Harris Health Retiree Health Reimbursement Account Informational Session

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1 Harris Health Retiree Health Reimbursement Account Informational Session 0

2 Agenda Post-Retirement Health Benefits Video & Presentation Cigna & Kelsey Seybold Medicare Advantage Discussion Q&A 1

3 A Promise Made Is A Promise Kept Commitment A foundational element of Harris Health s success in continuing our mission to service our community is the strength and absolute dedication of our workforce. Harris Health s commitment to the members of our workforce, both active and retired, carries over to our concern for their healthcare needs. Assurance Harris Health is currently the only organization in the Texas Medical Center that offers health benefits to post-65 retirees. We recognize promises were made to our retirees in this regard and our goal is to maintain that compact with those who gave service to our organization. George V. Masi, CEO 2

4 A Message to Our Family 3

5 2020 Retiree Medical Overview Effective January 1, Harris Health retiree medical plans will be replaced with a Health Reimbursement Account (HRA) Pre-65 retirees who retired before January 25, 2018 will be considered grandfathered and will have the ability to remain on the active employee plan options until they become Medicare eligible Post-65 retirees and Pre-65 retirees who retire on or after January 25, 2018 will be moved to the HRA effective January 1, 2020 Retiree eligibility continues to be based on age and years of service (rule of 80) 4

6 2020 Retiree Medical Overview What is an HRA? An HRA is an IRS approved, employer funded, tax advantage health benefit plan The HRA will be funded by Harris Health based on the defined contribution schedule Unused funds will rollover from year to year The HRA benefit plan provides you with the flexibility to select the benefit plan and provider network that best meets your needs. The HRA also gives you the ability to use available funds for out-of-pocket expenses You will have the option to re-evaluate your plan choice each year 5

7 Guidance We are here to help guide you through this process. In addition to the Harris Health Benefits Team, Benefit Counselors will be available through the selected HRA vendor to answer questions and assist you in plan selection and enrollment Harris Health System Harris Health Retiree HRA Vendor (Benefit Counselors) Medicare Advantage Plan Marketplace Insurance Carrier Prescription Drug Plan Dental & Vision Plan 6

8 Post-Retirement Implementation Timeline 3/5 Initial Communication sent to Actives & Retirees (postcards) 4/18 Bayou City Event Center Face-to-Face Retiree Discussions Release RFP In-Depth Retiree Meetings Mar 2018 Apr 2018 May 2018 Aug 2018 Oct 2018 Nov 2018 Feb 2019 Jan /8 Corporate Communications intranet story posted Pavilion Face-to- Face Active Employee Discussions Vendor Selection GO LIVE 3/16 Communication & FAQ mailed Vendor Announcement Letter 3/29 Board Meeting 7

9 2020 Retiree Medical Overview Proposed 2020 Retiree HRA Funding Schedule EXAMPLE Post 65 Age at Retirement Annual HRA Employer Contribution 65 $1,968 **Pre 65- Age at Retirement (if retired after January 25, 2018) Annual HRA Employer Contribution- Retiree Annual HRA Employer Contribution- Spouse 55 $6,600 $3, $7,200 $3, $7,800 $3, $8,400 $4, $9,000 $4,500 Example reflects annual HRA contribution (funds may be provided on a monthly basis) 60 $9,600 $4, $10,200 $5, $10,800 $5, $11,400 $5, $12,000 $6,000 **Pre 65 schedule reflected applies only to pre 65 retirees who retired after January 25,

10 2020 Retiree Medical Overview- Post 65 Plan Example Current Retiree Health Plan Options Sample Medicare Advantage Plan Designs Benefit Low Deductible KelseyCare High Deductible Individual Ded $750 $0 $1,500 PCP/Specialist $25/$35/$55 $15/$30 $25/$35/$55 Coinsurance 10% N/A 20% OOP Max $3,000 $750 $3,750 Hospitalization $100 per day (5max)/10% $100 per day (5max) $100 per day (5max)/20% ER Visit 10% $200 20% Rx Copays Generic Preferred Brand Non Preferred Brand $10 20% ($60 max) 30% ($120 max) $10 20% ($60 max) 30% ($120 max) $10 20% ($60 max) Benefit Cigna Standard High HMO 1 Kelsey Essential + Choice HMO-POS 1,2 Individual Ded $0 $50 3 PCP/Specialist $0/$30 $5/$35 Coinsurance 0% 20% OOP Max $3,400 $3,400 Hospitalization $350 per admit $500 per admit ER Visit $100 $75 Rx Copays (tier 1/tier 2/tier 3/specialty $5/$9/$45/$85 /33% $8/$20/$45/ 32% of the cost 30% ($120 max) 1 Plan includes dental and vision benefit 2 Includes out of network coverage 3 Plan includes vision benefit 4 Applies to RX only Monthly Premium- Retiree Only Low Deductible KelseyCare High Deductible Monthly Premium- Retiree Only Cigna Standard High HMO Kelsey Essential + Choice HMO-POS Total Monthly Premium $ $ $ Total Monthly Premium $0 $77 Harris Health s Monthly Contribution $ $ $ Harris Health s HRA Monthly Contribution $164 $164 Monthly Retiree Contribution $ $38.09 $38.09 Retiree Monthly Contribution $0 $0 Medicare Part A and B enrollment required under current plan options and Medicare Advantage plans Medicare pays primary and coordinates with current Harris Health benefits which can result in 100% benefit coverage 9

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