Issue 3 • Oct. 17, 2012

The biweekly newsletter that shows you how to make the most of your UPMC Total Rewards.

UPMC MY BENEFITS 2013BENEFIT CHANGES FOR 2013In each issue, we will discuss one or more of the 2013 changes. Don’t miss an issue.

Would you prefer to pay $400 for a new TV or$2,400? More than 20,000 employees have made

their choice and completed their MyHealthrequirements to receive their deductible savings.

Have you?

NO CHANGE IN EMPlOYEE MEdICAl PER-PAY CONTRIBUTION RATES FOR 2013!• $50 individual/$100 family increase in the core

deductible of all medical plan options • $5 increase on specialist/urgent care office visits• $5 increase on therapy visits (speech, physical, and

occupational)• $5/$15 increase on low-/high-tech diagnostic copays*

*Diagnostic services are paid at 80% after the deductible is met on the Advantage PPO plan.

dENTAlDental plans remain the same in 2013, with slight increases to employee contributions.

HEAlTH CARE FlExIBlE SPENdING ACCOUNT (FSA)For 2013, the Patient Protection and Affordable Care Act (PPACA) will limit the amount that an employee can contribute to a health care FSA to $2,500.

HYATT lEGAlA new voluntary benefit, Hyatt Legal Plans, will replace the ARAG Legal Plan.

Here’s a simple question: If you were in the market for a new TV, would you be willing to complete three simple steps in order to save up to $2,000 on the purchase price? Or would you choose not to complete those steps and pay $2,400 for the TV instead of $400?

When you complete the three simple steps necessary to meet your MyHealth requirements for 2013 — the MyHealth questionnaire, the biometric screening, and $400 worth of Healthy Step activities — you give yourself similarly impressive cost savings. You save $1,000 off your deductible if you have individual coverage, and $2,000 if you have family coverage. Why wouldn’t you take advantage of a savings opportunity like this?

Follow this path to access MyHealth and the 2013 requirements: Infonet > My HUB > Human Resources > MyHealth OnLine > MyHealth Central > Click here to check your status!

You will save money in 2013 when you complete your MyHealth requirements!

MyHealth Requirements DEDUCTIBLE Savings

Individual Coverage Tier Family Coverage Tier

Without completed requirements

With completed requirements SAVINGS Without

completed requirementsWith

completed requirements SAVINGS

HMO $1,200 $200 $1,000 $2,400 $400 $2,000

PPO $1,400 $400 $1,000 $2,800 $800 $2,000

Open Access PPO $1,400 $400 $1,000 $2,800 $800 $2,000

2 MYBENEFITS2013 ISSUE3•OCT.17,2012

Choose the plan option that is right for you

Meet RyanRyan chose the Advantage PPO for 2013 because he prefers to have lower per-pay amounts deducted from his pay for medical coverage and is willing to pay more at the time he receives certain health care services. Because Ryan completed his MyHealth requirements in September, he saved $1,000 on his deductible. Even if Ryan occasionally has more out-of-pocket expenses, he saves money in the long run by choosing the lower cost plan. Because his annual payroll contributions were $624 less with the Advantage PPO than with the Advantage HMO, Ryan decided to contribute $650 ($25 per pay) on a pre-tax basis to the MyFlex Advantage health care flexible spending account (FSA) to cover his out-of-pocket expenses. He knew he would have some prescription copays, and he also wanted to get a new pair of eyeglasses. By doing this, Ryan saved 25%-35% on his out-of-pocket expenses because he is paying for them with pre-tax dollars.

In January, Ryan went skiing and had an accident. He was admitted to the hospital, where he spent the night.

Ryan’s total accident expenses $1,650Ryan’s individual Advantage PPO deductible ($400)

Remaining balance $1,250Ryan’s 20% coinsurance under the Advantage PPO ($250) UPMC Health Plan paid 80% $1,000

Ryan’s total out-of-pocket expenses $650*

*These amounts are for illustrative purposes only. Individual expenses will vary.

For questions, call the Employee Service Center at 1-800-994-2752, option 3.

Although Ryan didn’t like being in the hospital, he wasn’t too nervous about the expense. He knew that his Advantage PPO plan came with a built-in safety net, called his out-of-pocket maximum. The most he would have to pay out of his pocket for his deductible and coinsurance was $1,300. He paid $650 for his hospital stay, using the entire amount from his FSA. His out-of-pocket expenses did not exceed the $1,300 out-of-pocket maximum.

How much did Ryan pay for the Advantage PPO and his hospital stay in 2013?

Biweekly payroll contributions $300Out-of-pocket expenses $650Total $950

If Ryan had elected the Advantage HMO, he would have had paid:

Biweekly payroll contributions $924Deductible for hospital stay $200

Total $1,124

Ryan

ISSUE3•OCT.17,2012 MYBENEFITS20133

What is a deductible?A deductible is a specified dollar amount that you pay out of your pocket each year before UPMC Health Plan begins to pay coinsurance-based benefits (copay benefits are not subject to the deductible). Each person covered by the plan has an individual deductible. If you insure your family, you must meet a family deductible. Several family members may each satisfy a portion of the family deductible with money spent toward their individual deductibles. Expenses such as lab work, in- and outpatient hospital services, surgery, and anesthesia are all subject to the deductible before the Health Plan begins paying.

What is coinsurance? Coinsurance is the percentage of eligible expenses you are responsible for paying for select services. The amount you pay depends on the coverage option that you select and if you receive care in or out of network. For example, if you have the Advantage PPO plan, you are responsible for paying 20% coinsurance after the annual deductible is satisfied. You continue to pay coinsurance until you reach your annual out-of-pocket maximum, then all services are covered at 100%. Services such as physician office visits, prescription drugs, and therapy are all copay based and not subject to the coinsurance and deductible.

Updated 2013 Benefits information now available on Infonet

Information and easy-to-access tools are available on Infonet to assist you with making your 2013 Open Enrollment selections. Take a few moments to read the Open Enrollment 2013 page where you will find:

• Benefit changes effective Jan. 1, 2013• Summary of Benefits and Coverage (SBCs) for all

medical plan options• MyBenefits2013 newsletters•Complete Benefit Fairs schedule• Enrollment checklist

If you have questions after reviewing this information, call the Employee Service Center at 1-800-994-2752, option 3, Monday through Friday from 8 a.m. to 5 p.m.

Effective Jan. 1, 2013, an additional 0.9% Medicare tax will be collected from employees who earn more than $200,000 and from couples who earn a combined salary of more than $250,000. The 0.9% tax will be applied to the earnings in excess of $200,000/$250,000. This tax is a requirement of the Patient Protection and Affordable Care Act (PPACA) for 2013. You may access all 2013 PPACA requirements on the Payroll and Benefits sites on Infonet.

Health Care ReformTax Update

Have you recently moved?If you have recently moved, please update your address to ensure that you receive important communications from UPMC, including the Open Enrollment announcement, 2013 benefit confirmation statement, and 2012 W-2 Form. You must also complete a new residency certification form for local taxes to be withheld, found under My Payroll in My HUB.

Follow these directions to change your address and update your personal information:

My HUB > Human Resources > View/Update Personal Information > Personal Information Summary

4 MYBENEFITS2013 ISSUE3•OCT.17,2012

Mark your calendar — Benefit Fairs coming to many UPMC locations Open Enrollment is your annual opportunity to make changes to your benefit elections. Benefit Fairs are a great place to ask questions, learn, and talk with experts about your benefits at UPMC. As a UPMC employee, you are welcome to attend any fair at one of the many locations at your convenience during October and November.

Take this opportunity to learn more about:

•Medicalanddentalplanoptionsfor2013•OtherUPMC-providedbenefits•YourUPMCSavingsPlancontributions

Listed here are fairs that will be held between Oct. 19 and Oct. 31. A complete listing of fairs is available on the Benefits section of Infonet.

Many fair locations will be offering free flu shot clinics. Flu vaccines not only help protect you, your family, co-workers, and patients from influenza, but also are an easy way to earn 200 deductible credit dollars toward your 2013 MyHealth requirements.

• Friday, Oct. 19, UPMC McKeesport, Kelly Conference Room, 7 a.m. to 4 p.m.

•Monday, Oct. 22, Sherwood Oaks, Card Room, 11 a.m. to 4 p.m.

• Tuesday, Oct. 23, Starzl Biomedical Science Tower, 7 a.m. to 5 p.m.

• Tuesday, Oct. 23, Sugar Creek Station, Conference Room, 7 a.m. to 10 a.m.

• Tuesday, Oct. 23, UPMC Northwest, Courtyard Conference Room, Ground Floor, 7 a.m. to 4 p.m.

•Wednesday, Oct. 24, Seneca Place, First Floor Conference Room, 7 a.m. to 4 p.m.

• Thursday, Oct. 25, UPMC East, Ground Floor Conference Room, 7 a.m. to 3:30 p.m.

• Thursday, Oct. 25, UPMC Venango VNA, Conference Room, 9 a.m. to 4 p.m.

• Friday, Oct. 26, UPMC Passavant, Assembly Hall, 7:30 a.m. to 4 p.m.

• Monday, Oct. 29, Harbor Gardens, Lobby, 7 a.m. to 3 p.m.• Monday, Oct. 29, Sugar Creek Station,

Conference Room, 3 p.m. to 6 p.m.• Tuesday, Oct. 30, Magee-Womens Hospital of UPMC,

Auditorium and Conference Rooms A and B, Zero Level, 7 a.m. to 5 p.m.

• Tuesday, Oct. 30, UPMC Hamot, Employee Dining Room/Cafeteria, 10 a.m. to 2 p.m.

• Wednesday, Oct. 31, Chartwell, Cafeteria, 10 a.m. to 2 p.m.•Wednesday, Oct. 31, UPMC Horizon–Shenango,

Conference Room 2, 7:30 a.m. to 4:30 p.m.

2013 Open Enrollment postcards with enrollment instructions will be mailed to all eligible employees next week. Open Enrollment will take place from Wednesday, Oct. 31, through Wednesday, Nov. 14. This is your annual opportunity to review your current benefit elections and make changes that will be effective on Jan. 1, 2013. MyFlex Advantage Flexible Spending Accounts (FSA) and PTO Buy/Sell must be elected each year during Open Enrollment. Don’t forget to review each issue of the MyBenefits2013 newsletter to understand all of the benefit changes. Archived copies of all issues can be accessed online at Infonet.UPMC.com/MyBenefits2013.

Watch your mailbox for yourOpen Enrollment postcard!

The benefits described in this newsletter provide a general overview of the standard benefits available to most UPMC employees, but may not apply to all staff members. Physicians and members of collective bargaining units should refer to the terms of their contracts for information regarding their eligibility for UPMC benefits.

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Dignity and Respect Tip 15: Ask. It’s okay to ask when you‘re not sure.