Script for Manager s Tutorial 2016 Annual Enrollment Introduction Welcome to the 2016 Annual Enrollment Manager s Tutorial. Annual enrollment for eligible full-time and part-time employees is from October 19 through November 6 with a benefit effective date of January 1, 2016. This tutorial is designed to help you learn key points about the Lowe s benefits program for full-time and part-time employees and upcoming changes for 2016. At the bottom of the HR Managers page of the My Benefits site, you will be able to download a PDF of this presentation, FAQs sheets, and What s New documents about full-time and parttime benefits for 2016. You will be able to use these tools in group meetings to help communicate what you ve learned in this training. Let s get started! 2016 Annual Enrollment Again this year, full-time and part-time employees will be enrolling in benefits at the same time. The 2016 Annual Enrollment benefit information can be accessed by going through the My Benefits website, which is available on the My Lowe s Life dropdown by clicking My Benefits, as well as an external website, www.mylowesbenefits.com. As a reminder, employees and families can access the website on a computer, tablet, or smart phone. Before we get started, let s spend a few minutes discussing the reasoning behind how we reached decisions for 2016 s benefit offerings. 2016 The Why Lowe s invests over $1 billion each year on healthcare benefits that cover the Lowe s family, including our employees and their families. It is because we care about our employees and their families that we have implemented programs such as the Health Screening Units, Quit for Life, the advocate programs through Accolade and Quantum Health, and the Health Screening program. Looking forward, we have several new exciting programs that will be launching as well to help our associates be proactive in improving, or maintaining, their health. We truly value our employees and are dedicated to this initiative. However, despite many of these programs preventable health issues remain a significant issue for the Lowe s family. Many employees, or their families, are unaware of these potential conditions, which is part of why we implemented the Health Screening program in 2014 for Option 1 medical coverage eligibility and expanded it for 2015. This has helped a significant portion of our Lowe s family become aware of medical conditions that they otherwise may not have known about. Our hope is that employees will take the information they receive and act on it to improve their health where needed. We ve implemented healthcare navigator programs through Accolade, Quantum Health, and UnitedHealthcare to better help our employees understand their situations with hope that they will take action. If our employees do not improve in this area we will continue to see increases in the costs of our healthcare plans and programs to our employees. Our most important asset is our employees and with that we need a proactive workforce that will be engaged in their healthcare. This will result in them being their best and helping Lowe s maintain valuable benefit programs. 1
2016 Dependent Verification Audit In order to sustain a quality and comprehensive plan, Lowe s will be enacting a Dependent Verification Audit in 2016. Lowe s must act as a good steward by ensuring eligibility requirements are met for the benefits we offer. The audit is a very important piece of controlling the cost of health benefits for employees and for maintaining the integrity of our plan. The Dependent Verification Audit will require employees who have dependents enrolled in Lowe s full-time medical plan to provide proper documentation to verify the dependent s eligibility for coverage under the plans. The audit will be communicated with additional details in the first quarter of 2016. 2016 Full-Time Benefits Information Overview Employees are not required to re-enroll unless they would like to make a change. However, full-time employees are required to re-enroll in the healthcare flexible spending account (FSA), dependent care FSA, and health savings account (HSA). Those annual pledges from 2015 will not carry over to 2016. Employees, and eligible spouses/domestic partners, were required to complete and file the Health Screening Requirement by September 1, 2015 in order to be eligible for the Option 1 medical coverage for the 2016 plan year. Employees who did not meet this requirement (or if their eligible spouse/domestic partner did not) will be unable to enroll in Option 1 medical coverage for 2016. If currently enrolled in Option 1 they will be automatically enrolled in Option 2 medical coverage unless they make a change during annual enrollment. 2016 Medical Benefits As we strive to enhance our benefits plans and provide the best coverage for employees and their families, there will be many positive changes to our medical plans for 2016, including vendor and plan design changes. Lowe s reviewed all medical vendors and plans for the 2016 plan year; we chose the vendors that provided the best value for our employees and most robust network of quality physicians and facilities. Our medical plans will be offered through Blue Cross Blue Shield, United Healthcare, and Kaiser. Plans offered through Meritain and HMSA will not be a part of the 2016 options. Employees enrolled with Meritain will be offered either Blue Cross Blue Shield or UnitedHealthcare depending on their location while our HMSA participants will be offered Kaiser Hawaii. New medical ID cards will be mailed to all impacted members in late December. The full-time medical plans will experience several plan design changes in 2016. For Option 1, the in-network deductibles will increase from $750 to $1,000 for Employee Only and from $2,250 to $3,000 for Family. The Employee Only Out of Pocket Maximum for in-network will go from $5,000 this year to $6,000. Lastly, both in-network Specialist and in-network Urgent Care copays will go from $45 to $50. For Option 2, the in-network deductibles increase from $1,000 to $1,250 for Employee Only and from $3,000 to $3,750 for Family. The Employee Only Out of pocket maximum will go from $6,000 to $6,550 for in-network and from $12,000 to $13,100 for Family. Lastly, both in-network specialist and in-network Urgent Care copays will go from $55 to $60. The 2016 medical benefits will continue to include our Health Screening Requirement for the Option 1 medical plan. New, however, is the requirement that an eligible spouse/domestic partner must also complete the screening for the employee to be eligible for Employee + Family Option 1 coverage. Employees, and their eligible 2
spouse/domestic partner, must have submitted a completed health screening by September 1, 2015 to be eligible for the Option 1 medical plan for 2016. Employees who did not complete the screening will not be able to enroll in Option 1 for the 2016 plan year. There will be an appeals process available for employees who are marked ineligible for Option 1, but believe they have met the Health Screening Requirement. Some employees, including newly eligible employees and employees at Kaiser locations, are not required to have the screening to be eligible for the Option 1 medical plan in 2016. Employees can check the My Benefits site to see if they are required to have the screening, and also verify whether their screening was received. In 2015, Lowe s provided a 50% reduction in the copay for retail clinics such as CVS MinuteClinics, Walgreens clinics and Walmart clinics for employees and spouses, domestic partners and/or dependents enrolled in the Option 1 plan or Option 2 plan. In 2016, Lowe s is expanding this benefit to include a $0 copay at CVS MinuteClinics. To take advantage of this offering, members should use their CVS Caremark prescription ID card when visiting a CVS MinuteClinic. You can print a temporary card from the CVS Caremark website after logging into your account. The $15 (Option 1) and $20 (Option 2) copays will remain for other retail clinics. Employees can still receive a discount per month off their medical rates by pledging to be tobacco-free in 2016. The discount has increased to $100 per month. In that pledge, employees state in 2016 that they and their covered dependents will not use tobacco products, including cigarettes, cigars, pipes, e-cigarettes and forms of smokeless tobacco. If employees do not re-enroll in coverage, they will keep the same tobacco status they pledged last year. As a reminder, all employees should visit the medical page on the My Benefits site to see who will provide coverage in their area for 2016. They can also view the 2016 rates on the My Benefits site. All Lowe s full-time employees have the option to enroll in the state or federal marketplace for healthcare coverage. However, full-time employees are not eligible for government subsidies since Lowe s offers health coverage that meets the federal mandate. Employees should visit www.healthcare.gov for more information about the coverage available to them through the marketplace. 2016 Prescription Drug Benefits CVS Caremark will continue to be the pharmacy benefit manager for full-time employees and their families enrolled in the Lowe s medical plans, except for those enrolled in a Kaiser HMO (Kaiser administers their own prescription drug plan). Lowe s will continue using the Maintenance Choice program for prescription drugs. In this program, employees must fill their maintenance prescriptions through mail order or at a CVS pharmacy, and will receive a 90-day supply at a discounted price. This program is mandatory. Due to rising pharmaceutical costs, the 30 day generic prescription copay will change from $8 to $10 and the specialty prescription copay will change from $50 to $75 for the 2016 plan year. 2016 Dental and Vision Plans The full-time Dental and Vision plans and rates will remain the same as in 2015. Employees currently enrolled in Dental or Vision will remain in the same plan they had in 2015, unless they make a change during annual enrollment. 3
2016 Voluntary Benefits: No changes from 2015 Full-time employees at Lowe s will continue to have several other voluntary benefits that they can enroll in during annual enrollment. Those benefits, all administered through Allstate, include, Critical Illness, Fixed Indemnity, and Accident insurance. The rates and plan design for these benefits will be unchanged from 2015. More details are available on the My Benefits site for all of those voluntary benefits. Flexible Spending Accounts: Changes and Limits Lowe s will continue the carryover rule for the Healthcare FSA for the 2016 plan year. For the 2016 Healthcare FSA (which runs the calendar year of 2016), participants will have until May 31, 2017 to submit claims that occurred during 2016. Claims can only be made on eligible expenses that occur through December 31, 2016. However, employees may roll over up to $500 in unused funds for the 2017 plan year. Unused funds over $500 will be forfeited. The annual pledge maximum for the Healthcare FSA will remain at $2,500, and the annual maximum for the Dependent Care FSA will remain at $5,000. The Health Savings Account maximum will remain the same as 2015 for individuals, but will increase to $6,750 for families. For the commuter benefit, employees can change their elections on a month-to-month basis. We will also have a new Health Savings Account vendor, ConnectYourCare. More information will be sent to associates enrolling in an HSA for 2016. 2016 Part-Time Benefits Information Overview Benefits for Lowe s part-time employees will have a few changes from 2015. Part-time employees will continue to enroll with full time employees during Lowe s Annual Enrollment in the fall with a benefit effective date of January 1, 2016. 2016 Part-Time Medical Plans and Options Lowe s will continue to offer the Preventive plans provided through United Healthcare with a few changes for 2016. These plans only cover certain services and do not provide out-of-network coverage. There is also no monetary benefit for events such as hospitalization or critical illness. The Preventive plan offers preventive care services at select United Healthcare network providers. This plan pays up to 100 percent of costs for several wellness and preventive care services. New for 2016 is that the Preventive plan will include two physician visits to in-network doctors each year. The Preventive Plus plan now includes four physician visits to in-network doctors each year. Additionally, for the Preventive Plus plan, we added an All Generics Covered plan with 50% coinsurance for prescription medication. Employees should visit the My Benefits site for more information about the Preventive plans. Part-time employees may also want to consider other options available through the state or federal healthcare marketplace, because they may be eligible for a subsidy. GoHealth: Helping Part-Time Employees 4
Lowe s has partnered with GoHealth to assist part-time employees as they determine which medical option is the best choice for them. GoHealth can answer employee questions and also help determine: - What plans are available through the marketplace - Whether employees are eligible for federal subsidies - How to enroll for coverage through an employee s state or federal marketplace If a part-time employee does not enroll in coverage through Lowe s before the November 6 deadline, they would need a qualified status change to be eligible for Lowe s coverage after Annual Enrollment ends. 2016 Dental and Vision Plan The part-time Dental and Vision plans and rates will remain the same as in 2015. Employees currently enrolled in Dental or Vision will remain in the same plan they had in 2015, unless they make a change during annual enrollment. 2016 Voluntary Benefits: No changes from 2015 Part-time employees at Lowe s will continue to have several other voluntary benefits that they can enroll in during annual enrollment. Those benefits, all administered through Allstate, include life insurance, short-term disability, Critical Illness, Fixed Indemnity, and Accident insurance. The rates and plan design for these benefits will be unchanged from 2015. More details are available on the My Benefits site for all of those voluntary benefits. 2016 Benefit Changes: A Review Full-Time Enrollment is passive, meaning employees are not required to re-enroll unless they would like to make a change. However, they are required to re-enroll in the flexible spending accounts and health savings accounts. Medical plans will no longer be offered through Meritain or HMSA in 2016. Employees enrolled with Meritain will be offered either Blue Cross Blue Shield or United Healthcare while our HMSA participants will be offered Kaiser Hawaii. New medical ID cards will be mailed to all impacted members in late December. Option 1 in-network deductibles will increase to $1,000 for Employee Only and $3,000 for Employee + Family. Option 2 in-network deductibles will increase to $1,250 for Employee Only and $3,750 for Employee + Family. Copays for specialists and Urgent Care will increase to $50 for Option 1 and $60 for Option 2. Pharmacy benefit changes include a $10 copay for a 30 day supply of generics and $75 copay for specialty medications. Employees were required to complete a health screening to be eligible for Option 1 Employee Only medical coverage. Both employees, and their eligible spouse/domestic partner, were required to complete the screenings to be eligible for Option 1 Family medical coverage. The carryover rule will continue for the 2016 Healthcare FSA. Part-Time 5
Part-time employees can enroll in the Preventive medical plans through Lowe s, but may also want to consider options available through the state or federal marketplace. GoHealth can assist part-time employees with enrollment through the marketplace. The Preventive medical plan will now include two visits to in-network physician offices and the Preventive Plus will include four. The Preventive Plus plan will now include an All Generics Covered plan with 50% coinsurance for prescription medication. All voluntary benefits from 2015 will be unchanged in rates and plan designs. If employees need information about any of Lowe s benefits, they should visit the My Benefits site. The site has a wealth of information about Lowe s benefits plans. The site contains benefit rates, plan designs, vendor contact information, interactive tools, and tutorials for Lowe s employees and their families. Plan now to conduct Annual Enrollment meetings with your employees in the weeks ahead. We want you to feel well-equipped to lead meetings on Annual Enrollment and answer questions employees may have. Remember to download a PDF of this presentation, FAQs sheets, and What s New documents about full-time and part-time benefits for 2016. You will be able to use these tools in group meetings and it will highlight much of what you ve learned in this training. Thanks everyone for watching this tutorial. Annual Enrollment is October 19 through November 6. If you have questions regarding annual enrollment, please contact Lowe s HR Shared Services at 1-888-HRINFO5 or 1-336-658-3535. 6