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NORTHERN ARIZONA PUBLIC EMPLOYEES BENEFIT TRUST
Open
Enrollment
May 2 – 31
2011
Plan Year
July 1, 2011 – June 30, 2012
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RETIREMENT Contribution Rates Effective JULY 1, 2011
Retirement System
Arizona State Retirement System
 Effective July 1, 2011, employee will pay 57% of the contribution rate
for both the pension plan and long term disability plan. Contribution
rate still to be determined by ASRS.
 Effective July 1, 2011, employer will contribute 47% of the
contribution rate for both the pension plan and long term disability
plan. Contribution rate still to be determined by ASRS.
 Employees hired on or after July 1, 2011 who are regularly scheduled
to work must wait at least 6 months before being eligible for and
enrolled in the Arizona State Retirement System.
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NAPEBT
Medical Plans
3
NAPEBT – Trends
NAPEBT Health PremiumTrend versus National Health Premium Trend
$600
Monthly Employee Rate
$500
$400
$300
$200
$100
$0
9596
9697
9798
9899
9900
0001
0102
0203
0304
Plan Year
0405
0506
0607
0708
0809
0910
1011
National
Trend
NAPEBT
National health premium trend data is from the Hay Benefits Reports (Hay Group) adjusted from a calendar year basis to correspond with NAPEBT's fiscal
year. The 2010 trend data was not available from Hay, therefore, the 2009 trend increase percentage was used. For the 2006-2007 plan year the NAPEBT
contribution rates are a blend of the one plan offered (7/1/06-12/31/06) and three plans offered (1/1/07-6/30/07) weighted by enrollment. For the 2008-2009
and 2009-2010 plan years the NAPEBT rates are a blend of all three plans weighted by enrollment.
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NAPEBT – Large Medical Claims Paid
Claims per Employee per Month
$ 540.00
$ 525.59
$ 520.00
$ 500.00
$ 47 6.41
$ 48 0.00
$ 460.00
$ 450.30
$ 440.00
$ 420.00
$ 400.00
FY 08
FY 09
FY 1 0
Fiscal Year
Total Claims
Average # of
Employees
Claims per Employee per Month
FY08
$19,499,142
3,609
$450.30
FY09
$21,078,317
3,687
$476.41
FY10
$22,797,920
3,615
$525.59
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NAPEBT – Total Claims Paid
Northern Ariz ona Public Employees Benefit Trus t
Paid Claims > $ 7 5,000
50
46
45
Number of C laims
40
36
35
31
30
25
21
20
17
15
10
14
12
11
6 7
6
5
1
6
3
5
8
7
5
2
6
4
0
$ 7 5,000$ 99,999
$ 1 00,000$ 1 24,999
$ 1 25,000$ 1 49,999
7 /1 /2006-6/30/2007
7 /1 /2008 -6/30/2009
$ 1 50,000$ 1 99,999
$ 200,000+
TOTAL
7 /1 /2007 -6/30/2008
7 /1 /2009-6/30/201 0
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NAPEBT Medical Plans
Blue Cross Blue Shield of Arizona
Group # 19676
NAPEBT Rx Plans
CVS Caremark
Plan Year
July 1, 2011 – June 30, 2012
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NAPEBT
Northern Arizona Public Employees Benefit Trust
• Coconino County
• City of Flagstaff
• NAIPTA
Northern Arizona Intergovernmental Public Transit Authority
• Coconino Community College
• Housing Authority
• Flagstaff Unified School District
• Accommodation Schools
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MEDICAL PLAN EFFECTIVE July 1, 2011
In-Network
Base Plan
Buy-Up Plan
HDHP
$750
$1,500
$500
$1,000
$1,250**
$2,500**
PCP Copay – Per visit
$35
$25
80%/20%
Specialist Copay – Per visit
$45
$35
80%/20%
Chiropractic Copay
$45
$35
80%/20%
Urgent Care Copay
$75
$50
80%/20%
Emergency Room Access Fee
$150*
$100*
$100*
Inpatient Hospital Access Fee
$100*
$100*
Does not apply
20% after ded
$3,000
$6,000
20% after ded
$3,000
$6,000
20% after ded
$4,000
$8,000
$5/$35/$55/$105
$5/$35/$55/$105
After ded – 20% or $5
2.5x Copay
2.5x Copay
After ded – 20% or $5
2x Copay
2x Copay
After ded – 20% or $5
$1,500
$3,000
$1,000
$2,000
$1,250**
$2,500**
40% after ded
40% after ded
40% after ded
Calendar Year Deductible: Per person
Per family
Member Coinsurance
Out of Pocket Maximum:
Per person
Per family
Rx Retail Copay
Rx Retail 90 day Copay
Rx Mail Order 90 day Copay (CVS Caremark)
Out-of-Network
Calendar Year Deductible: Per person
Per family
Member Coinsurance
*Access Payment and Deductible applied prior to 80%/20% coinsurance
**The In and Out-of-Network deductibles are combined for HDHP.
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MEDICAL PLAN EFFECTIVE July 1, 2011
Medical Plan FY12
Base Plan
Employee
Dependent
Total for Family
Buy-Up Plan
Employee
Dependent
Total for Family
HDHP
Employee
Dependent
Total for Family
Previous Rates
07/01/10 – 06/30/11
Original Proposal
9.7% Increase
Including $20
Employee Cost Share
Final Rates
8.1% Increase
Including $20
Employee Cost Share
$ 437.38
$ 676.30
$1,113.68
$ 479.80
$ 741.88
$1,221.68
$ 472.78
$ 731.04
$1,203.82
$ 476.04
$ 736.12
$1,212.16
$ 522.20
$ 807.50
$1,329.70
$ 514.58
$ 795.70
$1,310.28
$ 393.26
$ 608.08
$1,001.34
$ 431.40
$ 667.06
$1,098.46
$ 425.10
$ 657.30
$1,082.40
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MEDICAL PLAN EFFECTIVE July 1, 2011
Employee Cost Sharing
Approved & Adopted by NAPEBT
• Historically, NAPEBT Employers funded 100% of employee base level
premium
• NAPEBT Employers cannot continue to shoulder full cost
• $20 cost to be passed on to employees to contribute
July 2011 – June 2012
FUSD#1 is waiving cost share for this year only
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MEDICAL PLAN EFFECTIVE July 1, 2011
Employee Premium
Holiday
FUSD#1 will pay for 1 month of dependent/buy-up
premium.
Employee will pay for 11 months of dependent/buy-up
premium.
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MEDICAL PLAN EFFECTIVE July 1, 2011
Medical Plan FY12
Monthly
Premium
FUSD Cost
Employee
Cost Share
Waived by
FUSD
Employee Cost
per Month
Base Plan - $750 Deductible
Employee
$ 472.78
$ 452.78
$ 20.00
$ 0.00
Dependent
$ 731.04
$ 0.00
$ 0.00
*$ 731.04
$1,203.82
$ 452.78
$ 0.00
$ 731.04
Total for Family
Buy-Up Plan - $500 Deductible
Employee
$ 514.58
$ 452.78
$ 0.00
*$ 61.80
Dependent
$ 795.70
$ 0.00
$ 0.00
*$ 795.70
$1,310.28
$ 452.78
$ 0.00
$ 857.50
Total for Family
HDHP/HSA - $1,250 Deductible
* $27.68 per month employer contribution to HSA or FSA
Employee
$ 425.10
$ 452.78
$ 0.00
$ 0.00
Dependent
$ 657.30
$ 0.00
$ 0.00
*$ 657.30
$1082.40
$ 452.78
$ 0.00
$ 657.30
Total for Family
* FUSD will pay one month premium and Employee will pay 11 months.
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MEDICAL PLAN EFFECTIVE July 1, 2011
HDHP Employer Contribution
• $27.68 per month ($332.16 per year)
• Health Savings Account if Eligible
• Who is NOT eligible for an HSA?
Individuals entitled to Medicare (eligible & enrolled)
Individuals covered under another non-HDHP
Individuals enrolled in AHCCCS or Medicaid or have used IHS
• Flexible Spending Account if NOT Eligible for HSA
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MEDICAL PLAN EFFECTIVE July 1, 2011
So what’s the bottom line?
Change in Cost Per Month
Previous
Cost
Per Month
Effective July 1, 2011
Cost
Per Month
Difference
Cost
Per Month
Base Plan
Employee
Dependent
$ 0.00
$ 676.30
$ 0.00
$ 731.04
$ 0.00
$ 54.74
Buy-Up Plan
Employee
Dependent
$ 38.66
$ 774.78
$ 61.80
$ 857.50
$ 23.14
$ 82.72
HDHP
Employee
Dependent
$ 0.00
$ 608.08
$ 0.00
$ 657.30
$ 0.00
$ 49.22
Medial Plan FY12
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MEDICAL PLAN EFFECTIVE July 1, 2011
CVS/Caremark
New Rx Vendor
 Two ID cards
– Medical and Rx
–Continue to use same pharmacies
 Mail Order
–Will need a new prescription
–Fast Start program
 90 days at Retail for 2-1/2 times copay
 Grandfathering of drugs – first 6 months
– A small percentage of drugs will change tiers after 6 months (January
1, 2012)
– Will receive a letter if your drug is changing
 Register at Caremark.com
– Check drug costs
– Compare prices of Generic vs. Retail
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MEDICAL PLAN EFFECTIVE July 1, 2011
FYI…
Useful Information
 Mayo Clinic in Arizona
- Is an in-network Provider on all plans
- Includes Mayo Clinic and Mayo Clinic Hospital Services
- Identify as member of NAPEBT
 Waivers of Medical Coverage
- Other coverage under a qualified group plan other than
another NAPEBT employer
- Must provide enrollment confirmation
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MEDICAL PLAN EFFECTIVE July 1, 2011
FYI…
Useful Information
 Deductibles run on calendar year
- January 1st – December 31st
 Dual-spouse Deductible Coordination
- Husband and wife employed by a NAPEBT employer.
- Base and buy-up plans only.
- One spouse must have family coverage.
- Indicate on the Blue Cross enrollment form that your spouse
works for NAPEBT and provide the spouse’s ID number.
 Member ID Cards
- Have available at every appointment!
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MEDICAL PLAN EFFECTIVE July 1, 2011
Patient Protection and Affordable Care
Act
Healthcare Reform

Pre-existing Condition Restrictions
- Removed for children younger than age 19
- Still applies for adults until 2014

Preventative Services
- No office visit co-pay for recommended screenings, general physicals and vaccinations

Eligible Dependents to Age 26
- Without regard to
- Student Status
- Marital Status
- Financial Dependence
- Only applies to legal child of employee
- Does not extend to the spouse or child(ren) of the adult child
- Applies ONLY to Medical plan and Flexible Spending Accounts
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Wellness Incentive Program
July 2012 – June 2013
NAPEBT – Self-funded Plan
• Rates driven by claims experience
• Increase of large claims
• Increased frequency of in-patient hospitalization
Improved Health of Employees
• Long-term results
Return on Investment
• Studies show a $4 return for every dollar spent on Wellness programs.
• Lower costs for everyone
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Wellness Incentive Program
July 2012 – June 2013
$20 Cost Share with Employee
• $20 per month added to employee cost for Base and Buy-Up plans
• $20 decrease to HSA / FSA contribution on HDHP.
Opportunity to Waive $20
• Employee participates in Wellness Program
• Complete Biometric Testing
• Fall 2011 Health Fair
• Jan – May 2012
• Complete My Blueprint Health Assessment
• www.azblue.com
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NAPEBT Dental Plans
Delta Dental of Arizona
Group # 1505-0001
Plan Year
July 1, 2011 – June 30, 2012
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DENTAL PLAN EFFECTIVE JULY 1, 2011
Dental Plan FY12
Base Plan
Annual Maximum Benefit
per Person
$1,000
Routine Services
100%
Basic Services
80%
Major Services
50%
Calendar Year Deductible
$50 per person
$150 per family
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DENTAL PLAN EFFECTIVE JULY 1, 2011
Monthly
Premium
FUSD Cost
Employee Cost
per
Month
Employee
$ 30.60
$ 30.60
$ 0.00
Dependent
$ 51.52
$ 0.00
$ 51.52
Total for Family
$ 82.12
$ 30.60
$ 51.52
Dental Plan FY12
Base Plan
$1,000 Annual Benefit
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DENTAL PLAN EFFECTIVE JULY 1, 2011
So what’s the bottom line?
Change in Cost Per Month
Dental Plan FY12
Base Plan
Employee
Dependent
Total for Family
Previous
Cost
Per Month
Effective
July 1, 2011
Cost
Per Month
Difference
Cost
Per Month
$ 30.16
$ 50.82
$ 80.98
$ 30.60
$ 51.52
$ 51.52
$ 0.44
$ 0.70
$ 1.14
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NAPEBT Vision Plans
VSP
Group # 12239817
Core #0003
Buy Up #0004
Plan Year
July 1, 2011 – June 30, 2012
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VISION PLAN EFFECTIVE JULY 1, 2011
Vision Plan FY12
Core Plan
Employee Only
Eye Exam
Once every 12 months
$15.00 Co-pay
Prescription Lenses
Once every 12 months
20% Discount
on a complete
pair of glasses.
Frames
Once every 24 months
Contacts
Instead of Glasses
15% Discount on Contact
Lens Exam
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VISION PLAN EFFECTIVE JULY 1, 2011
Monthly Premium
FUSD Cost
Employee Cost
per Month
Family Exam
$ 1.37
$ 1.37
$ 0.00
Employee Buy Up
$ 6.97
$ 1.37
$ 5.60
Family Buy Up
$ 14.97
$1.37
$ 13.60
Vision Plan FY12
VSP
So what’s the bottom line?
There is no change to employee payroll deductions for vision coverage for
2011-2012.
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NAPEBT
Life Insurance Plans
Minnesota
Life
Policy # 33585
Division 5
Plan Year
July 1, 2011 – June 30, 2012
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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011
Basic Term Life & Accidental Death &
Dismemberment Insurance
Based on position and salary
• Provided by FUSD at no cost to the employee
• May convert to an individual policy upon separation of employment
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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011
Voluntary Term Life Insurance
• Employee may increase elected coverage amount by
$10,000 at Open Enrollment without underwriting (up to the
Guaranteed Issue limit of $100,000)
• $100,000 guaranteed issue at original enrollment
• Maximum coverage amount = 5x annual salary up to $500,000
• Insure spouse up to half of employee’s voluntary coverage election
• Insure children @ $10,000
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LIFE INSURANCE PLAN EFFECTIVE JULY 1, 2011
Voluntary Term Life Insurance
• Rate Change
• % of Increase Varied by Age Bracket
• Child Rate – No Change
Employee – Age 36
Previous Monthly Rate
Effective July 1, 2011
$ 5.60
$ 7.20
$ 19.00
$ 23.00
$ 3.25
$ 4.75
$ 14.40
$ 21.20
$80,000 Coverage
Employee – Age 52
$100,000 Coverage
Spouse – Age 47
$25,000 Coverage
Spouse – Age 59
$40,000 Coverage
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Flexible Spending Accounts
ASI Flex
Plan Year
July 1, 2011 – June 30, 2012
33
FSA PLAN EFFECTIVE JULY 1, 2011
Flexible Spending Accounts

Reduce Tax Liability

Health Care FSA (HCFSA) – allows you to set aside pre-tax dollars to pay
for eligible health care expenses not covered by insurance or reimbursed
from any other source.
• Limited Purpose Health Care FSA (use with a High Deductible Health Plan
(HDHP) and Health Savings Account (HSA)
(dental, vision and preventive care expenses only)
• General Purpose Health Care FSA (qualified health care expenses)

Dependent Care FSA (DCFSA) – allows you to set aside pre-tax dollars to
pay for eligible day care expenses for children up to the age of 13, disabled
children over age 13, and elder care.
34
FSA PLAN EFFECTIVE JULY 1, 2011
FSA – Medical
• Unreimbursed Medical, Prescription, Dental, & Vision expenses
• Up to $3,000 Per Year
• Debit Card
• Reimbursement by Check or Direct Deposit
• Full Amount Elected Available Immediately
• MUST RE-ENROLL EACH YEAR!
• Use or Lose – Be Conservative!
35
FSA PLAN EFFECTIVE JULY 1, 2011
Ineligible Health Care Expenses
• Cosmetic Expenses
• Rogaine, bleaching of teeth, cosmetic surgery (other than
reconstructive surgery following a mastectomy for cancer)
• Dietary Supplements such as Vitamins
• Personal Use Items
• Health Club Memberships
• Tanning Salon
• Over-the-Counter Medications Unless Prescribed by a Doctor
36
FSA PLAN EFFECTIVE JULY 1, 2011
FSA – Dependent Care
• Up to $5,000 per year
• Reimbursement by Check or Direct Deposit
• Funds Available as Contributed
• MUST RE-ENROLL EACH YEAR!
• Use or Lose – Be Conservative!
37
FSA PLAN EFFECTIVE JULY 1, 2011
Ineligible Dependent Care Expenses
• School Expenses for Children in Kindergarten or Older
• Overnight Camping
• Expenses for a Child Age 13 or older (unless disabled)
• Expenses for Nighttime Babysitting
• Daycare Expenses During an Extended Leave of Absence
• When a Dependent is Providing Child Care
• Expenses Paid to Your Child Under the Age of 19
(even if child is not your dependent)
38
Health Savings Accounts
Health
Equity
Plan Year
July 1, 2011 – June 30, 2012
39
HSA PLAN EFFECTIVE JULY 1, 2010
Health Savings Accounts





Only available with election of HDHP
Reduce Tax Liability
Use like flexible spending account for Medical, Prescription, Dental
and Vision
Unspent money rolls over year after year; NOT use it or lose it
Take it with you when you leave or retire
• Pay for COBRA, Medicare or Long Term Care Premiums
• Never pay taxes as long as used for qualified expenses
40
HSA PLAN EFFECTIVE JULY 1, 2010
FYI…
Useful Information
• Health Equity and Blue Cross Blue Shield of Arizona have created an
integrated Health Savings Account (HSA) solution.
•Your claims information will now be available with your HSA account
information for easier management of claims payment and review.
• When you login to the Blue Cross web site (www.blueaz.com) you
can click on a link to take you to the Health Equity portal where you
can view your claims, see how much you owe, and process payment
(pay a provider, or yourself) – all from the same website.
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Open Enrollment 2011
Questions?
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