2009 Retiree Choice News

Transcription

1 2009 Retiree Choice News MERCK retiree choice 2009 ANNUAL ENROLLMENT PERIOD OCTOBER 17, 2008 NOVEMBER 6, 2008 Welcome to the 2009 Retiree Choice Annual Enrollment Period! Each year during the Annual Enrollment period, you have the opportunity to review your Retiree Choice Benefit options for the upcoming year and make the coverage elections or changes that are right for you. The 2009 Annual Enrollment period for Retiree Choice will run from Friday, October 17 through Thursday, November 6, Merck remains proud to offer its retirees access to health care benefits that are comprehensive and designed to help you take care of your health. However, our offerings are only part of the story; you also have an important role to play and choices to make such as Embracing a healthy lifestyle; Choosing the health care option that best fits your needs through Merck s Retiree Choice Program; and Managing your health care spend by choosing in-network providers, receiving preventive medical care, and taking advantage of the moneysaving features of the Merck Managed Prescription Drug Program. What s New for 2009? As you review this 2009 Retiree Choice newsletter, you will see that we are introducing a new generic-incentive feature to the Merck Managed Prescription Drug Program. This program, which is provided through Medco, Merck s Pharmacy Benefit Manager, is known as Member Pay the Difference. With Member Pay the Difference, you still have the choice of using non-merckbrand drugs or their generic equivalents (when available), but you will pay more for the non-merck brand. The Member Pay the Difference program supports our existing commitment to the use of generic equivalents, when available, as alternatives to non-merck brands. Keep in mind that Member Pay the Difference will only apply to non-merck brands for which a generic equivalent exists. And, Merck-brand drugs continue to have a $0 copay. For more information, see Important Change to the Merck Managed Prescription Drug Program. WHAT S INSIDE: Your 2009 Retiree Choice Checklist inside front cover 2009 RETIREE CHOICE MEDICAL AND DENTAL: Available Retiree Choice Medical Options for Retiree Choice Medical Plan Contributions CIGNA NC HMO Moves to Open Access Enrolling in a Medicare HMO Important Change to the Merck Managed Prescription Drug Program Prescription Drug Costs About Your Retiree Choice Dental Coverage Contributions for Retiree Choice Dental Special Enrollment Considerations for Retirees ADMINISTRATIVE INFORMATION: Important Reminders About Your Eligible Dependents How to Enroll Enrolling Online Enrolling by Phone If you (and/or your dependents) have Medicare or will become eligible for Medicare in the next 12 months, a federal law gives you more choices about your prescription drug coverage. Please see the enclosed Medicare Part D Notice of Creditable Coverage for more information. Paying for Your Benefits Benefits Contacts and Resources

2 YOUR 2009 RETIREE CHOICE CHECKLIST Follow these steps to ensure you have the coverage you want for 2009: READ this 2009 Retiree Choice News for an overview of what s new or different for REVIEW the enclosed Personal Fact Sheet For your 2009 Retiree Choice default Medical and Dental Plan coverage options and cost information. To confirm that the dependent(s) you are covering for 2009 are correct that is, that they are the dependents you want to cover and they satisfy the Plan s dependent eligibility requirements (see Important Reminders About Your Eligible Dependents). TAKE ACTION ENROLL ONLINE through Fidelity NetBenefits before the November 6, 2008, Annual Enrollment deadline if you would like to make an online change to your Retiree Choice Medical Plan Coverage option or the dependents you will cover in 2009 under the Medical or Dental Plans. Keep in mind that you can call the Merck Benefits Service Center to make any allowable changes throughout the year. CALL the Merck Benefits Service Center at MERCK ( ) to enroll by phone. The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

3 Available Retiree Choice Medical Options for 2009 Through the Retiree Choice Program, you may enroll you and your eligible dependents in one of the following Merck Medical Plan options: Merck PPO Option (Horizon BlueCard PPO network); Merck 80/20 Option (BlueCard Traditional network); Merck 80/20 Out-of-Area Option (only available if you live outside the BlueCard Traditional network); A variety of HMOs and Medicare HMOs (depending on where you live); The Retiree Catastrophic Option; or The No Coverage Option. For information about the 2009 Retiree Choice Medical Plan options available to you, please refer to the enclosed Personal Fact Sheet or go online during Annual Enrollment to Fidelity NetBenefits at and view your online Benefit Elections page. THINKING ABOUT ENROLLING IN THE MERCK PPO OR 80/20 OPTIONS? Visit to access the online BlueCard network provider directory. To locate participating providers for the BlueCard PPO network (Merck PPO Option), click on the PPO suitcase graphic, then enter MWJ as the Identification Prefix under the member tab. (If you login under the guest tab, select PPO under Choose a Product Type. ) Click continue, then follow the on-screen instructions. To locate participating providers for the BlueCard Traditional/Indemnity network (The Merck 80/20 Option), click on the empty suitcase graphic, then enter MWK as the Identification Prefix under the member tab. (If you login under the guest tab, select Traditional under Choose a Product Type ). Click continue, then follow the on-screen instructions. You may also check to see if your providers are in the BlueCard network by calling the Merck-dedicated Horizon BCBSNJ customer service line at Retiree Choice Medical Plan Contributions Retiree Choice Medical Plan contributions are increasing for Keep in mind that contributions toward the cost of retiree medical benefits vary by individual because they are based on one s accumulated Retiree Choice points 1, as well as one s eligibility for Medicare, and one s type of covered family members and their ages/eligibility for Medicare 2. For Retirees and their covered dependents under age 65, point-based contributions apply while lower, flat-dollar contributions are in place for retirees over the age of 65. For information about your 2009 Retiree Choice Medical Plan contributions, please refer to the enclosed Personal Fact Sheet or go online during Annual Enrollment to Fidelity NetBenefits at and view your online Benefit Elections page. 1 For information about how your points are calculated, please refer to the Medical Plan section of the Merck Benefits Book. 2 Dependent children pay the rate applicable to those under age 65 regardless of the dependent child s age or Medicare status. 1

4 HMO REMINDER Keep in mind that certain HMOs are subject to state-mandated changes. Therefore, it s a good idea to contact any HMOs you are interested in to learn about their coverage details for the upcoming year. CIGNA NC HMO Moves to Open Access Effective January 1, 2009, the CIGNA NC HMO Medical Plan options will become an Open Access plan. This means that participants in this HMO option will no longer be required to obtain referrals to see in-network specialists. Keep in mind that if you are enrolled in the CIGNA NC HMO Medical Plan option for 2009, you will still need to see in-network providers. Please note that the CIGNA NC HMO option is only available to pre-age 65 retirees and their pre-age 65 eligible dependents. Please also note that all current and new participants will receive new CIGNA NC ID cards for Enrolling in a Medicare HMO If you are currently enrolled (or enroll) in an HMO, and you and/or a covered dependent become eligible for Medicare, you may be required to make a change in your medical coverage option. That s because the Retiree Choice Program does not offer a Medicare Advantage plan through all of its available HMOs. As you and/or your covered dependents approach Medicare eligibility, keep in mind that: If the HMO you are currently enrolled in through Merck s Retiree Choice Program offers a Medicare Advantage plan, you may stay in that HMO once you are eligible for Medicare (however, you will need to assign your Medicare benefits to the HMO); If the HMO you are currently enrolled in through Merck s Retiree Choice Program does not offer a Medicare Advantage Plan, you must change to another medical option (such as the Merck PPO or Merck 80/20 options); If the HMO you are currently enrolled in through Merck s Retiree Choice Program does not offer a Medicare Advantage option, it is your responsibility to contact your HMO prior to your Medicare eligibility date to find out the enrollment/disenrollment procedures for that HMO; and You must also notify the Merck Benefits Service Center if you need to make a change. ABOUT MEDICARE ADVANTAGE HMOS Please note that Medicare Advantage HMOs are subject to Medicare regulations, which vary by state. Therefore the copay and coinsurance amounts may be different than what is described here. If you are already enrolled in, or are interested in enrolling in a Medicare Advantage HMO, please contact the HMO s Member Services Department directly for copay and coinsurance information. Retiree Choice offers the following Medicare HMOs Aetna of NJ/NY/PA Geisinger Healthplan Gold PA Keystone Health Plan East PA Keystone Health Plan Central PA (SeniorBlue) Kaiser Permanente of Southern CA (Sr. Advantage for Southern CA) PacifiCare of CA (Secure Horizons) 2 The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

5 Important Change to the Merck Managed Prescription Drug Program Beginning on January 1, 2009, there will be a change to the amount you pay for certain non-merck brand-name prescription drugs when a generic equivalent is available. This program, provided through Medco, Merck s prescription drug benefit manager, is known as Member Pay the Difference. This program supports the Company s existing commitment to the use of generic equivalents, when available, as alternatives to non-merck brands. The use of generic equivalents allows the Company to manage costs while maintaining quality prescription drug coverage for you and your covered family members. How It Works If you purchase a non-merck brand when a generic equivalent is available, you will pay the generic copay plus the difference in cost between the brand and the generic drug, up to a capped amount. The capped amount for drugs purchased at a participating retail pharmacy will be $50 (inclusive of the copay) per prescription. The capped amount for drugs purchased through Medco by Mail will be $100 (inclusive of the copay) per prescription. To avoid paying the difference, you can consider having your non-merck brand prescriptions filled with their generic equivalents. By switching to a generic equivalent, you will only pay the generic drug copay ($20 for up to a 90-day supply through Medco by Mail; $10 for up to a 30-day supply through participating retail pharmacies). Keep in mind that the additional charges only apply to non-merck brands for which a generic equivalent exists; you will not be charged an additional amount if the drug you are filling does not have a generic equivalent. And, Merck brands continue to have a $0 copay. Talk to Your Doctor Today, many doctors write prescriptions for generic drugs to help their patients save on their prescription drug costs while maintaining the same level of quality. If you are taking a non-merck brand drug and you would like to save on your prescription drug costs, you should begin by talking to your doctors. When you talk to your prescribing doctors, find out which of your current non-merck brands have a generic equivalent and ask if generic substitution is possible. If so, you ll want to have your 2009 prescriptions written with generic substitution allowed. Then, anytime you are prescribed a new drug, talk with your prescribing physician about the possibility of having it filled with a generic equivalent. If you have questions about the Member Pay the Difference program, please contact Medco at 800-Rx-MERCK ( ). Member Pay the Difference supports the Company s existing commitment to the use of generic equivalents where available, as an alternative to non-merck brand-name drugs and allows the Company to manage costs while maintaining quality prescription drug coverage for you and your covered family members. Merck brands continue to have a $0 copay 3

6 2009 Prescription Drug Costs The following chart summarizes prescription drug costs for Please note that all of the 2009 medical options (except the No Coverage option) offer the same prescription drug coverage through Medco, Merck s prescription drug benefit manager Prescription Drug Copayments for All Medical Options (except the No Coverage option) Type of Drug Purchased through Medco By Mail Purchased at Medco Participating Pharmacies*, ** Merck-brand drugs Generic drugs Non-Merck brand drugs (for which a generic equivalent is NOT available) Non-Merck brand drugs (for which a generic equivalent is available) For Up to a 90-Day Supply $0 copay $20 copay $40 copay $20 copay plus the cost difference between the retail price for the non-merck brand and its generic equivalent, up to the $100 cap (per prescription). For Up to a 30-Day Supply $0 copay $10 copay $20 copay $10 copay plus the cost difference between the retail price for the non-merck brand and its generic equivalent, up to the $50 cap (per prescription). **Certain prescription medications are available only through Medco By Mail for example, oral contraceptives and male erectile dysfunction medications. **Prescriptions filled at non-participating pharmacies will be reimbursed based on the network-negotiated price of the medication, minus the applicable copayment. Employees are responsible for any drug costs in excess of network-negotiated fees. In addition, Member Pay the Difference provisions (without the cap) apply for non-merck brand drugs that are filled when a generic is available. Generics A Healthy Prescription for You and the Company Here s an example of what you and Merck will pay for the same prescription next year when you fill a 30-day supply with a non-merck brand as compared to a generic equivalent when a generic equivalent is available: A Generic Prescription Drug Filled A Non-Merck Brand Prescription Drug Filled at a Participating Pharmacy*, ** at a Participating Pharmacy*, ** (Member Pay the Difference) 30-day supply 30-day supply Cost of Brand-Name Drug: $45 Generic Cost of Drug: $15 Generic Cost of Drug: $15 Cost Difference: $30 You pay: $10. You pay: $40. (Your $10 Generic copay amount.) (Your $10 Generic copay amount plus the cost difference between the retail price for the brand and its generic equivalent, up to the $50 per prescription cap.) Merck Pays: $5 Merck Pays: $5 **Certain prescription medications are available only through Medco By Mail for example, oral contraceptives and male erectile dysfunction medications. **Prescriptions filled at non-participating pharmacies will be reimbursed based on the network-negotiated price of the medication, minus the applicable copayment. Employees are responsible for any drug costs in excess of network-negotiated fees. In addition, Member Pay the Difference provisions (without the cap) apply for non-merck brand drugs that are filled when a generic is available. 4 The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

7 HEALTHY REMINDER PRIOR AUTHORIZATION REQUIRED FOR CERTAIN MEDICATIONS Certain medications require prior authorization before your prescription will be filled by the Plan. To confirm if a drug is covered, subject to dispensing limits, age limits or other coverage review processes, call Medco Member Services. You, your doctor or your pharmacist must call Medco at 800-Rx-MERCK to authorize any medications that require prior authorization. TIPS FOR SAVING MONEY ON YOUR PRESCRIPTION DRUGS Use Medco by Mail for your long-term prescription drugs: You ll receive up to a 90-day supply of medication for your mail-order copayment and pay less over time than you would at a retail pharmacy. Your medications will be conveniently delivered right to you. Plus, standard shipping is free. Use generics: If you are taking a non-merck brand-name medication, ask your doctor to consider prescribing a lower-cost generic or a Merck-brand medication, if available. Access your benefit online: Visit to compare costs, order refills, check the status of your orders and request additional order forms and envelopes. If you are a first-time visitor to the Medco website, take a moment to register. (Have your member ID number and a recent prescription number handy.) After January 1, 2009, the costs shown online will reflect the 2009 changes. View cost-savings opportunities online: Visit My Rx Choices at to identify potential cost-saving alternatives for the medications you take on an ongoing basis or for a prescription you may need in the future. My Rx Choices shows you how much you may save by using lower-cost alternatives. DID YOU KNOW? Generic-equivalent medications contain the same active ingredients and are subject to the same rigid Federal Food and Drug Administration standards for quality, strength and purity as their brand-name counterparts. 5

8 About Your Retiree Choice Dental Coverage Merck offers Retiree Choice Dental Plan coverage under the Comprehensive Dental option. This option offers coverage for a wide spectrum of dental services including preventive, basic, major restorative and orthodontic services. It also offers access to an optional dental PPO, which allows plan participants and the Company to take advantage of discounts available through Aetna s preferred provider network. Please refer to the Dental Plan section of the Merck Benefits Book together with any summary of material modifications thereof for detailed information about the Merck Dental Plan Contributions for Retiree Choice Dental Dental contributions are increasing for For information about your 2009 Retiree Choice Dental Plan contributions, please refer to the enclosed Personal Fact Sheet or go online during Annual Enrollment to Fidelity NetBenefits at and view your online Benefit Elections page. Special Enrollment Considerations for Retirees During the Annual Enrollment period, you can make changes to your Retiree Choice coverage either online, through Fidelity NetBenefits at or by calling the Merck Benefits Service Center. During the year, you may change your Retiree Choice health care elections at any time and for any reason but you must make those changes by calling the Merck Benefits Service Center by phone at MERCK ( ). Please note: your ability to elect the No Coverage option and re-enroll for coverage may be limited. As you evaluate your alternatives, here are a few things to consider: It generally makes sense to make coverage changes at the start of a new calendar year (since deductible and out-of-pocket maximums apply on an annual, calendar-year basis); Coverage changes generally take effect prospectively (looking forward) as soon as administratively possible and generally no later than the first of the month after you make the change through the Merck Benefits Service Center; If you are Medicare eligible and changing HMO coverage, there are formal enrollment and dis-enrollment processes that require specific notification. Please contact the HMO directly for further information; and If you make changes for 2009 during Annual Enrollment or during the year, you will be billed monthly based on the new coverage you ve elected. Changes to your Retiree Choice contributions for changes that you made during Annual Enrollment will be effective January 1, Changes to your Retiree Choice contributions for changes that you make during the year become effective on the first of the month following the date you notified the Merck Benefits Service Center. Keep in mind that you must pay your Retiree Choice contributions for coverage in a timely manner, based on the specified due dates. If you fail to make required payments, your coverage will end and you will default to the No Coverage option. Please note that your ability to re-enroll may be limited. 6 The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

9 NEED-TO-KNOW INFORMATION ABOUT MEDICARE WILL YOU OR A COVERED DEPENDENT BECOME ELIGIBLE FOR MEDICARE IN 2009? Once you become eligible for Medicare, Retiree Choice medical benefits become secondary to Medicare Parts A & B. Please note that all of the Medical Plan options available to you under Merck s Retiree Choice Program require that you and your eligible dependents enroll in Medicare Parts A & B, when first eligible. Medicare finances a significant portion of medical expenses once a participant qualifies for coverage. MEDICARE PART D (THE MEDICARE PRESCRIPTION DRUG PROGRAM) IS VOLUNTARY Merck does not require that you or your covered eligible dependents sign up for Medicare Part D. Please refer to the enclosed Medicare Part D Notice of Creditable Coverage for more information. COORDINATING BENEFITS WITH MEDICARE FOR ALL NON-HMO MEDICAL PLAN OPTIONS Once you become eligible for Medicare, your Retiree Choice medical benefits become secondary to Medicare Parts A & B. Whether you are enrolled in the Merck PPO, the Merck 80/20 or the Catastrophic options, the following procedure applies when Medicare Parts A & B are your primary Medical coverage. You should present both your Medicare Parts A & B card and your Horizon BCBSNJ card to the provider at the time of service. Your medical provider will submit charges to Medicare first. Medicare will determine the allowable amount and pay the provider 80% of the allowable amount after your Medicare deductible is satisfied. You will receive a Medicare statement direct from Medicare. Your bills are then submitted to Horizon BCBSNJ through Medicare Crossover. (If you are not already signed up for Medicare Crossover, you will need to send your Medicare Statement to Horizon BCBSNJ for consideration. For information about how to enroll in Medicare Crossover, please contact Horizon BCBSNJ Customer Service Line at ). Horizon BCBSNJ will calculate the normal benefit under the Merck option in which you are enrolled, subtract the amount paid by Medicare and pay the difference if any between the Medicare approved amount and the Horizon BCBSNJ Normal Benefit (assuming deductibles have been met). You will receive an explanation of benefits statement from Horizon BCBSNJ, indicating the amount you owe to your provider. You will be billed by your medical provider for the office copay (if applicable) or coinsurance amount. You are responsible for any amount billed up to the Medicare allowable amount. The amount you pay out-of-pocket (except for co-pays, if applicable) is added to your annual out-of-pocket maximum at Horizon BCBSNJ. 7

10 Important Reminders About Your Eligible Dependents As you know, to be eligible for coverage under the Medical and Dental Plans that are part of Merck s Retiree Choice Program, your dependent must be a Dependent of Record. To be a Dependent of Record, your dependent must have been registered on Fidelity s dependent data base within the required time frame and must satisfy the Plans definition of an eligible dependent. Keep in mind that it is your responsibility to ensure that the dependents you elect to cover under the Retiree Choice Program meet the definition of an eligible dependent for each Plan in which they are enrolled. You should also keep in mind that the Company retains the right to audit any and all dependent information on file at any time. In fact, our plan is to conduct such an audit in Therefore, you are again reminded to confirm that the dependents you are covering for 2009 are correct that is, that they are dependents that you want to cover and they satisfy the Plan s dependent eligibility requirements. For information on who is an eligible dependent under the Merck Medical and Dental Plans which are part of Merck s Retiree Choice Program, please see the applicable sections of the Merck Benefits Book. DEPENDENT OF RECORD A Dependent of Record is generally an Eligible Dependent as of the Retiree s retirement date whom the Retiree registers on Fidelity s dependent database within 30 days of retirement. If you are a Retiree who retired prior to April 1, 2007, your Dependents of Record are Eligible Dependents (as of March 31, 2007) whom you registered on Fidelity NetBenefits by March 31, Any Covered Dependents who were enrolled for coverage under your Retiree Choice medical benefits on March 31, 2007, were automatically registered as your Dependents of Record. A Special Note for Parents of Children Approaching Their 19th Birthday Children are covered until age 19 (or age 25, if they are full-time students). Before your child reaches age 19, you will receive an age-out warning letter. If your child will continue to be a full-time student, you are responsible for calling the Merck Benefits Service Center to declare your child s status as a fulltime student. If you fail to call within 30 days of your child s 19th birthday, your child s coverage will be terminated and you will receive a notice informing you of your right to continue coverage under COBRA. If your child will not continue as a full-time student, and you are interested in continued coverage for your child under COBRA, you must notify the Merck Benefits Service Center within 60 days of your child s 19th birthday. Failure to request COBRA benefits within the specified time frame as well as failure to make the required payment by the deadline will result in termination of coverage for your child without the option of COBRA coverage for your child. MERCK S RIGHT TO AUDIT DEPENDENT ELIGIBILITY By electing coverage for your dependents (either by affirmative election or through the default process), you are confirming that they meet the Plan s dependent eligibility requirements and agree to notify the Merck Benefits Service Center within 30 days of an event that causes any of these dependents to no longer meet the definition of an Eligible Dependent in the Plan. The Company, in its sole discretion, maintains the right to audit any and all dependent information on file, and may require that you promptly provide sufficient documentation verifying your Covered Dependents continued eligibility. If you do not promptly provide documentation sufficient to verify your Covered Dependents continued eligibility or if the Company determines that any of the information that you provide (or provided) regarding your Covered Dependents is untrue, incomplete or misleading, or if you fail to promptly notify the Merck Benefits Service Center of an individual s loss of eligibility, the Company may take such action as it deems appropriate under the circumstances. Those actions may include, but are not limited to, the retroactive termination of benefits for your ineligible dependent, requiring you to repay the Plan for any benefits/premiums paid with respect to your ineligible dependent. 8 The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

11 How to Enroll Enrolling Online STEP 1: From the NetBenefits Health & Insurance tab Select Get Started Now. Click Continue. STEP 2: Confirm and validate information about your dependents Review your dependent information that s on file. If all of your dependent information is complete and accurate, click Continue. If any of your dependents are listed incorrectly or their information is incomplete, click on Update next to the dependents names to change their personal information. If you need to elect coverage for any eligible dependents, click Add. (Please note that you may only cover those dependents already on file as an eligible dependent of record). If you need to drop a dependent, contact the Merck Benefits Service Center at MERCK ( ). Enroll in the Retiree Choice Medical Plan option that makes the most sense for you for Click Save Your Benefits. The elections from your online session will not be saved unless you click Save Your Benefits. STEP 3: From your online Benefit Elections page View your medical and dental benefit options for the coming year. Review the online enrollment tools. STEP 4: Print Your Confirmation A confirmation screen will display the elections you have just submitted, with a confirmation number. Print the page for your records or make a note of this confirmation number. Enrolling by Phone Throughout the 2009 Annual Enrollment period, Customer Service Associates are available 8:30 a.m. to midnight (ET), Monday through Friday, to assist you in making your benefits elections. To make a change, contact the Merck Benefits Service Center by phone at MERCK ( ). When you call the Merck Benefits Service Center, simply select the Annual Enrollment option. You will be asked to enter your Social Security number and date of birth, for verification purposes. For Overseas Calls: Dial your country s toll-free AT&T USADirect access number then enter In the U.S., call to obtain AT&T USADirect access numbers. From anywhere in the world, access numbers are available online at or from your local operator. 9

12 NEW! VIEW YOUR PAYMENTS ONLINE! Fidelity, the service provider for Merck s benefits program, has recently added new functionality for Merck Retirees to the NetBenefits website. Effective immediately, Merck Retirees can go online to view their payment status, print an invoice, change payment method and view other payment information. Follow these steps to view your payment statement: Log on to Select the Health & Insurance tab; and Under More Benefit Resources, click on the Payment for Benefits hyperlink. Paying for Your Benefits Billing invoices are sent to you on a monthly basis with payments due on the first day of each month to continue coverage for that month. This invoice includes your costs for all benefits in which you re enrolled, including Retiree Choice medical and/or dental (as well as any life insurance for which you pay premiums). You continue to have the option to pre-pay for your coverage: this will show as a credit on your monthly invoices. If you fail to pay your required coverage premiums, within the time and manner specified by Merck, your coverage under the Plan(s) for which the premium was not paid will terminate effective as of the premium due date. If you fail to pay any Life Insurance premiums, you will remain permanently ineligible for that coverage. If you fail to pay for your medical and/or dental contributions you will default to the No Coverage option. Please note that your ability to re-enroll may be limited. ARE YOU STILL WRITING OUT A CHECK TO PAY YOUR BENEFIT PREMIUMS? Convenient and easy to use, Automatic Bank Withdrawal deducts premiums right from your bank account; eliminates the burden of manually mailing a check and ensures payments are on time! And best of all, it s easy to enroll online through Fidelity NetBenefits or by calling the Merck Benefits Service Center: Enroll through NetBenefits: To sign up for Automatic Bank Withdrawal, log on to From there, click on the Health & Insurance tab, select Forms under Other Benefits and then Change Payment Method on the left-hand navigation bar. Enroll through the Merck Benefits Service Center: Contact the Merck Benefits Service Center at MERCK ( ), Monday through Friday (excluding New York Stock Exchange holidays), between 8:30 a.m. and midnight, Eastern time, to speak with a Customer Service Associate. You ll receive information from Fidelity about the Automatic Bank Withdrawal service and complete the process with a Fidelity Customer Service Associate. 10 The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

13 IMPORTANT INFORMATION The Women s Health and Cancer Rights Act of 1998 requires that all group health plans that provide medical and surgical benefits with respect to mastectomy must provide coverage for: Reconstruction of the breast on which the mastectomy has been performed; Surgery and reconstruction of the other breast to produce a symmetrical appearance; and Prostheses and treatment of physical complications of all stages of the mastectomy, including lymphedema. These services must be provided in a manner determined in consultation with the attending physician and the patient. This coverage may be subject to annual deductibles and coinsurance provisions applicable to other such medical and surgical benefits provided under the Plan. Please refer to the Medical Plan section of the Merck Benefits Book for deductibles and coinsurance information applicable to the medical option in which you choose to enroll. MERCK HEALTH PLANS NOTICE OF PRIVACY PRACTICES Originally issued in 2003, the Merck Health Plan s Privacy Commitment addresses the protection of medical records, health benefits records and other personal information of participants in Merck s health care plans, including the Medical Plan and Dental Plans. Merck Health Plan s Privacy Commitment is available online, through Fidelity NetBenefits at Print copies are also available on request, and at no cost by calling the Merck Benefits Service Center at MERCK ( ). 11

14 Benefits Contacts and Resources For More Information About Contact By Phone Contact Via the Internet The Retiree Choice benefits described in this newsletter Non-HMO Medical Plan Options (Merck 80/20, Merck 80/20 Out-of- (Horizon BCBS Customer Area; Merck PPO and Retiree Service Line) Catastrophic) Medicare HMOs Aetna of NJ/NY/PA Group # Geisinger Healthplan Gold PA Group # Kaiser Permanente of Southern CA Group # Keystone Health Plan East PA Group # Keystone Health Plan Central PA Group # PacifiCare of CA Group # Non-Medicare HMOs Merck Benefits Service Center Fidelity Customer Service Associates by phone at MERCK ( ). For overseas calls, dial your country s toll-free AT&T USADirect access number then enter In the U.S., call to obtain AT&T USADirect access numbers. Aetna of DE/FL/NJ/NY/PA/TX Group #468 BlueOptions NC Group # CIGNA HealthCare NC Group # Fidelity NetBenefits For important phone numbers, web addresses and forms, log on to Fidelity NetBenefits at Geisinger Healthplan Gold PA Group # Kaiser Permanente CA Group # Keystone Blue PA Group # The Merck Benefits Book is your source for detailed Plan information. Access the Merck Benefits Book together with any summary of material modifications through the Reference Library of Fidelity NetBenefits.

15 For More Information About Contact By Phone Contact Via the Internet Non-Medicare HMOs (continued) Keystone Health Plan East PA Group # Network New England Blue Group # Keystone Health Plan Central PA Group # Oxford Health Plans NJ Group #MC2652 PacifiCare SignatureValue SM CA Group # Southern Health VA Group # Dental Option Comprehensive Dental (Aetna)

16 Please refer to the appropriate section of the Merck Benefits Book, together with any summary of material modifications thereof, for the most complete and up-to-date details. Individual sections of the Merck Benefits Book are available online, under the Reference Library of Fidelity NetBenefits at or upon request by calling the Merck Benefits Service Center at MERCK ( ). If you are a retiree, your same-sex domestic partner and his/her dependent children may not qualify as eligible dependents. Eligible dependents exclude the retiree s same-sex domestic partner and his/her same-sex domestic partner s children if the retiree retired on or before January 1, 2003; or retired after January 1, 2003 but before April 1, 2007 and did not cover those individuals while an active employee immediately prior to the retiree s retirement date and continuously thereafter during retirement through April 1, Please note that in all cases, your Same-Sex Domestic Partner must already be on file as an eligible dependent of record as of April 1, Merck reserves the right to amend the medical and dental benefits provided under Retiree Choice and the life insurance benefits provided to retirees (and the plans and programs under which they are provided) in whole or in part or completely discontinue them at any time. Copies of the Merck Benefits Book (and prior summaries of material modifications) are available online through Fidelity NetBenefits at or upon request by calling the Merck Benefits Service Center at MERCK ( ). The information contained herein has been provided by Merck & Co. and is solely the responsibility of Merck & Co., Inc. 3.MK-H-440R.105