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11-01-2010, 14:03
2011 OPEN ENROLLMENT
XXXXX is pleased to announce our 2011 Annual Open Enrollment, which begins November 1st and ends at midnight on November 30th, 2010. The new benefit program, and any changes you make, will be effective January 1, 2011.
The company’s management team is committed to providing you with a positive and productive work environment. As part of that commitment, we strive to offer a competitive, total-compensation package, which includes a market-based employee benefits program. This program provides comprehensive coverage to not only meet the needs of you and your family, but also to control the costs of these benefits. These objectives are just a few our guiding principles, as we re-evaluate the XXXXX Employee Benefits Program each year.
As you know, this year there are a number of new laws that affected benefit programs throughout the United States - the most significant of which was the passing of health care reform legislation. We thought it would be helpful to provide you with a recap of some of the legislation, and then explain how both you and XXXXX will be affected beginning January 1, 2011.
HEALTH CARE REFORM – “AFFORDABLE CARE ACT”
What does it mean for you?
On March 23, 2010, President Obama signed the ‘Affordable Care Act’, and set into motion efforts to help ensure Americans have stable, affordable health insurance, and protection against the skyrocketing costs of coverage. These reforms will give Americans new rights and benefits, including: helping all children get health coverage; ending all lifetime limits, and ending most annual limits on healthcare. Some changes are effective immediately; some will happen in 2014.
Is your child uninsured?
In the past, if your child lost eligibility for our health plan when they were no longer a full-time student, or when they turned age 24, they were terminated from our plan. Effective January 1, 2011, you can cover your child on your medical and vision insurance until s/he turns age 26. While you will not be required to show proof of student status, you will be required to provide proof of dependent status.
Also, in the past, if your age 19-24 child was not a full-time student, s/he had to be entirely financially dependent upon you. Effective January 1, 2011, there is no financial dependency required for federal tax purposes; however, California requirements have not changed.
Additionally, under a change in tax law included in the Affordable Care Act, the value of any employer-provided health coverage for an employee's child (age 24 – 26), is excluded from the employee’s income through the end of the taxable year in which the child turns 26. Although the I.R.S. has accepted extending the dependent age to 26, some states (including California), have not, and will require employers to charge employees imputed income tax on the cost of covering dependents ages 24 through 26.
Both married and unmarried children qualify for this coverage (applies to medical and vision benefits only). Effective January 1, 2011, you may cover a dependent child through age 26, unless s/he is eligible to be covered under their employer plan. Beginning in 2014, the employer coverage rule will no longer apply.
Has anyone in your family reached the lifetime limit?
In the past, our plans shared in the cost of your health care expenses, up to $2,000,000, over the course of your lifetime. Effective January 1, 2011, our plans no longer have lifetime limits. If you, or your eligible dependent, lost coverage because your healthcare costs reached the lifetime limit, you can now re-enroll in our plans.
Do you have children with a pre-existing condition?
In the past, pre-existing condition exclusions could be applied to children under age 19. Effective January 1, 2011, pre-existing conditions cannot be applied to children under age 19. Pre-existing condition exclusions are eliminated for all enrollees in 2014. If you believe your child has been identified as having a pre-existing condition, please contact the XXXXX Benefits Help Desk for assistance, at Benefits@XXXXX.com (Benefits@atmel.com)
What does it mean to be a “grandfathered plan”?
XXXXX believes its medical plans are "grandfathered health plans", as allowed for under the Affordable Care Act. As permitted by the Act, a grandfathered health plan can preserve certain basic health coverage that was in effect at the time the law was enacted. Being a grandfathered health plan means that your coverage under the XXXXX plans may not include some of the consumer protections that apply to non-grandfathered plans. However, other consumer protections have been incorporated into our plans, as explained in the paragraphs above.
2011 XXXXX U.S. Benefit Changes
In addition to the federally-mandated plan changes, XXXXX has decided to continue to modify our medical plans in order to align them closer to the marketplace. The pressure of rapidly increasing health care costs, and new government mandates, combined with already tight budgets, is prompting most employers to be more proactive in the strategies and tactics they use to help minimize the impact of these ever increasing costs. Below is a high level summary of the changes that become effective January 1, 2011:
I.What’s Staying the Same?
Most of the current providers are being renewed for another year. They are:
Delta Health Systems: Our TPA (third party administrator), who pays our medical and vision claims, and manages our physician and hospital networks (Anthem/Blue Cross), and our pharmacy services (WellDyneRx).
MetLife: Ourself-insured dental benefit, and fully insured disability and life insurance provider.
MHN (EAP): Our Employee Assistance Program provider.
Sterling HSA Administrators: Our Health Savings Accounts administrator, who manages our accounts and reimburses you for eligible HSA-related claims.
Kaiser Permanente: Our HMO for employees in Northern California.
Your Dental and Vision benefits are remaining the same.
Your Annual Out-Of-Pocket (OOP) limits remain unchanged for the XXXXX Open Access and XXXXX High Deductible Health Plan (HDHP).
If you choose to waive medical and vision coverage, we will continue to provide an Opt-Out Payment of $1,200 per year. In order to receive the $1,200, you must provide proof of other coverage. You will not be eligible for this benefit if you are covered under your spouse’s plan and your spouse also works for XXXXX.
II. What’s Changing?
Cost Sharing - We are committed to subsidizing the premiums you pay, at levels consistent with other companies in our industry. You can review the 2011 U.S. Employee Benefits Guide for the specifics on cost sharing. The “Guide” will be available in the Reference Center on BENi (www.benefitsolver.com (https://webmaileu.atmel.com/exchweb/bin/redir.asp?URL=http://www.benefitsolver.com)) on November 1, 2010.
Medical Benefits - We are changing co-pays, co-insurance and deductibles, so they are more in line with the levels of other companies in our industry. To accomplish that goal, the following changes will be applied to the medical plans:
Raise doctor office co-pays to $25 for the XXXXX Open Access Plans
Raise doctor office co-pays to $30 for the XXXXX PPO Plan
Raise Out-Of-Pocket (OOP) limits to $3,500 (individual), and $7,000 (family), for the XXXXX PPO plan when using network providers, and $10,500 (individual) and $21,000 (family), when using non-network providers
Raise prescription co-pays for the XXXXX medical plans, excluding Kaiser HMO
Raise deductible to $410 (individual) and $1,230 (family) for both the XXXXX PPO and Open Access Plans, when using network providers, and to $1,050 (individual) and $3,150 (family), when using non-network providers
Raise hospital deductible/co-payment for all XXXXX medical plans, excluding Kaiser HMO
Short-Term Disability Insurance: Employees who are paid out of Colorado will see a change in the cost of the voluntary short-term disability insurance. The change will better align the cost difference between what California based employees pay, (due to their contribution to the California State Disability Insurance Program), and the cost to provide the enhanced short-term disability insurance to all other employees. You will want to look at the new rate when you review your benefit plan choices for 2011.
d.FSA Administrator - We are replacing the Delta FSA Administrator with P&A Flex Plan Administrators (more on this change below).
e.Over-the-Counter Medications (FSA and HSA):
1.Beginning January 1, 2011, with the exception of insulin, over-the-counter medication will no longer be considered qualified medical expenses for FSA’s or HSA’s. Employees cannot use funds from any of these health accounts for medications, unless it is prescribed by a physician.
2.HSA distributions that are used for non-qualified expenses, will be subject to a 20% excise tax (up from 10%).
II.What’s New?
WorldMedAssist (Medical Travel Benefit): We are adding a medical travel facilitation service. This is a medical travel company that coordinates medical treatment for travelers outside of the United States. WorldMedAssist improves lives by helping patients receive high-quality medical treatment, at international facilities, at affordable prices. WorldMedAssist assists employers in lowering their overall health care costs by offering medical travel facilitation.
Health and Wellness Program: During 2011, we will be rolling out a wellness program that will be designed to help you improve the overall health of XXXXX employees. The essence of the program will be to promote healthy lifestyles, offer wellness initiatives, provide educational materials, and much more. Details of the program will be announced later.
Flexible Spending Account (FSA): We are pleased to announce P&A has been selected as our new flex plan administrator beginning January 2011. They currently have over 2,500 clients and 250,000 participants, and their core product is the administration of flex programs. Their website and member tools are considered to be among the finest in the industry. We are looking forward to introducing you to all the new features and tools which will be available to you … (including free Debit Cards)!!!!!
III.What Happens Next?
XXXXX wants you to know that we remain strong in our commitment to providing you with competitive benefits and supporting your health and wellness efforts. Although we don’t have all the answers to the questions and concerns you may have about how health care reform will affect you, your family, and the company in the long run, we do know that you will be allowed to keep the coverage you have now.
Specific aspects of this ever-evolving program will undoubtedly change over time, and we will keep you abreast of those changes as they take affect.
This year the Benefits Open Enrollment period, will be held from November 1st through November 30th, 2010. We encourage you to attend one of the meetings to learn more about the XXXXX Employee Benefits Program, and the Healthcare Reform Act, so you can make the right choices for yourself and your family. If you work outside of San Jose or Colorado, please contact the Benefits Help Desk (Benefits@XXXXX.com (Benefits@atmel.com))
XXXXX is pleased to announce our 2011 Annual Open Enrollment, which begins November 1st and ends at midnight on November 30th, 2010. The new benefit program, and any changes you make, will be effective January 1, 2011.
The company’s management team is committed to providing you with a positive and productive work environment. As part of that commitment, we strive to offer a competitive, total-compensation package, which includes a market-based employee benefits program. This program provides comprehensive coverage to not only meet the needs of you and your family, but also to control the costs of these benefits. These objectives are just a few our guiding principles, as we re-evaluate the XXXXX Employee Benefits Program each year.
As you know, this year there are a number of new laws that affected benefit programs throughout the United States - the most significant of which was the passing of health care reform legislation. We thought it would be helpful to provide you with a recap of some of the legislation, and then explain how both you and XXXXX will be affected beginning January 1, 2011.
HEALTH CARE REFORM – “AFFORDABLE CARE ACT”
What does it mean for you?
On March 23, 2010, President Obama signed the ‘Affordable Care Act’, and set into motion efforts to help ensure Americans have stable, affordable health insurance, and protection against the skyrocketing costs of coverage. These reforms will give Americans new rights and benefits, including: helping all children get health coverage; ending all lifetime limits, and ending most annual limits on healthcare. Some changes are effective immediately; some will happen in 2014.
Is your child uninsured?
In the past, if your child lost eligibility for our health plan when they were no longer a full-time student, or when they turned age 24, they were terminated from our plan. Effective January 1, 2011, you can cover your child on your medical and vision insurance until s/he turns age 26. While you will not be required to show proof of student status, you will be required to provide proof of dependent status.
Also, in the past, if your age 19-24 child was not a full-time student, s/he had to be entirely financially dependent upon you. Effective January 1, 2011, there is no financial dependency required for federal tax purposes; however, California requirements have not changed.
Additionally, under a change in tax law included in the Affordable Care Act, the value of any employer-provided health coverage for an employee's child (age 24 – 26), is excluded from the employee’s income through the end of the taxable year in which the child turns 26. Although the I.R.S. has accepted extending the dependent age to 26, some states (including California), have not, and will require employers to charge employees imputed income tax on the cost of covering dependents ages 24 through 26.
Both married and unmarried children qualify for this coverage (applies to medical and vision benefits only). Effective January 1, 2011, you may cover a dependent child through age 26, unless s/he is eligible to be covered under their employer plan. Beginning in 2014, the employer coverage rule will no longer apply.
Has anyone in your family reached the lifetime limit?
In the past, our plans shared in the cost of your health care expenses, up to $2,000,000, over the course of your lifetime. Effective January 1, 2011, our plans no longer have lifetime limits. If you, or your eligible dependent, lost coverage because your healthcare costs reached the lifetime limit, you can now re-enroll in our plans.
Do you have children with a pre-existing condition?
In the past, pre-existing condition exclusions could be applied to children under age 19. Effective January 1, 2011, pre-existing conditions cannot be applied to children under age 19. Pre-existing condition exclusions are eliminated for all enrollees in 2014. If you believe your child has been identified as having a pre-existing condition, please contact the XXXXX Benefits Help Desk for assistance, at Benefits@XXXXX.com (Benefits@atmel.com)
What does it mean to be a “grandfathered plan”?
XXXXX believes its medical plans are "grandfathered health plans", as allowed for under the Affordable Care Act. As permitted by the Act, a grandfathered health plan can preserve certain basic health coverage that was in effect at the time the law was enacted. Being a grandfathered health plan means that your coverage under the XXXXX plans may not include some of the consumer protections that apply to non-grandfathered plans. However, other consumer protections have been incorporated into our plans, as explained in the paragraphs above.
2011 XXXXX U.S. Benefit Changes
In addition to the federally-mandated plan changes, XXXXX has decided to continue to modify our medical plans in order to align them closer to the marketplace. The pressure of rapidly increasing health care costs, and new government mandates, combined with already tight budgets, is prompting most employers to be more proactive in the strategies and tactics they use to help minimize the impact of these ever increasing costs. Below is a high level summary of the changes that become effective January 1, 2011:
I.What’s Staying the Same?
Most of the current providers are being renewed for another year. They are:
Delta Health Systems: Our TPA (third party administrator), who pays our medical and vision claims, and manages our physician and hospital networks (Anthem/Blue Cross), and our pharmacy services (WellDyneRx).
MetLife: Ourself-insured dental benefit, and fully insured disability and life insurance provider.
MHN (EAP): Our Employee Assistance Program provider.
Sterling HSA Administrators: Our Health Savings Accounts administrator, who manages our accounts and reimburses you for eligible HSA-related claims.
Kaiser Permanente: Our HMO for employees in Northern California.
Your Dental and Vision benefits are remaining the same.
Your Annual Out-Of-Pocket (OOP) limits remain unchanged for the XXXXX Open Access and XXXXX High Deductible Health Plan (HDHP).
If you choose to waive medical and vision coverage, we will continue to provide an Opt-Out Payment of $1,200 per year. In order to receive the $1,200, you must provide proof of other coverage. You will not be eligible for this benefit if you are covered under your spouse’s plan and your spouse also works for XXXXX.
II. What’s Changing?
Cost Sharing - We are committed to subsidizing the premiums you pay, at levels consistent with other companies in our industry. You can review the 2011 U.S. Employee Benefits Guide for the specifics on cost sharing. The “Guide” will be available in the Reference Center on BENi (www.benefitsolver.com (https://webmaileu.atmel.com/exchweb/bin/redir.asp?URL=http://www.benefitsolver.com)) on November 1, 2010.
Medical Benefits - We are changing co-pays, co-insurance and deductibles, so they are more in line with the levels of other companies in our industry. To accomplish that goal, the following changes will be applied to the medical plans:
Raise doctor office co-pays to $25 for the XXXXX Open Access Plans
Raise doctor office co-pays to $30 for the XXXXX PPO Plan
Raise Out-Of-Pocket (OOP) limits to $3,500 (individual), and $7,000 (family), for the XXXXX PPO plan when using network providers, and $10,500 (individual) and $21,000 (family), when using non-network providers
Raise prescription co-pays for the XXXXX medical plans, excluding Kaiser HMO
Raise deductible to $410 (individual) and $1,230 (family) for both the XXXXX PPO and Open Access Plans, when using network providers, and to $1,050 (individual) and $3,150 (family), when using non-network providers
Raise hospital deductible/co-payment for all XXXXX medical plans, excluding Kaiser HMO
Short-Term Disability Insurance: Employees who are paid out of Colorado will see a change in the cost of the voluntary short-term disability insurance. The change will better align the cost difference between what California based employees pay, (due to their contribution to the California State Disability Insurance Program), and the cost to provide the enhanced short-term disability insurance to all other employees. You will want to look at the new rate when you review your benefit plan choices for 2011.
d.FSA Administrator - We are replacing the Delta FSA Administrator with P&A Flex Plan Administrators (more on this change below).
e.Over-the-Counter Medications (FSA and HSA):
1.Beginning January 1, 2011, with the exception of insulin, over-the-counter medication will no longer be considered qualified medical expenses for FSA’s or HSA’s. Employees cannot use funds from any of these health accounts for medications, unless it is prescribed by a physician.
2.HSA distributions that are used for non-qualified expenses, will be subject to a 20% excise tax (up from 10%).
II.What’s New?
WorldMedAssist (Medical Travel Benefit): We are adding a medical travel facilitation service. This is a medical travel company that coordinates medical treatment for travelers outside of the United States. WorldMedAssist improves lives by helping patients receive high-quality medical treatment, at international facilities, at affordable prices. WorldMedAssist assists employers in lowering their overall health care costs by offering medical travel facilitation.
Health and Wellness Program: During 2011, we will be rolling out a wellness program that will be designed to help you improve the overall health of XXXXX employees. The essence of the program will be to promote healthy lifestyles, offer wellness initiatives, provide educational materials, and much more. Details of the program will be announced later.
Flexible Spending Account (FSA): We are pleased to announce P&A has been selected as our new flex plan administrator beginning January 2011. They currently have over 2,500 clients and 250,000 participants, and their core product is the administration of flex programs. Their website and member tools are considered to be among the finest in the industry. We are looking forward to introducing you to all the new features and tools which will be available to you … (including free Debit Cards)!!!!!
III.What Happens Next?
XXXXX wants you to know that we remain strong in our commitment to providing you with competitive benefits and supporting your health and wellness efforts. Although we don’t have all the answers to the questions and concerns you may have about how health care reform will affect you, your family, and the company in the long run, we do know that you will be allowed to keep the coverage you have now.
Specific aspects of this ever-evolving program will undoubtedly change over time, and we will keep you abreast of those changes as they take affect.
This year the Benefits Open Enrollment period, will be held from November 1st through November 30th, 2010. We encourage you to attend one of the meetings to learn more about the XXXXX Employee Benefits Program, and the Healthcare Reform Act, so you can make the right choices for yourself and your family. If you work outside of San Jose or Colorado, please contact the Benefits Help Desk (Benefits@XXXXX.com (Benefits@atmel.com))