Benefits Analysis - Inventory of Benefits - Medical Expense Coverage

Benefits Analysis Part I, II, and III

Inventory of Benefits

Medical Expense Coverage

KenCrest provides four different medical plan options, so that employees can choose the plan that best meets their needs, all fully insured through Independence Blue Cross and Keystone Health Plan East which both have A.M Best ratings that were recently downgraded to B (Fair) . KenCrest also provides two Flexible Spending Accounts for medical spending and dependent care. Full time employees working 30 or more hours/week and Part time employees working at least 20 hours/week are eligible for health benefits on the first day of the month following 90 days of employment. Eligible dependents include the eligible employees spouse and eligible children up to age 19 (23 if full-time student). Full time employees who elect one of KenCrest medical plans are provided $325 flexible credit dollars per month to use towards the purchase of a healthcare plan. Any extra dollars after the purchase of healthcare can be used to purchase other contributory benefits. Part time employee's health benefits are fully contributory.

Keystone Health Plans - HMO

The HMO provides medical care through a selected group of doctors and hospitals. The insured has a primary care physician who coordinates medical needs and refers patients to specialists as needed. With the HMO, there are no claims forms, no deductibles, and low out-of-pocket expenses. Employee contributions are $298/mo for single up to $874/mo for family coverage.

Keystone Health Plans - Point Of Service (POS)

A Point of Service is an HMO plan. It provides benefits with no deductibles and little or no out-of-pocket expenses for covered services provided or referred by your primary care physician. POS has a self-referred care feature which gives employees the freedom to use any doctor or hospital, and members share the cost of medical expenses through deductibles and coinsurance. There is a choice between two different POS plans which have different cost and co-payments to match employee's budgets and needs. Employee contributions are as low as $330/mo for single and up to $1063/mo for family.

Independence Blue Cross - Personal Choice - High Deductible Health Plan

The Personal Choice option gives access to medical care at the lowest out-of-pocket cost by seeing network provider. The employee also gets the freedom to choose the provider you prefer that are out of network. When an employee selects this Personal Choice - High Deductible Health Plan option they are eligible to participate in a Health Savings Account (HSA). $185 or the $325 health plan election credit6 per month will go towards purchasing coverage under the high deductible plan and KenCrest will contribute the remaining $140 of the credit into the employees HSA. The HSA provides a tax-free savings vehicle for medical expenses. Employees are not obligated to use the money contributed each calendar year in that year. The money can remain in the account and earn interest until the employee needs it. At the age of 65, the account can continue to be used for medical expenses or as retirement savings. Employee contributions start at $158/mo for a single employee and as high as $465/mo for a family.

Flexible Spending Accounts (FSA) - Medical Spending & Dependent Care Accounts

The medical spending account helps employees use pre-tax dollars to pay for medical, dental, vision and other medical expenses not covered in their basic plans. The dependent care account helps to pay for child care or the care of an elderly adult. The eligible expenses must be incurred during the plan year to receive reimbursements. Any money left in the account at the end of year is forfeited by the employee. Employees can contribute up to $5,000 per year for each account. These accounts are fully contributory and are administered by Lincoln Benefit Group.

Dental Insurance

There are 2 dental plans to choose from, United Concordia Plus and United Concordia Flex. The Plus plan provides coverage for services done by network providers and no coverage outside the network. The Flex plan is a fee-for-service plan that provides coverage for services done by both in network and out-of-network providers. The Plus plan has no deductible and an unlimited annual maximum; the Flex plan has a $50 single deductible and $150 family deductible and a $1000 annual maximum. Monthly rates for employees who choose the plus plan start at $13 for single and up to $40 for family, while those who choose the flex plan are subject to rates starting at $29 up to $85.

Vision Insurance

Vision coverage is provided through Keystone HMO and POS plans. For those employees with the Personal Choice coverage, there is no vision coverage, but vision care can be paid for through the HSA account. The HMO plan has employee co-pay of $50 for an exam and $100 for hardware. The POS plans offer a $40 or $25 exam co-pay (depending on which POS employee chooses) and $100 towards hardware. In addition, any extra vision expenses can be paid for through an FSA account.

Prescription Plan

KenCrest has a three tier prescription drug program provided through Keystone. Co-payments for a 30 day supply at a Retail Pharmacy are:

 Generic Drugs $10 co-pay

 Preferred Brand Name Drugs $20 co-pay

 Non-preferred Brand Name Drugs $35 co-pay

Co-payments for a 90 day supply through Mail Order:

Generic Drugs $20 co-pay

Preferred Brand Name Drugs $40 co-pay

Non-preferred Brand Name Drugs $70 co-pay

Loss of Income

Death

KenCrest provides all full-time benefit eligible employees 100% employer paid Basic Life Insurance and AD&D insurance that is fully insured through Cigna. Cigna has an A.M. Best rating of A- (excellent). It is term, life insurance and pays a benefit if you should die while an active employee in the amount of $10,000. Term life insurance