west orange education association · health benefit contribution base salary year 4 percentage...
TRANSCRIPT
West Orange Education Association
Health Benefits ReviewWednesday March, 29 2017
& Thursday March, 30 2017
▶DIRECT ACCESS 10▶DIRECT ACCESS 20▶DIRECT ACCESS 30▶EPO
OVERVIEW OF CURRENT PLANS
▶Level of Benefit◦Single◦Parent/Child(ren)◦Member/Partner◦Family
OVERVIEW OF CURRENT PLANS
BOE PROPOSED PLAN
➢ DIRECT ACCESS 10/20
WOEA PROPOSED PLAN
➢HIGH DEDUCTIBLE HYBRID
▶ Deductible – Amount paid directly to providers prior to insurance coverage.
▶ In a High Deductible Health Plan, employees are responsible for deductible amount. After deductible is met, insurance benefits begin.
▶ Deductibles are very high◦ Single $2,500◦ Family $5,000
Advantages of a High Deductible
▶ In WOEA proposal, a high deductible…◦ Board of Education would cover 50% of the deductible
through an HRA (Health Reimbursement Account)⚫ Single $1,250⚫ Family $2,500
◦ Employees receive incentive stipend at the start of the plan year (July) for remaining 50%⚫ Single $1,250⚫ Family $2,500
Advantages of a High Deductible
▶ Under the WOEA proposal, members are NOT be responsible for ANY of the deductible.
▶ Risk involved with Incentive Stipend.▶ Lower cost plan▶ Similar level of benefit as Direct Access 10
Advantages of a High Deductible
Base Salary Year 4 PERCENTAGE
FAMILY COVERAGE Under $25,000 3.00%
$25,000 $29,999 4.00%$30,000 $34,999 5.00%$35,000 $39,999 6.00%$40,000 $44,999 7.00%$45,000 $49,999 9.00%$50,000 $54,999 12.00%$55,000 $59,999 14.00%$60,000 $64,999 17.00%$65,000 $69,999 19.00%$70,000 $74,999 22.00%$75,000 $79,999 23.00%$80,000 $84,999 24.00%$85,000 $89,999 26.00%$90,000 $94,999 28.00%$95,000 $99,999 29.00%
$100,000 $104,999 32.00%$105,000 $109,999 32.00%$110,000 Over 35.00%
Health Benefit Contribution
Health Benefit ContributionBase Salary Year 4 PERCENTAGE
MEMBER/PARTNER & PARENT/CHILD(REN) COVERAGEUnder $25,000 3.50%
$25,000 $29,999 4.50%$30,000 $34,999 6.00%$35,000 $39,999 7.00%$40,000 $44,999 8.00%$45,000 $49,999 10.00%$50,000 $54,999 15.00%$55,000 $59,999 17.00%$60,000 $64,999 21.00%$65,000 $69,999 23.00%$70,000 $74,999 26.00%$75,000 $79,999 27.00%$80,000 $84,999 28.00%$85,000 $89,999 30.00%$90,000 $94,999 30.00%$95,000 $99,999 30.00%
$100,000 Over 35.00%
Health Benefit ContributionBase Salary Year 4 PERCENTAGE
SINGLE COVERAGE Under $20,000 4.50%
$20,000 $24,999 5.50%$25,000 $29,999 7.50%$30,000 $34,999 10.00%$35,000 $39,999 11.00%$40,000 $44,999 12.00%$45,000 $49,999 14.00%$50,000 $54,999 20.00%$55,000 $59,999 23.00%$60,000 $64,999 27.00%$65,000 $69,999 29.00%$70,000 $74,999 32.00%$75,000 $79,999 33.00%$80,000 $84,999 34.00%$85,000 $89,999 34.00%$90,000 $94,999 34.00%$95,000 Over 35.00%
NJ Direct Access 10
Premium Costs for Current Plan 2016-2017
Level of Benefit Annual Premium CostMedical + Prescription
Single $11,531
Parent/Child(ren) $18,602
Member/Partner $21,850
Family $33,724
How Much You Contribute…TodayDirect Access 10
$50,000 $54,999 12.00%
Family Coverage Calculation
Salary Premium Percentage Contribution
$54,100 $33,724 12.00% $4,047
NJ Direct Access 10
Projected Premium Costs2017-2018
Level of Benefit Annual Premium CostMedical + Prescription
Single $12,737
Parent/Child(ren) $20,558
Member/Partner $24,147
Family $37,273
How Much You Contribute… Next Year
$50,000 $54,999 12.00%
Family Coverage Calculation
Salary Premium Percentage Contribution
$54,100 $37,273 12.00% $4,473
Increased Contribution$426
What happens next year with a higher percentage?
Salary Premium Percentage Contribution
$56,200 $37,273 14.00% $5,218
Family Coverage Calculation
Increased Contribution$1,171
WOEA High Deductible Hybrid
Projected Premium Costs2017-2018
Level of Benefit Annual Premium CostMedical + Prescription
Single $8,230
Parent/Child(ren) $13,224
Member/Partner $15,532
Family $26,880
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$56,200 $26,880 14.00% $3,763
Family Coverage Calculation
DECREASED Contribution($284)
BOE Direct Access 10/20
Projected Premium Costs2017-2018
Level of Benefit Annual Premium CostMedical + Prescription
Single $11,636
Parent/Child(ren) $18,766
Member/Partner $22,042
Family $34,017
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$56,200 $34,017 14.00% $4,762
Family Coverage Calculation
Increased Contribution$715
How Much You Contribute…Today
$95,000 $99,999 29.00%
Family Coverage Calculation
Salary Premium Percentage Contribution
$98,100 $33,724 29.00% $9,778
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$101,500 $26,880 32.00% $8,602
Family Coverage Calculation
DECREASED Contribution($1,176)
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$101,500 $34,017 32.00% $10,885
Family Coverage Calculation
Increased Contribution$1,107
How Much You Contribute…Today
Single Coverage Calculation
Salary Premium Percentage Contribution
$54,100 $11,531 20.00% $2,306
$50,000 $54,999 20.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$56,200 $8,230 23.00% $1,893
Single Coverage Calculation
DECREASED Contribution($413)
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$56,200 $11,636 23.00% $2,676
Single Coverage Calculation
Increased Contribution$370
How Much You Contribute…Today
Single Coverage Calculation
Salary Premium Percentage Contribution
$94,100 $11,531 34.00% $3,921
$90,000 $94,999 34.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$96,200 $8,230 35.00% $2,880
Single Coverage Calculation
DECREASED Contribution($1,040)
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$96,200 $11,636 35.00% $4,073
Single Coverage Calculation
Increased Contribution$152
How Much You Contribute…Today
Parent/Child(ren) Coverage Calculation
Salary Premium Percentage Contribution
$54,100 $18,602 15.00% $2,790
$50,000 $54,999 15.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$56,200 $13,224 17.00% $2,248
DECREASED Contribution($542)
Parent/Child(ren) Coverage Calculation
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$56,200 $18,766 17.00% $3,190
Increased Contribution$400
Parent/Child(ren) Coverage Calculation
How Much You Contribute…Today
Parent/Child(ren) Coverage Calculation
Salary Premium Percentage Contribution
$99,100 $18,602 30.00% $5,581
$95,000 $99,999 30.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$101,200 $13,224 35.00% $4,628
DECREASED Contribution($953)
Parent/Child(ren) Coverage Calculation
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$101,200 $18,766 35.00% $6,568
Increased Contribution$987
Parent/Child(ren) Coverage Calculation
How Much You Contribute…Today
Member/Partner Coverage Calculation
Salary Premium Percentage Contribution
$54,100 $21,850 15.00% $3,278
$50,000 $54,999 15.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$56,200 $15,532 17.00% $2,640
DECREASED Contribution($638)
Member/Partner Coverage Calculation
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$56,200 $22,042 17.00% $3,747
Increased Contribution$469
Member/Partner Coverage Calculation
How Much You Contribute…Today
Member/Partner Coverage Calculation
Salary Premium Percentage Contribution
$99,100 $21,850 30.00% $6,555
$95,000 $99,999 30.00%
What happens next year, under the High Deductible Plan?
Salary Premium Percentage Contribution
$101,200 $15,532 35.00% $5,436
DECREASED Contribution($1,119)
Member/Partner Coverage Calculation
What happens next year, under Direct Access 10/20?
Salary Premium Percentage Contribution
$101,200 $22,042 35.00% $7,715
Increased Contribution$1,160
Member/Partner Coverage Calculation