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This presentation is copyrighted © exclusively by Emeriti
2013 Benefits
THE EMERITI PROGRAM for those planning for retirement
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Medicare and Emeriti’s Health Insurance and Reimbursement Benefit
Your Institution’s Commitment
Giving you a tax-free way to pay your health care expenses in retirement
Providing access to group health insurance when you retire
Offering tax-free reimbursement for other health care expenses
Keeping you informed about retiree health care issues along the way
Your Institution is:
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Comprehensive Retirement Security
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403 (b) Retirement Plan
Accessible for general retirement expenses
Retiree income distribution is taxable
Beneficiaries
Assets passed to the estate
501 (c) (9) – VEBA Retiree Health Plan
Dedicated to health-related retirement expenses
Retiree health benefit distributions are tax-free
Dependents
Assets passed on for mutual benefit of the plan
Emeriti’s Core Benefit Components
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• Tax-advantaged savings and investment vehicle, via VEBA Trusts, for payment of future medical expenses in retirement
Emeriti Health Accounts
• Portable group retiree health insurance options building on the foundation of Medicare
Emeriti Health Insurance
• Tax-free reimbursement of other qualified medical expenses not covered by Medicare or Emeriti insurance options
Emeriti Reimbursement
Benefits
Emeriti
TIAA-CREF
Accumulation Recordkeeping Trust Services Investment
Management
Proprietary Mutual Funds
Non Proprietary
Mutual Funds
Savitz
Disbursement Recordkeeping
Insurance Premiums
Qualifying Medical
Expenses
Debit Card Manual Claims
Aetna
Retiree Health Plans
HealthPartners
Retiree Health Plans
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Emeriti’s Service Providers
Source: EBRI estimates from the 2009 Medical Expenditure Panel Survey.
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Out-of-Pocket
13%
Private Insurance
14%
Medicare 59%
Other 14%*
*VA, Tricare, other private, Medicaid, other.
Medicare is Not Enough
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What Are You Saving For?
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Medicare
• Part B premium• Part A deductible• Part B deductible• Part D deductible• Part D Coverage Gap
cost share• Part D True Out-of-
Pocket) TrOOP
Supplemental Insurance
• Premiums• Plan deductibles• Co-pays and
co-insurance
Out-of-Pocket Expenses
• Vision• Hearing• Medical equipment• Long-term care• Nursing home
• Medicare provides these coverages • You have your choice of doctors & providers
Part A (Hospital) and Part B (Medical)Original Medicare
• Private insurers approved by Medicare provide Parts A & B coverage
• You may get extra benefits
Part C Medicare Advantage, PPO Plan
• Private insurers approved by Medicare provide coverage • Different plans cover different drugs at different levels• You can choose from a range of plan designs
Part D Prescription Drug
How Medicare Works
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• Guaranteed issue group health insurance coverage
• Portable, nationwide access
• A flexible menu of insurance options
• Annual choice among plans
• Catastrophic protection
• Part D prescription drug coverage
• Foreign urgent or emergency care*
• Preventive care**
Advantages of Emeriti Post-65 Insurance
*Available in some plans.** Varies by plan.
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Emeriti’s group plans build on the foundation of Medicare.
How Do You Access Medicare and Emeriti Health Insurance
NOTE: Consult your Summary Plan Description for details.
After age 65 When you retire After enrollmentin Medicare Parts A & B
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Permanently disabled children**
Dependent children (before majority, to age 26)
Domestic partner (pre- or post-65) depending on your plan*
Available for Participant & DependentsParticipant’s dependents include:
Who Can Use Emeriti Health Insurance
Spouse (pre- or post-65)
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NOTE: The employer’s plan establishes specific rules for vesting in the Emeriti account balance and retirement eligibility for the Emeriti insurance.
*Domestic partners’ coverage is available only if elected by the institution. Independent domestic partners pay for insurance outside of the Health Account.
**Determination of permanent disability also confers access to post-65 insurance for these individuals. Disability must occur before majority.
Post-65 dependents must enroll in same coverage as participant
Emeriti Insurance Choices for 2012
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One Medicare coordination plan
Two Medicare supplemental plans (availability based on state approval)
One Medicare Advantage PPO (Extended Service Area (ESA) available for geographical areas outside Aetna’s network)
Rx High Plan – continuing coverage in coverage gap
Rx Mid Plan – generic coverage only in coverage gap
Rx Low Plan – no coverage in coverage gap
One dental plan
Emeriti Group Medical Plans
Emeriti Rx Plans*
Emeriti Dental Plan
PLEASE NOTE: Emeriti will offer Aetna Group Medicare Supplement Insurance (GMS) Plans A and L to retirees living in Florida.
STEP 1
Create Your Own Plan
STEP 2 STEP 3select a medical plan select an Rx plan Consider the optional dental plan
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Or Preserve Your Options
Choose Rx Low Plan as stand-alone option
Select Rx Low Plan
Add dental to the Rx Low Plan if you wish
Consider Dental
Selecting an RX Low Plan allows you to remain in the Emeriti Program and permits you to change coverage in future years.
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Emeriti’s Other Program Components
Emeriti Health AccountsA tax-advantaged way to save and invest for future medical expenses.
Note: ACH savings option will be available in 2013.
Emeriti Reimbursement BenefitsA tax-free method for you to pay for other qualified out-of-pocket medical expenses not covered by Medicare or Emeriti insurance.
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Reimbursement Benefits at Work
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Manually submit claims to Savitz:• Mail• Fax• Upload through Participant Benefits Dashboard
(MyEmeritiBenefits.org)
Debit card option in development for 2013
Reimbursement Benefits will be paid from participant’s balance in the Money Market Fund.Participants may transfer lump-sum amounts or set-up monthly systematic transfers in amounts of $100 or more.
For expenses incurred after termination
NOTE: A wide range of health care expenses are eligible for tax-free reimbursement as long as they satisfy
the requirements of Section 213 (d) of the IRS Code.
How You Can Use Your Reimbursement Benefit
Emeriti Reimbursement Form available on MyEmeritiBenefits.org
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Partial List of UsesMedicare premiums and cost sharesSupplemental insurance deductibles, co-insurance, co-pays Vision, dental, hearing care Over-the-counter and non-formulary drugs (with Rx prescription from doctor) Medical equipment Long-term care insurance Medical expenses associated with nursing or in-home health care servicesOther post-65 and pre-65 insurance premiums (if Emeriti coverage is not elected)
Dependent relatives depending on your plan
Permanently disabled children
Dependent children (before majority, to age 26)
Domestic partner (pre- or post-65) depending on your plan
Available for You & Your DependentsParticipant’s dependents include:
Who Can Use Your Reimbursement Benefits
Spouse (pre- or post-65)
Consult your summary plan description for details
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• Lifecycle funds• Asset diversification among asset classes• Automatic rebalancing
TIAA-CREF Lifecycle Funds
(Retirement Class)
• A money market mutual fund• Seeks to assure the value of your investment at $1
per share
TIAA-CREFMoney Market Fund
(Retirement Class)
• Some TIAA-CREF proprietary funds• Some non-proprietary funds from other mutual fund
families
Additional Mutual Funds – based on
institution’s election
Investment Options in 2013
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CORE FUNDS
CORE PLUS FUNDS
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ESSENTIAL SERVICES
Call toll-free:1-866-EMERITI(1-866-363-7484)
Monday – Friday9:00AM to 5:30PM (ET)
• Annual workshops on campus
• National teleconferences
• Investment statement
• Benefits statement
• When you are saving
• When you are nearing retirement
• When you are using retiree health benefits
• Initial age-in kit at Medicare eligibility
• Annual insurance enrollment kit, thereafter
In print | In person | On phone
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DIGITAL SERVICESOnline: access via EmeritiHealth.org
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DIGITAL SERVICES
• At-a-glance benefits website
• Register at MyEmeritiBenefits.org
• Check your Emeriti Health Account balance
• Log-in at tiaa-cref.org
• Comprehensive Program website
• Visit EmeritiHealth.org
• Online resource for insurance benefits and health information
• Check your insurance claims
• Order prescriptions online
• Access via EmeritiHealth.org
• Detailed investment information
• Prospectuses, fund fact sheets, performance reports
• Website in development
Online: access via EmeritiHealth.org
• Online resource for insurance benefits and health information
• Access via EmeritiHealth.org
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Log-in at TIAA-CREF.org • Investment choices• Account balances• Contribution history• Recent transactions
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TIAA-CREF Quarterly Statement - Investments Savitz Quarterly Statement – Benefits
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Register today at MyEmeritiBenefits.org• Health Account balances
• Health Insurance enrollments
• Reimbursement Benefit transactions
How to Use the Emeriti Service Center
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1-866-Emeriti
Thank you for calling Emeriti
Please listen carefully, as our menu has changed.YOU WILL HAVE 3 CHOICES
For information about Insurance Enrollment,
press 1
For information about the Reimbursement Benefit,
press 2
For information about the Health Accounts,
press 3
Status of 2012 Services Commitments
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• Improved Emeriti Service Center: 9am – 5:30pm ET 1-866-EMERITI• Dedicated Emeriti representatives• Improved warm transfers
• Enhanced reimbursement benefit options:• Manual claims can be submitted via direct mail, fax, or uploaded to participant benefits dashboard,
starting in January• New debit card option in development for 2013
• Online participant dashboard:• At-a-glance summary of Health Account activity, insurance plan information,
and reimbursement benefit transactions.
• Enhanced menu of investment funds and institutional Microsites:• Proprietary and non-proprietary fund choices• Microsites in development for 2013
• Quarterly statements:• Investment statement from TIAA-CREF• Health insurance and reimbursement benefit statement from Savitz
• Improved suite of life-stage communications for participants:• Retired participants• Participants nearing retirement• Younger active participants – in development for 2013
• Improved ACH savings opportunity from personal bank accounts:• Recurring and periodic lump sum savings option – in development for 2013
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Emeriti Program Fees
Fees Actives Retirees*
Emeriti $5.00 $5.00
TIAA-CREF $ .67 $ .67
Savitz $1.00 $6.00
Investment management fees are variable by selected mutual funds (see prospectuses)
Monthly Participant Fees
*Also applies to vested terminated employees
Your employer may cover all or some portion of the service fees. Check with your institution’s benefit administrator if you are uncertain.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
Summary Plan Description (SPD)This presentation is intended to provide you with a brief summary of some of the details of your Employer’s Emeriti Plan and the Emeriti Program. For a full summary of the terms of your Employer’s Emeriti Plan you must consult the SPD, which will be provided to you upon enrollment or upon request.
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Emeriti Retirement Health Solutions provided this information and is responsible for its content. Emeriti, TIAA-CREF, Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations and are not legally affiliated.
The retirement healthcare program is offered by the employer. Teachers Insurance and Annuity Association (TIAA) will provide services to the plan and make available investment options. TIAA-CREF Trust Company, FSB provides investment management and trust services.
Investment Adviser StatusEmeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options for the Emeriti Program, selecting the investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to plan participants. Emeriti does not provide advice to participants about their individual investment selections.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under various state securities laws. The offering of these Interests is subject to compliance with any applicable state law. For residents of Georgia, the Interests are being offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the “Georgia Act”). The Interests may not be sold or transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.
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Addendum
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$200 Deductible
20% coinsurance
$1,250 out-of-pocket limit
$0 Deductible
25% coinsurance
$2,330 out-of-pocket limit(subject to change based on 2013 CMS guidelines)
$0 Deductible
50% coinsurance
$4,660 out-of-pocket limit (subject to change based on 2013 CMS guidelines)
$300 Deductible in-network $500 Deductible out-of-network
15% coinsurance (in-network)25% coinsurance (out-of-network)
$2,750 out-of-pocket limit (in-network) $5,500 out-of-pocket (out-of-network)
*For 2013, the SRM Plans are not available in VT, MN, and America Samoa.
After plan deductible is satisfied, plan payment in full on Medicare eligible costs.
Emeriti Group Medical Plan Options in 2013Underwritten by Aetna
Payment based on the balance after Medicare’s payment.
Payment based on the balance after Medicare’s payment.
Payment based on total Aetna allowable cost.
Aetna Supplemental Retiree Medical Plan L*
Aetna Supplemental Retiree Medical Plan K*
Aetna Medicare Advantage - PPO/ESA-PPOAetna Traditional Choice
100% preventive care covered by Medicare
100% preventive care covered by Medicare
100% preventive care covered by Medicare
100% preventive care covered by the Plan
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NOTES: The ESA-PPO Plan has the same benefits as the In-Network PPO Plan.
Aetna’s GMS Plans A and L will be offered in Florida in place of SRM Plans K and L.
Age banded Age banded Age banded Community rated
Retiree Cost Share for Typical Doctor’s Visit Bill of $100
Trad. Choice SRMP L SRMP K MA-PPO/ESA
Charge
Medicare Pays
Aetna Pays
You Pay
$100
$80
$20
$0
$100
$80
$15
$5
$100
$80
$10
$10
$100
$0
$85
$15
NOTE: Illustration assumes any annual plan deductibles have already been satisfied for the plan year.
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You pay first $325 as deductible
You pay 25% of drug costs
You pay 97.5% of brand drugs
You pay 79% of generic drugs
You pay 5%
Deductible Initial Coverage Period
Coverage GapCatastrophic Coverage
You reach Catastrophic Coverage at $4,750 in true out-of-pocket costs.
You reach the Coverage Gap at $2,970 in total Part D covered drug expenditures (includes plan deductible, your costs and plan costs in the Initial Coverage Period).
Four Components of Part D Benefit
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YOU PAY FIRST $325 AS DEDUCTIBLE
PLAN PAYS 75% OF DRUG COSTS($1983.75)
YOU PAY 25% OF DRUG COSTS($661.25)
YOU PAY 97.5% OF BRAND DRUGS AND 79% OF GENERIC DRUGS($3763.75)
PLAN PAYS 95%
YOU PAY 5%* Greater of $2.65 or 5% for covered generic (including brand drugs treated as generic) drugs. Greater of $6.60 or 5% for all other drugs.
DeductibleInitial Coverage Period Coverage Gap
Catastrophic Coverage
You reach Catastrophic Coverage at $4,750 in true out-of-pocket costs. This threshold includes plan deductible, your 25% cost share during Initial Coverage Period, and your 97.5% cost share for brand drugs and 79% cost share for generic drugs in the Coverage Gap.
You reach the Coverage Gap at $2,970 in total Part D covered drug expenditures (includes plan deductible, your costs and plan costs in the Initial Coverage Period).
Standard Medicare Part D in 2013
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Standard Formulary
$325 deductible
Initial Cov Limit Retail:
15% - 30%
Coverage Gap: no coverage*
Catastrophic Cov: 95% coverage
Step therapy required for some drugs
Open Formulary
$100 deductible
Initial Cov Limit and Coverage Gap Retail
15% - 30% - 40%
Coverage Gap: full coverage
Catastrophic Cov: 100% coverage
No Step therapy required
Open Formulary
$100 deductible
Initial Cov Limit Retail
15% - 30% - 50%
Coverage Gap: generic coverage only*
Catastrophic Cov: 95% coverage
Step therapy required for some drugs
The Medicare Coverage Gap Discount Program provides a 50% manufacturer discount on brand drugs in the Coverage Gap for all Rx plans for participants not already receiving “Extra Help.”
Rx Mid PlanRx Low Plan
Rx Coverage Remains Unchanged in 2013Underwritten by Aetna
NOTES: Members who use Aetna’s Rx Home delivery Mail Order Drug (MOD) program will pay a reduced percentage of the negotiated cost of the drug as compared to retail.
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*Participant has 79% cost sharing limit on generic drugs in Coverage Gap (Rx Low Plan), and 2.5% plan cost sharing on brand drugs in the Coverage Gap (Rx Mid Plan and Rx Low Plan).
Rx High Plan
Geographically rated Geographically rated Geographically rated
CMS 21% Mandate in the Coverage Gap
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For generic drugs in the Gap (one month supply obtained at in-network retail pharmacy):
Sample Generic - $30 Rx Low Plan Rx Mid Plan Rx-High Plan
Your Cost Share 79% 15% 15%
You Pay $23.70 $4.50 $4.50
All costs above are illustrative. Table reflects cost sharing between plan Initial Coverage Limit and TrOOP threshold for members not eligible for low income cost sharing subsidies .
CMS 2.5% Mandate in the Coverage Gap
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For eligible brand drugs in the Gap (one month supply obtained at in-network retail pharmacy):
Sample Brand - $100 (Preferred Brand)
Rx Low Plan Rx Mid Plan Rx High Plan
Pharma Cost Share 50% Manufacturer Discount on total cost of drug
50% Manufacturer Discount on total cost of drug
50% Manufacturer Discount on total cost of drug
Plan Cost Share 2.5% of $100 total drug cost
2.5% of $100 total drug cost
Plan pays balance, after your 30% cost share
Your Cost Share 47.5% 47.5% 30% of total drug cost
You Pay $47.50 $47.50 $30
All costs above are illustrative. Table reflects cost sharing between plan Initial Coverage Limit and TrOOP threshold for members not eligible for low-income cost sharing subsidies. There is also a dispensing fee.
Preventive Service Coverage 100%
Annual Deductible (basic and major services) $100
Basic Services Coverage(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage(e.g. root canal therapy, surgical removals, dentures)
50%
Annual Benefit Maximum $1,500
Rate Structure Community rated
NOTES:
1.Twelve month waiting period applies, but may be waived with evidence of continuing coverage.
2.One-time only opt-in opportunity.
3.Dental is only available when you enroll in a combination Medical/Rx coverage, or elect the stand-alone Rx Low Plan
4. Please note: in the states of CA, OR, WA*, the stand-alone Dental plan may be elected if the participant is enrolled in a Kaiser Permanente MAPD Plan, and with evidence of existing coverage.
Aetna Dental Coverage in 2013
Dental Design
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