Road to Retirement. A program for Purdue employees approaching retirement.

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1 Road to Retirement A program for Purdue employees approaching retirement.

2 Faculty or Staff members age 55 or more with at least 10 years of service in a benefits-eligible position

3 Free Membership Monthly luncheons with interesting speakers Trips and tours Campus and community activities PURA Newsletter Volunteer Opportunities See the Retiree Brochure and the PURA website for information -

4 Organizing Your Affairs Members of the PURA Benefits committee have produced three helpful documents that provide an excellent way to keep track of your important personal information. You can access these online at the PURA website:

5 Benefit Programs for Official Retirees Complimentary A parking permit Fee privileges Staff rates on tickets, recreational facilities Nursing Center services Flu Shots University address and data network remote facilities

6 Benefit Programs for Official Retirees Optional participation in University-sponsored group medical & prescription insurance Retiree enrolled in a Purdue plan can continue to cover Spouse/Dependent* Surviving Spouse/Dependent* can continue to be covered Optional participation in Group Life Insurance plan to age 65 * Dependent eligibility rules apply

7 Medical Plan Options Plans are reviewed annually and are subject to change.

8 Medical Plan Coverage Retiree or Spouse Under Age 65 Continue on plans with same benefits as active employees until age 65 or eligible for Medicare prior to 65. You pay the full cost. Can change plan during annual open enrollment. New options for 2017 Marketplace plans through the Henriott Group Inc. When Medicare eligible (usu. age 65), can join a Purdue retiree group plan.

9 If I retire before age 65 what are my insurance options? An Official Retiree can continue their Purdue health insurance plan for themselves and their eligible dependents, and will be billed for the full cost of the insurance. The bill comes from Infinisource. Purdue and PURA have partnered with Henriott Group, Inc. to offer additional health insurance options. Retirees and eligible dependents who are not yet eligible for Medicare can consult with Henriott Group for help to enroll in a Marketplace plan. Open Enrollment for Marketplace plans is a qualifying Life Event to stop your Purdue U-65 Retiree plan. 9

10 2017 Monthly Medical Premiums * Retiree and/or Spouse not Medicare eligible Purdue Health Plan PHP No HSA 1 PHP No HSA 2 Single coverage $611 Retiree + Spouse $1,374 Single coverage $533 Retiree + Spouse $1,200 Single coverage $481 Retiree + Spouse $1,082 *Tobacco-User Additional Premium $500/person/year 3% discount for annual payment. Billed from Infinisource.

11 Retiree Group Plans - Retirees with Medicare Medicare Part A Hospital (Inpatient) - No monthly premium - Paid during working years Medicare Part B Medical (Outpatient) - Sign up at 65 or at full retirement - Base Premium for 2017 is $134/month

12 Medicare Part C - Private Insurance Medicare Advantage - PPO, HMO, Private Fee for Service Pay Part B monthly premium + insurance premium Medicare Part D - Prescription Drug Coverage Pay monthly premium to insurance company Parts B, C and D have a Premium Parts B & D have penalty if not joined when eligible Special Enrollment Period (SEP) at retirement

13 Creditable Coverage, Medicare Parts B and D Active employees who have coverage from employer s medical/rx insurance, as good or better than Medicare Part B and/or Part D penalty may apply if cannot show creditable coverage past age 65 (eligibility for Medicare) COBRA and employers retiree plans are NOT Creditable Employer will provide evidence of creditable coverage

14 Medical Plans Age 65+, Medicare eligible The PURcare plan Supplement (incl. Vision) + Prescription plan Supplement to Medicare Parts A and B through UnitedHealthcare Excellent Nationwide coverage See any doctor or any provider that accepts Medicare for medically necessary coverage Includes Medicare Part D prescription drug coverage International coverage for illness/accident Extra coverage above individual plans (e.g. Hospital, Skilled Nursing)

15 Medical Plans Medicare eligible UnitedHealthcare Group Medicare Advantage PPO Medicare Part C private insurance A type of Medicare Advantage Plan approved by Medicare Nation-wide PPO network Out of Network - any Medicare doctor or facility that will accept payment from the plan Payment to provider is the same reimbursement as Medicare Includes medical/hospital and Part D prescription coverage

16 Group Health Plan Eligibility Official Retiree and Qualifying Spouse Enrolled in Medicare Part A & B Age 65 (PURcare) If you re retired, age 65+ with Medicare, and choose an individual health insurance plan, you will not be eligible to return to a Purdue retiree group plan.

17 PURcare - Senior Supplement + Part D PURcare premium for 2017 is $263.85/month/person Veterans with Rx coverage from VA, $193.70/month $300 annual deductible (Medicare Parts A and B) Once satisfied, Senior Supplement pays 100% of Medicare A & B allowed amounts for rest of year $150 annual Vision benefit with no deductible

18 PURcare Vision Benefit A vision rider of $150 per year for expenses not allowed by Medicare No Network, use any provider No 12 month waiting period requirement May use for frames, lenses, second pair of glasses, refraction Not for refraction/glasses immediately following cataract surgery

19 2017 PURcare Part D Plan Prescription drug coverage Exceeds coverage required under Medicare Part D legislation No deductible Open formulary (FDA approved, medically necessary) No step therapy Few prior authorizations or limited quantities

20 2017 PURcare Part D Plan Initial Coverage stage Retail Pharmacy (30 or 90-day supply) You pay the lesser of: 50% co-insurance OR the maximum co-pay o Tier 1 $10 /mo. Mail-Order Pharmacy (90-day supply) You pay the lesser of: 45% co-insurance OR the maximum co-pay o Tier 1 $20 o Tier 2 $45 /mo. o Tier 2 $90 o Tier 3-4 $95 /mo. o Tier 3-4 $190 Until you reach the 2017 Coverage Gap $3,700 Total Rx cost (the $ you pay + $ insurance pays)

21 2017 PURcare Part D Plan Coverage Gap stage (Donut Hole) Medicare standard Gap coverage You pay 40% for brand name Rx 51% for generic Rx The manufacturer s discount on brand name Rx counts toward your annual total out-of-pocket. No cost when you reach Catastrophic coverage (after $4,950 out-of-pocket in 2017).

22 Closing the Gap (Donut Hole) Your share decreases each year % for generics and 40% brand drugs % for generics and 35% brand drugs % for generics and 30% brand drugs % for generics and 25% brand drugs 22

23 2017 Group Medicare Advantage UnitedHealthcare PPO - National network Monthly Premium is $ per person per month for medical/hospital and Part D prescription coverage You pay co-pay/co-insurance for Medicare covered Part A & B services/supplies until your reach Annual Maximum out-of-pocket Primary Care Office Visit $20 Specialist Office Visit $35 Annual Maximum Out-of-Pocket $3400

24 2017 Group Medicare Advantage PPO Prescription Drug Coverage Defined 4-Tier formulary (not all drugs covered) Step therapy, prior approval, limited quantities on some covered drugs Initial Coverage Stage Drug tier determines cost - $4, $28, $58, 33% at local pharmacy In the Gap if total Rx cost ($ you pay + $ insurance pays) reaches $3,700 You pay only your co-pay for Tier 1 generic drugs Tier 2, 3, 4 standard Gap coverage; 40% - brand, 51% - generics Catastrophic Coverage after $4,950 total out-of-pocket, you pay 5% or very small co-pay

25 PURcare Higher monthly premium ($263.85) Lower risk; out-of-pocket costs for hosp./medical ($300) Broader Rx coverage with few restrictions 100% Rx coverage during catastrophic phase Plan Comparison Medicare Advantage PPO Lower monthly premium ($208.49) Higher risk; out-of-pocket costs for hosp./medical ($3400) More limited Rx coverage, but with coverage of Tier 1 generics in the gap More Rx restrictions and some cost during catastrophic phase

26 Retiree Dental Option in 2017 Anthem Preventive Dental Plan oral exams and teeth cleaning twice per calendar year bitewing X-rays once per calendar year a full mouth X-ray once every five years once-a-year brush biopsy to detect oral cancer A third cleaning will be covered for members with certain conditions, such as diabetes and oncology patients. Covered Claims paid 100% In-Network; Out-of-network may be balance billed. For Retirees over age 65; Participation is Optional. Monthly premium billed by and paid to AmWins Retiree only $14.51/month Retiree & Spouse $29.02/month Administrative fee $2.25/month - EFT or $2.75/month - Check

27 Additional Benefits for Both Plans SilverSneakers You pay no membership fee for any of these local facilities: Cordova Recreational Sports Center Club Newtone Lafayette Family YMCA - two locations Parkwest Fitness A.H. Ismail Center Faith East and Faith West Centers Snap Fitness - two locations Curves (women only) - three locations Over 13,000 participating clubs nationwide 24-Hour NurseLine Optum Discount 27

28 Why a Purdue Retiree Group Plan? Purdue HR staff assigned to help you Not age rated premiums do not increase with age No yearly re-enrollment for either plan option Better benefits than most individual plans offer PURA Benefits Committee works on your behalf to negotiate best possible plans

29 Message from PURA Benefits Committee PURA believes that prudent retiree health insurance decisions should be determined by value, service and dependability. Your health insurance is important to your well-being and peace of mind. Choosing an insurance plan on the basis of price alone can be risky and costly.

30 Life Insurance Official retirees have various options to continue, port or convert Minnesota Life coverage without proof of good health. All options require action by the retiree within 31 days of the date your employee coverage terminates.

31 You are eligible to: Retiring Under Age 65 Continue Basic Term Life (1.5x Salary) and Additional Term Life all or part by paying the full cost Continue all or part of coverage for dependents Port (extend) Accidental Death & Dismemberment coverage for you and/or your dependents to age 70

32 Life Insurance age * You are eligible to: Convert Basic Term Life (1.5x Salary) to an individual policy with Minnesota Life by paying the full cost Port (extend) Additional Term Life and/or AD&D to age 70 by paying the full cost * Cost is dependent upon age and amount of coverage

33 Life Insurance age 70+ If you have ported (extended) your Additional Term Life coverage up to this point, or if you are retiring at age 70 or older, you may convert all or part of the coverage to an individual policy without proof of good health. You can keep this coverage for life by paying the full cost. Cost is based on age and coverage amount.

34 Retirement Your reward for a job well done!

35 Questions? Thank you for attending. Kate LaMar Human Resources