October 25, 2017 Chiefs’ Chatter News & Notes from Senior Leadership PTO Cash-In Policy Changes Due to IRS rules regarding constructive receipt, which refers to income you do not have physical possession of but have access to use without restriction (like cashing in PTO), CaroMont will be changing the PTO Cash-In policy effective January 1, 2018. While we have tried to delay this change as long as possible, we now need to make a change based on IRS guidelines which state that this must be taxed. Only non-exempt (hourly) employees and some providers (based on individual contracts) remain eligible to cash in PTO. Beginning in 2018, employees eligible to cash in PTO time will be subject to a 10% deduction. This means that PTO will be cashed in at 90% of its value. The 10% deduction applies to both PTO taken in cash and cashed-in PTO to cover CaroMont Health medical expense payments. If you cash in PTO to make CaroMont medical expense payments, CaroMont will discount your bill by 10%. This change does not impact PTO donations to other employees or to the Foundation. Employee Benefits Update for 2018 Open enrollment for CaroMont Health employees and covered dependents begins November 1. Benefits packets and information should be arriving to your home so you can review and prepare to complete your benefit selections by November 15. One item to note, beginning January 1, 2018, CaroMont premiums will increase an average of 4.1% for medical and 1.0% for dental. While we had hoped to avoid increasing premiums at all, we have worked hard to find a solution that did not increase premiums at the national averages, which are currently 7.0% for medical and 3.0% for dental. Everyone enrolled in the CaroMont medical plan plays a direct role in influencing plan costs. Because the medical plan is self-funded, CaroMont assumes financial risk for covering plan costs, which are primarily made up of projected claims for the year. The premiums shared by employees and CaroMont are intended to cover projected plan costs, but if actual claims paid exceed claims projections, premiums will likely rise the following year. As individuals, we can’t control the rising cost of medical care itself. We can, however, control how we access health care services and manage our personal health. For example, engaging in healthy behaviors, staying current on preventive care services to identify potential health risks early, and actively managing chronic health conditions, are all actions we can take to help control the cost of our medical plan today and in the future. Our health care plans and wellness programs are designed to help you and your family maintain or attain your healthy best, and we hope you will take advantage of the many employee programs available. If you have questions, please contact Human Resources at 704.834.2141. Chiefs’ Chatter | News & Notes from Senior Leadership