Open Enrollment 2011 - Delaware North

Open Enrollment 2011This presentation provides ahigh-level summary of the2011 Benefits Enrollment process.It also provides a review of benefit plansincluded in the annual enrollment.

2011 Benefits Guide• The primary source of information and contains details of thebenefit plans and the 2011 enrollment process.• We strongly encourage you to review the Guide and refer to it ifyou have questions, prior to contacting the Associate ServiceCenter.• The Guide can be accessed online through the AssociatesService Center – Associates Benefits website:From Home: https://dncasc.dncinc.comFrom Work: http://dncasc.dncinc.com• Additional information regarding open enrollment and ourbenefit plans is available on the ASC website. Click on“Associate Benefits” for a listing of subjects.

Open Enrollment 2011• A once-a-year opportunity to change your benefits• You may change your benefits during the plan year only ifyou have a qualifying life event (e.g., birth of child,marriage, divorce, change in employment status, etc.)October 25 th - November 12 thForPlan Year 1/1/2011 – 12/31/11

What’s New for 2011?Health Care Reform Mandated Changes• Preventive care covered at 100%.• Emergency care covered the same whether in-networkor out-of-network.• No pre-existing conditions limitations.• No lifetime maximums on claims paid.• Eligible children covered to their 26 th birthday(student or non-student; married or unmarried).• Over-the-Counter drugs no longer eligible forreimbursement under the Flexible Spending Account(FSA), unless prescribed by a doctor.

Dependent EligibilityNon-Union Plans• Medical Plan: Children covered to their 26 th birthday(student or non-student; married or unmarried).• Dental Plan: Dependent children covered to their19 th birthday; 23 rd if a full time student.• Vision Plan: Dependent children covered to their19 th birthday; 25 th if a full time student.• Dependent Life Insurance Plan: Children eligiblefor coverage to their 23rd birthday.

Personal Health AssessmentIf you complete the PHA during Open Enrollment(10/25/10 - 11/12/10), you will be entered in a prizedrawing to win one of many great prizes, including:– one Nintendo Wii Fit– two Apple 8GB iPods– 10 $50 Dick’s Sporting Goods gift cards!

BCBS Wellness Programs• Weight Management - Set goals, manage your weight, design aprogram.• 24x7 Nurseline - Advice, treatment alternatives, referrals and generalquestions.• Smoking Cessation - A confidential program to help you quit.• Maternity Care - A special program to help you manage yourpregnancy.• Health Management – Help you better manage your chronicconditions like diabetes, asthma, hypertension, arthritis, etc.

2011 Non-Union Medical Plans• Select Plan• Traditional Plan• The same choices as in 2010.• Premium rates reflect our actual claims experience.

Traditional Plan• PPO – Preferred Provider Plan• Freedom of choice to use In-Network or Out-of-Network Providers (no referrals are required)• Copays ($25 for primary doctor/$40 for specialist)• Annual Deductible ($300 Individual/$900 Familyfor in-network claims)• Coinsurance (80%/20% for most in-network charges)

Traditional PlanPlan is made up of two separate types of charges and paymentsCopays ApplyTypes of Charges:• $25 Copay – Regular Office Visits• $40 Copay – Specialist Office Visits• $50 Copay – Urgent Care Visit• $25 Copay – Chiropractic Visit• Services are paid-in-full with Copay• No Deductible or Coinsurance ApplyDeductible & Coinsurance ApplyTypes of Charges:•Surgery – Inpatient or Outpatient• Facility, Physician, Supplies•Diagnostic X-rays•Diagnostic Lab•Durable Medical Equipment•Physical Therapy• No Copays• Deductible & Coinsurance Apply• Copays, Deductibles and Coinsurance all apply toward Annual Out- of-Pocket Maximum.• Some services have limits on number of visits, e.g. Chiropractic, Physical Therapy.

Select PlanThe Select Plan features a high deductible with a HealthReimbursement Account. A higher deductible is required inexchange for lower premiums.•PPO – Preferred Provider Plan• Freedom of choice to use In-Network or Out-of-Network Providers (no referrals are required)•Base medical plan• Higher Deductible ($2,000 Individual/$4,000 Family)• Coinsurance (80%/20% for most in-network charges)•Health Reimbursement Account

Select Plan - What is an HRA?Health Reimbursement Account (HRA)An account funded by DNC that participants use to pay medicalexpenses that are not paid by the medical plan.• Delaware North provides an annual contribution to a Select Planparticipant’s HRA account:• $400 for Single Coverage• $800 for Family Coverages• It is used to pay for expenses that go toward the deductible.• Any dollars that are unused at year-end will automatically berolled over to the next plan year, however, the rollover cannotexceed two times the value of the fund amount.• The health account may not be used to pay for prescriptiondrugs

How is a Select Plan Claim Processed?

2011 Non-Union Medical Plans SummaryIn-Network Benefits Traditional Plan Select PlanDeductible$300 Individual$900 Family$2,000 Individual$4,000 FamilyCoinsurance 80% 80%HRA Contribution N/A $400 Single/$800 FamilyAnnual Out-of-PocketMaximum$3,000 Single$6,000 Family$5,000 Single$10,000 FamilyPreventive Care 100% 100%Office VisitsHospital ConfinementCopay$25 Copay - PCP$40 Copay - Specialist$250 per Confinement,then 80%/20%80% After Deductible80% After DeductibleLifetime Maximum Unlimited UnlimitedPrescription Plan Same Same

Compare Annual Premium CostsWhen you chose your medical plan be sure to take intoaccount the difference in your premium; not just yourestimated claims expense.Average PremiumsTraditionalPlanSelectPlanDifferenceEmployee Only $1,500 $600 $900Employee +Child(ren)$2,800 $1,100 $1,700Employee + Spouse $3,500 $1,700 $1,800Family $5,800 $2,600 $3,200Note: these are for illustrative purposes only; employeepremiums vary by region.

A Simple ExampleAn example of how each plan works. It is not meant to comparecosts. Actual medical expenses may vary.Employee-Only Coverage Traditional Plan Select PlanAnnual Premium (average) $1,500 $600Physical Exam $0 $0Office Visits5 at $100 per visitSpecialist Visits3 at $150 per visit$25 Copay x 5 =$125$40 Copay x 3 =$120$100 Full Cost x 5 =$500$150 Full Cost x 3 =$450Total Cost $1,745 $1,550Less HRA N/A ($400)Rx Expense (same plan) $180 $180Total Net Cost $1,925 $1,330

Sample CostsSample costs for common services are provided in Benefits Guide.They are only approximations to help associates approximate theirmedical expenses. Associates are encouraged to check with theirproviders for more detail on actual costs.Office Visits – PCP $80Office Visits – SpecialistConsultation$180Outpatient Lab $225Outpatient X-ray $570Emergency Room $1,200

Non-Union Prescription PlanBoth plans have the same prescription coverage through MEDCO.No Changes for 2011RetailMail OrderSupply 1 month 3 monthsGeneric Drugs $10 copay $20 copayBrand Name –FormularyBrand Name –Non-Formulary30% coinsurance 2 times 30% coinsuranceMinimum $30 copay Minimum $60 copayMaximum $100 copay Maximum $200 copay50% coinsuranceMinimum $50 copayMaximum $100 copayNo cost reduction for mail order

MEDCO Mail Order Pharmacy• Mail order is required for all maintenancemedications.• Maintenance medications are prescription drugsyou take for 3 months or longer.• e.g. allergy, diabetes, high blood pressure,asthma medication.• One-time prescriptions (i.e. antibiotics) should befilled at a retail pharmacy; regular copay applies.

MEDCO Mail Order PharmacyBenefits of Mail Order• Savings for you: 3 month’s supply for price of a2 month supply.• Medications are delivered within 10 days of receipt.• Eliminates need to travel to a retail pharmacy.• Less room for dispensing errors.• Fewer refills are required throughout the year.

MEDCO Mail Order Pharmacy• Have doctor write prescription for a 90-day supply(plus refills for up to 1 year, if applicable)• You are allowed 3 fills of each maintenance medicationat the retail pharmacy.• If you continue to fill at the retail pharmacy after 3 fills,you will pay 2x the copay for a one-month supply ofmedication.• Easy to use – order refills by phone or online

Other Benefits• Non-Union Dental Plan - No Changes for 2011• Non-Union Vision Plan - No Changes for 2011• Non-Union Life Insurance – Next Slide• Union Life Insurance – per collective bargaining agreement

Non-Union Dental Plan – Delta (In-Network)No Changes for 2011 – Plan & Premiums Remain the Same as in 2010DeductibleIndividual $50Family $150CoinsurancePreventiveBasicMajorAnnual Maximum $1,500Orthodontia(adults and children)100%, not subject to deductible2 cleanings per year80% after deductible80% after deductible50% after deductibleLifetime Maximum of $1,750Dependents covered to age 19; age 23 if full time students.

Non-Union Vision Plan (EyeMed - In-Network)No Changes for 2011 – Plan & Premiums Remain the Same as in 2010Exam (1 per year) $10 copay 1 exam per 12 monthsStandard LensesSingle, Bifocal, Trifocal $10 copay 1 pair per 12 monthsStandard FramesContacts – MedicallyNecessaryContacts – ElectiveConventional$0 copay$120 allowance100%$120 allowance notincluding fitting; 15% onamount over $1201 pair per 24 months1 pair per 12 monthsWith prior approval1 pair per 24 monthsDisposable$120 allowance notincluding fittingDependents covered to age 19; age 25 if full time students.

Non-Union Life Insurance and Supplemental AD&DCompany Provided• Basic Life Insurance – 1 times salary• Basic AD&D Insurance – discontinued• Supplemental AD&D is a good alternative to obtain thiscoverage at a very reasonable cost.Supplemental Benefits• Life Insurance: 1 to 5 times salary; maximum of $1 million• Dependent life:• Spouse: $25,000, $50,000, $100,000• Child: $5,000, $10,000 (to age 23)• Supplemental Accidental Death & Dismemberment (AD&D): 1 to5 times employee’s salary; max. $500,000

Non-Union Life Insurance and Supplemental AD&DEvidence of InsurabilitySupplemental Life InsuranceAn EOI Form must be completed and approved if:• You currently do not have voluntary life insurance and elect coverage• You currently have voluntary life insurance and elect to increase yourcoverage by more than one level (e.g. you currently have 2 x salaryand elect to increase your coverage to 4 x salary).• You currently have 3x salary and elect to increase your coverage onelevel to 4x, but the result is over your “guarantee issue” amount. Thisis lesser of 3 times salary or $500,000. For spousal life insurance of$100,000.Supplemental AD & D Insurance• No EOI required

Non-Union Reimbursement AccountsFlexible Spending Account (FSA)• Pre-tax account used to reimburse medical expenses notcovered by medical insurance• 2011: Over-the-counter drugs are not reimbursable unlessprescribed by doctor – mandated under Health CareReform (see Benefits Guide for information on how tosubmit claims).• Employee contribution: $50 minimum; $5,000 maximum• If you are in the Select Plan be sure to consider your HRAbalance when making your FSA election• “Use it or Lose It” rule. Unused balance is forfeited; nocarry over of balance to next year.

Non-Union Reimbursement AccountsDependent Care Reimbursement Plan• Pre-tax account used to reimburse dependent careexpenses that allow you and if married, your spouse towork or attend school full-time• No Changes for 2011• Dependent children under age 13• Examples: Day Care, babysitters, nursery school• Employee contribution: $3,000 or $5,000 maximum; seeBenefits Guide for more information.• “Use it or Lose It” rule. Unused balance is forfeited; nocarry over of balance to next year.

Open Enrollment Timeline10/25/2010 – 11/12/2010Open enrollment11/24/2010Deadline for confirmationstatement corrections only

Enrollment Reminders• This is an ACTIVE ENROLLMENT!• Associates who do not re-enroll for voluntarybenefits, including medical, will NOT havecoverage in 2011.• Associates who desire to elect the FlexibleSpending Account (FSA) or Dependent CareAccount must re-enroll.

Enrollment Materials• Online Enrollment• Instructions included in your 2011 BenefitsGuide.• Electronic Distribution• Salaried associates access their BenefitsGuide online via the ASC website.

Online EnrollmentLogin to PeopleSoft from the ASC website• From Home: https://dncasc.dncinc.com• From Work: http://dncasc.dncinc.comPlease note: You are not enrolled until you see the pagethat says “You are now enrolled in benefits for2011” with the date and time stamp. Please printthis page for your proof of enrollments.You will receive a hard-copy confirmation statement.Do not assume that your enrollment form has beenprocessed until you receive this statement.For questions, call the Associate Service Center at:1-877-936-2272 (7:30am -7:30pm EST)

Questions????Associate ServiceCenter1-877-936-2272Ext.71208