Creating Your Path— Focusing on Your Future Retiree Health Care BB&T | August 2014

Creating Your Path—Focusing on Your Future Retiree Health Care

BB&T | August 2014

Aon Retiree Health ExchangeProprietary & Confidential | 03769 AHN RET.PPTX/046-S8-01859 07/17/2013 2

Content

New Delivery Model for Medicare-Eligible Retirees


Overview of Retiree Benefit

For all BB&T retirees and spouses of retirees 65 or older: If you are over age 65 and your spouse is under age 65, you may elect to cover your spouse through

the BB&T Retiree medical coverage (Select or Consumer options ) through BCBS NC. BB&T will draft your account for the pre-65 coverage

If you elect the BB&T Retiree Life Insurance, BB&T will draft your account for the premium You may have 2 different enrollment periods:

– BB&T open enrollment for pre-65 Health care and for Life Insurance in November If you and your spouse are both 65 or older, you will each make an election with Aon Retiree Health

Exchange for your Medicare Supplement coverage and will be billed separately for coverage

Support for Medicare-Eligible Retirees


Introducing Aon Retiree Health Exchange

An independent insurance exchange Offers Medicare insurance plans from quality carriers

– Financially stable– “Staying power” in the marketplace– Name brands such as AARP, Blue Cross and Blue Shield, Humana, and United Healthcare

Broad range of products to meet individual needs Employs licensed and certified benefit advisors

– Are salaried; no incentive to steer individuals to specific carriers and/or plans for you!– Benefit advisors are licensed, certified, and experienced in Medicare related insurance. – Will assist you through the entire process and will remain your advisor ongoing


Why Aon Retiree Health Exchange?

Aon Retiree Health Exchange is one of the nation’s most trusted advisors in navigating Medicare—it’s advice you can count on

We have a reputation for providing expert, independent assistance to Medicare recipients who expect and deserve high-quality health insurance at an affordable price

Aon Retiree Health Exchange presents complex health insurance information in an objective manner via its Internet site and trained and licensed insurance professionals

The Benefit Advisors are located in Lincolnshire, Illinois, Charlotte, North Carolina, Orlando, Florida, The Woodlands, Texas and Winston-Salem, North Carolina

Medicare-Eligible Retirees


Enrollment Process for Medicare-Eligible Retirees

Getting Started Confirm your appointment Read materials in the education kit or online Collect the following:

– Medicare card– List of doctors– List of medications

Learn/Compare/Enroll Talk with your benefit advisor Complete necessary paperwork Enroll over the phone


2014 Medicare Part A (Inpatient Hospital Care)

What Is Covered

Part A covers part of the following services: Inpatient hospital care Inpatient care in a skilled nursing facility

(not custodial or long-term care) Hospice care services Home health care services Nursing home care

What You Pay

Enrollment in Medicare: Part A is automatic for most people who have

worked 40 quarters in their lifetime Deductible: $1,216 per benefit period

– A benefit period starts the day you leave the hospital and lasts 60 days


2014 Medicare Part B (Outpatient Hospital and Doctor Care)

What Is Covered

Outpatient care– Doctors’ visits– Outpatient hospital– Lab services

Preventive care Emergency room visits Mental health Ambulance Lab tests

What You Pay

Premium: $104.90 – Social Security determines the premium

amount based on the last 2 years of taxable income

Deductible: $147 Coinsurance:

– Medicare pays 80%– Participant pays 20%


Current Plan

Government-Funded

Original Medicare

Part A(covers

hospital stays)

Part B(covers doctors and

outpatient visits)

Medicare Supplement Plan + Rx Drug Coverage (Optional)


Medicare Insurance Plan Options

+

Keep original Medicare and add:

Medicare Supplement Insurance

Medigap(covers some or all of the costs

not covered by Part A or B)

Offered by Private Companies

Replace Original Medicare with

Medicare Advantage

Part C(combines Part A and B

and may include prescription drugs)


Medicare Part D

Part D(covers

prescriptions)


OR

And/Or If Part C of your plan does not include prescriptions,

consider adding Part D.

MEDIGAP

Government-Funded

Original Medicare

Part A(covers

hospital stays)

Part B(covers doctors and

outpatient visits)


Medicare Supplement (Medigap) plans

Medicare Supplements supplement the Medicare coverage you already have– Medicare remains your primary; your Supplement is your secondary

With Medicare Supplement plans, you can go to any doctor, any medical facility in the country as long as the doctor/medical facility accepts Medicare and the service is Medicare approved (similar to what you currently have)

Plans are all federally regulated– Plans come with a range of coverage—Plans A through N

• Plan F has highest level of coverage Covers your deductibles and out-of-pocket expenses left over by Medicare

– Plans from company to company are the same—only difference is price• Prices vary by company, age, and service area

Current group supplement is similar to Medigap Plan F—except for Part B deductible

In the open market, there are options known as Medicare Supplements.

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Medicare Supplement Chart

For illustrative purposes only.

Features A B C D F G K L M NMedicare Part A Coinsurance and Hospital Costs (up to 365 days after Medicare Benefits are used up)

Medicare Part A Hospital Deductible 50% 75% 50%

Skilled Nursing Facility Care Copay/Coinsurance 50% 75%

Part A Hospice Care Coinsurance or Copayments 50% 75%

Medicare Part B Deductible

Medicare Party B Coinsurance (Generally 20%) 50% 75%

Medicare Part BExcess Charges

Blood(First 3 Pints) 50% 75%

Foreign Travel Emergencies(up to Plan Limits)


Guaranteed Issue of Coverage for Medicare Supplement (Medigap)

“Guaranteed issue” means that during this special election enrollment period for retirees, you’re automatically accepted by the insurance plan without having to answer medical questions– You have guaranteed acceptance into any Medicare Supplement Plan, regardless of any

pre -existing health conditions Enrolling in a Medicare Supplement Plan after this period, in most states, requires approval from the

insurance company This is a one-time chance for those age 65 and older

– For those turning age 65 in the future, you have the same opportunity during your initial enrollment

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2014 Medicare Part D Plans(Prescription Drug Coverage)

100% Paid by ParticipantDeductible $310

75% Paid by Plan25% Paid by Participant

Initial Coverage Level $2,850 Limit

The Donut HoleExit at $4,550

BRANDS:(50% Discount)

GENERICS:72% Paid by Participant

28% Paid by Plan

47.5% Paid by Participant

2.5% Paid by

Plan

15% Paid by Plan80% by Medicare5%

Catastrophic Coverage


Medicare Advantage Plans (Part C)

Obtain Medicare Parts A/B coverage through the Medicare Advantage Plan, not Original Medicare Must pay:

– Part B premium– Medicare Advantage Plan premium (if any)– Copays/coinsurance and deductibles, as applicable

Network-based:– PPO, HMO, HMO-POS, PFFS

Medicare Advantage Plans may offer extra coverage:– Vision, hearing, dental, health/wellness programs

Most plans include prescription drug coverage (Part D)


Choosing a Medical Plan Comparison

Supplement Plan (Medigap)

Can be higher premium/low to no cost on the back end

Can go to any doctor or medical facility in the country that accepts Medicare

Does not include prescription drugs Most plans include foreign travel emergency

coverage Guaranteed issue under certain circumstances

Medicare Advantage (Part C)

Low to no monthly premium/Pay as you go Network based plans/HMOs, PPOs Typically includes prescription drugs copays,

coinsurance, and deductibles No medical underwriting


Choosing a Medical Plan

Even if you and your spouse are both Medicare-eligible, your health needs may differ—each eligible person can choose a medical or prescription drug plan

You may change your Medicare Advantage and Part D plans every year during the Annual Enrollment Period (AEP) October 15–December 7

You may change your Medigap plan at any time during the year. However – you may be subject to underwriting

Initial Enrollment Period (IEP) – Newly Eligible Tricare and VA coverage


Choices to Meet Retirees’ Needs

Prefilled Paper Many retirees prefer to

review printed materials before making decision

Paper applications accepted via prepaid envelopes or fax

Telephonic Enrollment Highly trained benefit advisor

guides retirees through process

Retirees work with same benefit advisor throughout process (if desired)

Enrollments can be completed over the phone with telephonic signature

Preferred method—98%

Online Detailed summary of benefits

information Comparison of current plan

and alternate plans Online plan application

collection up to signature requirements

www.retiree.aon.com/bbt


Conveniently Paying for Your Coverage

Two options: Pay your health insurance premium by check each billing period

or Have your premium automatically withdrawn from a checking or savings account

– Most insurance providers allow automatic withdrawal as a convenient alternative to paper checks


Retiree Health Reimbursement Account (HRA) Highlights

Retiree HRA can only be used for reimbursement of eligible premiums for Medicare Supplement, Medicare Advantage, and/or Medicare Prescription Drug Plan, Medicare Part B and D coverage (including Part D penalties paid or surcharges) – Any additional premium expenses for the year would be paid by you


Premium Billing and HRA Reimbursement

Pays insurance premiums directly to carrier

Reports premium payments to Aon Retiree Health Exchange

Aon Retiree Health Exchange

Reimburses retirees for premiums

CarrierRetiree


Premium Billing and Manual Claim HRA Reimbursement

Pays insurance premiums directly to carrier and completes manual claim form each month for eligible expense and submits to Aon Retiree Health Exchange/Your Spending Account™

Aon Retiree Health Exchange

Reimburses retirees for premiums

Retiree receives premium increase from carrier and fills out amanual claim form for premium increase and submits to Aon Retiree Health Exchange/Your Spending Account

Retiree

Retiree


Advocacy—The Solution

Retirees Need Assistance

Access to care and prescription drugs Claim denials and incorrect payments Billing disputes Authorization and referrals Medicare coordination

Advocacy Services

Pioneered service in 1999 200 clients 3.6 million participants Advocates average 18 years of industry

experience


PROBLEM SOLUTIONSROOT CAUSE

Medicare Advocacy Examples

Receiving unexpected bills from rheumatologist

Provider miscoded diagnosis and CPT code; as a result, charges were not eligible for Medicare reimbursement

Medicare denied a claim, indicating Medicare was not the primary payer

Retiree did have additional coverage; however, Medicare was primary

Medicare denied claim as not medically necessary

Advocate worked with provider to correct and refile bill with Medicare

After bill was reprocessed, advocate communicated accurate liability to retiree

Advocate facilitated refiling claim with Medicare, then forwarded EOBs to health plan for secondary payment

Advocate collected medical records and forwarded them to Medicare

Once approved, advocate made arrangements for home delivery of wheelchair

Medicare denied a retiree’s request for a wheelchair

Erroneous CPT code

Incorrect Medicare

claim denial

Access to wheelchair


Website

Visit retiree.aon.com/bbt On the website, you can:

– Confirm your appointment– Change you appointment– Add your prescriptions– Compare plans– Create a unique user ID

http://www.retiree.aon.com/bbt

http://www.retiree.aon.com/bbt


Website retiree.aon.com/bbt

Proprietary & Confidential

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Educational and Informative Content


Quick and Easy Plan Entry


Guided Tools, Including Personalized Rx Calculations


Simplified Browsing Experience


Side-by-Side Comparison Shopping—Comparing Apples-to-Apples


Prescription Profiler

Questions?

If you have questions:

Call Aon Retiree Health Exchange at +1.888.628.2393

Documents

Creating Your Path— Focusing on Your Future Retiree Health Care BB&T | August 2014