We are faced with increasing costs to all of our health plans, as well as additional taxes imposed by the Affordable Care Act (“ACA”). To mitigate costs and employ strategies to contain costs in future years, we are making some changes to our plans that you’ll want to carefully consider.

Updates to Our Medical Plan Options

This Open Enrollment may be an especially good time to take a fresh look at your medical plan options. We are particularly pleased to announce that LMU will now offer and contribute to a Health Savings Account (HSA) for all faculty and staff who enroll in the Anthem Blue Cross HealthSave Plan (formerly the Anthem Blue Cross HDHP). The HealthSave Plan continues to offer the same comprehensive medical coverage it has in the past, but it now comes with a tax-advantaged account to which both you and LMU can contribute and that helps you save for future health care expenses. Details on this exciting enhancement are provided on page 2.

Keeping Up With Health Care Reform

Other changes to our medical plans this year come as a direct result of health care reform. We are making changes to our PPO and HMO plans now to ensure we avoid paying the excise tax—also known as the “Cadillac tax”—that will be effective in 2018. Look for more on these changes on page 4. Then refer to page 9 for information on the special tax forms that LMU will provide beginning this tax year and that you will need to file with your annual tax returns.

Prepare to Enroll November 2–13, 2015

As you can see, there are many updates for 2016 that you’ll want to review. Take a few minutes now to learn about these changes, so you’re ready to enroll in November. As always, if you have questions about Open Enrollment or your LMU benefits, contact LMU Human Resources. If you work at the Westchester Campus, call (310) 338-2723. If you work at the Law School, call (213) 736-1415. You can also contact your plan provider directly. See page 10 for contact information.

UPDATE FROM REBECCA CHANDLEROpen Enrollment for your 2016 benefits is just days away. It’s your annual opportunity to review your Loyola Marymount University benefit options and choose the plans that best fit your needs for the coming year.

Volume 23 | Number 1 | October 2015

Open Enrollment Newsletter

What’s Changing for 2016 There are a number of changes that you should consider as you select your benefits for 2016:

• The Anthem HDHP: A Modified Name and an HSA Contribution From LMU. The Anthem Blue Cross HDHP Plan will now be called the Anthem Blue Cross HealthSave Plan and will be the lowest-cost option among the Anthem plans for 2016. The HealthSave Plan features a built-in Health Savings Account (HSA) and an annual HSA contribution from LMU to help you meet your initial expenses under the plan.

• Changes to the PPO and HMO Options

• New deductibles under the Anthem Blue Cross HMO and Kaiser Permanente HMO

• Separate in-network and out-of-network deductibles under the Anthem Blue Cross PPO

• $30 copay for specialist visits under the Anthem Blue Cross PPO and both HMO options

• Increased out-of-pocket maximum limits under all medical plan options except the Anthem Blue Cross HealthSave Plan (current HDHP)

• Increased Health Care FSA Limit. For 2016, you can contribute up to $2,550 to your Health Care Flexible Spending Account (FSA).

• 403(b) Retirement Plan True-Up. Watch for information before the end of the year regarding a change to true-up contributions under this plan.

• Note: as shown on page 6, contribution rates for medical coverage will increase for all medical plan options except the Anthem Blue Cross HealthSave Plan. Contribution rates for dental, vision, life insurance, AD&D and long-term disability coverage will not increase for 2016.

WHAT’S INSIDE

Take a Fresh Look at the Anthem HDHP .....2

Five Great Things About an HSA .................3

PPO and HMO Changes ................................4

Managing Health Care Costs .........................5

2016 Medical Plan Contributions ...................6

How to Enroll ..................7

Key Enrollment Dates and Deadlines ..................9

Contact Information .....................10

OPEN ENROLLMENT FOR 2016:

November 2–13, 2015

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TAKE A FRESH LOOK AT THE ANTHEM HDHPA Modified Name and an HSA Contribution From LMUThe Anthem Blue Cross HDHP has a new name for 2016. It will now be called the Anthem Blue Cross HealthSave Plan, and it has been significantly improved with several features. If you enroll in the HealthSave Plan, you’ll enjoy:

• New! Built-In HSA. A Health Savings Account (HSA) is like a personal checking account that you use to pay for medical expenses. If you enroll in the HealthSave Plan, you can set up an HSA through Bank of America and receive your contribution from LMU. You can also contribute your own money to your HSA tax-free (for federal tax purposes) to help pay your out-of-pocket medical care and prescription expenses.

• New! Annual LMU Contribution to Your HSA. LMU will make an annual deposit to your HSA – $500 if you elect employee-only coverage or $2,000 if you elect either of the family coverage levels. In addition, LMU pays Bank of America’s fees for administering your HSA.

• New! Hospital Indemnity Benefit. If you or a covered family member is hospitalized, in addition to your benefits under the HealthSave Plan, you will receive an extra hospital indemnity payment of $1,250 cash, plus an additional $50 for each day that you remain in the hospital.

• Lowest Payroll Contributions. The HealthSave Plan will cost you less each paycheck than any other 2016 Anthem medical plan.

• 100% Preventive Care. As with all LMU medical plans, the HealthSave Plan pays the full cost of preventive care with no deductible, as long as you receive care from a network provider.

• Same Covered Services as PPO. All of the same medical treatments and services that are covered under the Anthem Blue Cross PPO are also covered under the HealthSave Plan – only the level of coverage (deductibles, coinsurance, etc.) is different.

• Same Provider Network as PPO. The HealthSave Plan uses the same Anthem Blue Cross provider network as the current HDHP and the Anthem Blue Cross PPO.

All of this makes the Anthem HealthSave Plan with an HSA different from a conventional medical plan. Because high-deductible health plans are still relatively new, they can seem unfamiliar. But, these plans are growing in popularity across the country due to the cost savings and other great advantages they offer. Take the time to learn about the HealthSave Plan for 2016 – it just may be the best option for you and your family.

ALL THE WAYS TO PAY YOUR DEDUCTIBLE

While the Anthem Blue Cross HealthSave Plan includes the highest deductibles of all the medical plan options, it also includes several features that can really add up to help you meet your annual deductible:

• Payroll contribution savings (HealthSave Plan has the lowest cost per paycheck of any of the Anthem plans)

• LMU contributions to your HSA

• Your own HSA contributions and tax savings

• Extra hospital indemnity benefit if you are hospitalized

How the HealthSave Plan WorksPreventive care services are covered at 100% under all of the LMU medical plan options, including the HealthSave Plan, as long as you receive care from a network provider. All other non-preventive care services are subject to the deductible and coinsurance under the plan. You can use the money in your HSA to pay for medical care and prescription expenses that go toward satisfying your annual deductible. Here’s how it works when you use in-network doctors and health care providers:

For examples of how the HSA and the LMU contribution can help you cover your expenses under the HealthSave Plan, see A Guide to Your 2016 LMU mybenefits.

You get in-network preventive care

You get other in-network care

You pay full cost of care until you meet your annual deductible

Plan pays 100%No deductible No cost to you

Use your HSA, including the LMU contribution, to pay your deductible and 20% coinsurance

After deductible:Plan pays 80%You pay 20%But you never pay more than the out-of-pocket maximum (which is lower

for 2016!)

The HealthSave Plan also covers out-of-network services, but you pay a higher percentage of the costs and do not receive the discounts offered by the Anthem Blue Cross network providers. See A Comparison of Your 2016 LMU mybenefits for coverage details for all of the medical plan options.

Open Enrollment Newsletter | 3

FIVE GREAT THINGS ABOUT AN HSA

1. Contribution From LMU. LMU will make an annual contribution to your HSA when you enroll in the HealthSave Plan. Here are the 2016 LMU contribution amounts:

• $500 for employee only• $2,000 for employee + 1 or employee + 2 or more

You’ll receive instructions for opening your HSA through Bank of America, and LMU will deposit the contribution in your account at the beginning of 2016, so you can begin spending and saving. You will receive the LMU contribution even if you don’t elect to make any HSA contributions yourself.

2. No Use-It-or-Lose-It Rule. Unlike flexible spending accounts (FSAs), rules governing HSAs don’t require you to forfeit unused balances at the end of the year. Your money rolls over from year to year and continues to accumulate until you are ready to spend it.

3. Stays With You. Always. (HSA for Life) Your HSA account and all the money in it – including LMU contributions – are always yours, even if you change jobs, change medical coverage or retire.

4. It’s Easy to Use. If you elect to make an HSA contribution, it is deducted from your paycheck and deposited in your HSA each pay period. When you first elect to contribute to an HSA, you’ll need to complete a one-time account setup process with Bank of America. Once your HSA is set up, you will receive a Visa® debit card to access the funds in your account. Just present your card at the doctor’s office, pharmacy or other merchant or service provider to pay for qualified health care expenses. Your card makes it easier for you to manage your health care expenses, which means you have less claims paperwork and fewer billing hassles.

5. Triple Tax Advantage. You don’t pay federal income taxes on the contributions to your HSA, on any investment gains or on withdrawals for qualified medical expenses.

Spend It Today or Save It for TomorrowYour HSA balance carries over from year to year. Savings not needed for current medical expenses accumulate in your account. Once they reach a certain level, they can be invested in a wide variety of investment options to potentially grow your balance for the future. That, along with the tax advantages, makes your HSA a great way to save for retirement.

HSA CONTRIBUTION LIMITSThe federal government sets limits for how much you can contribute to your HSA each year. The LMU contribution counts toward those limits. Here is the maximum you can contribute yourself in 2016:

Employee only: $2,850

Employee + 1: $4,750

Employee + 2 or more: $4,750

If you are age 55 or older, you can contribute up to an additional $1,000 in “catch-up” contributions.

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PPO AND HMO CHANGES

$30 Specialist Office Visit Copay. Beginning in 2016, if you elect coverage under the Anthem Blue Cross PPO or HMO, or under the Kaiser Permanente HMO, you will pay a $30 copay for office visits with a specialist. The copay for primary care doctor’s office visits will remain at $20.

New HMO Deductibles. Both the Anthem Blue Cross HMO and Kaiser Permanente HMO will require you to pay an annual deductible for most covered services (excluding preventive care and services that have a specific copay, such as office visits). The 2016 annual deductibles under both HMO options are:

• $150 per person

• $300 per family

Separate Deductibles Under the Anthem PPO. If you elect the Anthem Blue Cross PPO in 2016, you will pay a separate deductible for in-network and out-of-network services, as detailed in the chart below.

2016 Anthem Blue Cross PPO Deductibles

In-Network Out-of-Network

$500 per person

$1,000 per family

$750 per person

$1,200 per family

Changes to Out-of-Pocket Maximums. The Anthem PPO and HMO, as well as the Kaiser HMO, will have higher out-of-pocket maximum limits for 2016. Out-of-pocket maximums will decrease under the Anthem Blue Cross HealthSave Plan. For more details, see A Comparison of Your 2016 LMU mybenefits.

Open Enrollment Newsletter | 5

MANAGING HEALTH CARE COSTSManaging health care costs continues to be a responsibility that you and LMU share. As a reminder, here are some ways you can do your part:

• Don’t Skip Preventive Care. Getting regular preventive care can help you stay well and catch problems early. LMU coverage provides annual medical and dental exams at no cost when you use in-network providers, and vision exams are available at a low cost. Make time for this important step toward better health.

• Know Where to Go for Care. Choosing the right place for care is a smart and easy way to save money on health care expenses. Before heading to the ER with a minor illness or injury, consider other more cost-effective options like an urgent care center or retail walk-in health clinic (for example, CVS MinuteClinic®, Target Clinic®, and Walgreens Healthcare Clinic). If you need care during office hours, call your doctor and ask for a same-day appointment.

• Keep It In-Network. Before getting medical care, always verify that a provider is in-network by contacting the insurance carrier. You’ll save yourself and LMU money.

• Ignore the Brand Name Hype. Although brand name drugs get a lot of press, generic drugs meet the same standards and usually cost less than their brand name equivalents – sometimes as much as 90% less. Ask your doctor if a generic can work just as well as a brand name drug for your treatment.

• Take Advantage of LMU Health Improvement Programs. LMU is committed to providing wellness resources to help you achieve better health. A wide range of on-campus programs and services is offered to faculty and staff, and most of them are free. For more information, go to lmu.edu/hrwellness.

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IF YOU HAVE QUESTIONSIf you have questions about Open Enrollment or your LMU benefits, contact LMU Human Resources. If you work at the Westchester Campus, call (310) 338-2723. If you work at the Law School, call (213) 736-1415. You can also contact your plan provider directly. See page 10 for contact information.

Tier 1Less than $35,000

Tier 2$35,000–$69,999

Tier 3$70,000–$99,999

Tier 4$100,000 or more

Anthem Blue Cross PPO

Employee only $110.42 $147.24 $184.04 $220.84

Employee + 1 $231.96 $309.28 $386.60 $463.92

Employee + 2 or more $331.40 $441.86 $552.32 $662.78

Anthem Blue Cross HMO

Employee only $81.84 $109.12 $136.42 $163.70

Employee + 1 $171.94 $229.24 $286.56 $343.88

Employee + 2 or more $245.64 $327.54 $409.42 $491.30

Anthem Blue Cross HealthSave

Employee only $70.75 $94.34 $117.92 $141.51

Employee + 1 $148.65 $198.20 $247.74 $297.29

Employee + 2 or more $212.37 $283.17 $353.96 $424.75

Kaiser Permanente HMO

Employee only $70.96 $94.60 $118.26 $141.92

Employee + 1 $149.06 $198.76 $248.44 $298.14

Employee + 2 or more $212.98 $283.96 $354.96 $425.94

2016 MEDICAL PLAN CONTRIBUTIONSRates will increase for all medical plan options except for the Anthem Blue Cross HealthSave Plan (formerly the Anthem HDHP). This increase is due to rising health care costs and health care reform compliance. The following are pretax monthly medical plan contributions for 2016. These contributions are based on your annual salary and are effective January 1 through December 31, 2016.

Open Enrollment Newsletter | 7

HOW TO ENROLLOpen Enrollment is your chance to:

What if I don’t enroll? Most of your benefits coverage will continue at 2016 rates. However, this does not apply to FSAs. Federal regulations require you to actively enroll each year that you want to participate in a Health Care and/or Dependent Care FSA.

• Change your medical and/or dental and vision coverage for 2016.

• Enroll in a Health Care and/or Dependent Care FSA for 2016. (Note: If you want an FSA in 2016, you must enroll during Open Enrollment.)

• Add or drop a dependent from your coverage.

For full-time faculty and staff, Open Enrollment is also an opportunity to:

• Change your long-term disability coverage.

• Change your AD&D and life insurance coverage for you and your dependents.

• Enroll in or change critical illness insurance, accident insurance, or group legal coverage with MetLife.

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Enroll Online at mylmuGetting the benefits you need is easier than ever online at mylmu.

Step

1Go to mylmu (my.lmu.edu) and enter your network user name and password. If you need help, call the ITS Helpdesk at (310) 338-7777.

Step

2Click the System Logins tab and then select Employee Self Service from the drop-down menu. Click here to “Access Employee Self Service.”

Step

3Click Employee Self Service, then My Benefits. Read the disclaimer. Click Accept, then Next. Enter your dependents and beneficiaries and then click Next.

Step

4A list with your current benefits will appear. (Note: If you currently have a flexible spending account (FSA), this benefit will be excluded. To have an FSA in 2016, enter the amount you want to contribute for 2016.)

Step

5 Click Manage My Benefits. Select the benefits you want for 2016.

Confirm Your EnrollmentAfter you make your enrollment elections, a benefits confirmation statement will be available for you to print. You should do so to retain a copy for your records. The statement will show your benefits elections effective January 1, 2016.

• If you made changes to your benefits during Open Enrollment, your confirmation statement will show your updated benefits coverage for 2016 and any action items that are pending.

• If you did not make any changes during Open Enrollment, your confirmation statement will show your current benefits coverage (which carries over to 2016) – excluding FSAs.

No Changes After Open EnrollmentAfter the close of Open Enrollment on November 13, 2015, you cannot change your benefits elections for 2016 unless you have a qualified status change (such as marriage, birth or adoption). You can find a list of all qualified status changes in A Guide to Your 2016 LMU mybenefits at mylmu.

Open Enrollment Newsletter | 9

KEY ENROLLMENT DATES AND DEADLINESMark your calendar with these important dates and actions.

November 2, 2015: OPEN ENROLLMENT BEGINS

November 4, 2015: Law School benefits fair

November 5, 2015: Westchester Campus benefits fair

November 13, 2015: OPEN ENROLLMENT ENDS

December 31, 2015: Last day to incur FSA expenses for 2015

January 1, 2016: 2016 PLAN YEAR BEGINS

March 31, 2016: Last day to submit FSA claims for 2015 expenses

NEW TAX FORMS IN 2016As part of our compliance with health care reform, you will receive the following health coverage documentation to file with your 2015 tax returns.

• Form 1095-B will be issued by your medical plan carrier (i.e., Anthem Blue Cross or Kaiser Permanente). It verifies you are receiving at least minimal essential coverage, which is required to avoid paying a penalty.

• Form 1095-C will be issued by LMU and will show the months of the year that you and your dependents were offered or enrolled in LMU medical coverage.

To prepare for these mailings in early 2016, please verify that we have the correct Social Security numbers and dates of birth for you and your covered family members. This can be done online at mylmu.

LEARN ABOUT THE HEALTHSAVE PLAN AND NEW BANK OF AMERICA HSAEmployee meetings will be held to review the features of the Anthem Blue Cross HealthSave Plan and the new Bank of America Health Savings Account (HSA). You are encouraged to attend one of the following meetings in the HR Training Room on the Westchester Campus:

November 3: 10 – 11 a.m.

November 6: 10 – 11 a.m.

November 10: 10 – 11 a.m.

November 12: 2 – 3 p.m.

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CONTACT INFORMATION

Benefit Plan Phone Number Website

Anthem Blue Cross PPO (877) 800-7339 www.anthem.com/ca

Anthem Blue Cross HMO (877) 800-7339 www.anthem.com/ca

Anthem Blue Cross HealthSave (877) 800-7339 www.anthem.com/ca

Kaiser Permanente HMO (800) 464-4000 http://my.kp.org/lmu/

DeltaCare® USA (HMO) (800) 422-4234 www.deltadentalins.com

Delta Dental PPO (800) 765-6003 www.deltadentalins.com

Vision Service Plan (VSP) (800) 877-7195 www.vsp.com

WageWorks (FSA) (877) 924-3967 www.wageworks.com

The Hartford (Life/AD&D) (800) 563-1124 www.thehartfordatwork.com

The Hartford (LTD)* (866) 945-7801 www.thehartfordatwork.com

MetLife (Voluntary Benefits)*(800) GET-MET8 (800) 438-6388

www.metlife.com/mybenefits

ComPsych GuidanceResources (EAP) (800) 327-1850 www.guidanceresources.com Company/Organization ID: LOYOLA

Transamerica (800) 755-5801 lmu.trsretire.com

LMU Human Resources (Westchester Campus) (310) 338-2723 mylmu (click Quick Links > Human Resources)

LMU Human Resources (Law School) (213) 736-1415 mylmu (click Quick Links > Human Resources)

* This contact information is for a benefit plan available only to full-time faculty and staff.

Open Enrollment Newsletter | 11

Open Enrollment Newsletter