Teradyne, Inc. · NASDAQ:TER
Teradyne — IPO Roadshow (October 2015)
39 slides from Teradyne's IPO roadshow presentation, October 2015
Slide 1: Your Health Benefits 2016 Open Enrollment
Your Health Benefits 2016 Open Enrollment October 2015
Slide 2: So why are we here?
So why are we here? • Sneak Peak for 2016 Open Enrollment • No major plan changes this year • Minor feature changes • Focus on Health Investment Plan Education • Many employees are STILL missing a significant retirement savings opportunity – 75% vs. 23% • New tools and resources to assist • Check st
Slide 3: What we are going to cover
What we are going to cover: • 2016 Open Enrollment Updates • What is the Health Investment Plan again? • Why is this important to Teradyne & our employees? • Why should you consider having an Health Savings Account? • Real –life Scenarios • What do you need to consider? • Resources to make the decis
Slide 4: 2016 Open Enrollment Updates
2016 Open Enrollment Updates Medical Changes – Overall, the cost trend is flat across all plans – Slight changes in premiums depending on plan experience – Health Investment Plan • Embedded per member Out-of-Pocket Maximums: $3,350 Family: $ 6,750 • Maintenance medication not subject to deductible.
Slide 5: What do we offer for BCBS Medical Plans?
What do we offer for BCBS Medical Plans? • Advantage EPO - 0.7% increase 23% • Highest premiums HIP PPO • In network only 63% 14% EPO • Co-pay model • Preferred PPO - 2.6% increase • In-network and out-of-network coverage • Co-insurance model • Health Investment Plan (HIP) w/HSA - 5.2% decrease
Slide 6: 2016 Plan Rates
2016 Plan Rates Active Employee and COBRA Participant Plan Rates as of January 1, 2016 Medical/Dental/Vision Active Employee COBRA Participant Rates Monthly Bi-Weekly Monthly Employee Employee plus one Employee plus one Individual Family Jj Individual Individual Medical Advantage Blue (EPO) $68.52 $
Slide 7: Teradyne Health Investment Plan
Let us re-introduce you to: Teradyne Health Investment Plan with a Health Savings Account (HSA) 1. Learn 2. Assess 3. Compare 4. Plan
Slide 8: Join the wave! From the Corner HR Office
Join the wave! From the Corner HR Office This year I am encouraging you to consider joining the wave. The “wave” consists of Teradyne employees who have switched to the Health Investment Plan for their health insurance coverage. This is the plan which features much lower monthly premiums out of your
Slide 9: Why the big push AGAIN this year?
LEARN Why the big push AGAIN this year? – We ALL own the cost of health care – Health care costs continue to drive significant cost ~$20M per year – Current Health Investment Plan enrollment is 23% (compared to the market +30%) up from 8% last year – Remove lack of understanding as a barrier to enro
Slide 10: Why should you consider the Health Investment Plan?
LEARN Why should you consider the Health Investment Plan? – Over 75% of our employees would have been financially better off in the Health Investment Plan – An HSA really needs to be considered as part of your overall retirement strategy • Projected $220,000 medical expenses in retirement • The MOST
Slide 11: How to find out if the Health Investment Plan is for YOU
How to find out if the Health Investment Plan is for YOU 1. Learn about the Plan – Attend a presentation – www.teradyne.com/benefits – Fidelity HSA Brainshark – Health Investment Videos – Guidespark Videos – Talk to someone in the plan 2. Compare Plans – Review plan comparison charts – Understand ho
Slide 12: What's the Health Investment Plan?
LEARN What’s the Health Investment Plan? (formerly the Blue Care Elect Saver PPO with HSA) It’s a unique and powerful combination Health Savings Account Teradyne’s (HSA) administered by Fidelity Consumer Driven – Long term savings vehicle for medical Health Plan (CDHP) expenses, invested similar to
Slide 13: Advantages of a Health Savings Account (HSA)
LEARN Advantages of a Health Savings Account (HSA) 1. Unique Tax Savings Opportunity 2. HSA Balance grows over time 3. It belongs to you
Slide 14: Are you missing an opportunity?
Are you missing an opportunity? Teradyne has a higher than average Savings Plan Participation: 88% of Teradyne employees participate in the 401k Savings Plan >30% of Savings Plan Participants hit the annual contribution max ($18,000) Annual contributions to an HSA are independent of what can be cont
Slide 15: Many pre-retirees are unprepared
Many pre-retirees are unprepared for future health care costs The traditional focus of retirement planning in the workplace has been to emphasize wealth, not health. Yet health care is a critical and often underestimated piece of the retirement planning equation. Fidelity research reveals that pre-r
Slide 16: Think about your overall retirement strategy
Think about your overall retirement strategy… Are you maximizing what is available to you? would recommend the following…. First, contribute enough to your 401(k) to maximize the employer match Next, consider contributing to the HSA up to the applicable limit, taking advantage of the employer HSA co
Slide 17: Are you STILL missing an opportunity?
If you have an HSA… Are you STILL missing an opportunity? You’ve made the leap to join the plan, but are you taking the opportunity to invest your funds so your investment can grow tax free? Of the individuals that have an HSA account: Less than 10% are investing in moderate to aggressive funds Tera
Slide 18: How do I use this plan?
LEARN How do | use this plan? Show your ID card when you see your doctor have “no idea” how an HDHP pays Your doctor submits a claim to your insurance Nt You get a benefits statement with any amount you owe for preventive Pay the bill with your HSA™
Slide 19: Tax benefits of an HSA
LEARN 2 ° Ta X be a) efits HSA contribution Why fund an HSA if you're only going $6,650 to spend the money this year anyway? y tal Isn't that a hassle? It does add a bit aie i of paperwork, but without an HSA, ns you're paying taxes on that money $1,663 when you don’t have to. HSAs let you save mone
Slide 20: Covering your costs
LEARN 3. Covering your costs LOWE! R PREMIUMS 89% are satisfied with their coverage efter being enrolled 86% are satisfied with the ease of use of their HDHP after 2+ years”
Slide 21: Getting started
LEARN 4. Getting started Once you've chosen an HSA-eligible health plan, here's how to get started: OPEN YOUR HSA: Some employers will automatically open your account, but not all of them. If you don't have an account, you could miss cut on your company’s contribution. DECIDE HOW MUCH TO CONTRIBUTE:
Slide 22: Fidelity-sponsored 2014 HSA survey note
* The Fidelity-sponsored 2014 HSA survey was conducted by GfK Public Affairs & Corporate Communications from April 30 to May 9, 2014, using GfK’s KnowledgePanel, a nationally representative online panel composed of 1,247 U.S. adults who are age 25-65, have household income of $25,000 or more, have p
Slide 23: Why aren't YOU in the Health Investment Plan?
Why aren’t YOU in the Health Investment Plan? It’s too much risk for my family. What if something major happens? I have NO idea how I want them to have high quality care. much my actual health care costs are in order to see if it would make It’s not a good plan if you have children. financial sense
Slide 24: Hypothetical Scenario – Regular Usage
Scenarios Hypothetical Scenario – Regular Usage (Under Individual Coverage on Health Investment Plan) • Medical Expenses • Employee Cost – Routine Adult Physical – 100% Covered – 100% of the costs up to the – (2) Sick Visits - $320 deductible ($1300) : $1,280 – Dermatologist visit - $125 – MRI / Ima
Slide 25: Hypothetical Broken Arm Scenario
Scenarios Hypothetical Broken Arm Scenario (Under Family Coverage on Health Investment Plan) • Employee Cost • Medical Expenses – 100% of the costs up to the – Emergency Room Visit deductible: $2,600 – 10% of the costs up to the out- – MRI / Imaging of-pocket maximum: $1,457.50 – Surgical treatment
Slide 26: The "True" Maximum Out of Pocket
The “True” Maximum Out of Pocket Outside of monthly premiums, what is the most I could possibly spend in this plan? Individual Family Maximum Out of Pocket $3,350 $6,750 less - Teradyne’s Contribution to HSA $650 $1,300 (TER funds 50% of the deductible) less - Annual Premium Difference ($148.46 -$92
Slide 27: Need help figuring it all out? Resources
Need help figuring it all out? We have resources to make it easier… • Teradyne Open Enrollment Website: www.teradyne.com/benefits • Plan Comparisons and Summary Plan Descriptions www.teradyne.com/benefits • Castlight Health – Past care detail, cost & quality data • Enhanced - Health Plan Cost Modeli
Slide 28: NEW 2015: Introducing CastLight
NEW 2015: Introducing CastLight • A new tool to provide a resource for assessing your past healthcare usage as well as researching cost and quality for future healthcare needs • Available to all employees (& dependents) regardless of which health plan they are enrolled in. • Important to understand
Slide 29: Resources: Introducing CastLight
Resources: Introducing CastLight
Slide 30: Castlight Quick Start Guide
Castlight Quick Start Guide It takes just two easy steps to activate your account and start finding doctors based on cost and quality reviews. Go to www.mycastlight.com and click Z| . 1 “Register for Castlight!” 2 Register for your account. — —= rece Take charge of your healthcare. Fn ster cn htc Cn
Slide 31: Find doctors with good reviews and prices
Now let’s find doctors with good reviews and prices. 1 Type what you're looking for — a doctor's name or specialty, lab test, hospital, condition, etc. — it all works. See results by quality, cost and location. fo a Primary Care for Adults ™=" $30 - $307 pan wor cre Sect ws Par Cnet ‘Sart oy Owewe T
Slide 32: Health Plan Cost Modeling Tool
Health Plan Cost Modeling Tool p> Welcome to the Health Plan Cost Modeling Tool Follow these 5 steps to estimate your 2016 costs in each of the Teradyne Health Plan options Step 1 Step 2 Step 3 Step 4 Step 5 Enter Your Compare Your Evaluate the Health Evaluate the Flexible See a Summary of Informati
Slide 33: Understand your medical needs
Understand your medical needs
Slide 34: Cost of Care
Cost of Care Estimated Medical Needs and Cost The cost and utilization estimates were developed by Fidelity Investments using various assumptions and data sources, including a national database of costs projected to 2016 Services Description Average Estimated Number of Services Teradyne Cost Common
Slide 35: What do you need to consider?
What do you need to consider? • How do you plan to pay for medical expenses in retirement? • Are you currently maximizing all of your tax-free savings plan contributions? • What are your anticipated medical needs? • Involve the other decision makers in your household. • Research & understand the pla
Slide 36: Appendix
Appendix
Slide 37: Qualified medical expenses
Qualified medical expenses What are they? • Defined by the IRS • Includes out-of-pocket expenses such as: – Health plan deductible and coinsurance – Most medical care and services – Dental and vision care – Prescription drugs – Medicare premiums IRS Publication 502: Visit irs.gov/publications/p502 f
Slide 38: Easy access to your Fidelity HSA
Easy access to your Fidelity HSA Convenient payment and reimbursement options Fidelity HSA Fidelity BillPay” Fidelity HSA Online transfer debit card for Health Savings checkbook Accounts
Slide 39: Investing in your Fidelity HSA
Investing in your Fidelity HSA A brokerage account with a wide array of investment options For current qualified For future qualified medical expenses medical expenses — Easy access to your money — Think about paying for — Keep enough in cash current health care cover your ae expenses out of pocket