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Welcome to RCRV’s presentation of Rockwell Collins Insurance Programs available to RC

retirees for 2014

10/8/2013

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RCRV Presenters

Don Grimm Harlan Hanson James Wolfe

RCRV SHIIP Counselors for the Senior Health Insurance Information Program of the State of Iowa Insurance Division

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Thank You RCRV St Luke’s Hospital & Angela Berns for all

the handouts plus the reservations for today’s meeting.

Rockwell Collins for providing our meeting room as well as support from Cypress, CA.

Extend Health for joining us at several of our meetings

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Disclaimer We do not make decisions for Rockwell

Collins (RC), we are here to present information only

We will not discuss Rockwell Collins Policies or Government Health Care Policy issues

Please hold all questions until the end Save personal questions for one-on-one

discussions with a counselor at the end of the presentations

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What is SHIIP?

Objective Information Source Part of the State of Iowa Insurance

Division

Answers questions and provides assistance

Doesn’t recommend or endorse specific companies, products or agents

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Rockwell Collins Medicare Insurance Program Rockwell Collins (RC) has partnered with Extend

Health to provide coverage for Medicare-eligible retirees and spouses

RC will continue to provide up to $669 for each eligible retiree and their eligible spouse (based on 25 years of service with RC)

You will receive these funds in a Health Reimbursement Arrangement (HRA) administered by Extend Health

You can be reimbursed for your premiums only by submitting claims to Extend Health

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Who is Extend Health? Extend Health is the largest private

Medicare exchange in the industry They have over 2500 agents, located in

Texas and Utah who will work with you to enroll you in a plan of your choice

This is Rockwell Collins third year with them

Insurance Questions--contact Extend Health at 1-866-249-9924

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Extend Health’s 2014 Offerings

13 Part D plans (from 3 carriers) will be offered by Extend Health. Several plans have been discontinued or replaced by other plans. See Extend Health’s website for details.

7 MAPD (Medicare Advantage with Prescription Drugs) plans by 3 carriers will be offered by Extend Health. Several HMO’s from $0 to $85 per month and 3 PPO’s from $0 to $37 per month are being offered. See Extend Health’s website for details.

3 Medigap carriers plans will be offered by Extend Health. You will have a choice of Plans C, D, F, or N plus High Deductible F. See Extend Health’s website for details.

The above is for Linn County. Other counties may have more or less plans available.

If you find a more economical drug plan than offered by Extend Health (and have signed up for a Health plan with Extend Health), you may sign up for a drug plan yourself, or through SHIIP or an agent of your choice and still collect your HRA.

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Enrollment Period

Medicare Open Enrollment is from 10/15/13 through 12/7/13

2014 information was available on Oct. 1, 2013 at www.medicare.gov or www.extendhealth.com/rockwellcollins.

You must enroll via Extend Health, or the HRA will not be available to you now or in the future

If you are turning 65 and have under-65 dependents, you must enroll prior to the month of your birthday or risk the chance of having your dependent’s insurance canceled by RC. See current contract info in future cell.

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If You Want To Stay With Your Current Provider

If you are already enrolled in a plan through Extend Health and wish to continue that plan, you don’t need to do anything

We still recommend you review your drug programs. Many retirees can get a more economical drug program if they just look!

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Health Reimbursement Arrangement (HRA) RC will provide a HRA for each Medicare recipient

(you and your eligible spouse) if enrolled via Extend Health

You will get this money by providing a claim form to Extend Health for each premium paid along with proof of payment. Use the recurring form for monthly reimbursements for your Part B premium.

HRA funds can only be used for reimbursement of premiums, not for copays or other medical costs

Put both retiree and spouse on a separate recurring claim forms. Retiree info must be on the top of each form!

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HRA Info (cont) Your Medicare Part B premiums ($104.90 for

2013) can be reimbursed from the HRA. Proof of payment can come from one of the following documents sent to you by social security:

Statement received in Dec of 2013 showing benefits and deductions for the coming year, 2014

SA-1099 received in January 2015 for your 2014 income tax records

If your spouse does not use all the money in his or her HRA, you can claim your spouse’s portion

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HRA Info (cont) No carry over. You must claim all your HRA for 2014

(claims will be accepted through 3/31/15) or you will lose it. (For 2013 dollars, you must claim by 3/31/14)

You must enroll in either a Medigap, Medicare Advantage or Part D Drug Plan through Extend Health to be eligible for the HRA

If you had 25 years (or more) with RC, you will receive $669 each for you and your spouse (if applicable)

If you had less than 25 years with RC you will receive notification of your HRA amount at the time you retire and a balance indicator as you receive funds from your HRA

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Bargaining Unit Insurance current contract If you retired under the current contract:

Your coverage remains the same until 12/31/13, Then you will transfer to Family Medical Care Plan (FMCP) offered by the Union. If you turn 65 prior to 12/31/13, you must sign up for Medicare Parts A and B. You must also sign up for a supplement, MA plan and/or drug plan as well via Extend Health to be eligible for your HRA with an effective date of 1/1/14.

If you retired during the current contract and do not reach age 65 until 2019, then you are covered until 12/31/2018 by your contract.

If you or your spouse are under 65 and not Medicare eligible in 2014, then call FMCP directly at 1-877-937-9602.

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Bargaining Unit Insurance prior contract (ended on 5/1/13)

If you retired under prior contract that expired in May of 2013, and are Medicare-eligible, you are covered until 12/31/13 then you must follow the same Extend Health/HRA program as non-bargaining unit retirees.

If you are under 65, then you will be covered via the Collins-sponsored group medical plan through December 31, 2013 as other bargaining unit retirees. Then you will be offered the same PPO Plus Plan that Rockwell Collins offers all retirees under Medicare age effective 1/1/14.

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Rockwell Collins Insurance for Under 65 Retirees (Non Bargaining unit only)

RC will continue to provide the PPO Plus plan administered by Wellmark BCBS

This is a high deductible health plan which is eligible for a HSA HSA contributions must be made after tax

and claimed on your next year taxes Letters will be sent out Oct 28, 2013

defining RC’s offering.

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Split Families(One Spouse under 65, the other on Medicare) People on Medicare will need to select a program via Extend

Health (no action required if you want the same plan from Extend Health in 2014 that you had in 2013)

Folks under 65 will continue to have the PPO Plus plan administered by Wellmark BCBS

4 months prior to your 65th birthday, you will get a package from Extend Health. You must enroll in a plan with the same effective date as your Medicare effective date or risk not having insurance for your dependents and you will not receive a HRA.

You must have a spouse covered under the RC plan if you want coverage for other dependents. If you and your spouse are both Medicare eligible, then RC insurance will not be offered to the remaining dependents

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Medicare Info

From this point forward, we will be reviewing Medicare requirements. This is to provide info to folks turning 65 next year and it is a good review for the rest of you already on Medicare.

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People Turning 65 in 2014 In Iowa, over 40,000 people are turning 65 in 2013 and

about the same in 2014 Rockwell Collins retirees turning 65 will receive a

package from Extend Health 4 months prior to their birthday. To preserve your eligibility for the RC HRA you must sign up for a health insurance plan through Extend Health prior to your birthday.

Your plan must take effect on the same date as your Medicare effective date

If not, you may lose your RC insurance for your dependents who are not yet 65. You may also lose the HRA for both yourself and your spouse now and in the future years.

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MEDICARE Who Is Eligible?

Age 65 and older

MEDICARE

End-Stage Renal

DiseaseDisability

Must be a U.S. citizen or permanent resident for 5 years

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Medicare Health Insurance

Part A Hospital Insurance

Part B Medical

Insurance

MEDICARE

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Monthly Medicare Part A Premiums - 2013

Based on Work Credits 40 quarters ----------------- Free

(Eligible for Social Security benefits)

30-39 quarters ------------- $243 Less than 30 quarters -- $441

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Enrolling in Medicare Part A

For people who have 40 work quarters of credit, i.e., for whom Part A is free

Enrollment is automatic if drawing Social Security benefits

No penalty for delaying Part A if it is free. Can enroll during Initial Enrollment Period or later

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Enrolling in Medicare Part B

Initial Enrollment Period 7 months, beginning 3 months before age 65 (Enrollment automatic if drawing SSA)

General Enrollment Period January 1 through March 31 each year Coverage effective July 1 Premium increases 10% for each 12-month

period you were eligible but did not enroll Pay this penalty as long as you have Part B

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Medicare-Eligible Retired & No Working Spouse

Medicare is your primary coverage. Need to enroll in Medicare

Part A and Part B. Enrolling in Part B later can

result in higher premium and a wait before getting coverage.

All Rockwell Collins Retirees at age 65 must enroll in Part A and B unless your spouse is working and you are covered on their insurance

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Medicare-Eligible and You or Your Spouse Works

Can continue on employer plan Employer’s plan remains primary to

Medicare Employer can’t offer alternatives Don’t need to enroll in Medicare Part B Can enroll in Part B when worker retires

regular premium & no delay in coverage

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Part B for Worker or Spouse Special Enrollment Period For worker or spouse with

Medicare Up to 8 months after worker

retires. (Rockwell Collins Retirees must have insurance through Extend Health with same effective date as your Medicare effective coverage to get HRA and to keep insurance for your under age 65 dependents)

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You might want to delay Part A if

You are working or covered by a working spouse and

the employer plan is a qualified high deductible plan and you have a Health Savings Account

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Your Medicare Coverage Choices

Original Medicare Medicare Advantage

Part A & B Part C = Parts A & B

Part D Drug Benefit Part D Drug Benefit

Medicare Supplement

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Medicare Part A

Home Health

Care

Hospital Insurance

Skilled Nursing Facility

Inpatient Hospital

Hospice

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Part A Inpatient What You Pay (2013)

Days 1-60 Days 61-90 60 Lifetime Reserve Days

You pay all

costs

Deductible $1,184

Daily Coinsurance

$296

Daily Coinsurance

$592

Renewable days

Renewable days

Each day available only

once

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Medicare Part B$104.90 per Month (2013)

OtherServices &

Supplies

DoctorServices

OutpatientHospital & Emergency

Room

Home Health Care

Medical Insurance

DurableMedical

Equipment

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CoveredPreventive Services

Welcome to Medicare preventive visit

Annual wellness visit Abdominal aortic aneurysm

screening Bone mass measurement Cardiovascular screenings Colorectal cancer screenings Diabetes screening Glaucoma tests

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CoveredPreventive Services (Cont) Mammograms (screening) Pap test/pelvic exam/clinical breast exam Prostate cancer screening Flu shots, pneumococcal shots & Hepatitis B

shots Smoking cessation Alcohol misuse counseling Depression screening Obesity screening & counseling Behavioral Therapy for Cardiovascular

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Medicare SupplementInsurance

Health insurance policies sold by private insurance companies

Also called “Medigap” Cover “gaps” in Original Medicare Plan 10 standardized policies Plans A, B, C, D, F, G, K, L, M, N Extend Health has Plans C, D, F, F High

Deductible and N available only Costs may vary

By plan By company Where you live

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Medicare Part D

Available to all people on Medicare Enrolled in Part A and/or Part B Includes those on Medicare due to

disability Don’t need part D if covered by current

bargaining unit contract plan until 1/1/2014 then must have signed up for a Part D PDP (Prescription Drug Plan)

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Initial Enrollment Period (IEP)

New Medicare Beneficiary – can join a drug plan any time during the 7-month period surrounding their Medicare eligibility (Bargaining unit folks must have Medicare A and B effective at time of their normal Medicare Effectivity)

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Annual Coordinated Election Period October 15 – December 7

During the Annual Election Period you can: Change prescription drug plans Enroll in a drug plan for the first time Drop Medicare drug coverage Enroll in a Medicare Advantage plan Change Medicare Advantage plans Disenroll from a Medicare Advantage plan

or Keep your current coverage

O-5

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Monthly Medicare Part D Premiums

Income above: $85,000 individual and $170,000 joint – you will pay a higher

premium

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Late Enrollment Penalty Assessed 1% of base premium* for

every month you were eligible to enroll in Medicare’s prescription drug coverage and did not enroll.

Pay penalty for your life timeExample: Did not enroll in 2006-your

penalty would be 91 months X 1% or 91% X $32.42 per month in penalty or $29.50 per month penalty (penalty goes up each year if National averages go up)

* $32.42 in 2014

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Standard Benefit-What You Pay, 2014 costs

Deductible—cannot exceed $310

Co-payment or coinsurance until you reach the coverage gap (or donut hole)--which is $2,850 in total drug costs (what you pay and the plan pays)

Coverage gap—once you reach the gap, you get a 52.5% discount on brand name drugs and 27% discount on generics; when your true out-of-pocket costs reach $4,550 the gap ends

5% coinsurance after you leave the gap or $2.55/$6.35 whichever is cheaper

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Creditable Coverage Notice

Individuals receiving their prescription drug coverage from an employer, retiree or pre-standard Medicare supplement plan will receive a notice by September 30 each year telling them if their coverage is “as good as or better than Medicare coverage”

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Comparing Part D Plans

Premium

Deductible

Formulary

Cost

Coverage in the Gap

Pharmacy

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How do you compare plans?

Information is Online

www.medicare.gov

SHIIP can help you compare plans! Phone numbers later in presentation

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Medicare Advantage(Part C)

Medicare Advantage Plan

Dr. A

$$

$$

$

$

$

Dr. B Lab

Hospital

Home Health Agency

AmbulanceService Drugs

Medicare $

OtherInsurance

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Medicare Advantage Eligibility

Have Medicare Parts A & B Covers people on Medicare because of

disability

Do not have end-stage renal disease

Live in service area

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Medicare Advantage A Private Solution

Medicare contracts with a private company on an annual basis

Contracts require that plans provide Medicare Part A & B services

The plan handles claims You receive services and make payments

based on the private plan’s rules There are no supplements for these plans

and Medicare supplement insurance will not pay

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Medicare Advantage Out-of-Pocket Costs

Must still pay Part B premium

May pay additional monthly premium

Pay other out-of-pocket costs Different from Original Medicare

Plan Vary from plan to plan

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Medicare AdvantageAnnual Contracts

Contract year is January 1 through December 31

The plan can be renewed, changedor terminated on an annual basis

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Medicare Advantage Types of Plans

HMO-Health Maintenance Organization

POS—HMO with Point of Service Option

PPO-Preferred Provider Organization

Cost Plan

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Medicare HMO/POS

Check that your providers will accept the plan. Generally must get care and services from

plan’s network May have to pay full cost of care outside of

plan’s network POS allows visits to “out-of-network”

providers May need to choose primary care doctor Need referral to see a specialist

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Medicare PPO

Can see any doctor or provider that accepts Medicare with some

exceptions, ask before you go! Don’t need referral to see specialist Don’t need referral to see out-of-

network provider Copayment amounts set by plan

Will usually pay more for out-of-network care

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Initial Enrollment Period

New Medicare Beneficiary – Can join a Medicare Advantage plan any time

during the 7-month period surrounding their Medicare eligibility.

If you are a RC retiree you must enroll via Extend Health with a plan effective on the same date as your Medicare effective date or you will not get the HRA and if you have dependents under age 65, they may have their insurance with RC canceled.

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Protection when Enrolling in a MA Plan

If you enroll in a Medicare Advantage plan when you first enroll in Medicare part B

at age 65 and disenroll within 12

months, you can go to Original Medicare

and get any Medicare supplement offered

in Iowa.

But these changes must be done via Extend Health Counselors to assure HRA.

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Open Enrollment Period

October 15 – December 7

Can choose new plan Medicare Advantage Plan Medicare Prescription Drug Plan Original Medicare Plan

New plan starts January 1

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Medicare Advantage Disenrollment Period

January 1 – February 14 each year Can return to original Medicare Can enroll in a stand alone Part D drug plan Change effective first day of following

month

Again, these changes must be done via Extend Health

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Key Questions when Shopping for MA Plans

Will my doctors, hospital and other medical providers accept payment from the MA plan?

What are the deductibles, co-payments or coinsurance for the benefits I’m most likely to use?

What is the annual out-of-pocket maximum? What is the premium? Do I live in the service area for the plan? Does the plan include prescription drug

coverage?

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For Assistance Call for appointments

Extend Health 1-866-249-9924 UnityPoint Health St Luke’s Hospital SHIIP 319-369-7475 Heritage AAA SHIIP 319-398-5559 or 1-800-332-5934 Mercy Medical Center SHIIP 319-861-7887 Witwer Center SHIIP 319-398-3636 Meth-Wick SHIIP, 319-297-8646 (Meth-Wick Residents

only) Jones County RSVP/SHIIP 319-560-0811 SHIIP Office, Des Moines 1-800-351-4664 Rockwell Collins Retirement Dept. 1-800-236-3071 Family Medical Care Plan (FMCP) 1-877-937-9602

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Thank you for Coming Any Questions

After group questions, we have several SHIIP Counselors situated around the room who will answer your questions one on one