Whirlpool Retiree Meetings Frequently Asked Questions Meetings held October 4 th through October 20 th, 2016

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1 Whirlpool Retiree Meetings Frequently Asked Questions Meetings held October 4 th through October 20 th, 2016 Funding (RHRA / RHSA) Q: How do I know what my RHSA balance is? A: Until December 31, 2016, you can contact HealthSCOPE Benefits at to confirm your current RHSA balance. Starting on January 1, 2017, you can log onto your OneExchange online account at medicare.oneexchange.com/whirlpool for those 65 and older, and oneexchange.com/whirlpool for those under 65 or contact OneExchange at for your RHSA account balance. Q: Do both the retiree and spouse each get $595 or just the retiree? A: Yes, for non-medicare participants, both the retiree and his/her eligible spouse will receive their own allocation of $595 each month from their individual RHSA accounts until their RHSA balances are depleted. For RHRA-eligible retirees, the pre- Medicare retiree and pre-medicare spouse will continue to receive $595 per month for their lifetime or the life of the Plan. Q: Will my spouse have access to my monthly allocation and vice versa? A: The unallocated RHSA funds will continue to be maintained in individual RHSA accounts that are unique to the retiree and spouse and can t be accessed by the other. Monthly amounts of $595 (for pre-medicare participants) are withdrawn (allocated) from each RHSA account (retiree s and spouse s) and will be combined into a joint account for the retiree and spouse, for a total monthly allocation of $1,190. Either spouse can draw from the joint allocated fund balance to pay medical and/or prescription drug plan premiums. The same is true for post- Medicare retirees and spouses, except that the monthly allocations from each RHSA are $85, for a total monthly allocation of $170. Q: My husband is over age 65 and I am under age 65. My husband receives $85/month and I will receive $595/month. If my husband s plan is greater than $85 and I use less than $595, can my husband use the remainder of my $595 towards the cost of his insurance? 1

2 A: Yes, either spouse can draw from the total allocated fund balance (which will be in a joint account) to pay their individual medical and/or prescription drug plan premiums. Q: How much am I paying after the $595? A: Premiums for health care plan options vary widely depending on your age, state/county of residence and the type of plan you select (e.g. bronze, silver, gold, platinum). The amount that you will pay after the $595 will depend entirely on the plan you elect. Your OneExchange Benefit Advisor will help you find a plan that achieves your financial and health care objectives and will ensure that you fully understand what your out-of-pocket cost exposure is. Q: How long does it take to receive reimbursement? A: Once your request is approved, you should receive your reimbursement within fourteen (14) days. For quicker access to your reimbursement, sign up for direct deposit when you receive your funding welcome kit in mid-december. If you have elected direct deposit, your reimbursement should be issued within three (3) days of the request approval. Q: If my spouse is on Medicare, does his/her monthly stipend come out of my RHSA? A: No. Generally, both the retiree and his/her eligible spouse have their own individual RHSA accounts. Both the retiree and spouse will receive their own allocation from their individual RHSA accounts until the RHSA is depleted. For pre-medicare retirees, the monthly allocation is $595 and for the Medicareeligible retiree the allocation is $85. The monthly allocations will be combined into a joint account for both the retiree and spouse to use. Once the spouse s RHSA is depleted, he/she will not receive any new monthly allocations from either his/her or the retiree s RHSA. However, he/she will be eligible to submit claims against the allocated funds in the joint account, including any new allocations from the retiree s RHSA. Q: Can I use my $595 to buy into my wife s group health care plan (i.e., are other employer group plan premiums an eligible RHRA/RHSA expense)? 2

3 A: Generally, group health care plan premiums are not an eligible expense. Eligible premiums include individual medical and prescription drug plan premiums, as well as Medicare Part B premiums for retirees that are Medicareeligible. Q: Is the RHRA/RHSA allocation paid to me or to OneExchange? A: The allocated amount is held in a notional account at OneExchange until you submit a claim for reimbursement. At that time, the funds are sent to you via check or directly deposited into your bank account, if you elected direct deposit as your preferred reimbursement method. Q: If I pay my full year s insurance premium in January, will my reimbursement be made in full in January? A: You may submit a claim for the full annual insurance premium, however, you will only be reimbursed each month up to the monthly allocation amount until the premium is reimbursed in full or the allocations are depleted. Q: What happens when my RHSA account is depleted? A: Once your RHSA account (including any unallocated and allocated funds) is depleted, your account will be closed and you will be responsible for paying 100% of your health care premiums, unless your eligible spouse has a remaining RHSA balance. If your spouse has an RHSA, you can access his/her allocated funds in the joint account. Once your spouse s unallocated and allocated funds are depleted, the joint account will be closed. At that time, you may wish to speak to a Benefit Advisor to re-evaluate your medical and prescription drug plan options to ensure you are in the most cost effective plan(s) based on your health and financial needs. Q: Does the RHRA/RHSA cover premiums for dental and/or vision coverage? A: No, eligible expenses include medical and prescription drug premiums only, as well as Medicare Part B premiums for retirees that are Medicare-eligible. 3

4 Q: What happens to the account if the retiree dies? What happens if the spouse dies? A: For RHRA participants, the survivor continues to have access to the balance in the joint account and will continue to receive their own monthly allocation. For RHSA participants, the survivor has access to the allocated funds in the joint account and will continue to receive monthly allocations from their own RHSA. Any unallocated funds in the deceased s RHSA will be forfeited. Federal Tax Credit Qualification Q: How is household income determined for purposes of determining eligibility for federal tax credits? A: Estimating your Modified Adjusted Gross Income: Once you have adjusted gross income, you "modify" it to calculate your MAGI. For most people, MAGI is the same as AGI. How to Calculate Your Modified Adjusted Gross Income (MAGI) Specifically, Internal Revenue Code ((d)(2)(b)) states that MAGI is Adjusted Gross Income increased by: Any amount excluded from gross income in section 911 (Foreign earned income and housing costs for qualified individuals) Any amount of interest received or accrued by the taxpayer during the taxable year which is exempt from tax Any amount equal to the portion of the taxpayer s social security benefits (as defined in Section 86 (d)) which is not included in gross income under section 86 for the taxable year. (Any amount received by the taxpayer by reason of entitlement to a monthly benefit under title II of the Social Security Act, or a tier 1 railroad retirement benefit.) For more information about how to calculate MAGI, visit the IRS website. 4

5 Advanced Premium Tax Credit (ATPC) - Government Subsidy Q: How large are advance premium tax credits (what percentage of the premium will they cover)? A: The amount of the advance premium tax credit depends on your household income. Here are two links that will provide more information: Q: Are the federal premium tax credits paid monthly or are they applied when you file your tax return? A: During your enrollment into Marketplace insurance, you can choose to have the Marketplace compute an estimated credit that is paid to your insurance company to lower what you pay for your monthly premiums (advance payments of the premium tax credit, or APTC). Or, you can choose to get all of the benefit of the credit when you file your tax return for the year. If you choose to have advance payments of the premium tax credit made on your behalf monthly, you will reconcile the amount paid in advance with the actual credit you compute when you file your tax return. Either way, you will complete Form 8962, Premium Tax Credit (PTC) and attach it to your tax return for the year. Plan Enrollment Q: Can my spouse and I enroll in different plans? A: Yes, for non-medicare couples, there are both individual and family plans available, so you and your spouse can enroll in different plans if you wish to do so. The Benefit Advisor will help you determine which makes sense for you based on your family s health and financial needs. For Medicare-eligible individuals, all plans are individual plans (there are no family plan options). 5

6 Q: Can a married retired Whirlpool couple (both spouses retired from Whirlpool) be on the same plan, if we aren t today? A: A pre-medicare couple may be on the same family plan. All Medicare plans are individual; however, Medicare-eligible married couples may choose the same individual plan. Regardless of whether you are pre-medicare or Medicareeligible, be sure to let your Benefit Advisor know that you are married to another Whirlpool retiree. Q: I will age-in to Medicare in June How do I change to Medicare midyear? A: As a Retiree, OneExchange will assist you in researching and enrolling in a Medicare supplemental plan. Look for materials from OneExchange in your mailbox as you near age 65. You will receive a reminder card from OneExchange and then a OneExchange Enrollment Guide around three months prior to reaching age 65. You may call OneExchange at , 3 months prior to your 65th birthday in March of 2017 to learn more and enroll. Q: I will be eligible for Medicare effective January 1, Do I still need to enroll in a pre-medicare plan through OneExchange? A: No, you only need to enroll in a Medicare supplemental plan through OneExchange, with a January 1, 2017, effective date. Check your mailbox; you should have received enrollment information from OneExchange. Be sure to call OneExchange at no later than December 30 th 2016, to ensure you are enrolled by January 1, Q: If nothing changes, do I need to enroll every year, or will existing coverage continue automatically? A: There is no need to enroll every year if nothing changes. OneExchange will continue to be available to you to help assess whether your current plan continues to be the best option. Q: Can I keep the same Benefit Advisor? A: Yes, however the person you enjoyed dealing with before may not be available due to other scheduled appointments or high call volume. Another member of 6

7 our team will be happy to assist you in the event your prior OneExchange representative is unavailable. Q: Do we both have to create a personal profile on the website? A: Yes, in order to build your profile, research plans, and manage your funding, each of you will need an online account. Q: If someone turns 65 in February will they need to have a different plan for just one month? A: Yes, they will need a non-medicare plan for January and a Medicare plan starting in February. Q: Is the website secure? A: Yes, the OneExchange system is approved as compliant by an international risk consulting firm. The SSAE 16 Type II certification audit is completed annually. Security systems and processes are independently tested by a qualified third party security assessor and/or scanning vendor. In addition, OneExchange conducts an Annual External Penetration Test and a monthly application security scan. Q. Can I defer my RHSA if I have access to other medical coverage (employer s group sponsored plan, spouse s group plan, etc.) and contact OneExchange at a later date to activate my funding? A. Yes, you can defer your RHSA funding when you retire from Whirlpool if you have access to other group-sponsored plan(s). You should contact OneExchange when you are ready to begin accessing your account. 7