QUESTIONS AND ANSWERS

Transcription

1 QUESTIONS AND ANSWERS Understanding Medicare Part D Q1: What is Medicare Part D? A1: Beginning January 1, 2006, Medicare Part D was introduced as an entirely voluntary prescription drug benefit offered to Medicare beneficiaries who choose it and pay the premiums. The Medicare Part D prescription drug plans are available through private insurance companies and other private organizations that negotiate discounts on drug Q2: What will I pay for Medicare Part D? A2: Like other insurance, if you elect Part D coverage you will pay a monthly premium and a share of the cost of your prescriptions. Costs will vary depending on the drugs you take and the plan you choose. Q3: When is Medicare Part D enrollment? A3: The enrollment period is held from November 15 through December 31 each year. Q4: Who should enroll in Medicare Part D? A4: For a few people who take certain high-cost prescription drugs, Medicare Part D could be a better choice than the Motorola Post-Employment Health Benefits Plan, which has an annual maximum benefit of $6,000 for prescription drugs (excluding specialty medications obtained through Caremark Specialty Pharmacy Services). Also, for certain low-income beneficiaries who meet strict income and asset requirements, Medicare offers enhanced coverage and subsidies. For these reasons, you should fully evaluate your options regarding medical and prescription drug coverage. Q5: Can my spouse/medicare-eligible dependents have Medicare Part D if I do not? A5: Yes. However, if they are currently covered by the Motorola Share Plan or Supplement Plan and elect Part D, they will no longer be eligible for retiree health

2 care coverage both medical and prescription drug through Motorola. Also, they will not be eligible to re-enroll in the Motorola retiree health care plan in the future, under any circumstances. Your Motorola Prescription Drug Benefits Q6: Should I enroll in Medicare Part D for 2006? Why or why not? A6: For most Motorola retirees, the answer is no. Your current prescription drug coverage through the Motorola Share Plan or Supplement Plan is equal to if not better than what Medicare Part D will offer. To keep your current prescription drug coverage under the Plan, do nothing other than continue to pay your monthly contributions. Q7: How do I know that Motorola s prescription drug coverage is equal to or better than Medicare Part D? A7: Companies that continue to provide prescription drug coverage to Medicare eligible retirees including Motorola are required by the federal government to provide creditable coverage notices each year. The notice will tell you whether Motorola s coverage is equal to or better than what Medicare Part D offers. You will receive notice of Motorola s creditable coverage in the fall of each year. Q8: Do I need to enroll in the Motorola retiree health care plan to continue my coverage? A8: There is no annual enrollment for retiree health care coverage once you are covered by the Motorola Plan. However, you do need to continue paying your monthly contribution to continue your medical and prescription drug coverage through the Motorola Share Plan or Supplement Plan. Q9: If I enroll in Medicare Part D, how will my Motorola retiree health care coverage be affected? A9: It s important for you to know that if you choose Medicare Part D, you and your dependents will no longer be eligible for retiree health care coverage both medical (including dental for those under age 65) and prescription drug through Motorola. And you will not be able to re-enroll in the Motorola retiree health care plan in the future under any circumstances. If you, as the Motorola retiree, decide to enroll in Part D, all coverage for all your remaining dependents will also end regardless of their age, including pre-65 dental coverage.

3 Q10: Will Motorola continue to provide prescription drug coverage? A10: Each year, we will assess our retiree health care strategy to determine whether we will continue to provide coverage. Some considerations include Motorola s business needs, legislative changes that impact the health care system and the evolution of the market as it relates to Medicare Part D coverage. Q11: If changes are made to Motorola s retiree prescription drug coverage in the future, how will I learn about these changes? A11: If changes are made, we will communicate them as soon as possible so you have time to learn about the changes, any impact on your personal situation and any action you may be required to take. Q12: I understand Motorola gets a subsidy from the government when retirees participate in the Motorola retiree health care plan and do not enroll in Medicare Part D. Will I get some of that subsidy money? A12: Motorola is sharing a portion of the subsidy with retirees by applying those funds to offset the overall costs of offering retiree health care coverage. Q13: If I decide to enroll in a Medicare Part D plan, what should I do in order to cancel my Motorola coverage? A13: If you or your covered spouse/domestic partner or other dependent over age 65 decide to enroll in Medicare Part D and drop your Motorola coverage, please contact the Rewards Administration Center (RAC) to notify them of your intent to drop your coverage. You may do this by sending a letter stating your intent to permanently discontinue your coverage to: Rewards Administration Center Attention: Membership Services PO Box 66875, Phoenix, AZ Should you decide to elect Medicare Part D, remember that your Motorola Share Plan or Supplement Plan coverage is forfeited altogether, as well as all medical and dental coverage for any dependents you may have under age 65. You can never reenroll yourself or your dependents in the Motorola Plan, under any circumstances. Q14: If I elect Part D and don t notify Motorola, what happens? A14: If you (or your spouse/domestic partner or other dependent over age 65) elect Medicare Part D, do not notify the RAC and Motorola is later notified by the government that you are enrolled in a Medicare Part D plan, you and any dependents covered under your plan will be immediately terminated from your

4 Motorola coverage. Further, if any claims were mistakenly paid under your Motorola coverage after you enrolled in Medicare Part D and while you were still enrolled in the Motorola plan, Motorola reserves the right to seek repayment or recovery of funds. Please be sure to immediately notify the RAC in writing at the following address if you should elect to enroll in Medicare Part D: Rewards Administration Center Attention: Membership Services PO Box 66875, Phoenix, AZ Q15: I would like to get an idea of how much I have spent on prescription drugs in the past so I can better evaluate my options. How might I go about doing this? A15: For 2008 and prior, you can obtain your prescription history by accessing the information via secure website at Caremark.com (If you have not already registered on the site, you will need to do so in order to look up your personal information.) For 2009 and beyond, you can obtain your prescription history by accessing the information via secure website at Medco.com (If you have not already registered on the site, you will need to do so in order to look up your personal information.) Q16: Why can t I re-enroll in the Motorola Share Plan or Supplement Plan if I elect Medicare Part D? A16: Currently, 65% to 75% of the Share Plan and Supplement Plan costs are for prescription drugs. Motorola wants to streamline our plan design and administration so that if you elect Part D and Motorola cannot receive the subsidy to help offset post-65 health care costs, you and your dependents will no longer be eligible to receive health care benefits from Motorola. Choosing the Best Option Q17: Can I call the Rewards Administration Center (RAC) for advice? A17: The RAC cannot give you advice regarding whether or not you should stay with the Motorola Share Plan or Supplement Plan or elect Medicare Part D. Only you can make the best decision about your continuing health care coverage. The RAC can help with questions about your benefits through the Motorola Share Plan and Supplement Plan.

5 Q18: How much does the standard Medicare Part D plan cost? How does it work? A18: Each private company that offers a prescription drug plan under Part D will operate a bit differently and cover medications at different levels. Here s an example of how the standard Medicare Part D plan will pay benefits: You pay a deductible. In 2009, the deductible is $295. After you meet the $295 deductible, you ll pay coinsurance for each prescription. coinsurance for dollar amounts from $295 to $2, % for dollar amounts from $2,700 to $4,350 a small copayment for dollar amounts over $4,350 Q19: The Motorola retiree prescription drug coverage maximum benefit is capped at $6,000 per year. Does Medicare Part D have a maximum benefit? A19: No. There is no maximum benefit cap on Medicare Part D. Q20: Will I pay a penalty if I don t enroll in Medicare Part D when I m first eligible but do enroll in the future? A20: No. You will not be required to pay any late enrollment penalty fees for Medicare Part D coverage as long as you have participated in a plan that provides prescription drug benefits that are, on average, at least as good as the coverage you would receive if you enrolled in a standard Medicare prescription drug plan. This is what is referred to as creditable coverage. (Please note: Motorola s prescription drug benefits currently meet this actuarial equivalence standard and you will receive a notice of creditable coverage from Motorola in the fall of each year.) You will not be subject to a late enrollment penalty if you enroll in Medicare Part D within 63 days of the date your coverage ends. Medicare-Related Questions Q21: What s the difference between Medicare, Medicaid, and Medigap? A21: Medicare is a federal health insurance program for people who are age 65 or older, certain people with disabilities and people with end-stage renal disease. Currently, Medicare has two parts Part A, which is hospital insurance, and Part B, which is medical insurance. Starting January 1, 2006, a third part was introduced Part D, which is prescription drug coverage. Another option under Medicare, Part C (known as Medicare Advantage ), refers to private Medicare benefits plans that provide benefits covered under Part A and Part B as well as Part D. These plans are

6 not directly provided by Medicare. Medicaid is a joint federal and state program that helps with medical costs for people with low incomes and limited resources. To qualify for Medicaid, you must have low income and little savings or few other assets. Medicaid coverage differs from state to state. A Medigap policy is a health insurance policy sold by private insurance companies to fill the gaps in Medicare. In other words, these policies help you pay some health care costs that Medicare does not cover. Currently, there are 12 standardized Medigap plans, designated A through L. Each plan provides a different set of benefits at a different cost, with Medigap Plan A offering only the basic benefits and Plan L offering the most benefits. Although the benefits for each plan are standardized, different insurance companies may charge different prices for the same coverage. Visit to learn more about the Medicare, Medicaid, and Medigap programs. Q22: Who is eligible for Medicare? A22: Medicare is a government health insurance program for: People age 65 or older, People under age 65 with certain disabilities, and People of all ages with end-stage renal disease (permanent kidney failure requiring dialysis or kidney transplant). You re eligible for Medicare if you have paid into Social Security for at least 10 years or are eligible to receive Social Security benefits on your spouse s earnings. Q23: Is the Medicare system at risk of running out of money (similar to what we hear in the media about Social Security)? A23: We are not able to predict what might happen with Medicare benefits, including Part D benefits, in the future. However, Motorola continually reassesses its benefits programs in light of legislative changes and its overall business strategy. If significant changes are made to how the Medicare system works, Motorola will carefully consider the impact on the benefits programs it offers. Q24: I d like to learn more about Medicare. What s the best way to do that? A24: The Medicare website ( is a great resource for up-to-date information about Medicare. At the site, you can learn how Medicare works, review Medicare related publications and see answers to frequently asked questions. It also includes a variety of tools to help Medicare-eligible retirees make good health care decisions. Another helpful website is the Centers for Medicare & Medicaid Services (CMS) ( CMS administers the Medicare program, and its

7 website includes information about a variety of government sponsored insurance programs and providers. In addition, it features news and statistics related to health care. You can also call Medicare toll-free at 800.MEDICARE ( ). For TTY assistance, call Q25: Where can I call if I have a question? A25: Call the RAC at with any Motorola Post-Employment Health Benefits Plan-related questions. For TTY assistance, call , Monday through Friday, 8:00 a.m. 5:00 p.m., Arizona time. For general Medicare-related questions, call the Medicare Hotline at 800.MEDICARE ( ). For TTY assistance, call Information is always available at