Open Employee Forum Medical Plans for 2012

1. Open Employee ForumMedical Plans for 2012 September 14, 2011

2. 2012 Medical/Prescription Drug Benefits • SLU will continue to offer two programs: • Plus PPO Plan (with a modified Rx component) • Health Savings Account (HSA) Qualified Plan

3. 2012 Medical Plan Options

4. 2012 Pharmacy Plan Options NEW! Under the proposed HSA plan, certain preventive, or “maintenance,” medications would be covered at 100%... NO copay or deductible would need to be satisfied by you or your family! Information on which drugs qualify as preventive will be distributed during open enrollment.

5. What is an HSA? Health Savings Accounts (HSAs) are designed to help you save and pay for your health care

6. OptumHealth BankSM, Member FDIC Focuses solely on health care banking Is one of the nation’s leading custodians of health savings accounts OptumHealth Bank serves thousands of employers, families and individuals UnitedHealthcareHSA Bank of Choice Established in 2003 We have more than $1 billion in assets We administer over 600,000 individual Health Savings Accounts We offer three HSA options to meet individual goals

7. HSA Overview Used to pay for qualified health care expenses immediately Require a High Deductible Health Plan • Grows over time and can be invested Funded by you, your employer or others • Account funds belong to you Investments are not FDIC insured, are not guaranteed by OptumHealth Bank and may lose value.

8. HSA Eligibility You are eligible to open and contribute to an HSA if you: Are covered by an eligible high deductible health plan Are not covered by any other health plan that is not a high deductible plan Are not enrolled in Medicare, Medicaid, or TRICARE Have not received VA benefits within the past 3 months Are not claimed as a dependent on someone else’s tax return Are not covered by a healthcare FSA

9. Contribution Limits The IRS determines how much you can fund. Amount of Funding Rules • For 2012, individuals can contribute up to $3,100and $6,250 for families. Those 55 years of age or higher, but not entitled to Medicare benefits, can fund an additional $1,000/year “catch-up” contribution! Additional Funding

10. 1 Steve puts his money into his HSA pre-tax 2 Any money Steve withdraws from his HSA to pay for qualified medical expenses is withdrawn income tax-free. 3 Steve may earn interest on his account, and it is not taxable. 4 The amount not spent during this year carries over for use in future years. How an HSA Helps You Save Steve

11. How Much Did Steve Save? 1 Steve’s federal and state income tax savings on his contributions for the year are $2,291. In 2012, Steve will deposit $6,250 into his HSA, the maximum contribution for family coverage. 2 Steve will withdraw $3,000 to pay for qualified health care expenses for him and his family. Steve will not have to pay income taxes on the $3,000 as long as he uses it to pay for qualified expenses. 3 Steve earns interest on his account. Steve does not have to pay income taxes on his interest. 4 Steve will carry over $3,250 HSA dollars (contributions—expenses + account earnings) into the next year. With a traditional plan, Steve wouldn’t have this carryover option, which helps him save for the future. 11

12. How You Can Make the Most of Your Coverage Health Care Consumerism Make informed choices Look for ways to lower health care costs Own your health care decisions Understand your medical coverage Maintain a healthy lifestyle Use your preventive care coverage to catch health issues early

13. Use HSA dollars to pay for medical expenses for your spouse or dependents Medical plan deductibles and coinsurance Medical, dental and vision care and services HSA Qualified Medical Expenses Any money you take out of your HSA for qualified medical expenses is income-tax free

14. Other HSA-Qualified Medical Expenses 1 • Health coverage while receiving unemployment benefits 2 4 • Medicare premiums and out-of-pocket expenses • COBRA continuation coverage 3 • Eligible • long-term care

15. Paying for Non-Qualified Expenses The tax penalty increased from 10 to 20 percent in 2011. The penalty does not apply to account holders age 65 and older, those who become disabled or enroll in Medicare. Any funds used for purposes other than to pay for qualified medical expenses are: Taxable as income Subject to a 20 percent tax penalty

16. Save Your Receipts! Important Tips: • Save your receipts for all qualified health expenses. • OptumHealth Bank does not track or validate your expenses or verify eligibility. 16

17. 1 Molly presents her UnitedHealthcare health plan ID card at the doctor’s office 2 The doctor submits a claim to the health care plan 3 Molly fills her prescription 4 Molly receives and pays her doctor’s bill 5 Molly keeps her receipts How Molly Uses Her HSA Molly goes to the doctor with her HSA Molly

18. Managing Your HSA with myuhc.com • Check monthly statements and interest rates • Pay bills to health care providers • Download forms needed to manage your account • Update personal information • Arrange deposits from another banking account • Manage investment activities for your HSA • Learn about HDHPs and HSAs • Use HSA calculators Investments are not FDIC insured, are not guaranteed by OptumHealth Bank and may lose value. 18

19. Common Questions Yes. You can open an HSA at any time, as long as you are covered by an HSA-eligible health care plan 3 4 Am I required to contribute a specific amount each year? 2 Do I need to use all of the funds in my HSA during the year? 1 Can I open a Health Savings Account at any time during the year? Can I take the funds in my HSA with me if I leave the company? Yes. Funds in your HSA belong to you, including any contributions that your employer or anyone else has made. No. You can contribute as much as you’d like up to the IRS maximums. Most people base contributions on the annual deductible required by their HDHP. No. HSA plans are not subject to IRS “Use It or Lose It” regulations. This means that funds in the account continue to accumulate over time. 19

20. To Learn More Online A series of short, online training sessions on HSAs are available at any time You can access all Health Accounts Self-Guided Tours at the site below. Access all Self-Guided Tours at: www.hsaenroll123.com/self-guided-tours/ 20

21. 2012 Cost Sharing • If you enroll in the HSA Qualified Plan for 2012, SLU will contribute funds to help you build your balance: • $250 for Single Enrollees • $500 for Enrollees with Family Members • Wellness Incentive increased from $20 to $30 for 2012

22. 2012 Cost SharingAnnual Contribution Difference vs. 2011 Plus Plan • If you enroll in the HSA Qualified Plan for 2012, SLU will contribute funds to help you build your balance: • $250 for Single Enrollees • $500 for Enrollees with Family Members

23. Eligible Dependents Definition of an Eligible DependentLegal spouse or dependent child under 26 years of age of the employee or the employee's spouse. The term child includes any of the following: • A natural child • A stepchild • A legally adopted child • A child placed for adoption • A child for whom legal guardianship has been awarded to the employee or the employee's spouse • Handicapped children over the age of 26 with certification from a physician

24. Dependent Eligibility Audit • SLU has a responsibility to: • Administer the plan as stated in the plan document • Administer the plan consistently for all employees • Monitor the costs of the plan • SLU will complete a Dependent Eligibility Audit in early 2012 • Employees will be asked to provide verification for enrolled dependents • Ineligible dependent will be removed from the plan • Claims paid for ineligible dependents may be recovered and the expenses would become the responsibility of the employee • Additional information will be provided

25. Vitality Program • Activity Distribution • Members completing 2-5 activities • April: 60% of total population • May: 55% of total population • June: 52% of total population • Members completing over 10 activities • April: 5% of total population • May: 10% of total population • June: 12% of total population • Vitality Status Earned (YTD) • April/May/June • Blue: 1,874/1,897/1,868 • Bronze: 740/722/757 • Silver: 1,694/1,733/1,752 • Gold: 16/20/28 • Platinum: 1/4/6 • Verified Workouts • April: 46 • May: 334 Added Simon Rec Center • June: 427 • Education Activities • April: 306 • May: 342 • June: 365 • Healthy Living Activities • April: 40 • May: 63 • June: 70 • Prevention Activities • April: 79 • May: 118 • June: 142

26. Contact Information • Please email questions or comments to: benefits@slu.eduor wellness@slu.edu • Your feedback is important!!!