Page 49 - 2019 - erbe employee handbook.draft national

9-3. Medical
Erbe offers medical coverage through a High Deductible Health Plan (HDHP). When employees elect coverage under the HDHP, they are eligible for a tax-advantaged HSA. An HSA helps employees save for deductibles with pre-tax dollars. Through the HSA, employees can decide the best way to spend their healthcare dollars.
Erbe makes a substantial contribution to each eligible employee’s HSA account. Please refer to the Annual Benefits Enrollment guide for specific details regarding this contribution. Employees may also elect to make additional pre-tax contributions to their individual HSA accounts. HSA contributions, whether from the employee or the Company, are subject to a combined annual contribution limit. The IRS publishes these limits on an annual basis.
The HDHP plan provides major medical and comprehensive hospital insurance coverage. Under this plan, participants may choose to use in-network or out-of-network providers at any time. This plan does not require selection of a primary care physician.
9-4. Dental
Erbe provides preventive, basic, major and orthodontic services through a PPO dental plan. All services except for preventive care are subject to an annual deductible.
Erbe offers the choice of two benefit plans, the MAC Plan and the UCR Plan. Both with similar benefit offerings but vary based on whether or not employees choose an in-network dentist. Employees that choose an in-network provider, receive benefits based on the negotiated fee schedule between the dentist and Cigna. Employees who elect the UCR Plan and go to an out-of-network provider, receive benefits based on the usual, reasonable, and customary charges at the 90th percentile. Employees who elect the MAC Plan and go to an out-of-network provider, receive benefits based upon a maximum allowable charge. The dental PPO network is made up of two separate networks. Each network offers different levels of coverage. Employees receive benefits whether or not they visit a participating dentist; however, employees who choose to visit a participating dentist, have the opportunity to maximize their benefit plan with access to lower out-of-pocket expenses.
9-5. Vision
Erbe provides a comprehensive vision plan to employees and their eligible dependents. This benefit has both in-network and out-of-network provisions.
9-6. Basic Life and AD&D Coverage
Erbe provides each employee a basic life and Accidental Death & Dismemberment (AD&D) policy with coverage amounts as follows:
 Employee  Spouse
 Children
Imputed Income
3 times annual salary up to $250,000 $5,000
up to $2,500 (per child) depending on age
Under current tax laws, employees are required to pay income taxes on the “value” of the basic life coverage in excess of $50,000. This so-called imputed income is required by IRS regulations.
49 | Company Benefit Programs Confidential/Internal Use Only