2014 Open Enrollment FAQS

Transcription

1 2014 Open Enrollment FAQS Medical Plans 1. Why is BNY Mellon changing health plans for 2014? 2. Why is enrolling for health care benefits especially important for 2014? 3. What are the health plan options for 2014? 4. How are these 2014 health plan options similar to the health plan options offered today? 5. How are these 2014 health plan options different from the health plan options offered today? 6. How do the 2014 health plan options differ from one another? 7. What are the prescription drug differences between Plan HRA (Health Reimbursement Account) and Plan HSA (Health Savings Account)? 8. How should employees choose between the two health plan options? 9. What other changes will there be to benefits coverage under the 2014 health plan options? 10. What tools and resources will be provided to assist employees? Health Accounts 1. Why do the 2014 health plan options have health account features? 2. What value do health accounts provide? 3. How does a Health Savings Account differ from a Health Reimbursement Account? 4. Will the Flexible Spending Accounts and Limited Purpose Flexible Spending Account be offered in 2014? 5. What s the difference between the Health Care Flexible Spending Account and the Limited Purpose Flexible Spending Account? 6. How can employees compare and choose from these account options? 7. Are there IRS limits to how much someone can contribute to these health accounts? 8. How should an employee calculate how much to contribute to his or her Health Savings Account, taking into consideration the $150/$300 incentive he or she may receive from participating in Health Coaching? 9. Can an employee change the amount of his or her Health Savings Account contribution during the year? 10. Besides payroll deduction, are there any other ways to contribute to the Health Savings Account? 11. If an employee has a Health Savings Account at another institution, can they roll over funds to their BNY Mellon Health Savings Account? 12. What happens if an employee contributes more than the IRS allows? 13. If an employee selects Plan HSA and decides in a subsequent year to change to Plan HRA, are remaining balances in the Health Savings Account available for future use? 14. If an employee selects Plan HRA and decides in a subsequent year to change to Plan HSA, are remaining balances in the Health Reimbursement Account available for future use? 15. In the event of death, what happens to balances remaining in the Health Savings Account? 16. In the event of death, what happens to balances remaining in the Health Reimbursement Account? 1

2 Live Well Savings 1. Who is eligible for Live Well savings? 2. What savings can employees earn by participating in the Live Well program? 3. What are the deadlines for completing Live Well steps in order to receive health plan premium savings? 4. Can employees still earn savings if they miss the deadline? 5. How can employees confirm that they are receiving credit for earned Live Well savings? Where can they find the incentive tracker? 6. How does an employee or covered spouse/domestic partner certify his or her tobacco status? 7. How many Tobacco Cessation Health Coaching calls must tobacco users complete, and what is the deadline for completing this program? 8. Can newly hired employees receive Live Well savings? 9. Can employees participate in a Health Coaching program if their Wellbeing Assessment does not recommend it? 10. What are the Live Well incentives for participating in health coaching by telephone? 11. Can employees join a Health Coaching program if they do not enroll online following their Wellbeing Assessment? 12. Who is our new Live Well partner? 13. What services does WebMD offer, and how can employees access them? Health Care Reform (Affordable Care Act) 1. What do employees need to know about the Affordable Care Act (ACA)? 2. Does BNY Mellon have to offer health coverage to every employee because of the ACA? 3. Did BNY Mellon change its health plans because of the ACA? 4. What are health insurance marketplaces (exchanges)? 5. If an employee already has health coverage through BNY Mellon, what benefits, if any, does the health insurance marketplace offer? 6. Will BNY Mellon employees be eligible for a premium subsidy in the health insurance marketplace? 7. If a BNY Mellon employee has never enrolled for health care coverage, does he or she need to do so now? 8. What happens if an employee doesn t want to enroll for health coverage through BNY Mellon? 9. Will employees who work part time be able to get coverage through BNY Mellon that meets the ACA requirements? Supreme Court Same-Sex Marriage Decision (DOMA Ruling) 1. How does the Supreme Court ruling affect benefit eligibility for same-sex partners of BNY Mellon employees? 2. Are further rulings or clarifications expected in the future? Open Enrollment 1. When is the 2014 Open Enrollment period? 2. What happens if employees do not actively enroll for 2014? 3. What benefits, besides health plan coverage, will employees choose during Open Enrollment? 4. How do employees complete their enrollment? 2

3 Medical Plans 1. Why is BNY Mellon changing health plans for 2014? For 2014, we are completing the transition of our health plan design by consolidating our options to two: the current Plan HSA (Health Savings Account) and a new Plan HRA (Health Reimbursement Account). Both comprehensive, accountbased health plan options are designed to engage and empower us as health care consumers. They are also intended to help us address the requirements of Health Care Reform, ensure that our benefits remain competitive in a changing marketplace and help keep benefits affordable for both BNY Mellon and our employees. Ultimately, our goal is to improve the long-term health of our employees and their families and to better manage what we the company and employees together spend on health care. In the two years since launching the Live Well program, we have made great progress. We should take pride that our preventive screening rates improved from 2011 to 2012 leading to earlier detection of emerging health risks. Further, now more than 90 percent of us participate in at least one of Live Well s programs devoted to improving personal wellbeing. We have more to do, however. BNY Mellon s health care costs continue to increase at a pace that is unsustainable for our company and employees. Our shared responsibility must broaden to include how we use our health plans. We work together toward this goal when employees choose and use their health plan in the most informed and responsible way. 2. Why is enrolling for health care benefits especially important for 2014? Enrolling for health care benefits is important for two reasons: 1. BNY Mellon s health plan options are changing for Open Enrollment is an employee s single opportunity to take a fresh look at current benefits elections and choose coverage for the coming year. Failure to enroll may result in being placed in default coverage for The individual mandate provision of Health Care Reform (the Affordable Care Act) requires that everyone must have medical coverage for 2014 or else pay a federal tax penalty. Employees who enroll in a BNY Mellon health plan for 2014 (and their covered family members) will meet the individual mandate requirements for coverage. 3. What are the health plan options for 2014? For 2014, most employees will have a choice between the following two national health plan options, both offered by our current carriers, Aetna and UnitedHealthcare, with prescription drug coverage offered through CVS Caremark: Plan HRA (Health Reimbursement Account) Plan HSA (Health Savings Account) Eligible California employees will continue to have coverage available through Kaiser Permanente (which sponsors a unique network of hospitals and physicians), and the HMSA Plan will be offered for those in Hawaii. International expatriates will continue to have the Aetna International Plan (renamed from the Aetna Global Plan). Employees may also waive BNY Mellon medical coverage for 2014 (but before doing so, should be sure that they will be enrolled in other medical coverage, such as through a spouse s plan, to avoid paying a penalty under the individual mandate provision of the Affordable Care Act). 4. How are these 2014 health plan options similar to the health plan options offered today? The current Plan HSA will continue in 2014 with the same choice of carriers (either Aetna or UnitedHealthcare). Some benefit levels will change; these details will be available in the 2014 Enrollment Guide. While Plan HSA and Plan HRA contain new consumer elements, they are both built upon traditional health plans with these familiar features: Employees have access to the same national networks of doctors and hospitals, provided by Aetna and UnitedHealthcare, that they have today. Employees save by using negotiated discounts when care is received in-network, while retaining the freedom to use outof-network providers at a higher cost. After the annual deductible is reached, the plan pays 80 percent of the cost of most other care and employees pay 20 percent in-network. Out-of-pocket medical costs including deductible and coinsurance are limited to an annual maximum, which is the most an individual will pay in any year. Prescription coverage continues through CVS Caremark with negotiated discounts. In-network preventive care is covered at 100 percent. 3

4 5. How are these 2014 health plan options different from the health plan options offered today? Plan HRA (Health Reimbursement Account) and Plan HSA (Health Savings Account) are both designed to help employees become more informed and involved buyers of health care. Through online tools and resources provided by the medical carriers, employees will have information about the cost and quality of services, and the financial benefits of making costeffective choices. This is more important than ever, given the wide variation in quality and costs among health care providers. In addition, to help employees pay for the care they need, both health plan options offer a health account to which BNY Mellon makes a contribution. Both health accounts allow unspent amounts to roll forward for use in future years. This puts employees in charge of managing the dollars in their accounts the individual decides how much from the account to spend for care, and how much to save for future needs. 6. How do the 2014 health plan options differ from one another? The key differences between the health plans are: the per-pay costs (in other words, the employee s cost of purchasing the coverage); the deductible, coinsurance and out-of-pocket maximums (in other words, the cost of purchasing care when needed); how prescription drug benefits will be paid under the plans; the health care account features of the plans (see the Health Accounts section of this FAQ), including how the accounts may be funded, and the ability of employees to contribute to and grow their account (in other words, the long-term saving potential of the account); and coverage employees can participate in if they are covered by another plan 7. What are the prescription drug differences between Plan HRA (Health Reimbursement Account) and Plan HSA (Health Savings Account)? Under Plan HRA, all covered prescription drugs are subject to the traditional four-tier prescription drug schedule (generic copays, formulary, non-formulary and specialty drug coinsurance) that is used in our health plans today. Under Plan HSA, IRS regulations require that all medical and prescription drug expenses be subject to the HSA plan s deductible and coinsurance. However, in order to encourage the wider use of preventive health strategies, the IRS allows HSA plans to provide preventive drugs to members at normal copayments (that is, not subject to the deductible). This results in a fairly wide range of preventive and maintenance drugs being subject to the prescription drug plan s normal copayment, including drugs to treat or prevent diabetes, hypertension, coronary artery disease, depression, osteoporosis and other conditions. 8. How should employees choose between the two health plan options? To help decide which health plan is right for their needs, employees should: become familiar with how the 2014 health plans work; compare the features of the health plans; understand how the health plans monthly medical contributions compare; and use the available cost profiles and personalized web modeling tools to make an informed decision based on their own projected 2014 costs and needs. Beginning September 16, full details about health plan coverage and costs will become available so employees can learn, compare and make informed enrollment decisions. 9. What other changes will there be to benefits coverage under the 2014 health plan options? Beginning January 1, 2014, both health plan options will provide a hearing aid benefit of $5,000 every two years (plan deductible, coinsurance and out-of-pocket limits apply). Benefits offered through other BNY Mellon plans (e.g., dental, vision, life and AD&D insurance, and long-term disability coverage) will not change for

5 10. What tools and resources will be provided to assist employees? Employees will have access to comprehensive decision support tools to help them and their families make the best choices for their 2014 health care needs. These include: Information Need Learn about 2014 Health Plan Options Review and Compare Costs Enroll Between October 28 and November 15, 2013 Resources Starting September 16: Visit the Live Well website at ivewell.bnymellon.com to read the 2014 Enrollment Guide, view a web presentation, and compare the features and costs of the health plan options Attend an on-site employee meeting (if available at employee s location) or attend a Webex session prior to Open Enrollment. Employees can find more information by visiting MySource or ivewell.bnymellon.com View a recorded presentation if unable to attend an on-site meeting or WebEx session, or need a refresher on health plan information Have questions about Plan HRA and Plan HSA answered by calling the 2014 Enrollment Decision Helpline at Send questions to the 2014 Enrollment Decision Support Website at htt p:// nhewittadvocacy. com/employer/contact.asp Starting October 21, visit the MyBenefit Solutions website to view new cost estimators, health plan comparisons and People Like Me tools: At work, single sign-on access through MyReward (MySource > My Reward > Logon to MyReward > Proceed to My Personal Total Reward Data > MyBenefit Solutions) At home, go to http: //mybenefits.bnymellon.com At work, single sign-on access through MyReward (MySource > MyReward > Logon to MyReward > Proceed to My Personal Total Reward Data > MyBenefit Solutions) At home, go to http: //mybenefits.bnymellon.com 5

6 Health Accounts 1. Why do the 2014 health plan options have health account features? The health account features of our health plan options are designed to encourage each employee to become a more informed and involved buyer of health care. These health accounts make 2014 health plans different from the traditional EPO and PPO plans many employees use today. The health accounts help employees budget and save for their share of health care costs, such as the higher plan deductibles and coinsurance. Also, the health accounts allow employees to pay for health services using pre-tax dollars. 2. What value do health accounts provide? First, BNY Mellon will make contributions to the health accounts at the beginning of the year, which employees can use to pay for qualified medical expenses. Second, the health accounts provide valuable tax benefits when used for qualified medical expenses BNY Mellon contributions, employee contributions to the Health Savings Account and related earnings, and reimbursements from both accounts are all tax-free. And, in the event account contributions are unused, they roll forward for use in future years. Overall, the health accounts provide employees with a greater degree of control and flexibility in deciding how they spend their health care dollars. Employees should review their Open Enrollment materials for the specific advantages and limitations of each account. 3. How does a Health Savings Account differ from a Health Reimbursement Account? The following table summarizes some of the most important differences between the two accounts. Employees should review their Open Enrollment materials for the specific advantages and limitations of each account. Who Owns the Account? Who Contributes to the Account? Can Unused Amounts Roll Over to the Next Year? Can Funds Move Between Employers? Health Reimbursement Account BNY Mellon BNY Mellon Yes, BNY Mellon permits carry-over of contributions from one year to the next if unused No Health Savings Account Employee BNY Mellon and employee (and others, including family members) can contribute Yes. The employee owns the account and any contributions made to it, regardless of the source and timing of the contribution Yes, the funds are portable because the employee owns the account What Are the Tax Benefits? Are Funds Available Beyond Active Employment? Contributions and reimbursements for qualified health care expenses are tax-free Funds remaining in the HRA account are forfeited if the employee leaves the company prior to attaining age 55, but will remain available for their use if they leave the company at or following attainment of age 55 Triple tax-free. Employee contributions and withdrawals for qualified health care expenses are tax-free, and interest on account funds can grow on a tax-advantaged basis Funds remaining in the HSA account will continue to be available for employee use 4. Will the Flexible Spending Accounts and Limited Purpose Flexible Spending Account be offered in 2014? Yes, the Flexible Spending Accounts and Limited Purpose Flexible Spending Account will continue to be offered for Individuals may elect up to $2,500 in pre-tax payroll contributions to their account in

7 5. What s the difference between the Health Care Flexible Spending Account and the Limited Purpose Flexible Spending Account? The key differences between the two accounts are participant eligibility and the types of health expenses they cover. Under IRS rules, individuals who participate in a Health Savings Account may not participate in a Health Care Flexible Spending Account at the same time, since both accounts provide tax benefits for unreimbursed medical expenses. (Note, however, that employees participating in a Health Reimbursement Account may participate in a Health Care Flexible Spending Account.) Instead, a Health Savings Account participant can enroll in a Limited Purpose Flexible Spending Account. Unlike a Health Care Flexible Spending Account, the Limited Purpose Flexible Spending Account cannot be used for reimbursement of eligible medical expenses until the plan deductible has been satisfied. However, it can be used for other eligible health costs, such as dental and vision expenses. For other differences between the Health Care Flexible Spending Account and the Limited Purpose Flexible Spending Account, employees can review the side-by-side comparison of health accounts in the 2014 Enrollment Guide. 6. How can employees compare and choose from these account options? Employees can review full details about each of the account options and compare the provisions of the account options side-by-side in the 2014 Enrollment Guide. 7. Are there IRS limits to how much someone can contribute to these health accounts? Yes, the IRS specifies annual contribution limits to each account, as summarized in the table below IRS Contribution Limits Health Savings Account Health Reimbursement Account BNY Mellon determines the amount of account funding each year, based on employee salary Health Care Flexible Spending Account Limited Purpose Flexible Spending Account Employees may contribute up to $2,500 for use in paying for medical (after meeting the deductible), dental and vision expenses Is There A Contribution Limit? $3,300 for individual coverage and $6,550 for employee + one and family coverage (this includes BNY Mellon and employee contributions as well as account credits earned by completing health coaching) Employees age 55 or older may contribute an additional $1,000 per year to their Health Savings Account Employees may contribute up to $2,500 for use in paying eligible medical, dental and vision expenses 8. How should an employee calculate how much to contribute to his or her Health Savings Account, taking into consideration the $150/$300 incentive he or she may receive from participating in Health Coaching? Employees can use the cost profiles and personalized web modeling tools available beginning October 21 to determine the amount they need to contribute to their Health Savings Account. Employees should consider BNYM s annual contribution to the account; if the employee expects to earn $150/$300 from Health Coaching, he or she should reduce that amount from his or her expected HSA contribution. 9. Can an employee change the amount of his or her Health Savings Account contribution during the year? Yes, employees can change their contribution amounts monthly throughout the year. 10. Besides payroll deduction, are there any other ways to contribute to the Health Savings Account? Yes, in addition to contributing with payroll deductions, employees may also contribute to their Health Savings Account by lump-sum payment, using either a deposit slip from their Health Savings Account checkbook or by electronic funds transfer. Both methods are described in the Welcome Kit received after enrolling. Since lump-sum contributions are made using after-tax money, employees may deduct the after-tax Health Savings Account contributions on their 2014 tax return. Lump-sum contributions may be delayed up to the time the 2014 income tax return is filed. 11. If an employee has a Health Savings Account at another institution, can they roll over funds to their BNY Mellon Health Savings Account? Yes, if an employee already has a Health Savings Account at another institution, he or she can roll over or transfer funds to their BenefitWallet Health Savings Account. Additional information will be provided in the Welcome Kit the employee receives after enrolling. 7

8 12. What happens if an employee contributes more than the IRS allows? If an employee contributes more than the maximum annual contribution to their Health Savings Account, the excess may be withdrawn without penalty until the deadline (including extensions) for filing his or her tax return for the tax year for which the excess contribution was made. After that time, the funds are subject to both income taxes and a 6 percent excise tax. 13. If an employee selects Plan HSA and decides in a subsequent year to change to Plan HRA, are remaining balances in the Health Savings Account available for future use? Yes. Remaining balances in the Health Savings Account will continue to be available for the employee s use in covering qualified medical expenses and/or can be saved for future expenses. While the Health Savings Account will remain open, the employee will not be eligible to make contributions into the account unless they re-enroll in Plan HSA in a subsequent year. As long as the funds in the Health Savings Account were contributed while the employee was eligible, the employee can continue to use the Health Savings Account funds when covered by Plan HRA. 14. If an employee selects Plan HRA and decides in a subsequent year to change to Plan HSA, are remaining balances in the Health Reimbursement Account available for future use? In the event an employee changes from Plan HRA to Plan HSA, the Health Reimbursement Account will become a Limited Purpose Health Reimbursement Account, which means that only dental and vision expenses will be eligible for reimbursement. Once the employee meets the Plan HSA deductible, eligible medical expenses can be submitted for reimbursement. In addition, the Plan HRA debit card will no longer be available for use; instead, the employee will be required to submit receipts for reimbursement. 15. In the event of death, what happens to balances remaining in the Health Savings Account? If the employee s spouse is the designated beneficiary, after the employee s death the account will be treated as if it was the spouse s. This means it will continue to be tax-free for distributions. If someone other than the spouse is the designated beneficiary, the fair market value of the Health Savings Account becomes taxable to the beneficiary in the year of the employee s death. The amount taxable to the beneficiary is reduced by the amount of any qualified medical expenses incurred prior to the employee s death that the beneficiary pays within one year after the date of death using the Health Savings Account. Additional information is available in the 2014 Enrollment Guide. 16. In the event of death, what happens to balances remaining in the Health Reimbursement Account? Funds remaining in the Health Reimbursement Account at the time of a participant s death can be used to pay for eligible expenses incurred through the date of death. The request for reimbursement must be submitted by June 30 of the year following the year of death, and any remaining funds would be forfeited. 8

9 Live Well Savings 1. Who is eligible for Live Well savings? Active employees and their spouses/domestic partners who are enrolled, or who will enroll for 2014, in a BNY Mellon health plan are eligible to participate in Live Well programs and earn Live Well health plan premium savings. Dependents who are age 18 and older, and who are covered by a BNY Mellon health plan, may also participate but are not eligible for Live Well savings. Employees on Long-term Disability, expats and those on military leave and their spouses/domestic partners enrolled in a BNY Mellon health plan will automatically receive Live Well savings. Employees currently covered by COBRA, pre-65 retirees and their spouses/domestic partners and dependents age 18 and older who are enrolled in a BNY Mellon health plan are eligible to participate in Live Well programs but are not eligible to receive Live Well savings. Benefits-eligible employees who do not participate in BNY Mellon health plans are eligible to participate in Live Well programs, but are not eligible for Live Well savings. 2. What savings can employees earn by participating in the Live Well program? Employees have several opportunities to earn savings: Employees and covered spouses/domestic partners must complete the Wellbeing Assessment (WBA) in order to earn any health plan premium savings for Employees who complete both a biometric screening and the WBA by November 15, 2013, will earn $400 in 2014 health plan premium savings. Employees will certify their tobacco status when they complete the WBA. Employees who do not use tobacco and certify as tobacco-free OR employees who are tobacco users and complete four Tobacco Cessation Health Coaching program phone calls between September 15 and December 15, 2013, will earn an additional $400 in 2014 health plan premium savings. These savings will be doubled when covered spouses/domestic partners also complete these steps. Please see Question 3 below for deadlines for these actions. Additionally, employees and their covered spouses/domestic partners who complete four calls with a WebMD health coach will each earn a $150 credit to their 2014 health account, which can be used to pay for eligible medical expenses. Rewards for participating in a wellness program are available to all employees who are covered by a BNY Mellon medical plan. Employees who think they might be unable to meet a standard for a reward under this wellness program might qualify for an opportunity to earn the same reward by different means. Such employees should contact WebMD by November 15, 2013, at HR4U (4748), option 3; WebMD will work with employees (and, if employees wish, with their physicians) to find an alternative means for them to earn the same reward in light of their health status. 3. What are the deadlines for completing Live Well steps in order to receive health plan premium savings? 2014 Live Well Savings Deadlines Schedule biometric screening What Do Employees Need to Do?* When Do Employees Need to Act?* Complete this step as soon as possible to ensure that the screening is conducted and results are submitted no later than November 15 Complete biometric screening As soon as possible and no later than November 15 Register on the WebMD Health Manager website No later than November 15 Complete Wellbeing Assessment No later than November 15 If employee does not use tobacco Certify as Tobacco-Free when completing the Wellbeing Assessment No later than November 15 OR If employee is a tobacco user Complete a Tobacco Cessation Health Coaching program * Including, as applicable, covered spouses/domestic partners By September 15 complete first program call By December 15 complete fourth program call Additionally, employees and covered spouses/domestic partners who complete four health coaching calls by July 31, 2014 (excluding tobacco cessation coaching), will each earn a $150 credit to their 2014 health account for use in paying eligible health expenses. If, however, the employee and covered spouse/domestic partner miss the first tobacco cessation call deadline date of September 15, 2013, and/or the fourth tobacco cessation call deadline date of December 15, 2013, to qualify for premium savings, but complete all four required tobacco cessation calls by July 31, 2014, the employee and the covered spouse/domestic partner will each earn a $150 deposit to their health account. 9

10 4. Can employees still earn savings if they miss the deadline? Employees who miss the 2013 deadlines will not be able to receive the health plan premium savings. However, they can still earn the $150 credit to their 2014 health account if they complete their Wellbeing Assessment and then complete four health coaching calls by July 31, How can employees confirm that they are receiving credit for earned Live Well savings? Where can they find the incentive tracker? Employees can track their progress on the Rewards Lobby Page of the WebMD Health Manager website at 6. How does an employee or covered spouse/domestic partner certify his or her tobacco status? Employees and covered spouses/domestic partners certify their tobacco status when they complete the Wellbeing Assessment. 7. How many Tobacco Cessation Health Coaching calls must tobacco users complete, and what is the deadline for completing this program? If an employee or covered spouse/domestic partner currently uses tobacco, he or she can still earn the Be Tobacco-Free savings by participating in the Tobacco Cessation Health Coaching program, delivered through WebMD. Under the program, the employee or covered spouse/domestic partner must complete four tobacco cessation coaching calls the first coaching call by September 15, 2013, and the fourth call by December 15, Can newly hired employees receive Live Well savings? Yes. Employees newly hired, newly enrolled, or returning from long-term disability or military leave on or after August 1, 2013 (including covered spouses/domestic partners), will automatically receive health plan premium savings through the end of 2014 for the Wellbeing Assessment, biometric screening and Tobacco Cessation Health Coaching program. 9. Can employees participate in a Health Coaching program if their Wellbeing Assessment does not recommend it? Yes. Upon completing the Wellbeing Assessment, employees and covered spouses/domestic partners will be invited to enroll in the voluntary WebMD Health Coaching program that best matches their health status. All employees, regardless of whether their health status suggests health coaching, may participate by using the online scheduling tool. Even those whose health status doesn t suggest health coaching can earn the $150 credit to their 2014 health account (either the Health Reimbursement Account or the Health Savings Account) by completing four health coaching calls by July 31, What are the Live Well incentives for participating in health coaching by telephone? If an employee or covered spouse/domestic partner completes four coaching calls by July 31, 2014, he or she will earn a $150 credit to his or her 2014 health account (either the Health Reimbursement Account or the Health Savings Account), which can be used to pay for eligible medical expenses. This excludes the WebMD Tobacco Cessation Health Coaching program, which qualifies one for health plan premium savings. If, however, the employee and covered spouse/domestic partner miss the first tobacco cessation call deadline date of September 15, 2013, and/or the fourth tobacco cessation call deadline date of December 15, 2013, to qualify for premium savings, but complete all four required tobacco cessation calls by July 31, 2014, the employee and the covered spouse/domestic partner will each earn a $150 deposit to their health account. 11. Can employees join a Health Coaching program if they do not enroll online following their Wellbeing Assessment? Yes. Employees who do not enroll for a Health Coaching program after completing their Wellbeing Assessment can enroll at a later time. 12. Who is our new Live Well partner? Effective August 1, 2013, WebMD Health Services, the arm of the WebMD team focused on helping companies and individuals positively change health behaviors and live healthier lives, replaced Healthways as our partner in delivering several Live Well services and resources. 10

11 13. What services does WebMD offer, and how can employees access them? WebMD will administer a number of Live Well resources, including the Wellbeing Assessment and tobacco cessation and telephone health coaching programs. Employees can now access these resources by visiting the WebMD Health Manager at or by calling WebMD Customer Service at HR4U (4748), option 3 during the following hours: Sunday: 1:00pm-11:30pm ET Monday-Thursday: 9:00am-11:30pm ET Friday: 9:00am-8:00pm ET Saturday: 9:30am-6:00pm ET Health Care Reform (Affordable Care Act) 1. What do employees need to know about the Affordable Care Act (ACA)? Employees may be hearing a lot about health care reform, also referred to as the Affordable Care Act (ACA) or the Patient Protection and Affordable Care Act, which was created to improve the accessibility of health care services in the U.S. The most important things that employees need to know are: BNY Mellon s current plans meet the law s requirements for Employees and their spouses/domestic partners who enroll in a BNY Mellon health plan for 2014 will meet the requirements for coverage. 2. Does BNY Mellon have to offer health coverage to every employee because of the ACA? The ACA does not legally require BNY Mellon to offer health coverage to every employee. Employers with 50 or more fulltime employees in the previous year have to offer coverage to full-time employees or pay a penalty. For this purpose, a full-time employee is one who works 30 or more hours per week. However, BNY Mellon exceeds this ACA requirement by offering health coverage to all employees who work 20 or more hours per week. 3. Did BNY Mellon change its health plans because of the ACA? Our health plan changes are a response to a broad analysis of our cost trends, analysis of our competitors plans, changes in the law, BNY Mellon business strategy and other factors. As the health care environment continues to evolve, it is important that our health plan designs help us achieve the following objectives: Get employees engaged in health care decision-making and promote a consumer mindset; Lower the long-term trend in health costs and keep coverage more affordable in the future; Ensure that BNY Mellon remains competitive amidst a move by our peer group towards CDHP designs; Keep our plans compliant with Health Care Reform legislation (Cadillac tax). 4. What are health insurance marketplaces (exchanges)? Health insurance marketplaces or exchanges are being offered as part of health care reform. We anticipate that they will become available in October 2013 for coverage effective in A health insurance marketplace is an online public shopping site where individuals, families and small business owners can shop for plans. Each state will sponsor a marketplace that will offer affordable medical insurance options. Some exchanges will be run by individual states, and others will be run by the federal government. While employees will hear a lot about exchanges in the media in the coming months, there generally is no action they need to take since enrolling in a BNY Mellon health plan for 2014 will meet the ACA requirements for coverage. Exchanges tend to make the most sense for individuals who do not have access to employer-sponsored plans. 5. If an employee already has health coverage through BNY Mellon, what benefits, if any, does the health insurance marketplace offer? If you enroll for coverage through BNY Mellon, your BNY Mellon health coverage is likely to be more cost-effective than anything you will be able to buy through a health insurance marketplace since BNY Mellon and employees share in the costs of this coverage, including premiums. That said, employees can always compare plans in the public marketplace. 6. Will BNY Mellon employees be eligible for a premium subsidy in the health insurance marketplace? Because BNY Mellon s health plans meet the affordability and minimum coverage requirements under the ACA, employees will not qualify for a government subsidy if they choose to enroll through a health insurance marketplace. This means that employees would have to pay the full cost of any coverage they buy through a marketplace. 11

12 7. If a BNY Mellon employee has never enrolled for health care coverage, does he or she need to do so now? Yes. BNY Mellon employees should enroll for medical coverage for Enrollment in a BNY Mellon health plan will satisfy the individual mandate of the ACA. Note that employees who have coverage only through a BNY Mellon dental or vision plan will not fulfill the individual mandate. Most Americans with private insurance through their employers or government coverage through programs like Medicare, Medicaid or Veterans Affairs (VA) options fulfill the mandate. If an employee will be covered under another employer plan, he or she (or his or her spouse/domestic partner) should verify that the other plan satisfies the ACA individual mandate provision. Some individuals may be exempt from having to buy coverage or pay a penalty: those with very low income who have to pay more than 8 percent of their household income for coverage, members of American Indian tribes or certain religious organizations, and people with short gaps in coverage (less than three months). 8. What happens if an employee doesn t want to enroll for health coverage through BNY Mellon? The individual mandate of the ACA states that nearly everyone must have medical coverage on January 1, 2014, or pay a penalty when filing their 2014 federal income tax return (the ACA does not require individual dental or vision coverage). The penalty for remaining uninsured increases year over year as follows: Uninsured individual pays the greater of: Fixed amount $95 for an adult; and 2014 $47.50 for each child under 18 No more than $285 per family $325 for an adult; and 2015 $ for each child under 18 No more than $975 per family $695 for an adult; and 2016 $ for each child under 18 No more than $2,085 per family 2017 and beyond Fee increases yearly based on cost of living Percent of household incomeyee Employees who do not enroll for medical coverage through BNY Mellon will avoid the penalty by being covered under another employer plan (e.g., through a spouse s employer s plan) or by enrolling for medical coverage in their states health insurance marketplace. Employees should remember, however, that generally their BNY Mellon health plans will be more cost-effective than the medical options they find in the health insurance marketplace. 9. Will employees who work part time be able to get coverage through BNY Mellon that meets the ACA requirements? Yes. Under the ACA, employees who work less than 30 hours a week are considered to be part time. Health coverage through BNY Mellon is available to all active full-time and part-time employees working at least 20 hours per week. 1.0% 2.0% 2.5% 12

13 Supreme Court Same-Sex Marriage Decision (DOMA Ruling) 1. How does the Supreme Court ruling affect benefit eligibility for same-sex partners of BNY Mellon employees? Earlier this year, the U.S. Supreme Court ruled unconstitutional a provision of the Defense of Marriage Act (DOMA) that barred the federal government from recognizing same-sex marriages. Although the Supreme Court s ruling did not address a separate DOMA provision that still permits states not to recognize same-sex marriages entered into in a different state, the Internal Revenue Service (IRS) has since determined that, effective later in 2013, same-sex married couples will be treated the same as opposite-sex married couples for purposes of all federal tax laws. For example, as long as a same-sex couple s marriage is valid in the state the marriage was entered into, then the covered employee may have the premium contribution amounts for his or her same-sex spouse deducted on a pre-tax basis for federal tax purposes, regardless of whether the employee s state of residence recognizes his or her marriage. Further guidance is expected from both the IRS and other agencies on the many laws affected by this ruling. BNY Mellon intends to comply with the Supreme Court s ruling and all applicable guidance and will provide more information as it becomes available. Note that the Supreme Court ruling and IRS guidance affect same-sex married couples only, they do not affect benefits coverage for domestic partners, including the taxation of benefits for domestic partners. 2. Are further rulings or clarifications expected in the future? Yes, but no timetable has been established for these clarifications. 13

14 Open Enrollment 1. When is the 2014 Open Enrollment period? Open Enrollment will take place from Monday, October 28, to Friday, November 15, This is employees single opportunity to take a fresh look at their current benefits elections and choose coverage for the coming year. Because health plan options are changing for 2014, employees should be sure to make an informed decision and actively enroll for medical coverage. 2. What happens if employees do not actively enroll for 2014? Employees who do not actively enroll for 2014 will receive default coverage as follows: Medical Coverage Employees Will Receive Newly Benefited Employees and If Employee Has Coverage for 2013 Those Hired After October 1, 2013 Plan HSA (Health Savings Account) with current plan carrier No coverage If currently enrolled in Plan HSA: If currently enrolled in Plan 85: If currently enrolled in Plan 100: If currently enrolled in Kaiser, HMSA, Aetna International: If an employee wishes to make contributions to the HSA account, the employee must elect an amount each year during Open Enrollment; this amount is not automatically carried forward; the employee may change this amount monthly throughout the year Plan HRA (Health Reimbursement Account) with current plan carrier Employee will be enrolled with their current plan carrier Dental No coverage Employee will keep 2013 elections Vision No coverage Employee will keep 2013 elections LTD Insurance Company-paid coverage equal to 60% of base pay Employee will keep 2013 elections Life Insurance Company-paid coverage equal to base pay, up to $500,000 Employee will keep 2013 elections Dependent Life Insurance No coverage Employee will keep 2013 elections AD&D Insurance Company-paid coverage equal to base pay, up to $500,000 Employee will keep 2013 elections FSAs and Flex Vacation* No participation No participation * Employee has to elect this coverage every year during Open Enrollment; enrollment is not automatically carried forward 3. What benefits, besides health plan coverage, will employees choose during Open Enrollment? During Open Enrollment, all employees will need to decide whether they want coverage for themselves and their families in a number of areas other than health plan coverage. These choices will include: dental coverage that provides preventive, diagnostic, basic and major dental care, as well as orthodontia; vision coverage that includes eye exams, frames, lenses and contact lenses; basic and supplemental life insurance for themselves, as well as life insurance for their spouse or domestic partner and their children; basic and supplemental accidental death and dismemberment (AD&D) insurance; Health Care and Dependent Care Flexible Spending Accounts (and, for those who participate in Plan HSA, a Limited Purpose Flexible Spending Account); long-term disability coverage; and a flex vacation benefit that allows purchase of up to five additional vacation days during the year. 14

15 4. How do employees complete their enrollment? Employees can enroll anytime during the Open Enrollment period by visiting the MyBenefit Solutions website. This site can be accessed in the following ways: At Work: Single sign-on access through MyReward (MySource > MyReward > Logon to MyReward > Proceed to My Personal Total Reward Data > MyBenefit Solutions) At Home: Go to http: //mybenefits.bnymellon.com (employees who have not already registered will need to create a username and password) Employees with general questions about benefits or enrollment can call the BNY Mellon Benefit Solutions Service Center at HR4U (4748), option 2, between 8:30 a.m. and 8 p.m. Eastern Time Monday through Friday. Employees who need additional support and consultation to finalize their medical plan enrollment decisions should contact the 2014 Enrollment Decision Helpline at , or send their specific questions to the Decision Support Website at http: // An experienced team is available to address annual enrollment needs and concerns. Employees with questions about the Live Well program can go to or contact WebMD at HR4U (4748), option 3 during the following hours: Sunday: 1:00pm-11:30pm ET Monday-Thursday: 9:00am-11:30pm ET Friday: 9:00am-8:00pm ET Saturday: 9:30am-6:00pm ET 15