Action Plan #1: Continuing Healthcare Under COBRA Action Plan #2: Continuing Life and Accidental Death & Dismemberment (AD&D) Insurance...

Transcription

1 TABLE OF CONTENTS: Your LOA Benefi t Action Plans Action Plan #1: Continuing Healthcare Under COBRA... 4 TABLE OF CONTENTS Action Plan #2: Continuing Life and Accidental Death & Dismemberment (AD&D) Insurance... 7 Action Plan #3: Continuing Long-Term Care (LTC) Insurance... 9 Action Plan #4: Applying for Long-Term Disability (LTD) Benefits Action Plan #5: If You re on Maternity Leave Action Plan #6: If You Have Been Diagnosed with a Terminal Illness Action Plan #7: Returning to work HR0905_F_LOAMag_Insert.indd 1

2 OVERVIEW overview While you re on an approved medical Leave of Absence (LOA), Costco knows you re likely to face many challenges, both personal and financial. And, chances are, your healthcare and other employee benefits are among your most important concerns. That s why you ll be glad to hear the Costco Employee Benefits Program offers plenty of benefit options during and after your leave but only if you take the proper steps in a timely way. To help you out, this booklet includes a series of Action Plans to guide you step-by-step through your benefit options. You ll also find questions and answers designed to shed more light on your particular situation. This is designed to be a quick, easy look at your benefit participation as it relates to your leave. For a comprehensive overview of the Program, be sure to check out the Costco Benefits Web site, This is where you can go, for example, for: snapshots of the various plans access to online enrollment official documents such as the Summary Plan Description links to benefits-related sites like Aetna Navigator, Care Network and Unum Looking for benefit-related forms? If you re returning to work or have been diagnosed with a terminal illness, the forms you ll need to submit are included with this booklet. For others, you can go to com, and click on Booklets and Forms, or contact your payroll or Benefits Representative. Where to find out more: For in-depth information about your benefit plans: Costco Employee Benefits Program Summary Plan Description (SPD) details including eligibility, enrollment, when coverage starts and ends, how the various benefit plans work, and exclusions and limitations. Costco Employee Benefits Program Highlights Booklet a brief rundown of the plans. Costco Employee Agreement a description of LOA and other employee policies. 2 08HR0905_F_LOAMag_Insert.indd 2

3 OVERVIEW Care Network: Confidential Assistance and Resources for Everyone! Care Network is available to you and your family while you re on leave. This valuable service provides free, confidential help for just about any life challenge you may face like finding child or elder care, resolving family issues, untangling financial and legal difficulties, locating community resources, and a whole lot more. Call toll free to talk to a trained representative who will point you in the right direction. Go to to link to the Care Network site for useful information, including more links to related Web sites, reading lists, referral resources and interactive assessment tools. This booklet is not a Summary Plan Description, nor is it a contract, or a promise of employment or a guarantee to continue employment for any length of time. It highlights only certain provisions of the Costco Employee Benefits Program it must be read in conjunction with the underlying SPD. If there is any inconsistency or ambiguity between this booklet and the Costco Summary Plan Description or Employee Agreement, the SPD and Employee Agreement will be controlling. If there s a discrepancy between this booklet and the official Program documents or contracts, the underlying insurance contracts and Program documents will be controlling. The Program is not bound to any oral or written communication that conflicts with Program documents. Officers and employees of Costco at the various warehouse locations and other third parties are not authorized to represent the Plan Administrator or to speak on behalf of the Program. Costco, through the Benefits Committee, has the right, at any time, to amend, modify, revoke or terminate the Employee Benefits Program or any of the benefits discussed in here, in whole or in part. 3 08HR0905_F_LOAMag_Insert.indd 3

4 ACTION PLAN #1: CONTINUING HEALTHCARE UNDER COBRA Action plan #1: continuing healthcare under COBRA YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS Your eligibility for employee benefits is ending. COBRA questions? Call Costco s Benefits Department toll free at Under COBRA, you may continue current medical (including vision, prescription drugs and mental health) and dental coverage for yourself and eligible family members generally for up to 18 months. When you enroll in COBRA, you can keep your current elections as is or make any of these changes: Switch medical plans (unless you re in the Part-Time Employee plan) Switch dental plans Continue medical and dental coverage or medical only Drop enrolled family members You must pay the full monthly cost of COBRA plus a small administrative fee. If you have one or more years of service when you go on leave, for the first six months of COBRA Costco will subsidize this percent of your monthly cost: 25% (one to five years service) 50% (five or more years service) 1. Provide your payroll or Benefits Representative with your most up-to-date mailing information if your address has changed. 2. Receive a COBRA package, mailed directly to your home after your eligibility ends. The package will include details of your options along with COBRA election and subsidy application forms. 3. Complete and return the COBRA election form along with a subsidy application form (if you re eligible) to Costco Benefits by the stated deadline. 4. Receive an invoice from Aetna for your first COBRA payment. 5. Mail in your first payment within the specified timeline. After that, Aetna will send you monthly invoices for the rest of your COBRA period. 4 08HR0905_F_LOAMag_Insert.indd 4

5 Action plan #1: questions and answers My eligibility for Costco healthcare plan coverage will end while I m on leave. How can I decide whether to elect COBRA or enroll in my spouse s employer s plan? First, find out the enrollment rules for your spouse s plan. Then, if that plan is available to you, be sure to compare such factors as the costs of coverage, participating healthcare providers and plan benefits. What if I don t elect COBRA when Costco first offers it to me? You won t be able to elect COBRA again during your leave. Also, if you don t happen to be covered by any other plan (for example, through your spouse s employer) in the meantime, that could result in a gap in your healthcare coverage. When you return and resume Costco healthcare coverage, that gap could affect medical benefits available for any pre-existing condition. If I enroll for COBRA, when will my coverage begin? As specified in your COBRA package, the rules give you generous timelines to enroll for coverage and to send in your first payment. As long as you meet these deadlines, COBRA coverage will go into effect retroactive to the day your eligibility for Costco healthcare coverage ended. (Since you ll have to pay the cost starting from the date your COBRA coverage began, your first invoice from Aetna may be for more than one month s payment.) Both my spouse and I are benefit-eligible Costco employees. I have elected to enroll my family for coverage and my spouse declines coverage. Can my spouse change his/her enrollment elections when my eligibility ends? Yes. Your loss of eligibility means that your family will also lose their coverage. A Loss of Coverage is a qualifying event which will allow your spouse to make mid-year changes to their benefits. Your spouse must make an enrollment request within the 30 days immediately following the date your coverage ends. To make this request your spouse will access the Enrollment Web site ( or call the Costco Enrollment Center at If I continue healthcare coverage under COBRA, will the rest of my employee benefit coverage automatically continue, too? No, COBRA only applies to medical, vision, prescription drugs, mental health and dental coverage. Costco does offer you the opportunity to continue certain other benefits but that requires you to make separate elections. To see how to do that, refer to Action Plan #2: Continuing Life and AD&D, and Action Plan #3: Continuing Long-Term Care (LTC) Insurance. Why does COBRA cost so much? I didn t pay this much for healthcare coverage when I was working. When you were an eligible employee, Costco paid a substantial share of the cost of your healthcare coverage. With COBRA, you pay the full cost plus a small administrative fee. Remember, if you qualify, Costco s subsidy is designed to help ease the sticker shock for your first six months of COBRA coverage. What s more, if you re getting LTD benefits you may be eligible for further help with your monthly costs after your Costco subsidy ends. This is available through the plan s special Healthcare Protect Benefit. For more information, see Action Plan #4: Applying for LTD Benefits. How do I get the Costco COBRA subsidy? That s easy! If you ve completed at least one year of service, the notification letter included with this booklet will show the amount of subsidy for which you qualify. To get the subsidy, just submit the subsidy application along with your COBRA enrollment form both forms are included in your COBRA enrollment package. The subsidy will be deducted automatically from your monthly costs for coverage and your first six months of invoices will reflect that deduction. ACTION PLAN #1: QUESTIONS AND ANSWERS 5 08HR0905_F_LOAMag_Insert.indd 5

6 ACTION PLAN #1: QUESTIONS AND ANSWERS Action plan #1: questions and answers (cont.) What can I do to reduce the amount I pay for COBRA each month? When you first enroll in COBRA, you may be able to save money by changing your current elections like switching to a less expensive medical or dental option, dropping dental altogether or covering fewer family members. The COBRA Rate Sheet included in this packet shows the costs of various available options. To show how this may work, let s take Stan, a full-time Costco employee. He, his spouse and twin children are currently enrolled in Freedom of Choice medical and Premium dental plans. Now let s look at some of his options to cut costs if he goes on COBRA in If Stan makes this choice: In 2009, his monthly COBRA costs would be: Keeps his current elections $1,670 Switches himself and family to Choice Plus medical and Core dental $1,150 Switches himself and family to Choice Plus, drops dental $1,060 What kind of healthcare election changes can I make after my initial COBRA enrollment? The same rules apply as for active employees: If your COBRA coverage extends over the Annual Open Enrollment period, you may make available changes at that time for example, switch medical or dental plans, add or drop family members, or elect or decline dental. During the year, you may adjust your elections after certain major changes in your family or job status. For a rundown of these events, go to and click on Benefit Enrollment & Changes. Switches himself to Choice Plus medical, drops dental, drops family coverage $400 Keep in mind: These examples don t include any Costco COBRA subsidy for which Stan may qualify. Also, COBRA costs may vary from one year to the next. And, of course, your actual options and costs will depend on your individual situation. 6 08HR0905_F_LOAMag_Insert.indd 6

7 Action plan #2: continuing life and accidental death & dismemberment (AD&D) insurance YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS Your eligibility for employee benefits is ending. Questions about Life and AD&D? Call Unum toll free at Your Costco Life and AD&D insurance is portable. That means you can elect to continue your current coverage by paying the group rate, no proof of good health is required. If you continue your own coverage, you can continue your families, too. For the first 30 days after your eligibility ends, Costco will pay the full cost of coverage for you and your enrolled family members. If you choose to continue coverage after 30 days, you must pay the full cost. 1. Contact Unum during the 30 days after eligibility ends to request a portability package. 2. Receive the package mailed directly to your home. 3. Complete and return the enrollment form along with the first monthly payment to Unum by the stated deadline. ACTION PLAN #2: CONTINUING LIFE AND AD&D INSURANCE 7 08HR0905_F_LOAMag_Insert.indd 7

8 8ACTION PLAN #2: QUESTIONS AND ANSWERS Action plan #2: questions and answers If I elect to continue my healthcare coverage under COBRA, why do I have to go through extra steps to continue my Life and/or AD&D insurance? These require separate elections because they re separate plans with different rules and different administrators. Therefore, even if you submit your COBRA enrollment to Costco Benefits, you must still apply to Unum to continue your Life and/or AD&D insurance. What are the advantages of continuing my current insurance under the portability provisions? If you re like most people, you ll want to be sure you have enough insurance to protect your family financially. The plans portability feature may be the easiest and most affordable way to do just that. After all, since proof of your good health is not required, this guarantees you ll be able to continue your current level of coverage (subject to certain limits). What if I decline to continue my Life insurance? The fact is, it may be very difficult for you to buy similar coverage later, or even to resume Supplemental Life insurance when you return to work at Costco. That s because, before an insurance company will issue a policy, they generally require you to submit proof of your good health, known as Evidence of Insurability (EOI). Based on your EOI, the insurance company may deny your coverage if they determine your medical condition makes you uninsurable. If I elect to continue my Life and/or AD&D insurance, can I change what I have now under the Costco employee plans? Sure, you ll be able to mix-and-match your current coverage in lots of ways. Unum s package will include a detailed description of your options and your costs for those options. For example, you may: continue Life but not AD&D insurance, or vice versa, continue Basic Life but not Supplemental Life insurance, continue your own coverage but not your family s, or elect a lesser amount of coverage than you have now, not increase coverage. I m not even sure how much coverage I have now under the Costco Life and/or AD&D Insurance Plans. How can I find out? Go to and click on Benefit Enrollment & Changes. From there, you can log in to see your current Costco employee benefit coverage, including your personalized insurance information. If you request a portability package from Unum, that package will also include the amount of your coverage. 08HR0905_F_LOAMag_Insert.indd 8

9 Action plan #3: continuing long-term care (LTC) insurance YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS Your eligibility for employee benefits is ending. Questions about LTC? Call Unum toll free at Your Costco LTC insurance is portable. That means you can elect to continue your current coverage by paying the group rate, no proof of good health is required. Continued coverage is available at your current group rates. For the first 30 days after your eligibility ends, Costco will pay the full cost of continued coverage on your behalf. You may decline to continue coverage after the 30-day period. If you choose to continue, you must pay the full cost. 1. Receive a letter from Unum as notification that you may decline coverage. If you do not opt-out, Unum will send you an invoice. 2. Return your payment to Unum within the stated deadline to continue your coverage. 9ACTION PLAN #3: CONTINUING LONG-TERM CARE (LTC) INSURANCE 08HR0905_F_LOAMag_Insert.indd 9

10 ACTION PLAN #3: QUESTIONS AND ANSWERS Action plan #3: questions and answers If I elect to continue LTC, will I be able to change my current elections? Not at first. The initial invoice you get from Unum will reflect the cost of your current LTC coverage elections. After that, you can call Unum to discuss what other coverage options may be available to you. I have more than 10 years of service so Costco has been paying for my Basic LTC benefit. Will I have to pay to continue that coverage? Yes. Unum will bill you the full cost of your Basic Benefit plus any Buy-Up Options you ve elected. The good news is, as long as you re eligible when you return from leave, Costco will resume paying the full cost of your Basic Benefit. If I decline to continue LTC during my leave, what happens if I want to re-enroll when I return to work? Of course, that s your choice. But, you should be aware of the possible consequences. For example: You ll have to provide Unum with proof of your good health known as Evidence of Insurability (EOI) to elect the coverage of your choice even to resume the options you had before. Unum will determine whether or not you qualify based on your current medical condition. If Unum approves your application, your cost for LTC will be re-calculated based on your age at re-enrollment. If you re in an older age group than when you first enrolled, you could end up paying more for the very same coverage you had before HR0905_F_LOAMag_Insert.indd 10

11 Action plan #4: applying for long-term disability (LTD) benefi ts YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS You will be disabled for 180 days or more. Questions about LTD? Call Unum toll free at If you qualify, after 180 days the LTD plan will step in to replace up to 60% of your monthly pre-disability earnings. Unum automatically processes your LTD claim if you ve been getting benefits from any of these sources: Costco Voluntary Short-Term Disability (STD) Insurance Plan Costco salary continuation program New York or Hawaii state disability plans. After six months of LTD payments, you may qualify for the Healthcare Protect Benefit, an extra monthly amount to help pay your healthcare coverage, if you elected COBRA. If you re not in a group for which Unum automatically processes LTD claims (such as CA or NJ employees or if you are off for a work injury): 1. Call Unum after four months of leave if you will be unable to return to work due to disability. 2. Receive an LTD claims package, mailed directly to your home by Unum. This includes all the application forms you need. 3. File your claim with Unum following the instructions included in your claims package. 4. Follow up on your claim status by calling Unum or going to ACTION PLAN #4: APPLYING FOR LONG-TERM DISABILITY (LTD) BENEFITS 11 08HR0905_F_LOAMag_Insert.indd 11

12 ACTION PLAN #4: QUESTIONS AND ANSWERS Action plan #4: questions and answers If I lose eligibility for employee benefits, how will that affect my LTD Insurance Plan benefits? Not to worry! As long as you had LTD coverage when your disability began, payments will begin after you complete the 180-day waiting period and otherwise qualify for benefits. I ve been getting benefits from the Voluntary STD plan. Will I automatically qualify for LTD benefits after 180 days? The Voluntary STD and LTD Insurance Plans each have different requirements to determine whether you qualify for disability benefits. That means, even if you qualified for Voluntary STD benefits, Unum must re-evaluate your actual condition to see if you qualify for benefits under LTD Insurance Plan provisions. Why do some employees have to file LTD claims and others don t? If Unum has already been managing disability claims on your behalf under the Voluntary STD Insurance Plan, salary continuation program, or the New York or Hawaii state plans, they re already familiar with you and your condition. As a result, they can move the process forward without another claim from you. If Unum has not been managing your claim, you must file an LTD claim so they can review your case to determine whether you qualify for benefits. This would be the case, for example: If you have not been getting Voluntary STD Insurance Plan or salary continuation program benefits, or You have been receiving New Jersey or California state disability or Worker s Compensation benefits. I m worried about paying for my healthcare coverage especially when my Costco COBRA subsidy ends. How will the Healthcare Protect Benefit help me out? That s easy! This special LTD benefit is designed to step in when the subsidy stops. If you qualify, this will pay you $300 (part-time employees) or $500 (full-time employees) per month in addition to your regular LTD plan benefits. You ll be able to apply the extra money toward the monthly cost of your healthcare coverage. How can I qualify for the Healthcare Protect Benefit? Unum will notify you if you qualify and provide you with the details. Briefly, as long as you re still disabled and not working, the extra payments will begin after six months of LTD benefits but only if you have COBRA or other healthcare coverage at that time. (That doesn t include Costco coverage, for example, that you may have through a family member.) Healthcare Protect Benefits may continue for up to 12 months. I d sure like to get back to work, but I m not completely well yet. What will happen to my LTD benefits if I return before I m fully able to resume my regular duties? If your doctor has released you to work, the LTD plan has special return-to-work provisions for employees who return to work before full recovery. With these provisions, you may continue to get full or partial disability benefits while you work. Unum will coordinate with you and your doctor to determine whether you may qualify HR0905_F_LOAMag_Insert.indd 12

13 Action plan #5: if you re on maternity leave YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS Your eligibility for employee benefits is scheduled to end. You want to enroll your baby for Costco healthcare coverage. You ll have to pay for childcare when you return to work. In certain states, to comply with applicable law, Costco will extend your eligibility while you are on maternity leave. Your baby is eligible for the same healthcare coverage you have for yourself. The Dependent Care Assistance Plan (DCAP) can help you save money on eligible childcare costs. Upon your return, you may: begin contributing to the DCAP if you re not already participating or Call Costco Benefits toll free at , before your eligibility ends to notify us you are on maternity leave. 1. Enroll your child within 60 days after birth. You can do that online at and click on Benefit Enrollment & Changes. 2. Provide Costco Benefits with your child s state-issued birth certificate as proof of eligibility. Enroll or increase your DCAP contributions within 30 days after you return. You can do that online at and click on Benefit Enrollment & Changes. ACTION PLAN #5: IF YOU RE ON MATERNITY LEAVE increase your current contributions if you re already enrolled HR0905_F_LOAMag_Insert.indd 13

14 ACTION PLAN #5: QUESTIONS AND ANSWERS Action plan #5: questions and answers My manager knows I m on maternity leave. Why do I also have to notify Costco Benefits? Only Costco Benefits can arrange the extension of eligibility if you live in a state where this applies. However, while your location notifies us when you go on approved leave, they don t tell us why. That means it s up to you to call us to discuss your maternity leave and see if extended eligibility is available in your state. What happens if I don t enroll my baby within 60 days after birth? The fact is, you may enroll your baby anytime up through 12 months following the date of birth but there could be some consequences for that coverage. For example, if you: Enroll within 60 days, your child s coverage will begin on their date of birth and your costs for coverage will be deducted pre-tax. Enroll after 60 days, your child s coverage will begin the first of the month after enrollment and your costs will be deducted after-tax for the rest of the calendar year. I previously declined Costco healthcare coverage for myself and my children. Now that my new baby s here, can I change my mind? Yes. Federal law says, provided you re eligible for healthcare coverage as an employee, you may enroll yourself, your newborn and any other eligible family members not currently enrolled. Coverage for properly enrolled family members begins effective on the baby s date of birth. Saving money on my daycare costs sure sounds good! How does the DCAP work? In a nutshell, if you elect to contribute to DCAP, you can use those contributions to pay eligible costs with tax-free money. That cuts your tax bill and, as everyone knows, paying less taxes can mean more money in your pocket! For more details, including a snapshot of the plan and how it works, login to and click on Reimbursement Accounts. As a new mother, I have so much to learn and do. Can I turn to any of Costco s other benefit programs for help? Absolutely! For example, as a Costco employee, you can call Aetna s Informed Health Program, 24-hour nurse line, to talk to a Registered Nurse (RN) about health-related issues for you or your child. The toll-free numbers are or TDD And, don t forget the Care Network. It offers all kinds of information and services geared to help you before and after your baby gets here. This includes, pre-and post-pregnancy health tips, information about returning to work, childcare references and much more. You can link to the Care Network site from or call toll free at to speak to a Care Network representative HR0905_F_LOAMag_Insert.indd 14

15 Action plan #6: if you have been diagnosed with a terminal illness YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS You have been diagnosed with a terminal illness. Questions about the ADB? Call Unum toll free at Costco Life Insurance Plans offer an Accelerated Death Benefit (ADB). With the ADB, you can elect to receive from $1,000 up to 75% of your employee life insurance now, with the balance going to your beneficiary. If Unum certifies you are terminally ill (not expected to survive more than 24 months) based on your ADB application, Costco will: reimburse you 100% of your current monthly costs of COBRA for up to 18 months and pay the cost of your continued life insurance for up to 18 additional months. 1. Before your benefit eligibility ends: Complete and mail the Benefit Continuation of Terminally Ill and ADB application form to Unum. Submit the Request for Medical Documentation form to your healthcare provider. Both forms are included with this booklet. 2. Receive notification from Unum about whether you qualify for the ADB. 3. Make sure your beneficiaries are up-to-date: Life insurance, submit a revised Beneficiary Designation form to Costco Benefits (available at 401(k) Plan, submit a revised Beneficiary Designation form to T. Rowe Price (available at or by calling toll free ). ACTION PLAN #6: IF YOU HAVE BEEN DIAGNOSED WITH A TERMINAL ILLNESS 15 08HR0905_F_LOAMag_Insert.indd 15

16 ACTION PLAN #6: QUESTIONS AND ANSWERS Action plan #6: questions and answers Even though I ve been diagnosed with a terminal illness, what if I don t need or want an ADB? I want all my life insurance to go to my beneficiary. You must apply for the ADB because that s the process by which Unum certifies to Costco that you qualify for the special benefits for terminally ill employees. Keep in mind, you may request a minimum ADB of just $1,000 and the balance of your insurance will go to your beneficiary after you die. As an employee diagnosed with a terminal illness, what do I have to do to get reimbursed for my monthly COBRA costs? After Unum approves your ADB, Costco Benefits will send you detailed instructions about how to request reimbursement. Basically, you ll have to send us proof of your COBRA payments then we ll reimburse you by check. Does Care Network offer any special help for dealing with terminal illness? Care Network can provide support and references to help you and your family cope with the emotional, social, financial and other issues related to your situation. You can call toll free at to speak to a Care Network representative. Also, you ll find useful information on the Care Network site, which you can link to from If I die, I m worried my family s healthcare coverage will end. Does Costco have any provisions to help them? Be assured that continued healthcare coverage under COBRA may be available to your eligible family members for a period of time after you re gone. In fact, if they qualify, Costco may even pay the cost of that coverage for up to one year. For more information, be sure to contact Costco Benefits toll free at After one year of leave, will I be terminated if I m not able to return to work due to my illness? Ordinarily, employees who don t return after exhausting their available leave may be subject to termination. However, if Unum has certified you are terminally ill, we ll still consider you to be on an approved leave of absence. That means: you ll continue to have employee privileges, such as a free membership card and if you re ever able to return to work, your eligibility for benefits will resume immediately with no benefit waiting period HR0905_F_LOAMag_Insert.indd 16

17 Action plan #7: returning to work YOUR SITUATION YOUR BENEFIT OPTIONS IN BRIEF YOUR STEPS You return from your leave within 30 days after your eligibility ends. You return from your leave more than 30 days after eligibility ends. Your eligibility for Costco employee benefits will resume immediately. Your previous coverage and payroll deductions to pay for that coverage will be reinstated. You will only be able to change your elections during annual open enrollment or following a qualifying mid-year change in your job or family status. Your eligibility for Costco employee benefits will resume immediately. Your previous coverage and payroll deductions to pay for that coverage will be reinstated. No action is required to resume benefit coverage. No action is required to resume benefit coverage. ACTION PLAN #7: RETURNING TO WORK You can make changes within 30 days after you come back. You can do that online at www. costcobenefits.com and click on Benefit Enrollment & Changes. Important Note: Pre-existing condition limitations will apply when there is a break in coverage of more than 62 days HR0905_F_LOAMag_Insert.indd 17 7/29/09 3:52 PM

18 ACTION PLAN #7: QUESTIONS AND ANSWERS Action plan #7: questions and answers Before I come back to work, will I need a statement from my healthcare provider? Yes, you must provide your manager with documentation from your healthcare provider stating that you are released to return to work with or without restrictions. If you have any work restrictions, your manager will need to know what they are and how long they are expected to last. To help your healthcare provider in supplying this information, you should give him or her the Work Restrictions form enclosed in this packet. What happens to my eligibility for benefits if I must work a reduced schedule due to my medical condition? To maintain eligibility for benefits, employees are required to work an average of at least 20 hours per week during each benefit measurement period. When we review your average hours at the end of the measurement period we will take into consideration periods of reduced hours as well as leave of absence HR0905_F_LOAMag_Insert.indd 18 7/29/09 3:52 PM

19 Action plan #7: questions and answers (cont.) When I started my leave, I wasn t yet eligible for benefits. Does the time I was on approved leave count towards my eligibility waiting period? Yes. In fact, if you complete the waiting period while you re gone, your healthcare coverage will begin automatically on your benefit-effective date. (Other coverage, such as Life and AD&D insurance and disability insurance will be delayed until you return to work.) As you approach your benefit-effective date, Costco Benefits will send you notification along with details of your enrollment options. I came back to work after two months medical leave. But, after only a month on the job, it looks like I ll need to go on leave again for the same condition. What s going to happen to my eligibility for benefits? If you return for less than 90 days, then go out for the same or related medical reason, your leave is considered continuous and unbroken. As a result, the maximum time you ll be eligible during your leave will be counted from the date you originally went out, plus the time you were back. After being ill, I really can see the advantage of using the Health Care Reimbursement Account to save money on my medical bills. Can I enroll when I get back to work? This is a great way to pay your eligible costs, unfortunately, mid-year enrollment in this plan is not allowed. Just resolve to sign up during the next annual open enrollment then you can start cutting your out-of-pocket healthcare expenses the very next calendar year. ACTION PLAN #7: QUESTIONS AND ANSWERS For example, let s say you were eligible for six months continued coverage during your leave. Since you returned to work for one month, in your case your eligibility will end in seven months counted from your original leave date HR0905_F_LOAMag_Insert.indd 19 7/29/09 3:52 PM

20 NOTES: Notes: 20 08HR0905_F_LOAMag_Insert.indd 20 7/29/09 3:52 PM