2018 BENEFITS GUIDE» U.S. POST-65 RETIREES. Let s get started!

Transcription

1 2018 BENEFITS GUIDE» U.S. POST-65 RETIREES Let s get started! 2

2 HOW DO I ENROLL FOR 2018 BENEFITS? Learn about your benefit options, and then make your selections by following these steps: 1. Review the enclosed Benefits Enrollment Statement which shows the cost of the FreedomBlue PPO plan for Your current dependents that are covered will receive a separate Benefits Enrollment Statement. To make changes to your dependents, please contact the HR Support Center at myhr@hersheys.com or call To keep the medical benefits you have now, no action is required. Your current benefits will continue. Review your retiree enrollment form for your 2018 monthly cost. 4. If you want to waive coverage in the FreedomBlue PPO plan, please mark the enclosed Benefits Enrollment Statement appropriately and send it to the HR Support Center. Address is under Contact Information on the last page. The Hershey Company understands how important it is to take care of the health and wellbeing of yourself and your family. In a world where many employers are having to cut back on benefits and choice for retirees, Hershey continues to offer a very competitive program, meaningful choice and access to best-in-class programs and benefit partners. You have the opportunity to make thoughtful benefit elections during Open Enrollment each year. Take the time to review this Benefits Guide and learn more about the benefits available to you and your family and to support a healthy lifestyle. 2

3 WHAT S INSIDE 2 How Do I Enroll in Benefits? 4 What You Need To Know 5 Eligibility 5 Domestic Partners 6 Health Care Reform and the individual Mandate 6 Changing Your Coverage 7 Voluntary Dental and Vision Coverage 10 Contact Information BE SURE TO REVIEW YOUR OPTIONS Mark your calendar and take action to get the benefits you want for

4 This 2018 Benefits Guide provides you detailed information about your health benefits and other benefits that Hershey proudly offers to eligible retirees. WHAT YOU NEED TO KNOW You will receive a separate mailing from Highmark with all the details of the FreedomBlue PPO plan for There will be no changes to the prescription drug coverage and durable medical equipment provisions for Our dental insurance provider, United Concordia Life, will become United Concordia Insurance Company due to the upcoming merger with Health Insurance Company in January This name change will have no impact on your current policy. Refer to page 7 for more details. While we haven t made any changes to the dental and vision plan rates since 2012, it was necessary to adjust these premiums because of a high utilization of these plans and constantly increasing health care costs. See page 7 for your new 2018 dental and vision rates. The retiree plan costs have exceeded the annual cap of $2,000 per retiree which results in an overage of $48.53 per month for Make sure that any dependents you intend to cover under your benefits are correctly listed on the Benefits Enrollment Statement. Eligible dependents include: Spouse or domestic partner Dependent children under age 26, regardless of status; student, married or tax dependent To add dependents, you must contact the HR Support Center at myhr@hersheys.com or If you add a dependent to your coverage for 2018, you need to submit the required documentation (e.g., birth or marriage certificate) to the HR Support Center before coverage begins. Failure to provide documentation could result in the loss of coverage. To report a qualifying life event, contact the HR Support Center. You may be required to provide supporting documentation of the life event. If you do not make changes within 31 days of the event, you will have to wait until the next Open Enrollment period to make changes. 31 DAYS WHAT HAPPENS AFTER OPEN ENROLLMENT CLOSES? 1. If you make a change to your benefits for 2018, you will receive a Benefits Confirmation statement. Check your statement carefully to make sure it reflects the appropriate changes. Contact the HR Support Center immediately if it is not correct. 2. WageWorks will mail the coupons for 2018 payments in mid-december,

5 ELIGIBILITY As a Hershey retiree, you are eligible to participate in the Hershey health and welfare benefits program. You may choose to cover the following dependents: Your spouse Your domestic partner Children up to 26 years of age, regardless of status student, married or tax-dependent Unmarried, disabled dependent children of any age who depend on you fully for support To add or remove dependents, contact the HR Support Center (see Contact Information for details). If you knowingly cover an ineligible dependent, you could be required to repay claims that are paid for that ineligible dependent. DOMESTIC PARTNERS If you cover a domestic partner, you will need to demonstrate that your domestic partner meets Hershey s eligibility requirements. For more information about eligibility requirements, contact the HR Support Center as soon as possible. IMPORTANT NOTE As the U.S. benefits landscape evolves, we regularly evaluate Hershey s group insurance Medicare plans and how they compare to the many options available in the individual Medicare insurance market. We feel strongly that we want the best choice, coverage and options for our retirees. As we are evaluating our plans, Hershey recognizes that retirees who are eligible for Medicare may find greater choice and flexibility, with lower costs, in the individual Medicare market. Hershey wants to introduce you to this conversation, and make you aware that we may have additional opportunities for this discussion in While the Freedom Blue plan for 2018 is still the option, there may be more choice coming in Hershey values our retirees dedicated service to Hershey, and we re committed to continuing to provide you with access to quality, competitive healthcare, while maintaining our promise for retiree coverage. Look for more information and additional opportunity for education and dialogue throughout

6 HEALTH CARE REFORM AND THE INDIVIDUAL MANDATE Under the Patient Protection and Affordable Care Act, most U.S. citizens must have medical coverage in 2018 or potentially pay a tax penalty for non-compliance. For every month you are without health coverage, you may be subject to a tax penalty based on your income and the income of other members of your family without coverage. The total penalty amount will be collected as a single payment with your federal income tax return. It s important to know that Hershey s medical plans meet the minimum value requirements under the Affordable Care Act, are designed to satisfy the affordability requirements under the Affordable Care Act, and satisfy the Individual Mandate requirements under the Affordable Care Act. Open Enrollment is your opportunity to enroll in a Hershey medical plan and ensure you and your family are covered in CHANGING YOUR COVERAGE DURING THE YEAR IRS regulations prohibit benefit changes during the year unless they are made within 31 days of certain qualifying life events. Eligible qualifying life events include: Marriage Divorce or legal separation Birth or adoption of a child Death of a spouse or dependent Start or termination of a spouse s employment Completion and approval of domestic partner application Change from part-time to full-time employment (or vice versa) for you or your spouse Unpaid leave of absence for you or your spouse Significant change in medical coverage because of spouse s employment Change in dependent status of your children If you do not make changes within 31 days of the event, you will generally have to wait until the next open enrollment period to make changes absent another qualifying life event during the year. 6

7 SAME PROVIDER, NEW NAME Effective January 1, 2018, our dental insurance provider, United Concordia Life, will become United Concordia Insurance Company (UCIC) due to the upcoming merger with Health Insurance Company. This name change will have no impact on your current policy and there is no action you have to take. However, you may start to see the UCIC name appear in future communications regarding your dental plan. VOLUNTARY DENTAL AND VISION COVERAGE You have the opportunity to sign up for dental only coverage or dental with vision coverage through United Concordia Insurance Company (UCIC) and Davis Vision (a UCIC affiliate). Dental Plan Overview With the UCIC Flex dental plan, you can select a dental only plan or a dental with vision plan. The dental portion of both plans offers: Preventive care covered at 100% including routine exams, cleanings and bitewing x-rays. Basic care covered at 70% including fillings, certain x-rays, simple extractions, repairs to crowns, bridges and dentures, and palliative treatments. A six-month waiting period applies when enrolling more than 90 days following retirement. A discount on Major care (Class III) such as root canals, crowns, prosthetics, non-surgical and surgical periodontics, complex oral surgery and general anesthesia, along with certain non-routine services, if provided by an Advantage Plus amended dentist. (Please note, Class III services are not insured services and therefore do not require submitting a claim). The average discount is 31%. DENTAL PLAN ONLY RETIREE ONLY RETIREE +1 RETIREE + FAMILY Monthly Rates $22.17 $40.08 $71.59 Quarterly Rates $57.81 $ $ Annual Rates $ $ $ DENTAL WITH VISION PLAN RETIREE ONLY RETIREE +1 RETIREE + FAMILY Monthly Rates $30.16 $55.28 $94.79 Quarterly Rates $81.78 $ $ Annual Rates $ $ $1, Enrollment This plan is available to all retirees, your spouse/domestic partner and any dependent children (up to age 26). To find a participating dentist, or to see if your dentist participates, please visit If you do not have access to the Internet, you can call our toll-free customer service department between 8 a.m. and 8 p.m. ET at Be sure to mention that you are a Hershey retiree and that you are looking for a UCIC Alliance dentist. 7

8 ALLIANCE NETWORK Your dental plan now offers expanded access under the Alliance Network, UCIC s largest dental network. With this network, you have access to over 97,500 dentists. Most of the dentists are amended network dentists because they have agreed to accept allowances for non-covered services such as Class III services (crowns, bridges, implants, etc.) at discounted rates. When you receive a Class III service from an amended Alliance dentist, you ll receive an average discount of 31%! You can check to see if your dentist is an amended dentist or ask for a list of amended dentists in your area by calling the customer service department at RETIREE DENTAL PLAN DETAILS BENEFIT CATEGORY IN-NETWORK OUT-OF-NETWORK CLASS I DIAGNOSTIC/PREVENTIVE SERVICES Exams; X-rays (Bitewings); Fluoride Treatments; Cleanings; Sealants Plan pays 100% of MAC; member pays nothing CLASS II BASIC SERVICES (Six-month waiting period applies to new entrants) X-Rays (all others); Palliative Treatment; Basic Restorative; Space Maintainers; Simple Extractions; Repairs of Crowns, Inlays, Onlays, Bridges, Dentures CLASS III MAJOR SERVICE Endodontic; Inlays, Onlays, Crowns; Prosthetics; Surgical and Nonsurgical Periodontics; Complex Oral Surgery; General Anesthesia ORTHODONTICS, COSMETICS OR OTHER SERVICES Orthodontic Diagnostic, Active, Retention Treatment; Bleaching, Veneers, Implants Plan pays 70% of MAC; member pays 30% of MAC Average discounts of 31%* off dentist s charge Must visit an Amended Dentist Average discounts of 31%* off dentist s charge Must visit an Amended Dentist Deductible (per person/per family) $25/$75 Class I and II only None Out-of-Pocket Maximum $750 None Plan pays 100% of MAC; member pays remainder of dentists charge Plan pays 70% of MAC; member pays remainder of dentists charge No discount; member pays dentist s full charge No discount; member pays dentist s full charge * The average 31% discount is based on UCIC charge data. Actual discounts will vary depending upon the procedure and the geographic region in which it is performed. 8

9 Optional Vision Coverage In addition to dental benefits, Davis Vision, a UCIC affiliate, offers an optional insured vision plan that can only be selected alongside the dental plan. The vision plan covers the following items once every 12 months: Eye exam ($10 co-payment) One pair of eyeglasses (frames and lenses) Contact lenses in lieu of eyeglasses To request a detailed information and enrollment packet for both plans, call the Customer Service department Do not contact Hershey directly. IN-NETWORK Eye Examination VISION PLAN DETAILS Every January 1, covered in full after $10 copayment EYEGLASSES Spectacle Lenses Frames CONTACT LENSES Contact Lens Evaluation, Fitting & Follow Up Care Contact Lenses (in lieu of eyeglasses) Every January 1, covered in full; For standard single-vision, lined bifocal, or trifocal lenses Every January 1, covered in full; any fashion or designer frame from Davis Vision s collection* (value up to $160) OR $120 retail allowance toward any frame from provider, plus 20% off balance** Every January 1, Collection Contacts, covered in full Every January 1, covered in full (in lieu of glasses) OR $105 retail allowance toward provider supplier contact lenses, plus 15% off balance** * The Davis Vision Collection is available at most participating independent provider locations. Collection is subject to change. ** Additional discounts not applicable at Walmart, Sam s Club or Costco locations ADDITIONAL DISCOUNTED LENS OPTIONS & COATINGS Most Popular Options WITHOUT DAVIS VISION WITH DAVIS VISION Scratch-Resistant Coating $25 $0 Polycarbonate Lenses $66 $0 - $30 Standard Anti-Reflective (AR) Coating Standard Progressives (no-line bifocal) Photochromic Lenses (i.e. Transitions, etc.)* $83 $35 $198 $50 $110 $65 * Transitions is a registered trademark of Transitions Optical Inc. 9

10 CONTACT INFORMATION FOR YOUR QUESTIONS BENEFIT COMPANY CONTACT INFORMATION FreedomBlue PPO Highmark Blue Shield Member Services TTY users call a.m. 8 p.m. ET Retiree Life Insurance Beneficiary Designation MetLife Voluntary Dental/Vision Program United Concordia Insurance Company Customer Service a.m. 8 p.m. ET Davis Vision client code Questions about your Retiree Medical monthly bill WageWorks All other questions HR Support Center 19 East Chocolate Ave. Hershey, PA myhr@hersheys.com 10

11 DON T FORGET TO ENROLL! MY NOTES 11

12 LEGAL DISCLAIMER All benefits are governed by plan documents. If any conflicts arise between this communication and any plan document, the plan document will prevail. Hershey and designated benefit plan administrators reserve the right to determine eligibility, to interpret, and to administer issues under the benefit programs. The Company reserves the right to amend or terminate benefit plans at any time.