Montgomery & Associates 2018 Benefit Book

MESSAGE TO EMPLOYEES: M&A continues its commitment to staff by offering a comprehensive benefits package that protects individual health, well-being and financial security. Our staff is our most valued resource, and we keep this in mind every year when evaluating the employee benefits programs. This communication highlights changes and summarizes M&A’s health and welfare benefit plans effective January 1, 2018 through December 31, 2018. Our goal is to offer a benefits package which provides comprehensive protection to you and your family while controlling company expenditures. As with all companies, M&A works hard to balance employee out-of-pocket costs while dealing with ever-increasing benefit expenses. The cost of healthcare significantly increases every year; however, we remain committed to providing high quality, market competitive benefits at an affordable level. Effective January 1, 2018, we will continue the health insurance coverage through CIGNA with no benefit plan changes and a small increase in premium rates. As a reminder, the Advantage Prescription Drug Formulary will not cover any medication that has an over the counter (OTC) alternative available. The deductible, coinsurance and copays including prescription drug copays in 2018 will continue to accumulate toward the calendar plan out of pocket maximum. CIGNA continues to offer a comprehensive network of nationwide providers with high quality customer service. We will continue to contribute the amount equivalent to 90% of the employee premium, and an amount equivalent to 65% of the dependent premium. The employee will be responsible for the remaining 10% of the employee’s premium and 35% of any dependents’ premiums. Due to ACA fees, M&A will also pay the Patient Centered Outcomes Research Fee (PCORI fee) of $2.39 annually per covered life on the policy. We will also continue to offer the Health Reimbursement Account (HRA) to assist with the medical plan deductible thereby reducing your In-Network, out- of-pocket expense. As a result of the HRA, your plan In-Network deductible will continue to be $2,000 per employee or $4,000 per family for In- Network expenses. The dental plans will continue with CIGNA with a slight increase in premiums. M&A will continue to provide full-time employees with company paid Life/AD&D, Long Term Disability and Short Term Disability insurance through Mutual of Omaha with no plan changes. Employees are able to rollover up to $500 of unused funds at the end of the 2018 plan year for the Healthcare Flexible Spending Accounts (FSAs). • All participants will be eligible for the rollover. • The amount eligible to be rolled over is the amount unused after medical expenses have been reimbursed at the end of the plan’s run-out period for the plan year (up to the $500 limit). • The rollover amount does not count against the $2,650 salary reduction on limit. Employees will therefore be able to rollover up to $500 and still make a salary reduction of up to $2,650 into their Healthcare FSA for the current plan year. • Participants are unable to cash out the rollover amount or be allowed by M&A to have the amount be used for any other benefit. • Employees that rollover Healthcare FSA funds into the next plan year will not be eligible to contribute to a Health Savings Account (HSA). MEDICAL, DENTAL, LIFE/AD&D, AND LONG TERMDISABILITY COVERAGE: Full-time employees are eligible for these benefits the first of the month following 60 days of employment. You must work at least 25 hours per week to be considered a full-time employee and be eligible for benefits. You can enroll the following dependents in your medical plan: • Your legal spouse or domestic partner • Your dependent children up to age 26 MEDICAL AND DENTAL ENROLLMENT AND COVERAGE CHANGES Each year during annual enrollment, you have the opportunity to make new benefit elections for the coming year. All eligible employees electing coverage must complete and return an enrollment form by the due date. Changes to your medical and dental plan benefits are allowed only on 1/1 each year. Per IRS rules, employees cannot drop or add coverage for yourself or your dependents between 1/1/2018 and 12/31/2018 unless you have a qualifying change in family status such as loss of benefits under another plan, marriage, divorce, legal separation, birth, adoption or placement for adoption. If you have a qualifying change in family status and want to drop, add or make any changes to your coverage, you must request this change within 30 days of the qualifying event by completing a new enrollment form and giving it to Phyllis Leach in Human Resources. It is your responsibility to notify your HR Department of a qualifying event. Per IRS rules, if you waive or drop coverage on 1/1/2018, you will not be able to enroll in M&A’s plan until 1/1/2019, unless you have a qualifying change in family status. 2018 GUIDE TO YOUR BENEFITS BENEFITS PLAN ELIGIBILITY You and your dependents become eligible for benefits after the following waiting periods have been met:

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