And miscellaneous non-appropriated fund (NAF) activities. Retiree Watch

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1 Individual Mandate And miscellaneous non-appropriated fund (NAF) activities Retiree Watch Healthcare Reform Effective 2014 the Patient Protection and Affordable Care Act (PPACA or Healthcare reform) will implement the individual healthcare mandate which will require every American to purchase and maintain medical insurance or pay a tax penalty at the end of the year. The medical insurance that all Americans purchase must be deemed to meet minimum essential coverage (MEC) for basic healthcare needs. The definition of minimum essential coverage can be found on Federal employer sponsored medical plans have been deemed to meet the MEC standard. Penalties for those without healthcare will start in 2014 and will increase gradually by In 2014 the penalty will be the higher of $95 per uninsured person for each household up to three people ($285) or 1 percent of taxable income. This penalty increases in 2015 to the higher of $325 per uninsured person in a household up to $975 or 2 percent of taxable income. By 2016, the penalty will be $695 per uninsured person, up to $2,080 or 2.5% of taxable income, whichever is greater. There are a few exemptions to the individual mandate. Some of these exemptions are listed below. Certificates for exemptions may be required. This list may not be all inclusive, consult your tax advisor if you feel you may fit into an exemption category. People living below the poverty line Members of certain religious faiths (Amish for example) Members of healthcare sharing ministries (HCSM s) Members of federally recognized Indian Tribes Person who are incarcerated Unlawful presence in the U.S. Health Insurance Marketplace (aka Health Insurance Exchange ) The Marketplace has been developed to assist individuals, without affordable healthcare in finding health insurance that meets individual needs and budgets. Marketplace coverage is only available to those under age 65. For information on the Marketplace visit Open enrollment for coverage through the Marketplace began in October 2013 and continues through March Coverage elected by the designated date* will start as early as January 1, *Enrollment date subject to change as a result of the October government shutdown. Inside this issue: Fall/Winter 2013 Edition Individual Mandate 1 Marketplace Health Plan Changes 2 Aetna HIC 2 Generic Drug Update 3 Effect of Tobacco Use and Obesity on Healthcare Costs Cost of Care on Navigator 4 Direct Billing Premium Statements Are your records up to date 5 Flu and pneumonia shots 5 The PPACA is a dynamic piece of legislation and different portions of the PPACA have been postponed from their initial implementation date. As of the date of the printing of this newsletter, the information provided was still on schedule. Please visit for the most up to date information. In the Next Issue: Healthcare Reform Update 3 4

2 And miscellaneous non-appropriated fund (NAF) activities Pg2 Retiree Watch 2014 NAF Open Enrollment Period The 2014 Health Care Open Enrollment Period is November 4, 2013 November 29, You should have already received your open enrollment newsletter. Forms, summary of Benefits, Summary of Benefits and Coverage, and letters of Credible coverage may all be obtained electronically from During this time period, eligible retirees may change coverage to another available group plan in their geographic area. New enrollments, etc. Do not apply to retirees Health Plan Changes HMO: (In available geographic areas) HMO premiums will increase at varying rates. Check with your HMO for plan changes. Effective 1 January 2014, HealthNet and HMSA HMO s will no longer be offered members in those HMO s will have to elect new coverage. Aetna: To earn the Health Incentive Credit (HIC), Aetna members will be required to complete the Health Risk Assessment ($50 Health Incentive Credit), have an annual preventive exam ($50 additional Health Incentive Credit), and either entering data in to a Personal Health Record or entering data into a Personal Health Record Physical Activity Tracker ($50 additional Health Incentive Credit). *See details below. Medical premiums will increase 3.5%. Dental premiums will remain unchanged. PPO In-network deductible will increase to $400 per person ($1000 family maximum) out-of-network will increase to $1000 ($3000 family maximum). Traditional Choice deductible will increase to $400 ($1200 family maximum). Aetna Health Incentive Credit (HIC) In 2014 Aetna participants will have the opportunity to reduce their deductibles and out of pocket expenses by earning an additional $50 toward their Health Insurance Credit (HIC). The total per member HIC that can be earned in 2014 is $150 (with a family maximum of $450)! Here are the ways you can earn your HIC and reduce your out of pocket costs. More information on your HIC can be found by contacting the toll free number on your ID card or by logging into ACTIVITY Have a Preventive Care Exam (Well Child Exam Dependents Under age 18) Have a Preventive Care Exam (Routine Physical or Well Woman Exam Employees, Retirees and Dependents Over age 18) Complete or update Health Risk Assessment on NEW Completion of Simple Steps to a Healthier Life online program NEW Completion of the Personal health Record Walk-Me-Through Tool NEW Entering data into Personal Health Record Health Tracker NEW Entering data in Personal health Record Physical Activity Tracker NEW Responding to items on the Member Health Engagement Plan (MHEP) HEALTH INCENTIVE CREDIT EARNED $100 each 1 per year $50 each 1 per lifetime $50 each 1 per year In 2014, the In-Network PPO and Indemnity deductibles will be set at $400 for an individual, $800 for a family of two, and $1,200 for a family of three. Out of network PPO deductibles will be $1,000 for an individual, $2,000 for a family of two, and $3,000 for a family of three or more. As mandated by the Affordable Care Act, out of pocket copays, deductibles and coinsurance amounts will apply to the out of pocket limit, starting in 2014.

3 And miscellaneous non-appropriated fund (NAF) activities Retiree Newsletter Pg 3 Generic Drug Update We are please to announce that the use of generic prescription with Aetna members has increased approximately 5.3% since 2012, with about 74.7% of participants utilizing generics. Members that use generics (where available) have an average copayment expense of $8.72 as compared to the average cost of $20 for tier two preferred drugs or average $47.22 for tier 3 (non-formulary/ non-preferred brand name). Copayments are slightly higher for mail order, but are filled at the 90 day refill quantity. Generic Availability scheduled for 2013 MEDICATION PURPOSE ANTICIPATED GENERIC LAUNCH DATE Cymbalta Depression 4th Quarter 2013 Lidoderm Pain 3rd Quarter 2013 Niaspam Cholesterol/Triglycerides 3rd Quarter 2013 Aciphex Heartburn 4th Quarter 2013 Zometa Osteoperosis Launched 3/14/13 The Effect of Tobacco Use and Obesity on Health Care Costs The updated information from the Centers for Disease Control on the cost impact of Tobacco and Obesity on healthcare is staggering, and unfortunately is continuing to increase. The additional medical costs associated with smoking ($17,468,305) combined with the cost of lost productivity due to smoking ($13,392,241) the total is alarming! $34,620,541 is the estimated annual cost burden as a result of tobacco use! This assumes a 20.6% adult smoking prevalence. For Aetna members contact member services at the number on your ID card or go on Aetna Navigator at to obtain information on 100% covered smoking cessation opportunities. In 2011, 383 DoD Aetna members took advantage of the smoking cessation program. We are excited that in 2012 this number increased to 927 members. The financial impact on healthcare as a result of obesity is even more alarming than that of tobacco use. With an estimated 28.2% of the population considered obese, when you add the annual cost of obesity ($31,782,695) with the financial cost of lost productivity ($18,749,729) the combined total of $50,532,424 is astonishing. It s not surprising that the top four disease prevalence of the Department of Defense (Aetna) members include high blood pressure, high cholesterol, gastritis and diabetes, with hearth disease not far behind.

4 And miscellaneous non-appropriated fund (NAF) activities Retiree Newsletter Pg Retiree COLA The Bureau of Labor and Statistics has published the Consumer Price Index statistics that are used to compute the annual cost of living adjustments (COLA) for the Marine Corps Retirement Plan. Effective 1 January 2014 eligible retirees will receive a 1% COLA in their annuity check. Cost of Care on Aetna Navigator Be a smart health care consumer and use the Aetna Cost of Care tool to help you save money. With Aetna s cost of care tool, you can find out what you will pay for common services based on your medical plan by choosing the Member Payment Estimator. You can also Price a drug, compare hospital rates and quality and discover the average costs or medical and dental care in your area. You can even get a personalized estimate and know what you will pay for your health care before you go. Just log on to Aetna Navigator and click on Cost of Care on the left menu bar to get started at *COLA is not applicable to disability retirements or pre-retirement survivor spouse annuities. Direct Billing Premium Payments* Tired of mailing your monthly insurance premium payments? By now you should have received notice of the great enhancements coming to the monthly premium payment process. The Marine Corps has entered into an agreement with PayFlex Systems USA, Inc. (PayFlex) to administer the monthly insurance billing and payment collection process for marine Corps NAF Retirees. What does this mean to you? Effective September 1, 2013, your monthly insurance premium statement (coupon) stopped being sent by Headquarters (MRG). Your monthly billing coupon is sent to you directly by PayFlex. You are required to remit your payment to PayFlex, by the due date. How will this benefit me? In addition to making payments via personal check, PayFlex offers you the opportunity to have your premiums paid via an automatic premium bank draft or you have access to an online account that will allow you to make online payments. Contact Information Make sure your address is up to date with us as well as your health care provider. If you move, remember to notify us of your new address to ensure important mail and information can be delivered promptly. Don t forget to ensure your phone number is updated. If you have an address, make sure you provide it to us. *This benefit only applies to retirees who were eligible for insurance continuation and annuities are not sufficient for premium deductions. If you have cancelled, or no longer eligible for insurance benefits, please disregard as this does not constitute entitlement to benefits. Failure to remit payments on time will result in the irrevocable cancellation of coverage.

5 IMPORTANT CONTACT INFORMATION: Semper Fit and Exchange Services Division (MRG) Headquarters, U.S. Marine Corps 3044 Catlin Avenue Quantico, VA Annuities - Phone: gabriele.neuner@usmc-mccs.org 401(k) - Phone woodsonc@usmc-mccs.org Insurance - Phone: edentonlr@usmc-mccs.org And miscellaneous non-appropriated fund (NAF) activities Visit us on the Web at: benefits Are your records up to date at Headquarters (MRG)? During 2013, the number of retirees failing to notify Headquarters (MRG) of address changes grew dramatically. If retirement statements are returned by the Post Office as undeliverable, the retirement statement will be suspended. If we are unable to locate you your monthly annuity will be stopped until proof of your correct address is received. Your signature on the address change form will be required. Updated phone numbers and addresses are also critical. Is your beneficiary up to date? Unfortunately, during 2013 we have also had a large number of retirees that failed to notify us if a beneficiary or spouse passed away. Please be sure to review your beneficiary designations. Are the flu and pneumonia shots really necessary? Talk to your doctor. He or she is the best resource for what you and your family need. The doctor will tell you if you should get one, both or none of these vaccines. The flu vaccine guards against the flu, a virus that can cause respiratory infection. The flu spreads quickly. It can strike large amounts of people in a short period of time and can lead to pneumonia and other complications. This is why the health community urges most people to get the flu vaccine. It s best to get the vaccine: Every year. That s because the virus that causes the flu changes its form. The vaccine you get each year is new. Developers update it to protect against the new strains. In October or November. But getting it in December and January also affords protection since flu season can last as late as May. The pneumonia shot protects against pneumococcal disease. Pneumococcus is a bacteria that can cause, Pneumonia (infection in the lungs), Bacteremia (infection in the blood) and Meningitis (infection in the coverings of the brain and spinal column). These infections are serious and can be deadly. Most at risk are infants and toddlers, adults over age 65, and people with certain medical conditions. Get the pneumonia shot only if your doctor recommends it. Find out more about flu and pneumonia shots: Visit the Aetna InteliHealth website at Access When You Need It Want up-to-date information on your benefits? Would you like to receive alerts about upcoming changes? Like us on Facebook ( Follow us on Twitter (@MCCS_HQ_HR), visit our website ( or scan here with your smartphone: IMPORTANT: Please note that not all benefits will pertain to all retirees. If you were not eligible for, declined to continue, or have cancelled participation in a benefit, some articles may not apply.

6 HQ UNITED STATES MARINE CORPS SEMPER FIT AND EXCHANGE SERVICES DIVISION (MRG) 3044 CATLIN AVENUE QUANTICO VA MR JOE RETIREE 1234 RETIREE LANE RETIREE NEWSLETTER, VA POSTAGE