2011 Benefits—If You Remember Only Five Things Almost everybody will spend less through the Health & Savings Plan (formerly HDHP) than under any other option. You’ll receive an additional contribution if you choose it in 2011. The Health Savings Account—funded by Tenet and you—can be used now, next year, OR for retiree medical coverage. Use Tenet facilities whenever available! Nothing is more important than your health and wellness. Use the preventive benefits! Tenet spends FOUR times the amount you do to provide YOUR benefits. Annual Enrollment – November 8 - 23
Health and Welfare Benefits Pre-tax benefits Medical Rx Health Savings Account Wellness Pre-tax benefits (other) Dental Vision Spending Accounts After-tax benefits Disability Basic & Supplemental Life Basic & Supplemental AD&D Long-Term Care Hyatt Legal Plan
NEW! United Healthcare Network! Expanded Network & Minimal Disruption – Almost nobody will have to change doctors “Transition of Care” may be available if your physician is out of network Continue to receive services for specified medical and behavioral conditions For a defined period of time With out-of-network health care professionals at network rates You must apply for Transition of Care at enrollment, or no later than January 30, 2011.
2011 Medical Plans EPO Exclusive Provider Organization Highest premium (regardless of usage) No Deductible Co-pays ($) Unlimited Co-pays PPO Preferred Provider Organization Lower Premiums Moderate deductible Coinsurance (%) Out of pocket max - $4,000 to $12,000 Health & Savings Plan High Deductible Health Plan Lowest Premiums Highest deductible Coinsurance (%) Health Savings Account eligible Steerage to Tenet facilities Out of pocket max - $5,200 to $10,400 • All three plans: • Have the same physician network • Cover the same procedures • Require the same pre-authorization • “More expensive doesn’t equate to better care” 6 6
You Medical Plan Medical Plan You pay smaller monthly premiums You pay larger monthly premiums Plan pays part of cost when you need care Plan pays most of cost when you need care You save money in an HSA You can use HSA for your share of qualified medical expenses Care Providers HSA Care Providers $ save $ You pay a smaller amount when you need care Health – How does it work? Traditional Health Plans (PPO, EPO): Health & Savings Plan: Balances savings and insurance-style coverage Emphasize insurance-style coverage You
Health & Savings Plan HDHP and HSA = The Health & Savings Plan Why is this plan the best? What’s different? • How you pay for coverage • Premium costs are different • Deductible and co-pay/coinsurance amounts are different • Health & Savings Plan includes a savings component • For 2011 - Tenet provides an HIGHER annual contribution to your HSA of $950 employee only, $1,900 family • Wellness Incentives are higher on the HSP What’s the same compared to other Tenet Plans? • Comprehensive coverage for health care services • Full coverage for preventive services • Highest coverage when using a Tenet facility • Financial protection from catastrophic illness or injury • Tenet pays a significant share of the cost
EXAMPLE:Family Coverage in Health & Savings Plan PLAN PAYS 100% OF COVERED CHARGESafter you reach your annual out-of-pocket maximum YOUR COINSURANCE 10%-50% (In-Network) 60% (Out-of-Network) ANNUAL OUT-OF-POCKET MAXIMUM $10,400 (In-Network) Your share of the out-of-pocket maximum = $8,000 2 ANNUALDEDUCTIBLE $2,400 (Family) 1 HEALTH SAVINGS ACCOUNT Employee Contributions Up to $6,150 per year (Includes $1,900-$2,400 HSA funded by Tenet) PREVENTIVE CARE Many services covered at 100% without co-payment or using HSA
Medical: 2011 HSP w/HSAPay for expenses Now OR Save to Pay For Retiree Medical Health Savings Account (HSA) advantages Tenet contributes to your account Earn 2010 Wellness incentive $250 employee & $250 spouse Carry over remaining money year to year Money in your HSA is yours to keep Earnings on your account grow tax-free* Eligible distributions are never taxed. You may contribute through pre-tax deductions* Up to $3,050 for employee-only coverage Up to $6,150 for coverage that includes dependents Catch-up contributions if age 55 or older (maximum) – add $1,000 to above *State taxes may or may not apply. See your tax advisor for more information on the state tax implications on HSAs.
Medical: 2011 HSP w/HSA Health & Savings Plan (HSP) considerations Certain preventive coverage paid entirely by plan Not subject to the deductible Certain preventive prescriptions not subject to the deductible For other services, must meet deductible before plan begins paying $1,200 individual, OR $2,400 family Non-preventive Rx is applied to the deductible This is your Retiree Medical Benefit!!! 12
Potential Health Savings Account Growth Hypothetical Annual Account Contribution Account growth Hypothetical example assumes annual contribution amounts as stated above made on Jan. 1 each year until 1, 5, 10 and 20 year periods. Assumes tax-deferred you receive 2% investment growth on funds in the default account and that once the balance in this account reaches $2,500, excess funds will earn 7%. Assumes compounding in an HSA. Final balances prior to any eligible medical expenses and taxes may be due on distribution. Actual returns will be based on actual returns within the HSA. Source - Fidelity
Deductible covered in 2011 *2010 Wellness incentive opportunity; funded to HSA in January 2011
What is the 2011 employee financial model? Employer Contributions to the HSA* (A) Plan Employee Only Employee and Family HSP with HSA $950 $1,900 $800 PPO $0 $0 EPO $0 $0 Employee Premiums (B) Plan Employee Only Employee and Family HSP with HSA $321 $1,626 $800 PPO $488 $2,414 EPO $1,333 $6,746 Average Employee Out of Pocket Expenses (C) Plan Employee Only Employee and Family HSP with HSA $750 $1,200 $800 PPO $900 $1,600 EPO $400 $1,200 Average Employee Net Cost (B) +(C) – (A) Plan Employee Only Employee and Family HSP with HSA $121 $926 $7K savings $800 PPO $1,388 $4,014 EPO $1,733 $7,946 * Doesn’t include added value of wellness incentive 15
2011 Wellness Incentives (1)Only spouses that are covered under one of Tenet’s medical plans are eligible to receive the wellness incentive. Note: 2011 incentives are earned in 2011 and paid/funded in 2012. The wellness program and incentives are reviewed and updated annually. All employees can join Wellness challenges, issue their own challenges to co-workers, track results and have fun living healthy! California union employees can participate in the HealthyatTenet Wellness Program but are not eligible for the Wellness Incentives. 16
Plan Design Changes Work Here…Receive Care Here….For your Health, Family and Future Services in a Tenet facility HSP / PPO - plan pays 90% (after deductible in HSP) EPO - $250 / $500 co-pay Improved benefits for CMA physicians (90% instead of 80%) New Non-Tenet 2011 Coverage….If you don’t receive care here but could have. Non-Tenet In-Network Services paid at 50% (after deductible) Non-Tenet Out-of-Network Services paid at 40% (after deductible) New for 2011 - If you can’t receive care here Emergency, if the service isn’t offered at a Tenet facility, or the facility is further than 45 miles from your home Same coverage as if you received care at a Tenet facility!
2011 Rx Plan Simplification • Out-of-pocket costs are applied to HSP deductible • Prescriptions are qualified HSA and HCSA (FSA) expenses 18
Health Care Reform Changes Dependent children under age 26 will be eligible for health care coverage, regardless of student status Special enrollment rights apply to: A dependent child between the ages of 19 up until 26, who you were previously unable to cover in the Tenet medical plans due to student status or age limitations Extended enrollment period through December 8 Enroll online through November 23rd. After November 23rd call My Benefits Customer Support Center to add eligible individuals during the extended enrollment period Birth certificate required Over-the-counter medications must be prescribed by a doctor to qualify as eligible expenses under the Health Savings Account or Health Care Spending Account Mental Health Parity Act - Mental health & substance abuse claims will be paid at the same reimbursement level as Tenet Hospitals
www.HealthyatTenet.com Look for the Annual Enrollment Banner Quick access to: What’s New Medical Plan Comparison Tools—Use the Medical Expense Estimator to see if the HSP saves you money (it does for employees in almost any situation). HSP Video—Explore the HSP ……AND EARN 5 WELLNESS CREDITS to start off 2011. HSA Mythbusters FAQs—Find quick answers to your benefits questions Enrollment Steps Enrollment Exclusively Online
Tips • Evaluate your needs for benefits • Planning could save you thousands • Utilize tools available via HealthyAtTenet • Medical Plan Estimator; Health Savings Account Value Modeler • Use Tenet Hospitals & outpatient centers to lower your out of pocket expenses • Make healthy living a priority! • If you or your covered dependent smoke, quit now! • Preventive benefits: the most underused and potentially valuable set of benefits we offer • Earn your Wellness Incentive • Enroll by the deadline! • Look for information during the year on SMART PLAN USE
Tenet Benefits Strategy Simply the best medical coverage for a lifetime Create a culture of employee health and wellness…. engage in understanding and manage your health and your family’s Promote employee financial health and savings….for now and the future