What's New and What's Changing for 2014

 

2014 Benefits Open Enrollment is an ideal time to take inventory of your benefit coverage and determine if you need to make adjustments for things that may have changed with you or your family. Get ready and mark your calendar – Open Enrollment runs from Oct. 23 to Nov. 6.

You must make an active medical election (or actively choose “No Coverage”) during Open Enrollment; your current election will not carry over into 2014. You will receive default coverage if you don’t make an election. Default coverage is Basic w/HSA at your current 2013 coverage level.

Below is a list of what’s new, what’s changing and what’s staying the same for 2014 that can help you make your decisions.

  • New Health Savings Account (HSA) Medical Options. Three new medical options are being offered for 2014:
    • Basic w/HSA – Lowest premiums, highest deductibles
    • Plus w/HSA – Mid-range premiums, mid-range deductibles
    • Max w/HSA – Higher premiums, lower deductibles
  • New HSA Base and Matching Company Contributions. The Base and Matching company contributions are different based on your salary tier and coverage level. The Maximum company contribution is $500 for employee only coverage and $1,000 for dependent coverage tiers for 2014. Here’s how it works:

     

    • If your annual salary is less than $50,001:
      • Base company contribution*: UnitedHealth Group contributes to your HSA with every paycheck, up to an annual contribution of $375 ($14.42/paycheck) for Employee-Only coverage or $750 ($28.84/paycheck) for dependent coverage tiers.
      • Matching company contribution: When you contribute at least $125 ($4.81/paycheck) to your HSA, then the company will contribute an additional $125 ($4.81/paycheck) to equal a Maximum annual company contribution of $500. For dependent coverage tiers, these amounts double: $750 Base company contribution ($28.84/paycheck), you contribute $250 ($9.62/paycheck) and then you receive the Matching company contribution of an additional $250 ($9.62/paycheck).
    • If your annual salary is $50,001+:
      • Base company contribution*: UnitedHealth Group contributes to your HSA with every paycheck, up to an annual contribution of $250 ($9.62/paycheck) for Employee-Only coverage) or $500 ($19.23/paycheck) for dependent coverage tiers.
      • Matching company contribution: When you contribute at least $250 ($9.62/paycheck) to your HSA, then the company will contribute an additional $250 ($9.62/paycheck) to equal a Maximum annual company contribution of $500. For dependent coverage tiers, these amounts double: $500 Base company contribution ($19.23/paycheck), you contribute $500 ($19.23/paycheck) and then you receive the Matching company contribution of an additional $500 ($19.23/paycheck).

Note: During the enrollment process, you will be asked to make a new HSA contribution election and indicate how much you want to contribute to your HSA in 2014.

See the Health Savings Account section for more details and examples.

*You must have (or open) an HSA with Optum Bank to receive the Base and Matching company contribution.

  • New Network Select Medical Option Pilot. Employees living in Colorado or Ohio, have an option to enroll in this new network-only medical option. Under the Network Select option, you must select a primary care physician from the Navigate Network to help you manage your health and get the care you need. Deductibles are lower under this option. There is no HSA or company contribution to an HSA.

    Network Select is a network only medical plan option and there is not an account associated with this plan. No benefits are paid for care or services outside of the network. A Primary Care Physician (PCP) referral is required to see a specialist — otherwise no benefits will be paid. See the Network Select medical option section for more information.
  • The Next Gen medical option will continue to be offered for employees in grades 25 and below and SBAs. There are some increases to the deductibles, out-of-pocket maximums and a decrease in the Base Benefit to $1,200.(See the Comparing Medical Options chart for changes.) See the Next Gen medical option section for more information.
  • UnitedHealthcare of Nevada HMO and POS medical options will continue to be offered to employees in Reno and Las Vegas. There are changes to the deductibles, out-of-pocket maximums and copays. See the UnitedHealthcare of Nevada HMO or UnitedHealthcare of Nevada POS medical option sections for more information.
  • UnitedHealthcare SignatureValue and SignatureValue Alliance medical options will continue to be offered for eligible employees in southern California. There are changes to the deductibles, out-of-pocket maximums and copays. See the UnitedHealthcare SignatureValue or UnitedHealthcare SignatureValue Alliance medical option sections for more information.
  • WellMed 1st Tier will continue to be offered to WellMed employees in the WellMed business unit living or working in San Antonio, TX. There are changes to the deductibles, out-of-pocket maximums and copays.
  • Medical options that will not continue for 2014. The Select Saver, Super Saver and HRA medical options will not be offered next year. If you are currently enrolled in the HRA, account balances will not carry over into 2014 and the HRA will not be accessible. If you are enrolled in the HRA option in 2013 and enrolling in one of the HSA options for 2014, you should consider the following:
    • Open an HSA account with Optum Bank to receive the company contribution.
    • Consider making an employee contribution of at least the minimum amount to get the Matching company contribution.
    • Also, if you enroll in the Health Care Flexible Spending Account please note that it will be a Limited-Purpose FSA. You will only be allowed to submit claims for Dental and Vision expenses.
  • Pharmacy changes. In an effort to ensure the best management and oversight in the use of specialty medications, beginning Jan. 1, 2014, benefit coverage for certain specialty medications will only be provided when prescribed by an appropriate specialist physician. See the Pharmacy Changes page for more information.
  • Premiums for 2014. The change in your medical premiums will depend on your current option, pay tier, coverage level and Your Rewards for Health incentive. In general, premiums will increase for the dependent coverage tiers. There will be a slight increase to dental premiums, no change for vision and a decrease in Tobacco-Free Supplemental Life Insurance premiums. See the 2014 Benefit Premiums page.
  • Using Premium Providers for Orthopedic and Cardiac surgical procedures. The benefit for specific procedures will remain at 80 percent if you use a network Premium Provider beginning July 1, 2014. Otherwise, the benefit for these surgical procedures will be at 60 percent.
  • Basic Life Insurance. If you become totally disabled while you are covered by Basic Life insurance, you may be eligible for coverage to be continued to age 65, provided you remain totally disabled, at no cost to you (under the new Waiver of Premium provision).
    • To be eligible, you must become disabled prior to age 60 and be totally disabled for at least 6 months.
    • With the addition of Waiver of Premium, the Minnesota Life Insurance Continuation offered with COBRA Continuation coverage will not be offered outside of Minnesota.
    • See the Basic Life Insurance page for more information.
  • Benefits Eligibility changes.
    • The definition of “spouse” has expanded to include same-sex spouse and opposite-sex spouse. Information will be collected during the enrollment process.
    • Part-time employees working under 20 hours per week will no longer be eligible for most benefits. However, part-time employees under 20 hours who are currently enrolled in medical will be grandfathered to be eligible for 2014.
  • Affordable Care Act Transitional Reinsurance Fee (payable to the Department of Health and Human Services to support State Health Insurance Exchanges). This new fee will apply to all employees and their dependents who will be enrolled in medical coverage. The fee is pre-tax and applies for 2014, 2015 and 2016, although it reduces in subsequent years. The fees are:
    • Employee-Only coverage = $2.30/paycheck
    • Employee+Spouse/Domestic Partner coverage = $4.60/paycheck
    • Employee+Child(ren) coverage = $6.24/paycheck
    • Employee+Family coverage = $9.34/paycheck
    For moreinformation, see the IRS website at
    http://www.irs.gov/uac/Newsroom/ACA-Section-1341-Transitional-Reinsurance-Program-FAQs
  • New voluntary Critical Illness Insurance benefit. Regular, full-time employees working at least 35 hours per week may enroll and pay the full premiums of this benefit (insured by UnitedHealthcare).
    • If you are diagnosed with a critical illness, such as cancer, you may receive a lump sum payment
    • No restrictions on how lump sum can be used
    • Pre-existing conditions clause applies
    • See the Critical Illness Insurance page for more information.
  • Prior Authorization List. The final list will be posted in mid-October (upon receipt of updated prior authorization requirements from UHC).