until the annual Open Enrollment

(November 1-30 with an effective date of January 1) period to rejoin.

55

Retiree Premium Determination

A Retiree’s Premium Is Based On:

Sliding Scale

Premium payment is based on the retirees years of service

Medicare Eligibility

Increase in premium based on years shy of Medicare eligibility, traditionally age 65

56

2014 Retiree Base Premiums

Premiums below are based on an employee with exactly 25 years of state service.

Non-Medicare

$226 Individual*

$478 Family*

Medicare Eligible (BlueRx)**

$0 Individual*

$121 Family*

*Premiums shown include the $50 non-tobacco user’s discount.

**BlueRx copays will increase $5 per prescription beginning January 1, 2014

57

Retiree Premium Sliding Scale

For every year of service under 25, the retiree share will be increased by 4%.

For every year of service over 25, the retiree share will be reduced by 2%.

Years of service (YOS) certified through RSA may differ from years eligible under SEIB.

Participation in ERS does not necessarily mean your

YOS will count towards your insurance premium.

58

Medicare Eligibility

A retiree will have a 1% increase for every year they are away from Medicare eligibility.

Example: A 55 year old retiree will see a 10% increase in their health insurance premium because they are 10 years away from age 65, or Medicare eligibility.

The percentage will remain the same until the member reaches Medicare eligibility.

59

To Determine Premium at

Retirement

Visit the SEIB website at www.alseib.org

and use the Retiree Premium Calculator to estimate premiums at retirement.

Or you can click here to automatically be directed to the Premium Calculator.

60

Other Employer Coverage Carve-

Out

State law requires the SEHIP retiree to enroll in

the new employer’s plan if member:

 goes to work for another employer and is e ligible for coverage with the new employer and the new employer pays 50% or more of the individual premium.

61

Available For Those Who Have Other

Coverage

Blue Cross Blue Shield Supplemental

Picks up co-pays and deductibles that your primary insurance does not pay at 100%, subject to a maximum deductible.

Southland Optional Plan

Provides dental, vision, hospital indemnity and cancer coverage

Both of these plans are free for the retiree and their eligible dependents, regardless of age and/or years of service.

62

Retired State Employees Who Return to

Work With the State of Alabama

Medicare eligible retirees returning to work:

Are classified as a non-Medicare retiree.

The employer is subject to the non-Medicare premium for the individual.

The member is responsible for the non-Medicare premium for the dependent.

63

Retirees on Medicare

Retirees should contact their

SEIB Advisor for information on

SEHIP benefits and premiums and coordination of benefits with Medicare.

64

Status Changes

After retirement, the retiree becomes responsible for notifying the SEIB of any changes to their health insurance contract.

65

Surviving Spouse Coverage

When a SEHIP member with dependent coverage dies:

 SEIB should be notified and the necessary forms should be submitted within 90 days of the date of death;

 Surviving spouses, and their covered dependents, will be eligible to continue coverage if they were covered at the time of death;

 Eligible spouse should make the appropriate monthly premium payments to SEIB.

66

Just so you know…

 The Wellness Discount is not applicable to

Medicare eligible retirees and their Medicare eligible covered dependents. However,

Medicare eligible SEHIP members are eligible to attend Worksite Wellness Screenings.

 The Southland Vision Supplemental Plan is available to both active and retired employees.

 Retirees should not opt out of the SEHIP without speaking with an SEIB advisor about the BCBS

Supplemental or Southland Optional .

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

STATE

EMPLOYEES’

FLEXIBLE

BENEFITS

Health Care Reimbursement

Account (HCRA)

Dependent Care

Reimbursement Account

(DCRA)

68

HEALTH CARE

REIMBURSEMENT

ACCOUNT

(HCRA)

F LEXIBLE E MPLOYEES ’

B ENEFITS P LAN

69

70

HCRA – How it Works

Determine the amount needed for out-ofpocket medical expenses for the upcoming year that include:

Physician copays

Prescription copays

Over-the-counter medications (ONLY with doctor’s written order)

Lasik surgery

Orthodontics

Dental

Glasses/Contacts

71

HCRA – How it Works

The total contribution is deducted in equal pre-tax increments from each pay period over the next year.

$1,000 / 24 pay periods = $41.67 per pay period.

The money is deducted pre-tax and placed into an account to use when you have an out-of-pocket medical expense not covered by your health insurance.

72

How Am I Reimbursed?

There are three types of reimbursement offered under the Flex Plan:

Manual

Traditional (Bump)

Flexible Spending Card

73

Manual Reimbursement

Visit your physician and pay your copay of $35

Complete and HCRA reimbursement form, available at www.alseib.org

, and forward to

BCBS along with receipt/documentation from doctor visit;

BCBS will reimburse the member $35 by either mailing a check directly to the member, or if enrolled, the reimbursement can be direct deposited into a checking/savings account.

74

Traditional Method (Bump)

Visit your physician and pay your copay of $35

When the claim is processed by BCBS, the HCRA will automatically issue a reimbursement for the out-ofpocket expenses not covered by your health insurance.*

BCBS will reimburse the member $35 by either mailing a check directly to the member, or if enrolled, the reimbursement can be direct deposited into a checking/savings account.

*If there is no claim filed with BCBS, the HCRA will not be alerted to send a reimbursement. Example, if purchasing glasses/contacts, the request for reimbursement would need to be filed manually because these are non-covered benefits under BCBS.

75

Flex Spending Card

You receive a MasterCard pre-loaded with the amount of money you choose to put into your account for the upcoming plan year.

You go to the doctor.

You use your Flex Spending card to pay the $35 copay directly from your account.

The money does not have to be in the account before the charge is incurred.

76

How Does the HCRA Benefit

State Employees?

The Health Care Reimbursement Account (HCRA) is basically an interest-free, tax-free loan.

The State is advancing you the total amount elected for the upcoming plan year, and that amount is payroll deducted from 24 pay periods, beginning January 1.*

Qualifying status changes allow enrollment and contribution changes outside of the open enrollment period.

*New employees who start after January 1 of the plan year have 60 days from date of employment to enroll. Their deductions would be divided by the number of payroll periods left in that plan year.

77

Example of Tax Savings

HCRA

Adjusted Gross Income $20,000 $20,000

7.5% AGI Max Amt

Medical Expenses

Amount allowed as deduction

Tax Savings (15% tax)

Tax Savings (28% tax)

$1,500 N/A

$1,500 $1,500

$0

$0

$0

N/A

$225

$420

78

What if I Don’t Use All of the

Money I Put Into the HCRA?

This program is regulated by the IRS; therefore, it has a “Use It or Lose It” rule.

The HCRA is available from January 1 until

March 15 of each following plan year.

To determine the contribution amount, only add expenses for January through

December.

79

Bonus For Joining HCRA

An additional $50 will be added to your account just for enrolling!

With a minimum $120 contribution(only $5 per pay period) you will actually have $170 to spend!

DEPENDENT CARE

REIMBURSEMENT

ACCOUNT

(DCRA)

F LEXIBLE E MPLOYEES ’

B ENEFITS P LAN

80

81

DCRA – How it Works

Determine amount needed to cover dependent care expenses for the upcoming year.

That amount is deducted pre-tax in equal increments from each pay period over the next year.

82

DCRA Example

$2,000 / 24 pay periods = $83.34 per pay period.*

The money is placed into an account for you to use when you have a dependent care expense.

*New employees who start after January 1 of the plan year have 60 days from date of employment to enroll. Their deductions would be divided by the number of payroll periods left in that plan year.

83

HCRA & DCRA Advantages

Allows you to set money aside for health/dependent care expenses for the upcoming year;

HCRA money can be used for dependents, even if they are not covered under your health insurance;

$50 bonus just for enrolling in the HCRA;

Entire amount of election is 100% pre-taxed;

Helps to budget health/dependent care expenses;

HCRA money in account after December 31 st can be used until March 15 th of the next plan year;

Significant tax savings over the course of the year.

84

Benefits of Enrollment in HCRA and DCRA

SEHIP members will pay for their out-ofpocket health and daycare expenses even if they are not enrolled in the HCRA or

DCRA.

So, why not pay with pre-tax money? And receive a $50 bonus just for enrolling in the

HCRA?

Encourage your employees to consider enrolling in the HCRA and DCRA.

85

Helpful Links

Visit the SEIB website at to www.alseib.org

view last three years of claims history to help determine upcoming years HCRA contribution amount;

Visit the Blue Cross Blue Shield of Alabama website at www.bcbsal.org

to view contributions, balances, claims, etc. on both your HCRA and DCRA.

86

Notes

Be sure to use correct plan year enrollment forms*

All payroll deductions in GHRS for both the

HCRA and DCRA are administered by SEIB

* 2014 enrollment forms have been included in your folder

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

State Payroll and

Personnel

Officer

Assistance

New and Existing

Employee

Information and

Forms

SEHIP Benefits, Plan Options, and Programs

Blue Cross Blue Shield Basic Medical Plan

Blue Cross Blue Shield Supplemental Plan

Southland National Benefits Plan

Federal Poverty Level Program and

Federal Poverty Level Guidelines

New Employee Forms

SEHIP Enrollment Form (IB2)

After initial enrollment, employee can communicate directly with their SEIB Advisor for all their health insurance benefit questions, changes, etc.

Non-Tobacco User Discount Application

Physician Certification Wellness Discount Form

Southland Vision Supplemental Enrollment Form

Federal Poverty Level Discount Application

Flexible Benefits Plan Enrollment (HCRA and/or

DCRA)

Existing Active Employee

Forms

BCBS Medical Expense Claim Form

Plan Change Form

Membership Status Change Form

Non-Tobacco User Discount Form

Physician Certification Wellness Discount Form

Federal Poverty Level Discount Application

Blue Cross Blue Shield Direct Deposit

Enrollment Form

Southland National Cancer and Hospital

Indemnity Claim Form

Southland National Dental Claim Form

Southland National Vision Claim Form

SEIB Wellness Benefits and

Programs

Worksite Wellness Screening Schedule

Tobacco Cessation Program

Physician Administered Weight

Management Program

Participating Exercise Facilities

Have Your New, Existing, and Retiring Employees

Contact Their SEIB Benefit Advisor For Plan and Benefit

Information

Marsha Abbett

866-841-9489 mabbett@alseib.org

Tonya Campbell

866-841-0978 tcampbell@alseib.org

Connie Grier

877-500-0581 cgrier@alseib.org

Kerry Schlenker

866-838-5027 kschlenker@alseib.org

Rick Wages

866-841-0980 rwages@alseib.org

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