2007 Open Enrollment

1. 2007 Open Enrollment For Health and Flexible Benefits

2. It’s the time you can… • Enroll in or change your health plan • Add or remove family members, or • Enroll in a flexible reimbursement account

3. Changes you make during Open Enrollment are effective July 1, 2007 – June 30, 2008

4. What do I need to do? • Take no action to continue your current health plan and membership level • Take action to enroll or make changes to your health plan and membership level • Take action to enroll in or continue a Medical or Dependent Care Flexible Reimbursement Account

5. How can I find out what benefits I have currently? • You may visit EmployeeDirect to review your current benefit elections and you can even enroll or make changes online • You may also call or e-mail a member of the Employee Benefits team: • Barbara Tonovitz (employees last name beginning A-J) • Angela Vann (employees last name beginning K-Z) • Beth Lunde

6. EmployeeDirect https://edirect.virginia.gov/Application.aspx Available 24 hours a day Step 1: Verify your registered e-mail address and date of birth Contact a member of the Employee Benefits team if your information is incorrect. It will need to be corrected before you can use EmployeeDirect Step 2: Create a password Step 3: Sign-up or login Step 4: Click and follow prompts Step 5: Ask questions if you need help

7. COVA Care changes effective July 1, 2007 • Routine wellness benefit enhanced • $500 cap on lab work, shots, and x-rays removed for routine wellness • Outpatient prescription drug benefit covers diabetic blood glucose test strips and glucometers • 20% of product cost, no deductible • Prescription needed • Medical benefit covers diabetic equipment and education

8. Anthem’s new 24/7 NurseLine • Available to COVA Care and COVA HDHP members • 365 days a year/24 hours a day • 1-800-337-4770 • Registered nurse trained to answer your medical questions

9. Flexible Reimbursement Account changes effective July 1, 2007 • New medical flexible reimbursement account reimbursement card • EZ REIMBURSE Mastercard • You present the card for payment when purchasing eligible medical services, prescription or over-the-counter drugs • The expense may not exceed your account balance • You may be required to provide documentation for certain expenses. Failure to provide requested documentation may result in suspension of your card until the next plan year • Must complete an EZ REIMBURSE card request by June 1st if you wish to receive the card • Account statements for both Medical and Dependent Care FRA will change from quarterly to monthly

10. Health Insurance Premium Increase • 4.5% premium increase on COVA Care ranges from $2 per month to $10 per month depending on plan and membership level • 2.75% of the 4.5% increase is to cover the wellness benefit enhancements • 1.75% of the 4.5% increase covers other post employment benefits • new accounting rules in 2008 require a special trust fund for early retiree coverage • HDHP continues to have $0 premium

11. Health Insurance – Full-Time Employee Monthly Premiums 7/1/07 – 6/30/08

12. When will the new premiums go into effect? • Look for new health plan premiums and FRA contributions on your paycheck on July 16, 2007 • 9 month faculty on 18 pay option will not see changes until the September 1, 2007 paycheck

13. Health Insurance • Premium Conversion • Health insurance premiums are automatically deducted pre-tax

14. Review of Plans

15. Health Insurance – Membership Levels • Single – Employee Only • Dual – Employee and one dependent (spouse or child) • Family – Employee and two or more eligible dependents

16. Health Insurance – Eligible Dependents • Legally married spouse • Unmarried biological and legally adopted children • Living with the employee • Employee provides over ½ support • May be covered until the end of the year they turn age 23 • Unmarried stepchildren • Living full-time with employee • Parent-child relationship • Eligible to be claimed on tax return • Children of whom you have permanent sole custody • Adult Disabled Children

17. Health Insurance – Ineligible Dependents • Siblings • Grandchildren (unless you have shared custody with a minor child living in your home) • Nieces/Nephews • Parents • Grandparents • Aunts • Uncles • Domestic Partners

18. Health Insurance – Plan Options • COVA Care • COVA HDHP

19. Health Insurance – COVA Care • No PCP requirement • No referrals • Blue Card PPO Network • Out-of-network defined by providers not a geographical region • Out-of network coverage for true emergencies

20. Health Insurance – COVA Care • Co-payments • PCP - $25 • Specialist - $35 • Inpatient hospital - $300 • Outpatient hospital and ER - $100 • Deductible • $200 – individual • $400 - family • Co-insurance • Out-of-pocket expense limit • $1,500 per person • $3,000 per family • Wellness visits covered at 100% - no co-pay

21. Health Insurance – COVA Care • Prescription Drug Program • Mandatory generic • Tier System • Mail Order for Maintenance Rx • Co-pays • Retail pharmacy – up to 34 day supply • $15 – Tier 1 • $20 – Tier 2 • $35 – Tier 3 • Mail order – 90 day supply • $30 – Tier 1 • $40 – Tier 2 • $70 – Tier 3

22. Health Insurance – COVA Care • Dental Basic Services • Diagnostic and preventive services • Twice a year • Paid at 100% • Primary services • Paid at 80% • Includes fillings, periodontal, and root canals • Dental Maximum • $1,200 annually

23. Health Insurance – COVA Care • Options • Out-of Network • Access to providers outside Anthem or Blue Card PPO network • Plan pays 75% - you pay 25% • Expanded Dental • Adds complex restorative service coverage at 50% (crowns, dentures, and bridgework) • Adds orthodontic services coverage at 50% up to a $1,200 lifetime maximum • Provides $1,500 dental maximum annually • Vision and Hearing • 1 eye exam every 24 months - $35 co-pay • Provides allowance for lenses, frames, and contacts every 24 months ($50, $75, or $100) • 1 hearing exam every 48 months - $35 co-pay • Provides hearing aids and other hearing aid related services up to $1,200 every 48 months

24. Health Insurance – COVA Care • Vendors • Anthem • Delta Dental of Virginia • Medco Health • ValueOptions

25. Health Insurance - HDHP • $1,200/$2,400 Deductible • 80/20% Coinsurance • $5,000/$10,000 Out-of-pocket expense limit • 100% wellness coverage • Deductible and co-insurance for prescription drugs • Out-of-network – not available • Blue Card PPO Network • Dental Benefits • $25/$75 Deductible • 100/80/50% Coinsurance • $1,500 Plan year maximum • $1,500 orthodontic lifetime maximum • Claims administrator for all services – Anthem • $0 premium does not mean $0 out-of-pocket expense

26. Flexible Reimbursement Accounts (FRA) • Allows employees to use pre-tax dollars to pay for certain medical and dependent care expenses • Cannot claim these expenses on your taxes and utilize the FRA • Medical Reimbursement Account – may claim expenses not covered by your health benefits plan • Dependent Care Reimbursement Account – may claim expenses for the care of your eligible dependent

27. Flexible Reimbursement Accounts (FRA) • Funds cannot be transferred between the accounts • “Use it or Lose it” rule • May claim reimbursement for expenses incurred during the plan year (July 1 – June 30) • Must submit all claims for reimbursement by September 30th of each year • Must re-enroll in FRAs each year – your election does not roll over from one plan year to another • Availability Rule • Medical – entire election amount available at the beginning of the plan year • Dependent Care – funds must be posted to the account in order to be claimed (available after payroll deductions)

28. Flexible Reimbursement Accounts (FRA) • Minimum contribution - $10 per pay period • Maximum contribution • $5,000 per plan year • IRS has a calendar year limit for Dependent Care FRA for the plan year beginning July 1 – see the Flexible Benefits Program Sourcebook for more information • Contributions must be made in whole dollar increments

29. Flexible Reimbursement Accounts (FRA) • Fringe Benefits Management Company (FBMC) is the claims administrator • Fax claims accepted • 5 day processing guarantee • Daily reimbursements • Direct bank deposit available • EZ REIMBURSE Mastercard available • Online account access at www.myfbmc.com

30. Qualifying Mid-Year Events • Within 31 days of qualifying event • Allows for consistent changes • Events include • Marriage • Birth/Adoption • Divorce • Termination or commencement of spouse’s employment • Death of a dependent • Dependent loses eligibility • Going on or returning from an unpaid leave of absence • Spouse’s open enrollment period

31. Enrollment Options • Employee Direct • Quick, easy, and available 24 hours a day from any computer with internet access • Permits review and changes to health benefits, flexible reimbursement accounts, and personal information in the Commonwealth’s Benefits Eligibility System • Enrollment Form

32. Confirmation of Changes • FRA confirmations will be sent to employees before July 1 • Please check the confirmation carefully and report errors immediately • Health insurance selections can be confirmed via EmployeeDirect

33. Links to Open Enrollment information and forms can be accessed on the TCC Benefits webpage http://www.tcc.edu//welcome/collegeadmin/administrative/hr/benefits/index.htm

34. Open Enrollment ends May 16, 2007