At John Deere, we are committed to helping you understand and improve your health and make the health care choices that are right for you and your

Transcription

1 Healthy Directions at John Deere How We Compare in 2014

2 At John Deere, we are committed to helping you understand and improve your health and make the health care choices that are right for you and your family. As part of the Total Rewards you receive in exchange for your hard work and dedication, we: Offer competitive, sustainable benefits that provide significant value to employees Provide benefits that encourage employee health and well-being Share responsibility in managing the cost of benefits between the company and employees Maintain compliance with legal requirements as they evolve Our Healthy Directions program provides the benefits, tools and support needed to allow you and our company to be successful. We must continue to work together to ensure Healthy Directions remains a viable and useful benefits program. Sharing responsibility is a sustainable way to manage health care. This approach helps John Deere continue to offer Healthy Directions a program that is affordable, valuable and competitive when compared with other companies and benefit options. 2 2

3 What s Inside This brochure highlights the variety and value of the benefits we provide to you and your family through Healthy Directions. Read on to get a better understanding of: The health and lifestyle benefits available to you and your family to help you manage your health care coverage How our health benefits compare to industry peers and the Health Insurance Marketplaces established through the Affordable Care Act Wellness tools and resources to help you pursue a healthier lifestyle 3

4 Healthy Directions: An Overview The Healthy Directions programs we offer you and your family can help you manage your health, make the most of your health care dollars and lead a productive life. Health A choice of two health care plan options, CarePlus and CarePlusMAX, based on the needs of your family. Both options are qualified for use with a Health Savings Account (HSA). What It Means for John Deere and You John Deere invests in making sure you are healthy both at work and at home. This is an important business issue for us. Healthy Directions is focused on more than just health and wealth it s a program that can help you establish an approach to everyday living. You have the opportunity to use the benefits the company provides, improve your personal health and make wise health care decisions. Together, this helps us build a healthier, safer John Deere. DID YOU KNOW? John Deere pays about 80% of the cost of your health care benefits. The company provides a contribution to your Health Savings Account (HSA); $700 for Employee Only coverage and $1,300 for Family coverage. These are just some of the ways John Deere invests in the health of you and your family. John Deere 80% You 20% Update: Health Care Reform The Patient Protection and Affordable Care Act, or ACA, continues to evolve as adjustments are made to the policy. In early February, the employer mandate requiring large employers to offer benefits to at least 70% of full-time employees in 2015 was eased for one year. We are already in compliance with this portion of the ACA. We are committed to providing you with timely, relevant and accurate information about further ACA developments. 4

5 Health Care Financial Support Access to a Health Savings Account (HSA) through Deere medical coverage A tax-favored way for you to pay for current and future qualified medical expenses, including your deductible, coinsurance (if enrolled in CarePlus) and eligible medical expenses not covered by our health plan. Access to Flexible Spending Accounts (FSA) Limited Purpose FSA and Dependent Care FSA A Limited Purpose FSA uses pre-tax dollars to pay for out-of-pocket vision and dental expenses in combination with an HSA. A Dependent Care FSA uses pre-tax dollars to pay for dependent care expenses. What It Means for John Deere and You The health care financial support John Deere offers through Healthy Directions provides opportunities for you and your family to save pre-tax dollars for health care expenses and receive contributions from the company to help you pay for your personal health care and that of your family. Lifestyle Access to wellness resources LiveWell/WorkWell Preventive health care benefits at no cost to you (including expanded women s preventive benefits) Tobacco Cessation Program Personal Health Assessment Weight Management Programs Online education Biometric tests Flu vaccinations Local and unit-level wellness initiatives What It Means for John Deere and You The wellness programs John Deere offers through Healthy Directions can help all of us improve our well-being, prevent health issues and lead productive lives. Taking advantage of these lifestyle resources allows you and your family to be healthy both at work and at home. 5

6 Healthy Directions: Why Are We Making Comparisons? We monitor Healthy Directions to see if it is competitive with the market place. We regularly benchmark our benefits with companies that are similarly-situated to John Deere and compare Healthy Directions to similar benefits available in the public Health Insurance Marketplaces, or exchanges. We do this even though full-time employees are not eligible for subsidized benefits through the exchanges. The results of these examples featuring fictional employees and scenarios confirm that the benefits offered to you and your family through Healthy Directions are valuable, competitive and help us remain an employer of choice. 6

7 Single Employee with No Children Meet Edward Status Single with no children Age 30 years old Household Income $46,000 Location Let s see how Edward s benefit options at John Deere compare with health plans similar to Healthy Directions available in the Health Insurance Marketplaces if he were living in Waterloo, Iowa (CoOpportunity Premier HSA Silver Plan), Moline, Illinois (Land of Lincoln National Preferred PPO Plan Silver) or Cary, North Carolina (Blue Value Silver 2800 Plan). What About the Health Savings Account (HSA)? John Deere contributes $700 to Edward s Health Savings Account (HSA) since his Employee Only coverage through Healthy Directions is HSA-eligible. While his coverage options in Iowa and Illinois are also HSAeligible, he will not receive an HSA contribution from either state. The health plan option available in North Carolina is not HSA-eligible. Monthly Premiums Costs Deductible Costs Out-of-Pocket Maximum Costs CarePlusMAX CarePlus Health Insurance Marketplaces $46.98 $65.12 Iowa: $ Illinois: $ $ $2,350 $1,450 Iowa: $2,000 Illinois: $1,500 $2,800 $2,350 $2,200 Iowa: $4,500 Illinois: $6,250 $6,350 Costs of Common Medical Services (Includes in-network office and hospital visits) Plan pays 100% Plan pays 80% Iowa and Illinois: Plan pays 70% $30/$60 office copays; Plan pays 70% after deductible 7

8 Single Employee with Children Meet Tina Status Single with two children Age 40 years old Household Income $70,000 Location Let s see how Tina s benefit options at John Deere compare with health plans similar to Healthy Directions available in the Health Insurance Marketplaces if she were living in Waterloo, Iowa (CoOpportunity Premier HSA Silver Plan), Moline, Illinois (Land of Lincoln National Preferred PPO Plan Silver) or Cary, North Carolina (Blue Value Silver 2800 Plan). What About the Health Savings Account (HSA)? John Deere contributes $1,300 to Tina s Health Savings Account (HSA) since her Family coverage through Healthy Directions is HSA-eligible. While her coverage options in Iowa and Illinois are also HSA-eligible, she will not receive an HSA contribution from either state. The health plan option available in North Carolina is not HSA-eligible. Monthly Premiums Costs Deductible Costs Out-of-Pocket Maximum Costs CarePlusMAX CarePlus Health Insurance Marketplaces $ $ Iowa: $ Illinois: $ $ $4,700 $2,900 Iowa: $4,000 Illinois: $3,000 $5,600 $4,700 $4,400 Iowa: $9,000 Illinois: $12,500 $12,700 Costs of Common Medical Services (Includes in-network office and hospital visits) Plan pays 100% Plan pays 80% Iowa and Illinois: Plan pays 70% $30/$60 office copays; Plan pays 70% after deductible 8

9 Married Employee with No Children Meet Katherine Status Married with no children Age 55 years old Household Income $90,000 Location Let s see how Katherine s benefit options at John Deere compare with health plans similar to Healthy Directions available in the Health Insurance Marketplaces if she were living in Waterloo, Iowa (CoOpportunity Premier HSA Silver Plan), Moline, Illinois (Land of Lincoln National Preferred PPO Plan Silver) or Cary, North Carolina (Blue Value Silver 2800 Plan). What About the Health Savings Account (HSA)? John Deere contributes $1,300 to Katherine s Health Savings Account (HSA) since her Family coverage through Healthy Directions is HSA-eligible. While her coverage options in Iowa and Illinois are also HSA-eligible, she will not receive an HSA contribution from either state. The health plan option available in North Carolina is not HSA-eligible. Monthly Premiums Costs Deductible Costs Out-of-Pocket Maximum Costs CarePlusMAX CarePlus Health Insurance Marketplaces $ $ Iowa: $1, Illinois: $1, $1, $4,700 $2,900 Iowa: $4,000 Illinois: $3,000 $5,600 $4,700 $4,400 Iowa: $9,000 Illinois: $12,500 $12,700 Costs of Common Medical Services (Includes in-network office and hospital visits) Plan pays 100% Plan pays 80% Iowa and Illinois: Plan pays 70% $30/$60 office copays; Plan pays 70% after deductible 9

10 Married Employee with Children Meet Jamie Status Married with spouse and three children Age 50 years old Household Income $110,000 Location Let s see how Jamie s benefit options at John Deere compare with health plans similar to Healthy Directions available in the Health Insurance Marketplaces if he were living in Waterloo, Iowa (CoOpportunity Premier HSA Silver Plan), Moline, Illinois (Land of Lincoln National Preferred PPO Plan Silver) or Cary, North Carolina (Blue Value Silver 2800 Plan). What About the Health Savings Account (HSA)? John Deere contributes $1,300 to Jamie s Health Savings Account (HSA) since his Family coverage through Healthy Directions is HSA-eligible. While his coverage options in Iowa and Illinois are also HSA-eligible, he will not receive an HSA contribution from either state. The health plan option available in North Carolina is not HSA-eligible. What Does This All Mean? In every comparison, each fictional employee received a better value for their health care dollars by electing coverage through Healthy Directions. While the deductibles were similar in each health plan, the monthly premium costs and out-of-pocket maximums were higher in every state Health Insurance Marketplace, or exchange. The cost of coinsurance was typically more expensive as well. While full-time employees are not eligible for subsidies through the exchanges, these comparisons are intended to give you and your family an idea of how our benefits at John Deere compare to what s available in the exchanges. Monthly Premiums Costs Deductible Costs Out-of-Pocket Maximum Costs Costs of Common Medical Services (Includes in-network office and hospital visits) CarePlusMAX CarePlus Health Insurance Marketplaces $ $ Iowa: $1, Illinois: $1, $ $4,700 $2,900 Iowa: $4,000 Illinois: $3,000 $5,600 $4,700 $4,400 Iowa: $9,000 Illinois: $12,500 $12,700 Plan pays 100% Plan pays 80% Iowa and Illinois: Plan pays 70% $30/$60 office copays; Plan pays 70% after deductible 10

11 Healthy Directions Compared With Other Companies Aon Hewitt, a global consulting firm, conducts an independent, third-party analysis of the benefits programs offered at more than 1,000 organizations. John Deere uses this analysis to benchmark benefits with similarly-situated companies. The results of this comparison, called Benefit Index, show Healthy Directions is in the top quartile of health benefits offered when considering employee contributions, point-of-care costs and company-provided funds. Other Companies Included in the Analysis The 2013 comparator group is listed below: 3M Alcoa Archer Daniels Midland Caterpillar Corning DuPont FMC Technologies GE Goodyear Honeywell IBM Illinois Tool Works Johnson Controls Lockheed Martin Northrop Grumman PPG Industries Raytheon Textron United Technologies What Does This All Mean? Healthy Directions was compared to the benefit offerings of 19 similar companies in 2013 by Aon Hewitt, an objective consulting firm. The results of this comparison showed our benefits rank in the top quartile. Healthy Directions continues to be a valuable and competitive program, according to independent results from Aon Hewitt. 11

12 Going Forward Together Sharing responsibility in managing the cost of benefits between the company and employees is a sustainable approach for operating in an ever-changing U.S. health care environment. At John Deere, this mutual understanding helps us continue to offer affordable, valuable and competitive benefits programs. But, it s an ongoing effort; one we must focus on together. What You Can Do Be informed. Review the benefits John Deere offers through Healthy Directions and make the right choices for you and your family. Stay engaged. There s a lot to think about when looking for health care services. There s quality, cost and location just to name a few things. Be a good health care consumer by asking questions, increasing your knowledge and engaging in decision-making. Participate in wellness. While not all health conditions can be prevented, many of them can be avoided by making smart, well-informed choices. Choosing to participate in wellness programs available through Healthy Directions may help you and your family stay healthy and keep more money in your pocket. Budget wisely. Plan for your out-of-pocket expenses now and in the future by contributing tax free to your HSA. What You Can Expect Competitive benefits. Deere is committed to providing our employees with benefits that are always competitive with those offered in the marketplace. Delivering on our philosophy. At John Deere, we believe in putting our words into action. We are committed to our benefits philosophy of providing you and your family with access to valuable benefits, programs and resources. Providing information. We are dedicated to informing you about Healthy Directions and updates about health care reform. Partnering with you and your family. By working together we can proactively manage our health care programs and costs. Our partnership will allow John Deere to maintain a valuable benefits program for employees and their family members. 12

13 The information contained in these materials is based upon the company s interpretation and understanding of the state and federal tax codes and regulations on the date of this publication. These laws and regulations, as well as the company s interpretations, may change from time to time. Details of the health plans and tax code regulations, as well as governmental rulings, may also affect the answers to the questions provided in these materials. Employees/Retirees should seek more information from their tax advisors in order to gain a full understanding of Health Savings Accounts, limited purpose Health Care Flexible Spending Accounts, Retiree Medical Credits, and how the various state and federal tax laws govern their use. This document is intended to present a summary of the health care benefits and benefit elections that are available to you; however, this materials does not, of itself, create or modify your benefits. The terms of the applicable benefits plans, and all company actions administering or interpreting these plans, continue to control. Deere & Company reserve the right to suspend, amend, modify, or terminate the Plan(s) in any manner at any time, including the right to modify or eliminate any cost-sharing between the company and participants. Changes, which can be made at any time, are made by action of the company s board of directors, or to the extent authorized by resolution of its board of directors, or by the Deere & Company Compensation Committee. In the event of a conflict between the language of the official Plan Documents and this document, the language of the official Plan Documents will govern. JohnDeere.com