Re-evaluation of plan offerings after 10 years Providing more options Cost to retiree Customer service Cost to administer Allow service credits to be

Transcription

1 August 25, 2017

2 Re-evaluation of plan offerings after 10 years Providing more options Cost to retiree Customer service Cost to administer Allow service credits to be fully utilized

3 Group Plan Offerings Medicare Advantage HMO Plan Restricted network and referrals Stand Alone Prescription Drug Plan (Part D) No coverage gap (or donut hole ) Individual Plan Offerings AARP Supplemental Plan (Plan F) No out of pocket expenses Part K Plan

4 Rx only 23% HMO 9% Plan K and Rx 3% Plan F only 20% Plan K 1% Plan F and Rx 44%

5 Group Plan Offerings Prescription Drug Plan (Part D) Medicare Advantage PPO Plan with Extended Service Area Premium (Includes Parts A, B, D and F) Standard (Includes Parts A, B, D and K) Individual Supplemental Plan Offering AARP Supplemental Plan (Part F)

6 Group Plan Offerings Underwritten specifically to a group Offer the same rate to all members Individual Plan Offerings Premiums are underwritten to incorporate risk Age Tobacco usage Health factors U.S. Location

7 Current Medicare Advantage HMO Plan Quoted 2018 Rate - $ New Medicare Advantage PPO Premium Plan - $ Medicare Advantage PPO Standard Plan - $ Note: HMO plan design is different in that referrals are needed and network is narrow

8 Note: If you are not enrolled in Part D or a creditable drug program, you may be subject to the Medicare Part D late enrollment penalty Current Offering 2018 Rate $ New Offering 2018 Rate $ Plans purchased on the open market have a coverage gap (donut hole)

9 Does not apply to the current plan through UHC or the plans offered by Aetna (including the Advantage plans) Plans purchased on the open marketplace are typically subject to this coverage gap (which is why they are cheaper) Retiree pays through the Tier and co-pay structure at the beginning of the year The cost of the drugs are accumulated by Medicare and once the cost of the drugs reaches $3,700 (the cost, not your portion paid), then you start paying a higher coinsurance of the drugs For example, if you reach $3,700 in drug costs, the next time you fill a prescription, you will pay around 40 50% of the cost of the drug. Once you hit $4,950 in out of pocket charges, you move out of the donut hole or coverage gap and into catastrophic coverage. The co-insurance/co-pay structure will then resume

10 Current Part F Ranges in rate from $138 - $450/month* Current Part K Ranges in rate from $62 - $85/month* Stand Alone Part K will no longer be offered due to low enrollment AARP Plan will continue to be offered in 2018 Rate increase will take effect in July and will be dependent upon demographic information *These rates include any discount received upon initial enrollment with AARP which reduces over time

11 Service Credits $11/month per year of service (minimum of 10 years, maximum of 30 years) Service credits will apply towards Prescription plan first, then to Part F Retirees without service credits may still participate Spouses may also enroll Spouses will be responsible for the full rate

12 2018 Monthly Rates under current offerings: Part F - $178* Part D - $206 Less: ($330) Total $ Best Option under new offerings: Part F - $178* Part D - $182 Less: ($330) Total $30 John saves $288 annually. * Part F increases in July (amount of increase is unknown)

13 2018 Monthly Rates under current offerings: Part F - $261* Part D - $206 Less: ($308) Total $ Best Option under new offerings: Adv. Premium^ $399 (Part F & D) Less: ($308) Total $ 91 Sandra saves $816 annually. *Plan F increases in July (amount of increase is unknown) ^Advantage Premium includes Part F and D (Rx)

14 2018 Monthly Rates under Current Offerings: HMO Plan $367 Less: ($110) Total $ Best Option under new offerings: Adv. Standard Plan* $224 Less: ($110) Total $114 *Advantage Standard Plan includes Part K and Part D (Rx) Retiree may opt for the Advantage PPO Premium Plan as an alternative Elvis will save $1,716 annually. That s a lot of peanut butter & banana sandwiches!

15 2018 Monthly Rate under current offering: Part D $206 Less: ($187) Total $19 For $18 extra each month, Marilyn can add Part K to her Part D coverage *Advantage Standard includes Part K and Part D (Rx) 2018 Best Option under new offerings: Adv. Standard* $224 Less: ($187) Total $37 Note: Marilyn would also save $24/month to transition to Part D only coverage and she is on a lot of medications.

16 2018 Monthly Rate under current offering: Part F $161 Less: ($330) Total $0 Service Credits unused - $ Best Option under new offering: Adv. Premium* $399 Less: ($330) Total $69 Most likely, Johnny is getting a cheap individual Rx plan on the marketplace currently, by increasing his out of pocket expenses only $69/month, which is comparable to many Rx plans Johnny can fully utilize their service credits and obtain an Rx plan without the donut hole. Johnny would still be no worse off by keeping the Plan F plan as an alternative *Advantage Premium includes Part F and Part D (Rx)

17 2018 Monthly Rates under current offerings: Part K $62* Part D $206 Less: ($110) Total $ Best Option under current offerings: Adv. Std.^ $224 Less: ($110) Total $114 Lena would save $528 annually. *Plan K is being discontinued as an option ^Advantage Standard includes Part F and Part D (Rx)

18 2018 Monthly Rates under current offerings: Plan K $78* Plan D $206 Less: ($220) Total $ Best Option under new offerings: Adv. Std^ $224 Less: ($220) Total $4 Clark would save $720 annually. *Plan K is being discontinued as an option ^Advantage Standard includes Part K and Part D (Rx)

19 2018 Monthly Rate under current offerings: Plan F $249* Less: ($110) Total $139 * Part F increases in July (amount of increase is unknown) ^Advantage Premium includes Part F and Part D (Rx) #Advantage Standard includes Part K and Part D (Rx) 2018 Options under new offerings: Adv. Premium^ $399 Less: ($110) Total $289 ($150 more per month to add Part D) Adv. Standard# $224 Less: ($110) Total $114 ($25 less a month to combine D & K) Or, No change if Rita keeps Plan F.

20 2018 Monthly Rates under current offerings: Part F - $234* Part D - $206 Less: ($253) Total $ Best Option under new offerings: Adv. Premium ^ $399 Less: ($253) Total $146 Spencer would save $492 annually. * Part F increases in July (amount of increase is unknown) ^ Advantage Premium includes Part F and Part D (Rx)

21 2018 Monthly Rates under current offerings: Part F - $139* Part D - $206 Less: ($330) Total $ Best Option under new offerings: Part F - $139* Part D - $182 Less: ($330) Total $0 Patsy will forfeit $9 in service credits/month (or $108 annually) & save $180 annually. * Part F increases in July (amount of increase is unknown)

22 2018 Monthly Rates under current offerings: Part F - $171* Part D - $206 Less: ($330) Total $ Best Option under new offerings: Part F - $171* Part D - $182 Less: ($330) Total $23 John would save $288 annually. * Part F increases in July (amount of increase is unknown)

23 2018 Monthly Rates under current offerings: Part F - $408* Part D - $206 Less: ($275) Total $ Best Option under new offerings: Adv. Premium^ $399 Less: ($275) Total $124 Olivia would save $2,580 annually. * Part F increases in July (amount of increase is unknown) ^Advantage Premium includes Part F and Part D (Rx)

24 2018 Monthly Rates under current offerings: Part F - $189* Part D - $206 Less: ($297) Total $ Best Option under new offerings: Part F - $189* Part D - $182 Less: ($297) Total $74 John would save $288 annually. * Part F increases in July (amount of increase is unknown)

25 Retirees enrolled in Part D (Rx) only will all save money by transitioning to the Aetna Part D Plan Retirees in Part D (Rx)and Part F (AARP) will need to examine their Part F rate and determine if it is more cost effective to move to the Advantage Premium Plan or if it is more beneficial to enroll in Part F and Part D separately All will save money regardless of the option as the Aetna Part D plan is less expensive The majority in Part F and Part D will save money by transitioning to the Advantage Premium Plan Remember that Part F (AARP) rates increase in July and can vary greatly as illustrated with our examples (actual Plano retirees) Retirees in Part K and Part D will save money by transitioning to the Medicare Advantage Standard Plan; Part K is no longer offered. Those who are forfeiting service credits or have lower service credits may consider the Medicare Advantage Standard Plan as an affordable option. Retirees in Part F will lose nothing by staying on the Part F plan, however, a large portion of this group forfeits service credits and may consider transitioning to one of the Advantage options or adding Part D through Aetna. Those in Part F who obtain Part D through the marketplace vs. a group plan should be aware these members can fall into the donut hole.