WKU Benefits Analysis

Introduction
An integral part of any personal financial plan will be the analysis of available employee benefits (EBs). Depending on the size of the employer, these offerings will range from non-existent to extensive and complex. While some EBs can be highly specialized (e.g. Employee Stock Ownership Plans), many others are commonly offered and fairly easy to understand.
WKU is one of the region’s top 5 employers with over 2,000 benefits-eligible employees on the payroll, including over 700 faculty and 1,300 staff. As with most employers of this size, WKU has a dedicated Human Resources department whose full-time job is managing employee issues, the majority of which are benefits related.
In October of each year during a two-week “Open Enrollment” period, employees are required to select the specific benefits they wish to receive (and in many cases pay for) during the next calendar year. It is common for employees of large organizations like WKU to receive a Benefits Guide/Menu/Manual to use during their “Open Enrollment” period that explains their choices and helps them to make selections. It is also common for a large percentage of employees to find these options overwhelming and confusing, thus making it a perfect decision-item for a financial planner to help demystify. This assignment allows students to explore a real-life Benefits Manual and evaluate the options described within it.

Instructions
For this assignment, you will use the WKU 2021 Benefits Guide to answer the questions listed on the next page. You may use your textbook to assist you with some of the concepts, if necessary, though it is helpful to have read through the Individual Health Insurance and Employee Benefits chapters as well as the Benefits Guide before undertaking the assignment.
Keep the following in mind as you answer each question:
All explanations must be stated in your own words and spelling and grammar count.
Keep your responses brief and to the point; answers should be no longer than 1-3 sentences MAX.
Answer the questions in a separate word document and submit the file here in Blackboard.
The benefits guide can be found by holding CTRL and clicking the link below or copying it into your browser

THIS LINK. THE ONE RIGHT HERE -> WKU 2021 Benefits Guide

Question List

(1 point) When was/is the WKU Annual Enrollment Period for selecting 2021 benefits?
(3 points) Under what circumstances, if any, may employees make selection changes after the enrollment period?
(4 points) List all the reasons an employee would consider making the Top Life Pledge?
(3 points) Describe what is required to satisfy the Top Life Pledge.
(3 points) What happens if an employee makes the Top Life pledge but then fails to complete all required activities?
(3 points) What happens for employees who decide they do NOT wish to have WKU health insurance?
Assume you are a single individual (often referred to in the guide as “EE” or “eligible employee”) with no dependents, and you are willing to make the Top Life Pledge. For each of the three offered health insurance plans available, answer the following questions. Consider making a table to summarize these items:
(3 points) What is the total annual premium that you (not WKU’s portion) will pay?
(3 points) What is the amount that will be credited to an HSA/HRA if you make the Top Life Pledge?
(10 points) What is the net cost to you after accounting for premiums you pay, and HSA/HRA credits received from WKU?
(3 points) What is the annual deductible for in-network services?
(3 points) What is the in-network co-insurance percentage you will pay once the deductible is satisfied?
(3 points) What is the in-network out-of-pocket maximum you would pay in a calendar year?
Assume you have selected the Healthy Saver 2800 plan and will satisfy the Top Life program requirements. Then assume that in 2021 you end up having unexpected in-network medical care, with services costing $7,450 plus an amount equal to the last 4 digits of your WKU 800 number.
(15 points) Ignoring premiums, copays, and HRA/HSA credits you might receive, what will you pay out of pocket for this cost? What will the insurer pay? Show your work
(15 points) Taking into consideration ALL premiums, credits, deductible, coinsurance, and out-of-pocket-maximums for each of the three plans, which plan would’ve been the best to choose if you’d known during open-enrollment that you were going to have the expenses described above in 2021? Show your work
(6 points) Assume you will incur $7,000 of orthodontia costs in 2021; what is your total net cost for the service, including premiums paid, assuming you chose the PPO Plus Premier dental plan? Show your work
Life Insurance
(1 point) How much (if any) free life insurance coverage does WKU provide employees?
(2 points) How much life insurance in total can an employee purchase on their own life?
(2 points) How much life insurance in total can an employee purchase on their spouse’s life?
Disability
(3 points) For an employee earning a salary of $95,000, how much is the premium for long-term disability insurance coverage?
(10 points) Mandrew, a handsome WKU employee, became disabled as of 1/1/21 after a now-legendary stunt at an NYE party. He will remain disabled until sometime in 2022. Assuming the disability is qualified, and his pre-disability annual salary was $95,000, what will be the total amount of LTD benefits paid to Mandrew in 2021? Show your work
(4 points) If I am footing the bill, for what financial reason might I want to encourage my children to attend WKU for their bachelor’s degree rather than somewhere like UK or UofL?