Information for Age 65+ NXP Medicare-Eligible Retirees and Medicare-Eligible Dependents

Transcription

1 Information for Age 65+ NXP Medicare-Eligible Retirees and Medicare-Eligible Dependents Beginning January 1, 2016, NXP retirees who are at least 65 years old and eligible for Medicare (or their dependent that meets this criteria), will no longer get their medical and prescription drug coverage through NXP s group plan. Instead, they will purchase individual health insurance. Let the Aon Retiree Health Exchange do the work for you! To help you explore your options in the individual Medicare marketplace, NXP has arranged for a licensed Benefits Advisor 1 from the Aon Retiree Health Exchange TM to provide you with knowledgeable guidance and assistance. This service is at no cost to you, you only pay for the insurance you choose. Use the Aon Retiree Health Exchange website and Benefits Advisors to search for wellrespected and affordable plans in your area. You may be surprised and comforted to learn that enrolling in an individual Medicare insurance plan could actually save you money and provide you with a plan that better suits your specific healthcare needs! Aon Retiree Health Exchange provides you with: Expert guidance and enrollment support Broad choices nationally from over 90 Medicare carriers including plans that may allow you to keep your preferred doctors and hospitals Objective advice as our Benefits Advisors are not compensated based on the plan you choose Complimentary advocacy and assistance as your needs change in the future and/or you encounter issues with your insurance carrier Aon Retiree Health Exchange has helped over 500,000 retirees like you evaluate and find more complete Medicare coverage. In fact, our service is recommended by a leading nonprofit service and advocacy organization for improving the health and economic security of older adults, the National Council on Aging (NCOA). Help paying For Your Coverage in 2016 and Your Retiree Health Reimbursement Account In 2016 and 2017, NXP will contribute to a Health Reimbursement Account (HRA) an account that NXP funds to reimburse you for health care premiums and other eligible health care expenses. The HRA is a tax-free account, so you do not pay taxes on your account balance or on reimbursements you receive from your account. These accounts also do not bear interest. This amount may be prorated based on your actual enrollment date. 1

2 Eligible Grandfather Retirees will receive an allocation in the amount of $1,030 for 2016 and Eligible Non-Grandfather Retirees will receive an allocation in the amount of $500 for 2016 and Contributions from NXP for both the retiree and spouse are combined into one HRA in the NXP retiree s name. Reimbursement of eligible expenses will be available to both the retiree and his or her eligible dependents, as long as there are available funds in the HRA. Understanding your Health Reimbursement Account An HRA is an account that NXP will fund in 2016 and 2017 to help reimburse you for eligible health care expenses. You pay for qualified individual health care expenses up front, and the amount you paid is reimbursed to you from your HRA. As an added advantage, the HRA is a tax-sheltered account, so you do not pay taxes on your balance in the account or on reimbursements from the account. The original intention of the HRA was to help ease the transition for retirees age 65 or older from group coverage to the Retiree Health Exchange. After a careful review, we have decided that we will no longer offer Health Reimbursement Account (HRA) funds for retirees and/or eligible dependents age 65 or older starting January 1, This does not impact HRA funds provided through December 31, If you are a retiree and/or eligible dependent age 65 or older and currently have an HRA, or will have an HRA in 2017, you will continue to have access to those funds. Any remaining balance as of December 31, 2017 will roll over until it is depleted. For additional details on this change please review the HRA Change letter mailed to eligible plan members August 15, Your HRA will be administered through Aon Hewitt s Your Spending Account TM service (YSA). Here s an overview of the HRA: Why Do I Need More than Basic Medicare? Medicare Parts A and B (assuming you are enrolled in both) may not be enough to cover unplanned medical and prescription expenses. Basic Medicare places no limit on the amount of money you could be responsible to pay annually and includes only limited prescription drug coverage. Because of this, we highly recommend you carefully evaluate your choices to find a plan to complement basic Medicare. As a reminder, the first step to enrolling in supplemental coverage is ensuring you are enrolled in Medicare Parts A&B Aon Retiree Health Exchange Enrollment Requirement The HRA is available only if you enroll in Medicare insurance through Aon Retiree Health Exchange. 2

3 Contributions to your HRA The amount contributed to your HRA is determined by NXP, which reserves the right to change the details of your HRA at any time. All HRA contributions provided in 2016 and 2017 by NXP for you and your eligible dependents will be deposited into a single HRA account. Individual Medicare health care expenses for you and your eligible dependents can be reimbursed from that one account. Using your HRA funds You may use the HRA to help pay for eligible individual Medicare health care expenses, including: insurance premiums for Medigap (also known as Medicare Supplement), Medicare Part D Prescription Drug, Medicare Advantage, and Medicare Part B; dental and vision premiums; and other out-of-pocket expenses such as copays, coinsurance, and deductibles (excluding those costs associated with prescriptions. You will be reimbursed only up to the balance of your HRA. Once your funds are exhausted, you will not be reimbursed for any additional expenses. If there is a balance left over in your HRA at the end of the year, it will roll over and be eligible for use the next calendar year. Any additional HRA contributions from Freescale in the future will be added to your remaining HRA balance. Your HRA will be available shortly after your Medicare insurance coverage begins. Once your HRA account has been established, you will receive a Welcome kit describing the process for reimbursement. You can expect to receive it shortly before your enrollment effective date. It will include instructions on how to get help online or over the phone. You can also learn more about the reimbursement process by talking to the Aon Retiree Health Exchange or your aligned Benefits Advisor during your scheduled appointment. Ready to Get Started Now? Are you or your covered dependents currently enrolled in NXP Pre-65 Retiree Medical? Current NXP pre-65 retirees will receive a welcome letter about 6 months in advance of your 65 th birthday from Aon Retiree Health Exchange that outlines what you can do to get prepared. Then about 3 months in advance of your 65 th birthday you will receive a personalized letter that includes an appointment time for you to meet with your Benefits and a Medicare Insurance Guide. If you want to review the current Aon Medicare marketplace options visit and follow the prompts to find plans in your area. Are you eligible for NXP Retiree Medical and exploring your options? Visit the current Aon Medicare marketplace options visit and follow the prompts to find plans in your area. For More Information If you have questions about the individual Medicare marketplace call the Aon Retiree Health Exchange at Representatives are available Monday through Friday from 8:00 a.m. to 8:00 p.m. Central time. If you have questions about your current medical coverage or other retiree benefits, NXP Rewards Customer Service at or visit 3

4 How We Can Help Contact an Aon Retiree Health Exchange licensed insurance agent today Phone: (TTY use 711 relay), Monday Friday, 8 a.m. 8 p.m. Central time. Closed on holidays, extended hours during Medicare s Annual Enrollment Period. Web: retiree.aon.com Our licensed Benefits Advisors will provide the guidance and support you need. Contact us today to find the coverage and peace of mind you deserve. About Us Private Aon Retiree Health Exchange services are available through Aon Hewitt Health Market Insurance Solutions Inc, a third-party marketing organization (TMO), retained to sell or promote a plan sponsor s Medicare products on the plan sponsor s behalf who holds the contract with the federal government. Aon Hewitt Health Market Insurance Solutions Inc is an Aon Hewitt company. Aon Hewitt is the global leader in human capital consulting and outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent, and related financial challenges, and improve business performance. Aon Hewitt designs, implements, communicates, and administers a wide range of human capital, retirement, investment management, health care, compensation, and talent management strategies. With 30,000 professionals in offices across six continents, Aon Hewitt makes the world a better place to work for clients and their employees. For more information on Aon Hewitt, please visit Copyright 2014 Aon Hewitt Health Market Insurance Solutions Inc Aon Retiree Health Exchange is available through Aon Hewitt Health Market Insurance Solutions Inc California Agency License Number: 0E97576, Arkansas Agency License Number: , DBA in North Dakota: Aon Hewitt Health Insurance Agency Solutions Inc, Fictitious Name in New York Aon Hewitt Health Insurance Agency Solutions While every attempt is made to keep this information correct and up to date, nothing contained herein is to be construed as a guarantee that it is. We take no responsibility or liability for any actions taken as a result of using the information presented in this booklet. We will not be liable as a company or as individuals for damages, losses, or other expenses incurred as a result of reading this material or for any other reason. Aon Retiree Health Exchange Help you can count on With the Aon Retiree Health Exchange you can: ddcompare a wide variety of health care plans ddchoose the plan that meets your needs and budget ddget one-on-one guidance from our Benefits Advisors ddenroll with confidence Recommended by Basic Medicare Isn t Enough For many, Medicare alone does not provide a comprehensive safety net for health care expenses. While Medicare Parts A and B help to provide coverage for some hospital and medical costs, the fact remains: For many people it s often not enough. Because of potential gaps in coverage, many people purchase Medicare insurance to help build complete coverage. The Aon Retiree Health Exchange can help you find and enroll in a plan that s right for you. RHX This is an advertisement. retiree.aon.com

5 Building more complete coverage The Aon Retiree Health Exchange can help make choosing and applying for your health care plan simple and affordable. Choose from over 90 well-known Medicare providers. Find plans that include your preferred doctors and hospitals. Shop a wide range of plans including low-cost options. Get one-on-one assistance over the phone from our Benefits Advisors (licensed insurance agents) who will help you compare, select, and apply for coverage. Medicare Parts A and B Coverage Type Medical Services Prescription Drugs Financial Protection Medicare Coverage Part A Inpatient hospital stays Limited skilled nursing care Medicare Insurance Medicare Advantage (most plans include prescription drug coverage) OR Supplement (Medigap) + Medicare Part D Prescription Drug Medicare Parts A and B vs. Medicare insurance: What s the difference? None More complete, comprehensive coverage and better financial protection Limited Turn to the Aon Retiree Health Exchange for help you can count on. This service is brought to you by Aon, a company that has helped millions of people with their insurance and benefits needs. Let us help you. Get simple side-by-side comparisons of plans in your state with our comprehensive online tools. Get ongoing support should you need help after you enroll. STEP 1 Part B Home health services Hospice care Doctors fees Outpatient hospital care Limited* Limited Medical equipment and supplies Medicare Insurance Options The best part? The Aon Retiree Health Exchange comes at no cost to you. You don t pay for the services the Aon Retiree Health Exchange provides. You pay only for the insurance coverage you choose. STEP 2 Medicare Advantage Supplement (Medigap) Medicare Part D Prescription Drug Covers at least the same services as Medicare Parts A and B and may cover additional services or supplies Helps pay for services and supplies not fully paid by Medicare Parts A and B and may cover other items OR More complete coverage (many plans) No coverage More complete coverage (many plans) No prescription coverage None More complete coverage More complete coverage *Please refer to the Medicare & You handbook, available at for a full review of Medicare Parts A and B.