Retiree Medical and Life Insurance

Transcription

1 Retiree Medical and Life Insurance Eligibility Full-time employees are eligible for retiree medical and life insurance based on their date of employment: o Before July 1, You are eligible for retiree medical and life insurance when you have reached both age 55 and completed 10 years of full-time service. The company contributes toward the cost of retiree medical. o July 1, 2004, and after. You are eligible for retiree medical and life insurance when you have reached both age 55 and completed 10 years of full-time service. The company does not contribute toward the cost of retiree medical; you pay the full cost. Part-time employees are eligible for retiree medical insurance; you pay the full cost. Retiree life insurance is not available to part-time employees. (If a part-time employee has reached both age 55 and completed 10 years of full-time service, the employee is eligible for retiree medical and life insurance for full-time employees.) Your retiree medical benefit start date is always the 1 st of the month following your last day of employment. Your active medical, dental and vision benefits will continue until the end of the month in which you are last day employed. How to Request an Estimate To receive an estimate for your retiree medical benefit you must be at least age 54 and have 10 years of full-time service. Contact the HR helpline at , Option 1, and provide your anticipated last day of employment. Your estimated benefit information will be ed to you within 45 days of the request. If you have questions regarding the information received, contact the HR helpline. How to Request a Retirement Packet To receive your retirement benefits packet, contact the HR helpline at , Option 1, at least two months prior to your last day of employment. Please note to have an actual retirement packet sent, you must supply the benefits department with your actual last day of employment. Your benefit election forms will be mailed to your home approximately 45 days prior to your retirement benefit start date. Notify your supervisor of your intent to retire at least two weeks prior to your last day of employment. 1

2 Retiree Life Insurance Company-Provided Coverage The company provides a term life insurance benefit of $10,000. The company pays the full cost of this coverage. This is a death benefit only. Continuation of Coverage In addition to the company-provided retiree life insurance, you may be eligible for continuation of life insurance through Minnesota Life. The following options are available: Election of portability. Former employees and their dependents may be eligible for group term life insurance based on medical status. You must be approved for life insurance in order for your dependents to be eligible for coverage. Notification of conversion privilege. The coverage provided under this plan can be a whole or term life policy. If you are not eligible to apply for portable coverage or your portable coverage ends, you or your dependents may qualify for conversion coverage. Minnesota Life will send information within 30 days following your last day of employment. Retiree Medical Insurance MidAmerican Energy Company offers access to retiree Pre-Medicare medical insurance, if you are not eligible for Medicare, you may choose from the Pre-Medicare plan option(s). Once you become eligible for Medicare, you may enroll in a Medicare supplemental plans through Towers Watson s Via Benefits or an individual agent in your area. Pre-Medicare Each year during the open enrollment period, you have the opportunity to consider your coverage and review the medical plan option(s) for the upcoming plan year. Note: After your retirement, you will receive formal notification of your medical insurance continuation rights under the Consolidated Omnibus Budget Reconciliation Act of 1985 (COBRA) in a separate mailing to your last known address. This is a required mailing. Since Pre-Medicare retiree insurance does not include the dental or vision plans, you may continue these coverages under COBRA, if you had them as an active employee. If you elect the Pre- Medicare retiree medical coverage, you are not eligible to elect COBRA medical coverage. You will receive information regarding COBRA continuation from Ceridian Benefit Services, Inc. approximately two to three weeks after your retirement benefit start date. Pre-Medicare Plan Options If you are not eligible for Medicare, you may choose from the Pre-Medicare plans below. Preferred Provider Organization (PPO*) allows you to use any provider, but benefits are reduced when you use a provider outside the network. 2

3 High Deductible Health Plan (HDHP) gives you the flexibility to choose both in-network and out-of-network providers. It is a high-deductible plan with lower premiums. The Medical Plan Summary is included at the end of this document. Retiree Medical Costs The company s cost-sharing arrangement for retiree medical coverage is based on three factors: Your hire date Your age at the time of retirement Your length of service with the company Cost-Sharing Arrangement Full-time employees age 55 and older on July 1, 2004, with 10 years of service at retirement have the choice between the previous cost sharing and the retiree medical account. Full-time employees hired before July 1, 2004, who are age 55 with 10 years of service at retirement have a retiree medical account. Full-time employees hired after July 1, 2004, are eligible for retiree medical at age 55 and 10 years of service; you pay the full cost. Previous Cost-Sharing Arrangement The company shares the cost of medical coverage when you reach age 62. If you retire before age 62, you pay the full cost. For retirees age 62 through 64, the company contributes 50 percent of the monthly premium for individual coverage. For spouses age 62 through 64, the company contributes 25 percent of the monthly premium for individual coverage. Key points to consider under the previous cost-sharing arrangement: If you elect this arrangement, you may not defer the start of medical coverage. You must begin medical coverage immediately at retirement and continue coverage to remain eligible for company cost sharing, even if you have not reached age 62. If you elect coverage, you also may elect coverage for your spouse and your dependents. If you waive coverage or later decide to cancel coverage, you, your spouse and/or your dependents will not be eligible for coverage at a later date. If you waive coverage for your spouse and your dependents at retirement, you may add them if there is a qualifying life event but no company cost-sharing will be available for your spouse. A spouse added to medical coverage after the retiree s initial date of retirement will not receive cost-sharing. A surviving spouse may continue coverage. Retiree Medical Account The retiree medical account is established at retirement for employees hired before July 1, The company contributes a fixed amount to the RMA for each year of service after July 1, The account balance earns interest annually. 3

4 The account is maintained by the company and is used to pay a portion of the retiree s monthly Pre-Medicare medical premiums, provided by the company, during retirement. The table below shows the contributions the company provides to an employee s retiree medical account. Company Contributions Employees less than age 50 on July 1, 2004 Opening account balance $3,700 per year of the credit employee s service prior to July 1, 2004, up to a maximum of 10 years Fixed annual contribution $2,000 times the employee s years of service after July 1, 2004 Additional opening account N/A balance credit Interest earned annually on account balance Employees age 50 and older on July 1, 2004 $37,000 $2,000 times the employee s years of service after July 1, 2004 $8,000 for employees who retire on or after age 62 and prior to age 65 3 percent 3 percent RMA Sample Calculations The following tables show examples of three employees and how their RMA would be calculated at age 62 and at age 65. Early retirement at age 62 Employee #1 Employee #2 Employee #3 Age at hire Age on July 1, Years of service on July 1, Less than 1 month Opening account balance $37,000 (10 x $3,700) $37,000 (10 x $3,700) $0 (0 x $3,700) Additional opening account balance $8,000 $0 $0 contribution Years of service after July 1, Fixed contribution $14,000 (7 x $2,000) $34,000 (17 x $2,000) $74,000 (37 x $2,000) Account balance at retirement (interest included) $70,669 $104,679 $132,348 4

5 Normal retirement at age 65 Employee #1 Employee #2 Employee #3 Age at hire Age on July 1, Years of service on July 1, Less than 1 month Opening account balance $37,000 (10 x $3,700) $37,000 (10 x $3,700) $0 (0 x $3,700) Additional opening account balance $0 $0 $0 contribution Years of service after July 1, Fixed contribution $20,000 (10 x $2,000) $40,000 (20 x $2,000) $80,000 (40 x $2,000) Account balance at retirement (interest included) $72,653 $120,567 $150,803 You decide how much of the account to use and when. The company applies the amount you elect toward the cost of your monthly medical premiums, and you pay the difference. RMA Election Options Election options available under the RMA are: Percentage Option You select any percentage between 0 and 100 percent of the medical premium to offset the monthly cost. This percentage continues until the account is exhausted or you change the percentage during the annual enrollment period. Your RMA balance earns 3 percent interest annually. You receive information about your balance during the annual enrollment period. If you die, your surviving spouse can continue to access medical coverage and use the remaining account to offset monthly premium costs. The percentage can be changed upon your death. If you marry after retirement and you die, your surviving spouse can continue to access medical coverage but will not have RMA survivorship benefits. You may defer coverage until for up to 10 years and not choose an election option. If you are not using the RMA 10 years after your retirement date, the account balance is forfeited. If you defer medical coverage and remain in a deferred status, without electing the percentage or annuity option, your election will default to the percentage option at the time you or your spouse become Medicare eligible. You may defer using the RMA and start at a later date, as long as you have at least $1,000 in your RMA and are within 10 years from the date you retired. If you are not using the RMA 10 years after your retirement date, the account balance is forfeited. In the event you exhaust all funds in your RMA, you may continue to purchase medical coverage through the plans offered by the company, but you are responsible for the full cost of premiums. If you cancel coverage after the account is exhausted you will not be able to return to coverage at a later date. 5

6 If you elect the percentage option, it cannot be changed. Annuity Option Your RMA balance is converted to an annuity that produces a level amount to offset monthly premium costs. You may choose a retiree-only annuity or a retiree-plus-spouse annuity. Your age and spouse s age (if you elect a retiree-plus-spouse annuity), along with standard mortality rates and 3 percent interest, are factored into the conversion to an annuity. If you select a retiree-only annuity and you die, the level payment amount ends. A surviving spouse may continue to have access to coverage; the spouse pays the full premium cost. If you select a retiree-plus-spouse annuity and you die, the level payment amount continues during your spouse s lifetime. If your spouse dies before you, the level payment amount continues for your lifetime. If you elect an annuity, it cannot be changed. Pre-Medicare Plans Pre-Medicare Plan Premiums Medical premiums are subject to change from year to year. You and your dependents must choose the same medical plan option unless one of you is eligible for Medicare and the other is Pre-Medicare. Below are the monthly Pre-Medicare plan premium costs effective Jan. 1, Your portion of the total cost is determined by the company cost-sharing arrangement for which you are eligible Coverage levels Individual-Retiree only, spouse only or child only Individual + 1-Any combination of two people covered on the plan Total Monthly Premium Cost Family-Any combination of three people or more covered on the plan Total Monthly Premium Cost HDHP $541 $1,082 $1,785 Total Monthly Premium Cost PPO* $1,020 $2,040 $3,366 *Due to implications of the Affordable Care Act, the PPO plan may no longer be offered beginning in Premium Payments You may choose one of the following options for premium payments during retirement: Electronic funds transfer from your savings or checking account. Electronic funds transfers are handled by Wellmark. Receive monthly invoices from Wellmark. Wellmark collects premiums one month in advance of coverage effective date. Payments collected in December are for January benefits. 6

7 Medicare Plans When you become Medicare-eligible (generally, age 65) you will have the opportunity to supplement or replace your original Medicare coverage with medical and prescription drug coverage. You will have access to a variety of Medigap (also known as Medicare supplement), prescription drug, Medicare Advantage, dental and vision plans through the Medicare marketplace. For Medicare-eligible retirees who currently receive a subsidy for coverage, MidAmerican Energy will continue to provide a subsidy in the form of a Health Reimbursement Arrangement to help retirees pay for their health care premiums. The HRA works much like a bank account. The HRA allows you to be reimbursed for your insurance premiums and eligible out-of-pocket expenses, such as deductibles and copayments. Berkshire Hathaway Energy has partnered with Towers Watson s Via Benefits a company that specializes in assisting retirees with selecting and managing Medicare plans. Via Benefits will work directly with you to enroll in coverage that best meets your personal circumstances. This service is provided at no cost to you. While we have partnered with Via Benefits, we recognize that some may prefer to purchase a supplement plan in your area. Regardless of which plan you choose, Via Benefits will administer your HRA. If you enroll in a supplement plan through Via Benefits, you will be able to use Via Benefits' automatic HRA reimbursement program and support services to assist you with claims, billing, reimbursement and other Medicare-related questions. If you enroll in a plan through a company other than Via Benefits, automatic HRA reimbursement will not be available and you will need to submit your receipts to Via Benefits for reimbursement. Guaranteed Issue for Medicare Plans In general, if you enroll in a Medicare plan (Medigap, prescription drug or Medicare Advantage) during the specified enrollment period, you are guaranteed coverage by one of the Medicare plans available in your area, regardless of your current medical conditions. If you are currently enrolled in Pre-Medicare medical coverage through MidAmerican Energy, in most cases, you may enroll in a Medicare plan during your enrollment period and receive a guaranteed issue policy, with no underwriting. You cannot be turned down based on your medical history or pre-existing conditions. After your first enrollment, if you choose to make changes to your coverage, subsequent applications may be subject to underwriting, meaning you can be rejected for coverage based on your pre-existing medical conditions. 7

8 This information briefly describes the benefits. If there are discrepancies between this information and any of the plan documents or company policies, the plan documents or company policies will govern in all cases. Berkshire Hathaway Energy reserves the right to amend, modify, suspend, replace or terminate the plan in whole or in part, including any level or form of coverage, without consent or concurrence. 8

9 Coverage Health Savings Account (HSA) Maximum Contribution From Retiree** Annual Deductible Medical Plan Out-of-Pocket Maximum (see below for PPO prescription drug maximum) Includes coinsurance, deductibles and copays Lifetime Maximum Benefit Allergy Injections Ambulance Durable Medical Equipment and Prosthetics Emergency Room Facility Charges Eye Exam - Routine (includes refraction) Emergency Room Physician Charges Home Health Care Limits Hospice Care $1,500 individual $3,000 family $3,500 individual $6,850 family $3,000 individual $6,000 family $6,000 individual $12,000 family $600 individual $1,200 family $2,500 individual $5,000 family $25 copay then $100 copay then $35 copay then $800 individual $1,600 family $4,000 individual $8,000 family $100 copay then Limits Infertility Services Lifetime Maximum on Infertility Services Inpatient Facility Charges Inpatient Physician Charges Maternity Services Prenatal and Postnatal Care and Delivery Inpatient Facility Charges Ultrasound and Amniocentesis Inpatient Physician Charges Newborn Charges 2018 Medical Plans Summary for Pre-Medicare Retirees Claims Administration provided by Wellmark Blue Cross Blue Shield for all plans This summary briefly describes the benefits in effect Jan. 1, If there are any discrepancies between this information and any of the plan documents, the plan documents will govern in all cases. High-Deductible Health Plan (HDHP) PPO with or without HSA* In-Network Out-of-Network In-Network Out-of-Network You may be billed for charges above usual Nationwide network of physicians and and customary charges as determined by hospitals Nationwide network of physicians and hospitals Wellmark $3,450 single coverage** $6,850 family coverage** Additional $1,000 catch-up allowed if retiree is age 55 or older** for prenatal obstetric office visits Otherwise, for prenatal obstetric office visits Otherwise, Not Applicable You may be billed for charges above usual and customary charges as determined by Wellmark Mental Health/Substance Abuse Office Visit/Outpatient Care $25 copay then Inpatient Facility Charges Inpatient Physician Charges * HDHP participants can choose to use an HSA to help pay the deductible or coinsurance or save the money for future use. If you elect other than single coverage, you must meet the combined family deductible of $3,000 before the coinsurance applies. When you meet the combined family out-of-pocket maximum of $6,850 the plan pays eligible expenses at for the remainder of the year. ** No contributions are made to the HSA by the company Pre-Medicare Retirees

10 Obesity Surgery Outpatient Surgery Facility Charges Outpatient Surgery Physician Charges Outpatient X-Ray and Lab Work 2018 Medical Plans Summary for Pre-Medicare Retirees Claims Administration provided by Wellmark Blue Cross Blue Shield for all plans This summary briefly describes the benefits in effect Jan. 1, If there are any discrepancies between this information and any of the plan documents, the plan documents will govern in all cases. Coverage Physician Office Visit Family Practitioner, Pediatrician, Internal Medicine, Generalist, OB/GYN Doctor on Demand Virtual Visits - available 24 hours Visit a doctor on your smartphone, tablet or computer for treatment of common medical conditions (cold or flu, bronchitis or sinus infections, sore throat, allergies, fever, headache, pink eye, skin conditions, etc.) Specialist Physician Office Visit Chiropractor, Podiatrist, Allergist, Therapist, Orthopedics, Acupuncture, etc. Limits for Spinal Treatment, Chiropractic, Acupuncture and Osteopathic Manipulative Therapy Preventive Services Services include routine cancer screenings (i.e., mammogram, gyn exam) and clinical preventive services (i.e., immunizations, physicals) identified by the U.S. Preventive Services Task Force Preventive Services for Women (Expanded) Services include well-woman visits, domestic violence screening and FDA-approved contraceptives Rehabilitation Services - Outpatient Therapy High-Deductible Health Plan (HDHP) PPO with or without HSA* In-Network Out-of-Network In-Network Out-of-Network $35 copay then $25 copay then $15 copay then (cost per visit $49) $35 copay then 25 visits per calendar year 25 visits per calendar year (no deductible) (no deductible) (no deductible) (no deductible) $35 copay then Limits for physical, occupational and speech therapy 20 visits per calendar year for each 20 visits per calendar year for each Urgent Care Center $35 copay then Prescription Drug Benefit All Plans Use Express Scripts as the Prescription Drug Benefit Network Prescription Drug Out-of-Pocket Maximum N/A N/A $4,850 individual N/A Includes coinsurance, deductibles and copays $9,700 family Retail Pharmacy - Quantity 30-day supply 30-day supply 30-day supply 30-day supply Generic Drugs Covered member pays 20% $10 copay or 20%, whichever is greater, for each prescription or refill Formulary Brand-Name Drugs Nonformulary Brand-Name Drugs Covered member pays 30% Covered member pays 40% $30 copay or 30%, whichever is greater, for each prescription or refill $50 copay or 40%, whichever is greater, for each prescription or refill Retail Pharmacy - Quantity 90-day supply 90-day supply 90-day supply 90-day supply Generic Drugs Covered member pays 20% $30 copay or 20%, whichever is greater, for each prescription or refill Formulary Brand-Name Drugs Nonformulary Brand-Name Drugs Covered member pays 30% Covered member pays 40% $90 copay or 30%, whichever is greater, for each prescription or refill $150 copay or 40%, whichever is greater, for each prescription or refill Mail Service Pharmacy - Quantity 90-day supply 90-day supply 90-day supply 90-day supply Generic Drugs Covered member pays 20% $20 copay for each prescription or refill Formulary Brand-Name Drugs Covered member pays $60 copay for each prescription or refill 30% Nonformulary Brand-Name Drugs Covered member pays 40% $120 copay for each prescription or refill * HDHP participants can choose to use an HSA to help pay the deductible or coinsurance or save the money for future use. If you elect other than single coverage, you must meet the combined family deductible of $3,000 before the coinsurance applies. When you meet the combined family out-of-pocket maximum of $6,850 the plan pays eligible expenses at for the remainder of the year. **No contributions are made to the HSA by the company Pre-Medicare Retirees