Health Flex Exchange Updates and Review for 2020

Health. Flex Exchange Updates and Review for 2020

Included in All Health. Flex Plans 100% coverage on in-network wellness and preventative services An out-of-pocket maximum that is a cap on all covered expenses The same provider networks/ drug formularies and discounts on service and medication Deductible that must be met before medical services are covered (not including dental/vision expenses) Coinsurance payments on inpatient and outpatient services 2 | Wespath

Health. Flex Plans HSA Plans H 1500 HRA Plans H 2000 H 3000 C 2000 B 1000 C 3000 B 1000 Health Account Employer Contributions $750 for 1 person $1, 500 for > 1 person $500 for 1 person $1, 000 for > 1 person None $1, 000 for 1 person $250 for 1 person $2, 000 for >1 person $500 for >1 person None Deductible You pay all $1, 500 person $3, 000 per family $2, 000 per person $4, 000 per family $3, 000 per person $6, 000 per family $1, 000 person $2, 000 per family If > 1 person is covered the family deductible always applies Co-insurance You pay part (Plan pays │ You pay) 80% │ 20% 70% │ 30% 40% │ 60% 80% │ 20% 50% │ 50% 80% │ 20% Out-of-Pocket Max (OOP) After this, plan pays all $6, 000 person $12, 000 per family $6, 500 per person $13, 000 per family $6, 000 person $12, 000 per family $6, 500 person $13, 000 per family $5, 000 person $10, 000 per family Pharmacy Benefit Highlights Generics $15 (30 day), $35 (90 day) after deductible Preferred brand 25% after deductible (with min/max cost) You pay 60% after deductible Generics: $15 (30 day), $35 (90 day) Certain preventive medications are not subject to deductible Preferred brand: 25% (with min/max cost) Generics $15 (30 day), $35 (90 day) Preferred brand 20% ( min/max ) Deductibles illustrated above assume participant and covered spouse (if applicable) meet Health. Quotient (HQ) incentive requirement. 3 | Wespath

Plan Similarities and Differences HSA Plans Doctor, Urgent Care and ER Visits: Fixed co-payment Doctor, Urgent Care and ER Visits: Co-insurance after deductible is met Pharmacy: Co-payment or co-insurance before deductible is met Pharmacy: Co-payment or co-insurance after deductible is met (some preventive medications not subject to deductible) Mental Health Outpatient Counseling Fixed co-payment (does not apply to deductible) Mental Health Counseling: Co-insurance before deductible is met (does not apply to deductible) Mental Health Counseling: Co-insurance after deductible is met 4 | Wespath HRA Plans B 1000

Plan Similarities and Differences— Another Way to Look at It HSA Plans HRA Plans B 1000 Medical office visits Copay Urgent care ER visits Hospitalization Deductible and co-insurance Other medical services Behavioral health office visits Prescription drugs 5 | Wespath Deductible, then copay/co-insurance Co-insurance, no deductible Copay/co-insurance

Preventive Medications and HSA Plans Co-payment and co-insurance apply before the deductible for certain preventive drugs in the following categories: Antipsychotics Estrogens Asthma and COPD GI/Ulcer Certain breast cancer HIV/AIDS Cardiovascular (antianginal, anticoagulants, blood pressure, cholesterol) Osteoporosis Contraceptives Transplant Diabetes Smoking cessation products Final list may change—subject to Optum. Rx Preventive Premium drug list 6 | Wespath

How Do I Choose? • • How many people I covering? • How manyam people am How much. I covering? service will we use? How comfortable amservice I withwill we use? • How much large expenses? • How comfortable am expenses? How close. I with am I large to Medicare? • How close am I to Medicare? Get answers from: 7 | Wespath

Considering a Lower Premium Plan? Example: You expect $1, 500 in out-of-pocket expenses in the H 1500. Now you are considering buying-down into a lower cost HSA plan. Plan ahead with your HSA! $260/monthly premium difference between H 1500 and H 2000 for family coverage ($3, 120/year) $440/monthly premium difference between H 1500 and H 2000 for family coverage ($5, 280/year) Logical contribution to HSA could be: $3, 120 + $1, 500 = $4, 620 8 | Wespath $5, 280 + $1, 500 = $6, 780

HRA and HSA Plans Are Growing in Popularity Over ⅔ of Health. Flex Exchange Participants Enroll in an HRA/HSA plan • Avoid buying more insurance than you need • Better control how your health care dollars are spent • Save money on current-year expenses and prepare for future health care needs 9 | Wespath

Dental/Vision Needs—Considerations Consider Similar Factors for Dental/Vision • Covered individuals • Dental and vision use • Financial risk and safety net 10 | Wespath

Dental Plan Choices—Cigna Passive PPO 2000 PPO Advantage Network • $2, 000 maximum annual benefit • Same coinsurance in-network/ out-of-network* DHMO Dental Care Access Plus • $2, 000 maximum annual benefit (in- • No maximum benefit network) • Cost share follows patient charge schedule • $1, 000 maximum annual benefit (out • In-network only -of-network) Wellness benefit: Get your cleanings and increase your maximum benefit by $150/year (up to $450) HMO dentists not available in all areas * Out-of-network subject to reasonable/customary limitations 11 | Wespath Find an in-network dentist: cigna. com

Dental Plan Choices—Cigna PPO Deductible $50 person $150 per family Passive PPO 2000 $50 person $150 per family Preventive / Diagnostic Care Plan pays 100% Basic Restorative (Fillings, root canal, extractions) Plan pays 90% in-network Plan pays 70% out-of-network Plan pays 80% Major Restorative (Crowns, dentures, implants) Plan pays 60% in-network Plan pays 50% out-of-network Plan pays 50% Orthodontia (Up to age 19) 50% up to $2, 000 in-network 50% up to $2, 000 50% up to $1, 000 out-of-network Dental HMO Sample Participant Costs* None • Periodic/Comprehensive oral evaluation; prophylaxis (cleaning): $0 • X-rays panoramic (every 3 yrs) or bitewings: $0 • All amalgam filling, anterior composite filling: $0 • Posterior composite filling: $47 – $115 • Molar Root canal: $335 • Periodontal scaling/root plane: $42 – $83/quad • Crown: $88 – $150 + $410 – $460 for materials • Partial dentures: $525 – $715 • Child orthodontics: $2, 040 • Adult orthodontics: $2, 376 * See full Patient Charge Schedule (PCS) online for member cost share for a list of detailed services. HMO dentists not available in all areas. 12 | Wespath

Vision Plan Choices Vision* • Exam-only: Exams covered (glasses, materials discounted) • Full service: Exam plus $160 toward glasses or contacts • Premier: Exam plus $200 toward glasses and contacts (each) * Can use premium credit to pay for applicable premiums 13 | Wespath To find in-network vision provider: vsp. com

Vision Plan Choices Exam Core Full Service Premier Exam Every 12 months $20 co-pay Glasses / Lenses Every 12 months No coverage $20 co-pay Glasses / Frames No coverage $160 allowance every 24 months $200 allowance every 12 months No coverage $160 allowance for contacts and exam; every 12 months instead of glasses $200 allowance for contacts and exam, every 12 months in addition to glasses Contact Lenses 14 | Wespath

Health Accounts Help You Save Money Tax-advantaged accounts help you decrease how much money you spend on health care HSA Plans H 1500 Employer Contributions (included) H 2000 $750 for 1 person $1, 500 for > 1 person 15 | Wespath H 3000 $500 No for 1 person employer $1, 000 contribution for > 1 person HSA Personal Contributions (you choose) HRA Plans C 2000 $1, 000 for 1 person $2, 000 for >1 person C 3000 B 1000 $250 No for 1 person employer $500 contribution for >1 person FSA You can also save on your own out of pocket expenses by contributing to a health savings or flexible spending account—IRS limits apply

Why Consider a Plan with a Health Account? • Employer contributions available in full January 1 • Use employer money for current year expenses or to save for future needs • Option to make additional personal contributions ⅔ of Health. Flex Exchange participants are enrolled in an HSA or HRA plan 16 | Wespath

Why Contribute Your Own Money to HSA/FSA? • Current year savings— don’t pay taxes on your eligible medical expenses • Access accumulated funds when you need them— no need to use a credit card or dip into savings • Save for future expenses (health, retirement) • HSA—triple-tax advantage Almost everyone can benefit— 95% of Health. Flex households have $300+ in health expenses each year 17 | Wespath HSA / FSA

How the Tax Savings Works If you have $2, 500 in out of pocket health care expenses: HSA/FSA NO health account contribution: PAY TAX on that $2, 500 CONTRIBUTE to an HSA or FSA: PAY NO TAX on that $2, 500 If your tax bracket is 22%*, you can take home this much more: * Based on Denominational Average Compensation (DAC) 18 | Wespath $550

Tax Advantages of Health Accounts Note the Extra Tax Advantage of Health Savings Accounts! HSA HRA FSA UMPIP Pre-Tax Participant Contributions Participant contributions through payroll are made on pre-tax basis YES N/A YES (except Roth) Pre-Tax Employer Contributions Plan or Employer contributions are not subject to income tax YES N/A YES Tax-Free Growth Gains are not subject to interest, dividend or capital gains taxes YES N/A YES Tax-Free Distributions for qualifying medical expenses are not subject to taxation YES YES No (except Roth) 19 | Wespath

Health. Flex Participants Fund Their HSAs! Average Personal HSA Contributions $4 000 $3 500 $3 000 $2 500 $2 000 $1 500 $1 000 $500 $0 Single P+1 or Family $3 790 $2 841 $1 712 H 1500 $2 605 $1 445 H 2000 $1 660 H 3000 Population (n= 737) includes individuals eligible to contribute to HSA in 2018 and excludes individuals with $0 personal contributions 20 | Wespath

How Much Should You Plan to Contribute? • Use ALEX to estimate out of pocket expenses • Talk to EY Financial Planners to balance with other financial and savings goals • Try to save enough to cover 100% of current year expenses plus additional savings for emergencies, planned future needs or health care expenses in retirement 21 | Wespath

Comparing Health Accounts HSA Rollover HRA FSA No limit $500 to next plan year Portability It’s yours—no matter what If you terminate or waive Health. Flex— 90 days to spend. If you retire from UMC—keep If you terminate or waive Health. Flex, you can only use on claims as of your last day in Health. Flex Interest/Dividends Possible, depending on investment choices No No Annual IRS Limits Self-only: $3, 500 Family: $7, 000 Individuals >55: Extra $1, 000 None $300 -$2, 700 Eligible Dependents Tax dependents under 19 Dependents covered by Health. Flex Tax dependents under 25 $2/mo fee if balance <$5, 000 Other 22 | Wespath Must accept terms/conditions to open account; ID confirmation may be required May forfeit* if balance <$100 * With notification Special rules if you have HSA contributions; 100% of personal funds available Jan 1

HSA or FSA—How Do You Decide? It may not make sense to contribute to a health Flexible Spending Account unless you have contributed the maximum to your Health Savings Account (HSA plans only) Contributing to a health Flexible Spending Account in addition to your Health Savings Account may work if: • You have predictable dental/vision expenses and you want to save your Health Savings Account money • You expect your medical/Rx/behavioral health expenses to exceed $1, 350 (individual) or $2, 700 (family) 23 | Wespath

Multiple Health Accounts— Debit Card Knows Which Account to Charge WHICH ACCOUNTS? WHICH PAYS FIRST? FSA and HRA FSA always pays first FSA and HSA pays first for medical/Rx/behavioral health FSA pays first for dental/vision FSA pays first for everything after documented* $1, 350/$2, 700 expense HRA pays after FSA exhausted Until documented expenses of $1, 350/$2, 700 FSA, HRA and HSA * Must notify Wage. Works with documentation of expenses 24 | Wespath

Health Accounts Advantages—Recap HSA HRA FSA Access Accumulated Funds to Pay Medical Bills • Employer contributions Personal contributions available in full January 1 Save for Future Expenses • Unlimited rollover and interest • Unlimited rollover, no interest • May forfeit if you leave/ waive the plan $500 rollover for medical FSA for next plan year (limit 1 year if FSA not re-elected) Potential Tax Savings Triple tax advantage: No tax on personal/employer contributions; grows tax-free, no tax on qualified reimbursements No tax on employer contributions or qualified reimbursements No tax on personal contributions or qualified reimbursements 25 | Wespath available January 1 • Personal contributions + extra Premium Credit deposited monthly on the 5 th or dividend potential • Yours to keep available January 1 • Extra Premium Credit deposited monthly on the 5 th

Dependent Care Flexible Spending Account Dependent care FSA is available with all plans Dependent Care Rollover None Portability If you terminate or waive Health. Flex, you can only use on claims as of your last day in Health. Flex Eligible Expenses Care for child or adult dependents Annual Limits $300 – $5, 000 Other Monthly share of election available each month on 5 th 26 | Wespath

Why choose a Health. Flex HSA or HRA plan? Lower Monthly Premiums Carry Over for Retirement Tax Advantages Smart Consumer

ALEX Benefits Counselor • Available mid-September through Annual Election • Lively graphics, animation, and humor • About 20 minutes to complete • Explains confusing benefit concepts and info with simple language • Personalized recommendation for plan choices and health account contributions 28 | Wespath

ALEX Recommends a Plan • ALEX “crunches” the numbers: premium, credit, and estimated out of pocket costs • Compares side by side and recommends a plan for you 29 | Wespath

ALEX Explains Tax Savings ALEX explains the tax benefits of contributing to a health account and helps you pick the right amount to contribute 30 | Wespath

Decision Support—All Year Long Health. Flex Consumer Tools • ALEX will review how your plan works anytime • Resources to minimize costs – Provider finder (medical) – Treatment cost estimator (medical) – Pharmacy cost estimator • Making the Most of your Plan – Cost saving tips • Learn more about health accounts – Opportunity for tax-advantaged savings for health care costs 31 | Wespath

Need More Details? Details and FAQs • Access more detailed information about Health. Flex benefits – HRA plan/HSA plan information – Guides to understanding FSAs, HRAs and HSAs • Frequently Asked Questions (FAQs) 32 | Wespath Detailed Reference Center • Summary Plan Description + Medical, Dental and Behavioral Health Benefit Booklets • Benefit Summaries (Summary of Benefits and Coverage) • Reimbursement Account information • Health. Flex Notice of Privacy Practices

Annual Election (AE): October 30 – November 14 • Use ALEX to decide which plans you want • During AE—make your elections for 2020 – Choose from 6 medical/Rx, 3 dental and 3 vision plans – Use your premium credit to “shop” for the plans – Make FSA and/or HSA* contribution elections – Accept the terms and conditions for HSA (if applicable) * HSA contributions require enrollment in an HSA plan and attestation that you are eligible per IRS guidelines 33 | Wespath If you do not make elections during AE, you will be automatically enrolled into the following default plans: • Medical, Dental, Exam Core Vision • No personal FSA or HSA contributions

Review/Approve and Confirm 2 -step process to review, approve and confirm elections Step 1 34 | Wespath Step 2

Telephone Support Beginning in late October, you can contact our AE support center by phone for information • Basic medical plan information (HSA vs. HRA vs. PPO plans) • Health account information (differences and limits) AE Support: 1 -844 -688 -1375 Monday – Friday ⁄ 7 a. m. – 7 p. m. , Central time 35 | Wespath

Timeline September October November December January 2020 • ALEX decision support tool available • Annual election communications • Annual Election begins—October 30 • Annual election through Nov 14 • Make an election! • Visit ALEX again if you need help choosing a plan • Health ID, dental HMO, and debit cards are mailed, if selected • New plan year 36 | Wespath • Digital dental and vision “cards” available online

Well-Being Overview Your health matters to us! Health. Flex well-being programs are based on 5 dimensions 37 | Wespath All well-being programs based on 5 dimensions

Why Well-Being? • Tools and resources to live your best possible life • Energy and vitality for family, friends and ministry • Earn money • Have fun! 38 | Wespath

Well-Being Programs Health. Flex /Web. MD website—This is your hub to vendor partner websites, benefits information, health tools, wellness success stories, videos and more. Start at wespath. org—select Health. Flex /Web. MD Virgin Pulse—Track physical activity and healthy habits, and learn new well-being tips and hints every day. You also receive Pulse. Cash along the way Diabetes Prevention Program—Online program for those at risk for diabetes, heart disease or with non-insulin dependent diabetes; reimbursement for participation in a local community-based program Health Coaching (Web. MD)—Confidential, phone-based coaching can help you stay on track toward achieving well-being goals EY Financial Planning Services—Web and phone based help for everything from financial planning, managing debt, estate planning and more 39 | Wespath

Well-Being Programs Employee Assistance Program (EAP)—Contact the EAP for confidential counseling related to work, relationship, family life, relocation and more (8 EAP sessions at no cost) Work/Life Services—Phone-based representatives help you find local resources for child care, elder care, legal needs and more; especially helpful during appointment changes relocation MDLIVE—Consult with physicians by phone, secure video or mobile app when your regular provider is unavailable Weight. Watchers®—Health. Flex offers a 50% subsidy on Weight. Watchers membership fees for local meetings and Weight. Watchers Online. Plus 40 | Wespath

Terms/Acronyms You Need to Know TERM DEFINITION Co-insurance Percentage of health care expense paid by individual and/or Health. Flex plan Co-payment Flat dollar amount individual pays toward health care expense Credit Premium Credit – Amount your plan sponsor gives you toward your Health. Flex premiums Deductible Amount the individual pays in full before plan co-insurance begins (does not include co-payments) FSA Flexible spending account (two types—health care and dependent care) HMO Health Maintenance Organization HRA Health reimbursement account HSA Health savings account Out-of-Pocket Max (OOP) Maximum amount the individual pays for covered medical, pharmacy and behavioral health expenses PPO Preferred Provider Organization Premium Your monthly (or annual) health plan payment to enroll in a plan 41 | Wespath