2016 Benefits Open Enrollment

Transcription

1 2016 Benefits Open Enrollment

2 Discussion Topics Your Health Care Benefits in 2016 Two new Health Plan options Health Savings Account Selecting a Health Plan Option ALEX a new, interactive, online tool! Account Comparison Other Benefits Thrift Plan Changes Next Steps HSA 2

3 2016 Benefits Open Enrollment Benefits Open Enrollment Begins: Sunday, November 1, 2015 Ends: Friday, November 20, 2015 Enroll online through SAP Online Services (salaried & hourly employees) Enroll via paper (hourly employees) Call or changes to the Benefits Service Center (all employees) You MUST enroll in a Health Plan option this year last year s election does not carry over 3

4 Basic Benefits Definitions Out-of-Pocket Maximum (OOPM) The most that you will have to pay out of your own pocket for medical expenses each year. Once your medical expenses reach this amount, the Health Plan pays 100% of your remaining eligible medical expenses for that year. Health Plan Premiums The money taken from your paycheck to pay for medical insurance. Copay A fixed amount you pay for a covered health care service, such as doctor visits and prescription drugs, when you receive the service; the Health Plan pays the remaining costs. For example, you may have a $20 copay for a doctor visit. Coinsurance The Health Plan s share of the costs of a covered health care service, calculated as a percent (80%). You pay the remainder of the amount. For example, if an office visit is $100 and you ve met your deductible, the Health Plan would pay $80 and you would pay the remainder of the amount ($20). Deductible How much you will pay in medical expenses before the Health Plan starts to pay its share each year. Health Savings Account (HSA) An account where you can save, grow and spend money tax-free for current and future medical expenses. 4

5 Your Health Care Benefits in 2016 Health Plan Options Prescription Drug Coverage Health Savings Account (HSA) Health Care Flexible Spending Account (FSA) 5

6 Your Health Care Benefits in 2016 Two new Health Plan options Saver HSA option with a Health Savings Account (HSA) Classic option Introduction of Health Savings Account (HSA) Available to those enrolled in the Saver HSA option Includes a Company contribution Administered by Fidelity 6

7 About the Saver HSA and Classic Options Both of these Health Plan options Saver HSA Option Classic Option Administered by Anthem Provide access to the same networks, doctors, specialists and health care facilities as you have in 2015 Cover the same procedures and prescription drugs Have a structure where medical and prescription drug expenses will apply toward meeting one out-of-pocket maximum Offer in-network and out-of-network coverage Cover in-network preventive care at 100% (e.g., annual physical) 7

8 Comparing the Two New Health Plan Options Saver HSA Option Is a High Deductible Health Plan as defined by the IRS Has the option to open a Health Savings Account (HSA) through Fidelity MPC will provide a contribution to the account $350 for employee only coverage $700 for employee + dependent(s) coverage Higher deductible Lower premium Coinsurance (no flat dollar copays) One combined deductible for medical and Rx Classic Option Lower deductible Higher premium Copays for many services (office visits and prescription drugs) Can contribute to the Health Care Flexible Spending Account ONLY 8

9 A Closer Look at the Two Health Plan Options Deductible Saver HSA In-network benefits $1,350 Employee Only / $2,700 Employee + Dependents Classic In-network benefits $500 individual / $1,000 family (prescription expenses are not applied) Out-of-Pocket (OOP) Maximum* $5,000 individual / $10,000 family $3,000 individual / $6,000 family Co-insurance 20% 20% Office Visit 20% after deductible $20 PCP / $50 Specialty ER Charge Deductible, then $150 charge, then 20% coinsurance $150 charge, then deductible + 20% coinsurance Rx Deductible Combined with medical $100 individual / $200 family (retail only) Retail Drugs (30 day supply) Mail Order Drugs (90 day supply) 20% after deductible 20% after deductible $10 (generic) after deductible $30 (preferred Brand) after deductible $60 (Non-preferred Brand) after deductible $25 (generic) $75 (preferred Brand) $150 (Non-preferred Brand) Rx Drug OOP Max Combined with medical Combined with medical HSA Contribution $350 individual / $700 individual + dependent(s) None 2016 Monthly Contribution** $69 / $152 / $138 / $207 $101 / $221 / $201 / $302 * Medical and prescription drug expenses will apply toward meeting the out-of-pocket maximum. ** Coverage levels include: Employee / Employee + Spouse / Employee + Children / Family; Regular FT and PT rates are now the same. 9

10 How the Saver HSA Option Works Saver HSA Option Health Plan option with a lower premium, a higher deductible and the option to open a Health Savings Account (HSA), which has triple-tax advantages and is portable! You pay all medical and prescription drug costs in full until you reach the deductible Then, the Health Plan pays 80% (in network) of the total cost of eligible services (coinsurance) When you reach your out-of-pocket maximum, the Health Plan pays 100% of your medical and prescription drug costs 10

11 How the Classic Option Works Health Plan option with a higher premium, lower deductibles, and copays. Classic Option You pay a copay for primary care/specialist visits and prescription drugs A $100 individual/$200 family deductible is applied to retail prescription drugs, then copays apply You can swipe your PayFlex FSA card without providing receipts You have to meet a deductible for medical services, other than office visits, such as diagnostic testing, outpatient procedures, and inpatient hospital stays Combined out of pocket maximum for medical and Rx expenses 11

12 Prescription Drug Costs Saver HSA Option You pay the full prescription drug cost until you reach the deductible* You may use funds in your Health Savings Account (HSA) to pay for prescription drugs This means that your prescription drug expenses may be higher than usual early in the year Medical expenses also count toward reaching the deductible Classic Option This option has prescription copays You will pay the lesser of the copay or total cost This option has a deductible of $100/$200 for retail prescription drugs * Certain generic preventive Rx expenses are covered at 100% 12

13 Prescription Drug Coverage Saver HSA Option Mail order drugs still administered by Express Scripts Employees pay the full, negotiated price until reaching the deductible Deductible and out-of-pocket maximum do not apply for certain generic preventive drugs, they are covered at 100% For a list of generic preventive drugs, go to Deductible Retail Drugs (30 day supply) Mail Order Drugs (90 day supply) Drug OOP Max Saver HSA Option Combined deductible for medical and Rx Plan pays 80% after deductible Plan pays 80% after deductible Combined with medical 13

14 Be A Wise Health Care Consumer Under the Saver HSA option, you pay 100% of medical and prescription drug costs until you meet your deductible That means you initially pay 100% of prescription drug costs SO be a wise consumer Shop for the best retail price for your prescription drugs or use mail order Use generics when possible 14

15 Prescription Drug Coverage Classic Option Mail order drugs still administered by Express Scripts Employees pay the full, negotiated price until reaching the deductible (for retail drugs only) For mail order drugs, there are only co-pays; no deductible Classic Rx Deductible Retail Drugs (30 day supply) Mail Order Drugs (90 day supply) Drug OOP Max $100 individual / $200 family - Retail Only $10 (generic) after deductible $30 (preferred Brand) after deductible $60 (Non-preferred Brand) after deductible $25 (generic) $75 (preferred Brand) $150 (Non-preferred Brand) Combined with medical 15

16 Prescription Drug Costs What This Means For You Saver HSA Option When you fill a prescription, you will pay the discounted cost until you reach the deductible* Let s say the discounted cost of your preferred brand, prescription drug is $150. Mail order or retail: You pay 100% of this cost or $150. You can use the funds in your HSA to pay for the prescription and the $150 counts toward your deductible as well as the out-of-pocket maximum. * Certain generic preventive Rx expenses are covered at 100%. Classic Option When you fill a prescription there is a copay; for retail drugs there is a deductible ($100 / $200) Let s say the discounted cost of your preferred brand, prescription drug is $150. Mail order: You pay $75, which is the copay for a preferred brand, mail order prescription drug. Retail: You pay the $100 retail deductible first, then $30 copay for a total of $130. If you have already met your deductible, you pay $30. 16

17 Saver HSA Option Health Savings Account (HSA) Advantages: Rolls over from year to year Portable Account balances can be invested in mutual funds once balance meets a threshold amount Contribution amounts can be changed throughout the year Money must be in your account before you can use it You manage the account You can use it to pay for these expenses MPC will contribute (Employee Only/Employee + Dependent(s)) You can contribute to the account Tax-free earnings Health Savings Account You decide to save or spend your HSA balance, this year or in the future. No use it or lose it rule. Annual deductible, your share of coinsurance, and other eligible expenses $350/$700 You can make before-tax payroll contributions, up to IRS limits All investment earnings are tax-free when used for qualified expenses The account offers investment opportunities Once your balance grows to a certain threshold, you can invest in a range of options 17

18 Saver HSA Option Health Savings Account (cont'd) HSAs are triple tax-advantaged. This means you pay no taxes* on: 1. Money deposited into your account 2. Investment growth, and 3. Funds used to pay for eligible health care expenses Your contributions will lower your taxable income *HSA contributions are subject to state taxes in Alabama, California and New Jersey; HSA earnings are subject to state taxes in New Hampshire and Tennessee. 18

19 Saver HSA Option Health Savings Account (cont'd) Eligibility: Employees must be enrolled in the Saver HSA option Employees cannot be: Covered by any other health plan that is not an HDHP and which provides coverage for any benefit covered under the Saver HSA option Claimed as a dependent on someone else s tax return Enrolled in Medicare Parts A or B Enrolled in TRICARE for Life Additional considerations: Employees with spouses who Are covered under a separate plan can still enroll, but will only be able to contribute up to the single statutory limit Contribute to a Flexible Spending Account (FSA) will not be eligible to contribute to an HSA or receive employer contributions Employees with a 2015 FSA balance and who enroll in the Saver HSA option need to have a $0 balance as of the end of 2015 in order to be HSA-eligible at the beginning of 2016, otherwise they will be HSA-ineligible until the 2016 grace period ends. 19

20 Saver HSA Option Health Savings Account (cont'd) 2016 Contribution Limits Employee and employer contributions are permitted up to annual statutory limits $3,350 for employee only $6,750 for employee + dependent(s) $1,000 in additional catch-up contributions allowed for those age 55+ Maximum limits include the 2016 MPC contribution amount $350 for employee-only coverage $700 for employee-plus-dependent(s) coverage Qualified Health Care Expenses Use the HSA to pay for qualified health care expenses* for you and your dependents, including, copays, coinsurance and deductibles for medical, prescription drug, dental and vision expenses *You can also use the HSA to pay for COBRA premiums, long-term care insurance premiums and Medicare Parts B, C and D premiums 20

21 Saver HSA Option Health Savings Account (cont'd) Receipts: You do not need to submit receipts for reimbursement However, it s recommended you save receipts to show that your disbursements were for qualified medical expenses Important! Reminders Tax Penalty: Any HSA funds used for purposes other than to pay for qualified health care expenses are taxable as income and subject to a 20% tax penalty Additional 20% tax penalty does not apply to account holders age 65 or older or those who become disabled or enroll in Medicare 21

22 Saver HSA Option Health Savings Account (cont'd) Opening Your Health Savings Account Log in to your Fidelity account at or using your existing username and password Elect the amount you want to contribute on a pre-tax basis through payroll deductions $1,000 catch-up contribution permitted (age 55 or older, not enrolled in Medicare) Contributions go into FDIC-insured core account Company contribution is immediate upon opening your HSA Select your beneficiaries Choosing Investments Contributions go to FDIC-insured core account Investment options include over 5,000 mutual funds, stocks, bonds, Treasuries, CDs, and more Paying for Qualified Medical Expenses Fidelity HSA debit card Fidelity BillPay Fidelity HSA checkbook Pay out of pocket and reimburse yourself 22

23 Health Care Flexible Spending Account (FSA) and Health Reimbursement Account (HRA) Health Care FSA Formerly referred to as the Health Care Spending Account (HCSA) Available: With enrollment in the Classic option, or If waived Health Plan coverage Allows you to save pre-tax money for health care expenses; however, the funds do not roll over year-to-year You may elect to contribute $120 to $2,550 PayFlex is the new administrator swipe debit card for copays Limited Purpose HRA Available with either the Classic option and the Saver HSA option IF you have an HRA balance remaining Payflex will be the new administrator HRA Blackout Period December 18 through January 10 Debit card will not work after December 18 for your HRA will only work with your Health Care FSA Allows you to use HRA balance for eligible dental and vision expenses only (pre-65 retirees can also use it for premiums) Online claim submission or paper forms 23

24 2016 Account Comparisons HSA Health Care FSA Limited Purpose HRA Who is eligible? Saver HSA option participants Classic option participants Who may contribute? MPC and Employee Employee only Employee/Retirees with a balance in their HRA from 2015 MPC only; however, as of 2016, MPC no longer contributes Who is the administrator? Fidelity PayFlex PayFlex Maximum Annual Contribution (Cap) *Includes Company contribution $3,350 (Employee only) $6,750 (Employee+Dependent(s))* $2,550 As of 2016, MPC no longer contributes Can I invest the money? Yes No No Tax Treatment Tax-Free Tax-Free Tax-Free Medical Expenses Allowed IRC 213(d) Expenses IRC 213(d) Expenses MPC Contributes to the Account Yes No No (Dental and Vision only) As of 2016, MPC no longer contributes Balance Carries Over Year to Year Yes No Yes Portable (employee can take the balance with him or her if he or she leaves MPC) *maximum amounts include Company contribution Yes No No (except for retirees) 24

25 Selecting a Health Plan Option Employees Like You ALEX a new, interactive, online tool! 25

26 Meet A.J. Low Plan Usage ILLUSTRATIVE ONLY Meet A.J.: A.J. is single and enrolled in employee only coverage. He is in good health and is considered a low user of health care. In a typical year, A.J. takes advantage of his preventive care benefits and has a physical exam, visits the doctor once or twice and fills the odd prescription. Coverage: Employee Only A.J. s situation: A.J. unexpectedly injures his hand while working on his car and goes to the emergency room for X-rays and stitches. 26

27 Meet A.J. Low Plan Usage (cont d) ILLUSTRATIVE ONLY Coverage: Employee Only A.J. s situation under the Saver HSA option: A.J. pays the full $1,500 out-of-pocket the first $1,350 satisfies his deductible with the remaining $150 being his copay for an emergency room visit. Since he has satisfied his deductible, the Plan pays 80% of his X-ray, follow-up doctor visit and prescriptions. A.J. s situation under the Classic option: A.J. pays only $820 for the emergency visit ($150 ER copay, + $500 deductible + $170 for the 20% coinsurance). While A.J. pays more up-front for his treatment at the ER under the Saver HSA option, when you take into account the premium differences between the two plans and the $350 contribution to his Health Savings Account from the Company (that he can use towards eligible health care expenses like his ER visit) at the end of the year, A.J. will actually pay less out-of-pocket under the Saver HSA option. 27

28 Meet A.J. Low Plan Usage (cont d) ILLUSTRATIVE ONLY The table shows what this employee might have to pay under each plan if he uses in-network providers and generic drugs. Coverage: Employee Only Saver HSA Annual Physical Exam (1 exam at $100) $0 $0 Classic Emergency Room Visit (1 visit at $1,500) +$1,500* +$820 X-Rays (1 at $200) +$40 +$40 Physician Visits (1 visit at $80) +$16 +$20 Generic Prescription (1 retail prescription for only 1 fill at $23) +$5 +$23 Total =$1,561 =$903 Marathon Petroleum HSA Contribution ($350) ($0) Total Out-of-Pocket Cost if Marathon Petroleum s HSA Contribution is Used =$1,211 =$903 Annual Premium Contribution (Employee Only Coverage) +$828 +$1,212 Total Out-of-Pocket Cost, including Annual Premium Contribution, if Marathon Petroleum s HSA Contribution is Used =$2,039 =$2,115 * $1,350 of the $1,500 Emergency Room Visit satisfies your deductible, and the remaining $150 is paid as the copay. 28

29 Meet Kathy Moderate Plan Usage ILLUSTRATIVE ONLY Meet Kathy: She is married and enrolled in employee + spouse coverage. Kathy and her husband have average health care needs. Throughout the year, they both receive an annual physical exam and visit the doctor a total of five times for medical care and lab work. Coverage: Employee + Spouse Kathy s situation: In addition to Kathy and her husband s doctor visits and lab work, they fill three maintenance preferred brand-name prescriptions through mail order refilled four times. 29

30 Meet Kathy Moderate Plan Usage (cont d) ILLUSTRATIVE ONLY Coverage: Employee + Spouse Kathy s situation under the Saver HSA option: Kathy and/or her husband must meet the $2,700 deductible before the Saver HSA Plan begins covering other services at 80%. As you can see in the following chart, under the Saver HSA option, Kathy and her husband will pay all of their prescription drug costs (because the prescription deductible is combined with the medical) before they reach the $2,700 deductible. Kathy s situation under the Classic option: Kathy and her husband pay higher monthly premiums, but lower deductibles and out-of-pocket maximums. They also pay less on their office visits and prescription drugs due to copays that are required with the Classic option. Even with the Saver HSA option s lower monthly premiums and the ability to use the $700 Company contribution to Kathy s Health Savings Account to help pay for eligible health care expenses, at the end of the year the Classic option actually costs them $112 LESS than they would have paid under the Saver HSA option money Kathy could contribute to her Health Care FSA account tax-free to cover current-year health care expenses. 30

31 Meet Kathy Moderate Plan Usage (cont d) ILLUSTRATIVE ONLY The table shows what this couple might have to pay under each plan based on the in-network health care they receive. Coverage: Employee + Spouse Saver HSA Annual Physical Exam (2 exams at $100 each) $0 $0 Classic Physician Visits (5 visits at $80 each) +$400 +$100 Brand-Name Prescription (3 mail order prescriptions with 4 fills each at $300) +$2,560* +$900 Lab Work (4 tests at $100 each) +$80 +$400 Total =$3,040 =$1,400 Marathon Petroleum HSA Contribution ($700) ($0) Total Out-of-Pocket Cost if Marathon Petroleum s HSA Contribution is Used Annual Premium Contribution (Employee + Spouse Coverage) Total Out-of-Pocket Cost, including Annual Premium Contribution, if Marathon Petroleum s HSA Contribution is Used =$2,340 =$1,400 +$1,824 +$2,652 =$4,164 =$4,052 *You pay $2,300 of the $3,600 to satisfy your deductible, plus 20% coinsurance on the remaining $1,

32 Meet Eva High Plan Usage ILLUSTRATIVE ONLY Coverage: Employee + Child(ren) Meet Eva: She is enrolled in employee + children coverage (with 2 children) Eva and her children typically visit the physician s office twice a year for non-preventive care visits due to illness six visits in total. On average, they visit the emergency room twice a year (once for each child). Eva and her children take one preferred brand-name prescription drug for a chronic condition, but use the mail-order program. Eva s situation: Eva and her children are high utilizers of health care services with their non-preventive care doctor and ER visits, and brand-name prescription drug needs for a chronic condition. 32

33 Meet Eva High Plan Usage (cont d) ILLUSTRATIVE ONLY Eva s situation under the Saver HSA option: Even for a high utilizer of health care services, the Saver HSA option works out to have a lower out-of-pocket cost when you take everything into account at the end of the year. Coverage: Employee + Child(ren) Even with Eva s situation, she will still end up with an extra $360 in her pocket by year-end if she enrolls in the Saver HSA option. While the Saver HSA is the best option for Eva, it s important to note: She will need to have the money to pay out of her pocket up-front for the Emergency Room visits. Under the Saver HSA option, she will have a higher deductible and she ll need to pay more up-front until she meets that deductible, but with the Company contribution to the HSA and lower premiums she can more often than not save on her overall health care costs. 33

34 Meet Eva High Plan Usage (cont d) ILLUSTRATIVE ONLY The table shows what this family might have to pay under each plan based on the in-network health care they receive. Saver HSA Classic Annual Physical Exam (3 exams at $100 each) $0 $0 Emergency Room Visit (2 visits at $1,500 each) +$2,880* +$1,640** Coverage: Employee + Child(ren) Physician Visit (2 visits each at $80 per visit total of 6 visits) +$96 +$120 Brand-Name Prescription (2 mail order prescriptions with 4 fills each at $300) +$480 +$600 Total =$3,456 =$2,360 Marathon Petroleum HSA Contribution ($700) ($0) Total Out-of-Pocket Cost if Marathon Petroleum s HSA Contribution is Used =$2,756 =$2,360 Annual Premium Contribution (Employee + Children Coverage) +$1,656 +$2,412 Total Out-of-Pocket Cost, including Annual Premium Contribution, if Marathon Petroleum s HSA Contribution is Used =$4,412 =$4,772 * Of the two emergency room charges, the first is paid in the full amount. From the second, $1,200 is paid to the deductible, and the rest is covered by a $150 copay and 20% coinsurance on the remainder. ** For each of the two emergency room charges (one for each child), the first $500 (excluding the $150 copay) is paid to the deductible, and the remaining $850 is paid at 20% coinsurance. 34

35 Meet Jordan High Plan Usage ILLUSTRATIVE ONLY Meet Jordan: He is married with three children and is enrolled in family coverage. Coverage: Employee + Family Jordan s situation: With a young and growing family, Jordan and his family have moderate health care needs. However, with his wife s allergies and with one child suffering from a muscular disease, they require additional medications and specialist visits that put Jordan in the high-utilizer range when it comes to health care services. 35

36 Meet Jordan High Plan Usage (cont d) ILLUSTRATIVE ONLY Coverage: Employee + Family Jordan s situation under the Saver HSA option: Due to the number of claims in this example, Jordon s outof-pocket expense is significantly higher than the Classic option ($2,157). Jordan s situation under the Classic option: After including the Marathon HSA contribution and lower contributions, Jordon s cost for the Classic option is still $317 less than the net cost of the Saver HSA option. As with all of these illustrations, it is important to select the option that offers the best fit for you and your dependents. 36

37 Meet Jordan High Plan Usage ILLUSTRATIVE ONLY The table shows what this family might have to pay under each plan option if they use in-network providers and generic drugs when possible. Coverage: Employee + Family Saver HSA Annual Physical Exam and Well Child Exams (5 visits at $100 each) $0 $0 Classic Physician Visits (9 visits at $80 each) +$720 +$180 Specialist Visits (2 visits at $150 each) +$300 +$100 Urgent Care visit (1 visit at $600) +$600 +$50 X-Rays (1 test at $200) +$200 +$200 Physical Therapy Session (12 sessions at $80 each) +$896* +$432** Generic Prescription (7 prescriptions filled at retail at $23 each) +$32 +$161 Maintenance Prescription (1 mail order prescription with 4 fills each at $40) +$32 +$100 Specialty Drug Prescription (1 mail order prescription with 4 fills each at $1,500) +$1200 +$600 Total =$3,980 =$1,823 Marathon Petroleum HSA Contribution ($700) ($0) Total Out-of-Pocket Cost if Marathon Petroleum s HSA Contribution is Used =$3,280 =$1,823 Annual Premium Contribution (Family Coverage) +$2,484 +$3,624 Total Out-of-Pocket Cost, including Annual Premium Contribution, if Marathon Petroleum s HSA Contribution is Used =$5,764 =$5,447 * For the Physical Therapy Sessions, you pay $880 of the $960 to satisfy your deductible, plus 20% coinsurance on the remaining $80. ** For the Physical Therapy Sessions, you pay $300 of the $960 to satisfy your deductible, plus 20% coinsurance on the remaining $

38 Meet Christina High Plan Usage (maternity) ILLUSTRATIVE ONLY Meet Christina: She is married with two children, is enrolled in family coverage and is expecting another child. Coverage: Employee + Family Christina s situation: Since Christina is expecting another child, she must select the right Health Plan option for herself and her family. 38

39 Meet Christina High Plan Usage (maternity) (cont d) ILLUSTRATIVE ONLY Christina s situation and both Health Plan options: Both options have embedded style OOPM, but the Classic has an embedded deductible while the Saver deductible is for the entire family. Office visits, urgent care and maintenance prescriptions are for nonmother family members. Coverage: Employee + Family Christina s situation under the Saver HSA option: The family has to meet the $2,700 deductible and $5,000 OOPM. Christina s situation under the Classic option: The mother only has to meet a $500 deductible and $3,000 OOPM. The Classic option is the best choice for Christina and her growing family. It s more cost-effective due to a lower out-of-pocket maximum and embedded design, as well as the cost-share of only one person having expenses. 39

40 Meet Christina High Plan Usage (maternity) (cont d) ILLUSTRATIVE ONLY The table shows what this family might have to pay under each plan option if they use in-network providers and generic drugs when possible. Coverage: Employee + Family Saver HSA Annual Physical Exam and Well Child Exams (3 visits at $100 each) $0 $0 Physician Visits (9 visits at $80 each) +$720 +$180 Specialist Visits (2 visits at $150 each) +$300 +$100 Urgent Care visit (1 visit at $600) +$600 +$50 Classic New baby delivery with C-section (professional and facility charges of $15,000) +$3,864 +$3,000 Maintenance Prescription (1 mail order prescription with 4 fills each at $40) +$32 +$100 Total =$5,516 =$3,430 Marathon Petroleum HSA Contribution ($700) ($0) Total Out-of-Pocket Cost if Marathon Petroleum s HSA Contribution is Used =$4,816 =$3,430 Annual Premium Contribution (Family Coverage) +$2,484 +$3,624 Total Out-of-Pocket Cost, including Annual Premium Contribution, if Marathon Petroleum s HSA Contribution is Used =$7,300 =$7,054 40

41 ALEX is Here to Help You Introducing ALEX your personal benefits counselor He s smart, humorous and compares your Health Plan options in simple terms He helps you choose the Health Plan option that makes the most sense for you and your family He is accessible from any internet connected device Meet ALEX at Which Health Plan option is best for my family and me? 41

42 Dental and Vision Benefits Dental Same providers Slight premium increase Vision Same providers Slight premium increase 2016 Monthly Employee Premiums (Full-Time and Part-Time) Employee Only $12 Employee + Spouse $24 Employee + Children $26 Employee + Family $ Monthly Employee Premiums (Full-Time and Part-Time) Employee Only $7 Employee + Spouse $12 Employee + Children $13 Employee + Family $20 Regular FT and PT rates are now the same Regular FT and PT rates are now the same 42

43 Other Benefits Dependent Care Spending Account Will no longer be available in 2016 governmental regulations regarding low employee participation Use the money you ve set aside in 2015 by March 15, 2016 No changes to Life Insurance Spouse/Dependent Life Insurance Accidental Death and Dismemberment Insurance Long Term Disability EAP Other Benefits 43

44 Thrift Plan What Isn t Changing Company Match Maximum of 7% Employee Contributions Pre-tax, Roth, After-tax, Catch-up, Rollover Multiple Investment Options Core Options (18 mutual funds, Stable Value Fund) Lifecycle Options MPC Stock Brokerage Link 44

45 Thrift Plan Company Match $1.17 match for every $1 contributed up to 6% (7% match on 6% employee contributions) Immediate vesting in Company contributions Made after 1/1/16 Pre-tax / Roth contributions: Highly Compensated Employees - no longer limited to 12% Still subject to IRS limits ($18,000 in 2015) After-tax contributions Not allowed for Highly Compensated Employees Year-end true-up match Allows full Company match 45

46 Thrift Plan Next Steps Newsletter Detailing All Plan Changes November Make 2016 Deferral Elections Through Fidelity In December to ensure January payroll deduction 46

47 Quick Summary Two new Health Plan options YOU MUST ELECT A NEW OPTION New Fidelity HSA available to employees enrolling in the Health Plan s Saver HSA option New tool, ALEX available to help you select an option Dental and Vision premiums increasing PayFlex will administer the Health Care FSA (formerly the HCSA) and the Health Reimbursement Account (HRA) replacing ADP Balances in the HRA will be usable only for Dental and Vision expenses until retirement Thrift Plan You will be matched 7% on the first 6% you contribute 100% immediate vesting 47

48 Next Steps LEARN Review the detailed information about all of Marathon Petroleum s benefit plans at DECIDE Consider the health care needs of you and your family Use the tools available to help you make your decision (ALEX new interactive, online tool! ENROLL November 1 20, 2015 MPCConnect Employee Center SAP Online Services (sign on with your normal network logon) HR Services tab Benefits Open Enrollment (under Quicklinks) By paper (hourly employees) By phone and REMEMBER You must enroll in coverage between November 1 and November 20, 2015 Questions? Contact the Marathon Petroleum Benefits Service Center to assist you with any questions you may have at benefits@marathonpetroleum.com 48

49 Questions? 49