2011 Retiree Benefits News

Transcription

1 2011 Retiree Benefits News For Legacy Schering-Plough Retirees October 2010 Welcome to the 2011 Annual Enrollment OCTOBER 22, 2010 NOVEMBER 12, 2010 Each year during the Annual Enrollment period, you have the opportunity to review your Schering-Plough retiree medical and life insurance coverage, if applicable, for the upcoming year. As a result of the harmonization of active health and insurance benefits plans following the merger of Merck and Schering-Plough, you will experience some changes to your retiree medical and life insurance benefits. What You Need to Do Review your Personal Fact Sheet for your 2011 medical plan coverage and cost information. Decide if you want to: Maintain your current coverage; Drop coverage for yourself or a dependent; or Add your dependent child under age 26 to coverage. Review the new prescription drug changes. Review your new life insurance program, if applicable, and designate your beneficiaries. This newsletter provides more details about these changes as well as important enrollment reminders. What s Inside What s New...2 Your 2011 Retiree Benefits Checklist...3 Eligibility for Retiree Medical Coverage...3 The Merck Benefits Service Center at Fidelity Your New Benefits Resource...4 Enrolling or Making Changes to Your Coverage...4 Retiree Medical Plan... 6 Paying for Your Medical Coverage...9 Retiree Life Insurance...10 Contact Information...12 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.

2 2 What s New The chart below highlights what s new to the benefits program for legacy Schering-Plough retirees Health and Insurance Benefits Programs Medical Plan (Including Prescription Drug) Aetna Medicare Advantage HMO no longer offered Preventive services covered at 100% New prescription drug administrator Medco Prescription drug coverage based on copay structure New program to help you and your providers manage your health care Life Insurance New administrator/insurer Prudential Group Variable Universal Life (GVUL) insurance no longer offered New beneficiaries must be designated Other Adult children can now be covered up to age 26 1 Coverage for opposite-sex domestic partners ends December 31, 2011 Benefit Advocates no longer offered The Merck Benefits Service Center at Fidelity replaces the current Benefits Service Center 1 U.S. health care reform now requires employers like Merck to extend medical coverage to children up to age 26, regardless of their student status, marital status, eligibility for coverage elsewhere and whether or not they live with you or are your dependent for tax purposes. Merck is extending this coverage to existing retiree life insurance coverage that applies to dependents, as well, effective January 1, See Covering Adult Children for details on how to enroll your dependent children. Do You Have Questions about Your 2011 Benefits? Beginning October 22, you can: go online to or call the Merck Benefits Service Center at Fidelity at Representatives are available Monday through Friday between 8:30 AM and 8:30 PM, Eastern time. (You ll need your Fidelity Customer ID/Social Security Number and PIN see page 5). You can also review the summary plan description for the applicable benefit plan. The summary plan description for each benefit plan includes detailed information about the benefits provided by, and the administration of, each benefit plan. Summary plan descriptions are available through Fidelity NetBenefits online at or by calling the Merck Benefits Service Center at Fidelity at You may also contact our benefits partners directly. Contact information can be found on page 12 of this newsletter.

3 3 Your 2011 Retiree Benefits Checklist Follow these steps to ensure you have the coverage you want for READ this newsletter for an overview of what s new or different for REVIEW the enclosed Personal Fact Sheet: 1. For your 2011 default medical plan coverage options and cost information. 2. To confirm that the dependent(s) listed are the dependents you want to cover and they satisfy the plan s dependent eligibility requirements. Remember, starting January 1, 2011, dependent eligibility for adult children is extended up to age 26. (See Covering Adult Children.) 3. For the amount of your life insurance and associated premium, if any. TAKE ACTION 4. If you would like to make changes to your coverage or the dependents you will cover in 2011, you can either: MAKE CHANGES ONLINE through Fidelity NetBenefits by the November 12, 2010 deadline; or CALL the Merck Benefits Service Center at Fidelity to enroll by phone by the November 12, 2010 deadline, or, if you are adding adult dependents, by November 23, Keep in mind that you can call the Merck Benefits Service Center at Fidelity to make any allowable changes throughout the year. 5. If you are satisfied with your coverage as reflected on your Personal Fact Sheet, you do not need to do anything. You will be enrolled automatically in that coverage beginning January 1, Eligibility for Retiree Medical Coverage Generally, you and your dependents must be currently enrolled for legacy Schering-Plough retiree medical coverage to be eligible to continue coverage for However, during the 2011 Annual Enrollment period, you can enroll your adult children under age 26. See Covering Adult Children. If you drop coverage for yourself during the 2011 Annual Enrollment period, you cannot re-enroll yourself in the future. You may, however, drop coverage for your dependents if they have coverage elsewhere. You may add your eligible dependents back to your coverage at a later date, provided they experience a qualifying status change that causes a loss of their other coverage, and you notify the Merck Benefits Service Center at Fidelity within 30 days of that change to add them back to coverage. Keep in mind, you may not add eligible dependents to your coverage during a subsequent Annual Enrollment period; only due to a qualifying status change. Covering Adult Children For a 30-day period starting October 22, you can enroll your children under age 26 (including an adult child who previously lost coverage or was ineligible for coverage) as dependents under your retiree medical benefits for coverage beginning January 1, 2011.

4 4 To enroll your child for retiree medical coverage, you must contact the Merck Benefits Service Center at Fidelity at between October 22 and November 23. Customer Service Associates are available Monday through Friday (excluding New York Stock Exchange holidays) between 8:30 AM and 8:30 PM, Eastern time. You will not be able to elect coverage for your dependents online through NetBenefits. Please note that after this 30-day period, you will not be eligible to enroll a dependent (including a child) for retiree medical coverage unless there is a qualifying status change that causes that dependent to lose other coverage and you notify the Merck Benefits Service Center at Fidelity within 30 days of that event to add them to coverage. Covering Opposite-Sex Domestic Partners Coverage for opposite-sex domestic partners and children (unless the child is your biological or adopted child) will no longer be offered under the medical plan beginning January 1, To help retirees plan for this change, Merck is offering a one-year transition period to legacy Schering-Plough retirees. Eligible domestic partners and children may be covered through December 31, If You Have a Life Event before December 31, 2010 If you experience a qualifying life event (i.e., birth or adoption of a child, marriage, divorce) before the end of the year and want to make a change to your health and insurance benefits, you must contact the Benefits Service Center at Mercer at or online at You will also need to contact Fidelity to ensure that your benefits for 2011 in the Fidelity system correctly reflect any change made to your benefits due to your life event change. Contact the Merck Benefits Service Center at or go online at The Merck Benefits Service Center at Fidelity Your New Benefits Resource Beginning with the 2011 Annual Enrollment period (October 22 November 12), the Merck Benefits Service Center at Fidelity will be where you will go to enroll or to make changes to your 2011 retiree medical and life insurance benefits. The Merck Benefits Service Center at Fidelity replaces the current Benefits Service Center offered through Schering-Plough. With Fidelity, there are two ways to make changes for your benefits online through NetBenefits or by calling the Merck Benefits Service Center at Fidelity. Detailed information about accessing NetBenefits and contacting the Merck Benefits Service Center at Fidelity is included on the next page. Enrolling or Making Changes to Your Coverage Review Your Personal Information Please take the time to review all of your personal information listed on your Personal Fact Sheet or in NetBenefits (note: the information contained in NetBenefits will be the same as what is listed on your Personal Fact Sheet). Please check the following information for you and all of your listed dependents: Name; Date of birth; SSN; and Home address. If any of your information is incorrect or missing please correct the information by calling the Merck Benefits Service Center at Fidelity. Please note that if your date of birth is incorrect, you will need to notify Merck directly by calling the Merck HR Support Center at 866-MERCK-HD ( ). If you want to make changes to your benefits coverage shown on your Personal Fact Sheet, follow the instructions for making changes online or by phone.

5 5 How to Enroll or Make Benefits Changes Online STEP 1: Log on to Fidelity NetBenefits at You will need to register for the first time or log on to Fidelity NetBenefits using your existing login information. If you have previously used NetBenefits, Fidelity.com or have established a PIN, log in to NetBenefits with the same Social Security number/customer ID and PIN information. If you have forgotten your PIN, you will need to reset it using Forget or need to reset your PIN on the login page. When you change your PIN (or Customer ID), the change will apply to all your Fidelity accounts and services going forward. STEP 2: From the NetBenefits Health & Insurance tab Select Get Started. Click Continue. STEP 3: Confirm and validate information about your dependents Review your dependent information 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 dependent children due to the extension of eligibility to age 26, contact the Merck Benefits Service Center at Fidelity at MERCK ( ). You will not be able to enroll a dependent online. If you need to drop a dependent, contact the Merck Benefits Service Center at Fidelity at MERCK ( ) or drop the dependent online at Fidelity NetBenefits. Click Save Your Benefits. The elections from your online session will not be saved unless you click Save Your Benefits. STEP 4: From your online Benefit Elections page View your medical benefits options for the coming year. Review the online enrollment tools. STEP 5: 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. How to Enroll or Make Benefits Changes By Phone Contact the Merck Benefits Service Center at Fidelity at MERCK ( ). Customer Service Associates are available Monday through Friday (excluding New York Stock Exchange holidays) between 8:30 AM and 8:30 PM, Eastern time. When you call the Merck Benefits Service Center at Fidelity, you will be asked to enter your Social Security number and date of birth for verification purposes. If You Do Not Enroll or Make Changes If you are satisfied with your current medical coverage as shown on your Personal Fact Sheet, you do not need to do anything. You will continue to be enrolled in the same medical plan option 1 and coverage level you currently have, at the updated 2011 rates, as outlined on your enclosed Personal Fact Sheet. 1 If you are currently enrolled in the Aetna Medicare Advantage HMO option, you will automatically be enrolled in the Merck PPO Hybrid Aetna Choice POS II option.

6 6 Retiree Medical Plan Overview The Aetna PPO Choice Plan and the Aetna 90/10 Indemnity Choice Plan 1 (for current participants only) will continue to be available in The Aetna Medicare Advantage HMO option will no longer be offered. Current participants in the Aetna Medicare Advantage HMO will automatically be enrolled in a new Merck PPO Hybrid option. See page 7 for details. 1 The Aetna 90/10 Indemnity Choice Plan is available only to retirees who participate in the Plan as of December 31, 2010, and who retired before January 1, How Does the Aetna PPO Choice Plan Work? If you are not Medicare eligible (generally, age 65 or disabled and receiving Social Security benefits), you may use in-network providers or out-of-network providers; however, your out-of-pocket costs will be less if you visit providers who participate in the Aetna PPO Choice (Aetna Choice POS II) network. Key Differences Preventive services: If you are enrolled in a medical option, many routine preventive services (including those preventive services required to be covered under U.S. health care reform and applicable guidance) will be covered at 100%. However, if you are enrolled in the Aetna PPO Choice or the Merck PPO Hybrid option, you must use in-network providers to receive these preventive services at 100%. Certain age, frequency and other restrictions may apply. For a list of covered preventive services, contact your health care plan directly. Speech, physical and occupational therapy services for developmental delays: These services are no longer covered for children up to and including age 6. If you are Medicare eligible, the Aetna PPO Choice in network benefit coverage levels will apply whether you visit an in-network or an out-of-network provider. Your coverage will be coordinated with Medicare with Medicare being your primary coverage.

7 7 Aetna Medicare Advantage HMO Eliminated Effective January 1, 2011, the Aetna Medicare Advantage HMO will no longer be offered to legacy Schering-Plough retirees. For participants currently enrolled in the Aetna Medicare Advantage HMO option, you will automatically be enrolled in the Merck PPO Hybrid Aetna Choice POS II option. This option is only available to participants currently enrolled in a Medicare Advantage HMO and cannot be elected by any other legacy Schering-Plough retirees. How Does the Merck PPO Hybrid Aetna Choice POS II Work? Generally, the Merck PPO Hybrid Aetna Choice POS II option offers the same features as the regular Aetna PPO Choice option, but for Medicare-eligible participants, the deductibles and out-of-pocket maximums that apply are significantly lower that those under the regular Aetna PPO Choice option. Participants who are Medicare eligible will not be subject to out-of-network provisions. The plan will coordinate with Medicare and will pay secondary to Medicare. For participants who are not Medicare eligible, the Merck PPO Hybrid option has an in-network and out of-network component subject to the Aetna Choice POS II network. For more information about this option, please contact Aetna at Dis-enrolling from the Aetna Medicare Advantage HMO Aetna will automatically dis-enroll you from the Aetna Medicare Advantage HMO with an effective date of January 1, 2011, and you will be placed in original Medicare that will coordinate with your Merck PPO Hybrid plan in Participants who are currently enrolled in the Aetna Medicare Advantage HMO will receive a separate communication from Aetna confirming this information in December. New Program to Help You Manage Your Health Care Merck has partnered with ActiveHealth Management to provide you with a confidential program that is part of your health plan benefits and offered at no additional cost to you. ActiveHealth s CareEngine System is a technology that works to improve the quality of care you receive. How the Program Works When you visit a doctor, fill a prescription or take a lab test, your information is sent to CareEngine. As information is received, it is compared to medical standards. If CareEngine identifies an opportunity to improve your care, it lets you and/or your doctor know by sending a Care Consideration. You do not need to do anything to benefit from this service; your enrollment in CareEngine is automatic. ActiveHealth s CareEngine helps you and your doctor by: Empowering you. You receive information about ways to improve or safeguard your health. Helping your doctors. Your doctors don t always have access to all your health information. CareEngine sends them important information about your health. Always working. CareEngine continuously scans for opportunities over a broad range of conditions and health issues. Please note that your personal health information is shared only between ActiveHealth Management and your health plan. It is never shared with the company. You are protected by all federal and state privacy laws. For information about this program, contact ActiveHealth Management at Benefit Advocates Will No Longer Be Offered Benefit Advocates will not be available as of January 1, Benefit Advocates will work with you and your plan provider to transition your case. Beginning January 1, 2011, you should contact your medical carrier directly with questions.

8 8 Prescription Drug Coverage Overview Medco is the new administrator for prescription drug coverage under all Merck medical options. Prescription drug coverage is the same under all medical options. You will pay a set fee for generic or non-merck brand drugs, according to a schedule of copays below. Most Merck brand prescription drugs (which generally include the drugs of both legacy companies) are provided at no cost to you. 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.) Prior Authorization Required for Certain Medications Certain medications require prior authorization before your prescription will be covered by the plan. To confirm if a drug is covered, or if it is subject to any limits, call Medco Member Services at You, your doctor or your pharmacist must call Medco to authorize any medications that require prior authorization. Transferring Your Prescriptions to Medco Beginning January 1, 2011, CVS Caremark will no longer be able to process your prescription drug claims. If you have an outstanding refill at the end of 2010, your prescription should be transferred to Medco automatically, but you may wish to check the status of your prescription before your refill comes due. If you are taking a specialty drug, Medco will contact you to help transition your prescriptions. New ID Cards You will receive a new prescription benefit card as part of Medco s Welcome Kit. Watch for your new card in the mail in mid-december. If you do not receive your prescription benefits ID card prior to your first visit to the pharmacist in 2011, you can print a duplicate by logging on to Medco s website at You will receive a mailing from Medco in mid November outlining the benefits of the new prescription drug program. Prescription Drug Copayments Drug Medco Pharmacy Copay (Mail Order) up to a 90-Day Supply Participating Retail Pharmacy Copay 1,2,3 up to a 30-Day Supply Merck brand drugs $0 $0 Generic drugs $20 $10 Non-Merck brand drugs (When generic equivalent is NOT available) $50 $25 Non-Merck brand drugs (When generic equivalent is available) $20 copay plus the difference between the retail price and its generic equivalent, up to $100 cap per prescription 1 Certain prescription medications are covered only by mail order through the Medco Pharmacy. $10 copay plus the difference between the retail price and its generic equivalent, up to $50 cap per prescription 2 Non-Merck brand oral contraceptives and non-merck brand male erectile dysfunction medications (MEDS) are covered only by mail order through the Medco Pharmacy. Merck brand oral contraceptives and MEDS may be filled at a participating retail pharmacy at $0 copay. 3 Prescriptions filled at non-participating pharmacies will be reimbursed based on the network-negotiated price of the medication, minus the applicable copay. Employees are responsible for any drug costs in excess of network-negotiated fees. Member Pay the Difference provisions (without the cap) apply for non-merck brands that are filled when a generic is available.

9 9 Paying for Your Medical Coverage The 2011 retiree medical contribution amounts can be found on the enclosed Personal Fact Sheet or online at Fidelity NetBenefits. If you are currently being direct billed by Benefits Concepts Inc. (BCI) for your retiree medical coverage, this process will change. Beginning January 1, 2011, Fidelity will handle the direct billing for retiree health care coverage for legacy Schering-Plough retirees. You will receive a letter from Fidelity in mid-december explaining the new direct billing process. If you have any questions, please contact the Merck Benefits Service Center at Fidelity. If you are currently paying for your retiree medical coverage through pension deductions, you do not need to do anything. Your 2011 contributions will continue to be deducted from your pension benefit. If you have any questions, please contact the Retirement Center at

10 10 Retiree Life Insurance Overview In order to streamline administration and align our life insurance benefits with the market, we are making the following life insurance changes effective January 1, New Administrator/Insurer Prudential will be the new administrator and insurer for life insurance benefits at Merck. As a result, your current life insurance coverage with MetLife will terminate on December 31, 2010, and your current life insurance coverage amounts will be mapped to the new life insurance options offered through Prudential. Designating A New Life Insurance Beneficiary All beneficiary designations for your MetLife coverage will terminate on December 31, Prudential will not honor any previous beneficiaries you may have had on file with MetLife, Mercer or legacy Schering-Plough. To designate a beneficiary for the new life insurance options with Prudential, you must file a beneficiary designation with Fidelity. Timing If you want a beneficiary designation for your Prudential coverage to be effective January 1, 2011, you must make your beneficiary designation between October 22 and December 31, If you do not file a beneficiary designation with Fidelity by December 31, 2010, your beneficiary for all life insurance coverage with Prudential payable due to your death will default to your estate as of January 1, You can update your beneficiary designation at any time after January 1, 2011, by logging on to Fidelity NetBenefits at However, if you do not have a valid beneficiary designation on file with Fidelity on your date of death, benefits payable due to your death under the Merck Life Insurance Plan will be paid to your estate. Who are my current beneficiaries? To review your current beneficiary on file for retiree life insurance, visit or call Representatives are available from 8:30 AM to 5:30 PM, Eastern time. To view your current beneficiary on file for GVUL coverage, visit or call Representatives are available from 8:00 AM to 8:00 PM, Eastern time.

11 11 How do I designate a beneficiary? To designate a beneficiary for your Prudential coverage, go online through Fidelity NetBenefits at to the Your Profile tab and then click Beneficiaries. If you have questions, contact the Merck Benefits Service Center at Fidelity. What if I assigned my MetLife coverage? It is your responsibility to determine the effectiveness of your life insurance assignments. In light of changes to Merck s life insurance program, you should review your assignment documents with your estate planner to be sure that they continue to meet your estate planning needs. Contact the Merck HR Service Center at 866-MRK-HR4U ( ) for more information. Group Variable Universal Life (GVUL) Insurance Is Terminating The Group Variable Universal Life (GVUL) insurance option with MetLife will terminate on December 31, 2010, and will not be offered with Prudential. An amount equal to the group term life insurance portion of your GVUL insurance will be mapped to the Optional Life insurance option offered through Prudential; and Any cash value accumulated within your GVUL investment options will be liquidated as of December 31, You must decide what to do with any accumulated cash value. Deciding What to Do With Your GVUL Cash Value Accumulated cash value cannot be mapped to Prudential and will be liquidated as of December 31, 2010 (or sooner, if you elect option 1 or 2 below). If you have any cash surrender value, you may: 1. Effect a tax-free Internal Revenue Code Section 1035 Exchange to transfer the cash surrender value and cost basis to a new or existing individual Universal Life (UL) or Variable Universal Life (VUL) policy or to an annuity, through MetLife or another provider of your choosing; 2. Use the cash surrender value to purchase a paid up life insurance policy from MetLife (minimum paid-up face amount of $10,000) or another provider of your choosing; or 3. Receive a check for the cash surrender value as of December 31, 2010 from MetLife (which may have tax implications for some participants). You should have received a letter from MetLife explaining your options. Please contact MetLife at if you have questions. Representatives are available from 8:00 AM to 8:00 PM, Eastern time. Paying for Your Life Insurance Coverage Beginning January 1, 2011, Fidelity will handle the billing for any optional life insurance coverage for legacy Schering-Plough retirees. You will receive a communication in mid-december explaining the new direct billing process. If you have questions, please contact the Merck Benefits Service Center at Fidelity. If you are currently paying for your life insurance coverage through pension deductions, you do not need to do anything. Your 2011 contributions will continue to be deducted from your pension benefit. If you have any questions, please contact the Retirement Center at

12 12 Contact Information For More Information About The retiree benefits described in this newsletter Medical Plan Options (Aetna PPO Choice, 90/10 Indemnity Choice, Merck PPO Hybrid Aetna Choice POS II) Prescription Drug Program Contact/ Benefits Provider Contact by Phone Contact via the Internet Merck Benefits Service Center at Fidelity MERCK ( ) 1 Aetna Medco Customer Service Associates are available Monday through Friday (excluding New York Stock Exchange holidays) between 8:30 AM and 8:30 PM, Eastern time. Representatives are available from 8:00 AM to 6:00 PM, Eastern time. 800-Rx-MERCK ( ) Specialty Pharmacy (Accredo) GVUL Insurance MetLife Paying for coverage Representatives are available from 8:00 AM to 8:00 PM, Eastern time. Pension Deductions Retirement Center Retirement Center Representatives are available Monday through Friday, between 8:30 AM and 5:00 PM, Eastern time, except on holidays. retirementcenterweb.html Please note that the Retirement Center website is not available to legacy OBS retirees. Legacy OBS retirees will need to call the Retirement Center. Direct Billing Merck Benefits Service Center at Fidelity MERCK ( ) 1 Customer Service Associates are available Monday through Friday (excluding New York Stock Exchange holidays) between 8:30 AM and 8:30 PM, Eastern time. 1 For overseas calls, dial your country s toll free AT&T USADirect access number then enter In the United States, call to obtain AT&T USADirect access numbers. Merck (and its subsidiaries) reserves the right to amend the medical and 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. The information contained herein has been provided by Merck & Co. and its subsidiaries and is solely their responsibility. 3.MK-H-440RR.100