Health plan changes for 2014
Your insurance plan choices may look different for 2014, so make sure you take time to compare plans and weigh options.
Riverside is offering two plans, the Riverside CareAdvantage PPO and the Lumenos High-Deductible Health Plan (HDHP). We will no longer offer the HealthKeepers HMO 25/30. Bariatric surgery will not be covered by either of the two remaining plans, although Riverside Medical Group will offer an employee discount on medical weight-loss services. Click here for details.
|Quick compare||CareAdvantage PPO||Lumenos High-Deductible Health Plan (HDHP)|
|DEDUCTIBLE||$500 for individuals, and $1,000 for families. There was no deductible in 2013||Remains $1,500 for an individual, and $3,000 for a family|
|PREMIUMS||Increasing in most cases (about 10% for individual, amounting to about $5 per paycheck in most cases. Premiums come out before taxes, which helps soften the impact).||Decreasing
in most cases
|CO-PAY AFTER DEDUCTIBLE||
to read about what else is changing
The CareAdvantage PPO, which uses the Riverside network of providers and facilities, will now have a deductible of $500 for individuals, and $1,000 for families. There was no deductible in 2013. Premiums, or the amount you pay out of your paycheck for the plan, will increase by about 10 percent for individuals, amounting to an additional $5 per paycheck in most cases. Premiums will increase more for families. The amount that you contribute toward your premium comes out of your paycheck before taxes, which helps soften the impact of the increases. Co-insurance will drop from 20 percent in 2013 to 10 percent when you use Riverside facilities. The co-payment will be 30 percent for non-Riverside facilities in the Anthem network.
A lower-cost option for many may be the Lumenos HDHP. The deductible for that plan will remain $1,500 for an individual, and $3,000 for a family. Premiums will go down for many people in the plan compared to the current year – and will be significantly lower overall than for the PPO. The HDHP uses the Anthem network of providers. Another important factor with the HDHP is that any incentive earned through participation on the My Healthy Lifestyle program will be added to the team member's Health Savings Account, unless they are 65 or older. Health Savings Accounts, described below, are a great option that let you set aside money to help pay for medical expenses. The funds, if not used, get rolled over from year to year.
You and Riverside share in the cost of your employee health plan. Riverside pays most of the cost, and each year, we work to minimize any increases to our team. This year, several issues made it necessary to increase some premiums for 2014. First, costs associated with our health plans were much higher than expected. Usage was high as well, and healthcare reform also played a role. The charts below show how increases have affected us from 2011 through 2014. The numbers represent the cost each month for the employee plan – for the team member, and also for RHS.
What can you do to help manage costs?
No matter which plan you choose, participating in My Healthy Lifestyle can save up to $750 off your premium costs. To qualify for the incentive you must complete your wellness exam and have your paperwork processed by Nov. 30. Click here to learn more about the discount.
There is also a 25 percent discount for team members who use eligible Riverside services.
Also, both plans have options for a certain type of savings account that allows you to set money aside to pay for healthcare expenses. The benefit of this arrangement is that you decide how much you think you might spend, and the money is deducted from your paycheck before taxes. This gives you more money, in the end, to help you pay out-of-pocket costs. Think of it this way: If your tax rate is 33 percent, and you decide to allocate $100 a month toward a health savings account, you will be able to save $1,200 in a year. Had the money been taxed, you would have only $804 to pay for the same medical expenses.
If you sign up for the HDHP plan you will have the option to enroll in a Health Savings Account. The amount you can set aside is capped at $3,300 for an individual, and $6,500 for a family. Those amounts are slightly higher than in 2013. Any funds left in this account at the end of the year roll over, which makes this a great option. Savings can carry you through into retirement.
Benefit-eligible team members also have access to the pre-tax Medical Flexible Spending Account. If you enroll in the PPO, participation in the Flexible Spending Account is optional. The amount you can set aside in any given year is capped at $2,500. It's also important to note that this type of account has a use-it-or-lose-it status. Funds that do not go to pay healthcare expenses do not roll over, and you lose them at the end of the year. That's why it's important to try to estimate exactly how much you're likely to spend. The good news is that you can use the money you set aside in the Flexible Spending Account for qualifying medical, dental and vision costs, including deductibles and co-payments.
Riverside Total Rewards/Benefit Services
12420 Warwick Boulevard
Building 6, Suite 6B
Newport News, VA 23606