AGENDA
Program Overview
Emeriti Insurance Options – In Minnesota
Emeriti Insurance Options – Out Of State
Enrollment Planning
Enrollment Process
Additional Resources
About Emeriti Retirement Health Solutions
First-ever, comprehensive retiree medical benefits program
Not-profit consortium serving the higher education community
Forty-one current member institutions and growing
Generous grant support from The Andrew W. Mellon Foundation
Headquartered in Hudson Valley, New York State
Commitment to education and integrated retirement planning
Source: This information is provided by
Emeriti® Retirement Health Solutions as of September 1, 2006.
5
ABOUT HEALTHPARTNERS
Largest consumer-governed, non-profit health care organization in the nation
630,000 medical members and 210,000 dental members in Minnesota and Wisconsin
Integrated health care organization delivering medical, dental, pharmacy, and group insurance products
Largest contracted network in Minnesota with more than 15,000 physicians at nearly 40,000 clinics, including HealthPartners Clinics
Headquartered in Bloomington, Minnesota
Commitment to seamless integration and delivery of Emeriti Program
This information is provided by HealthPartners as of June 30, 2006.
ABOUT AETNA
Oldest and leading insurance company in the United States
15.4 million medical members and 10.2 million pharmacy members
Delivery of integrated medical, dental, pharmacy, group insurance products
Certification to offer Medicare-approved Part D plans in all fifty states
Headquartered in Hartford, Connecticut
Commitment to seamless integration and delivery of the Emeriti Program
This information is provided by Aetna as of June 30, 2006.
ABOUT FIDELITY
Largest provider of workplace savings plans in the United States
Management of $1.3 trillion in assets on behalf of 22 million individuals*
Leading mutual fund company with goal of solid long-term performance
Service to 900 higher education clients with 840,000 participants**
Headquartered in Boston, Massachusetts
Commitment to seamless integration and delivery of the Emeriti Program
This information is provided by Fidelity*as of 7/31/2006** as of 8/31/2006
Comprehensive Benefit Paradigm
Emeriti Health Insurance OptionsPortable group health insurance options wherever
you decide to live in retirement
Emeriti Reimbursement BenefitsA tax-free method for you to pay for other qualified out-
of- pocket medical expenses not covered by Medicare or Emeriti
Emeriti Health Accounts A tax-advantaged way for you to invest and accumulate assets exclusively to help meet future retiree medical expenses
Distributions for Insurance Coverage in Minnesota
COMPREHENSIVE PLANS (2) Very Enhanced D
Rich Medical Standard D
RX ONLY PLANS (2) Enhanced D
No Medical Standard D
Distributions For Reimbursement Benefits
Payment of Medicare premiums and cost shares
Payment of supplemental insurance deductibles, coinsurance, and copayments
Payment of vision, dental, hearing care
Payment of long-term care insurance
Payment of medical expenses associated with nursing or in-home health care services
Payment of over-the-counter pharmaceuticals
Payment of other insurance (if Emeriti coverage not elected)
A wide range of health care expenses apply for tax-free reimbursement as long as they satisfy the requirements of Section 213 (d) of the IRS Code.
The Value of Emeriti’s Comprehensive Benefits
Range of group insurance designs coordinating with Medicare
National access to insurance
Flexibility of the reimbursement benefit for other medical expenses
Opportunities to set aside tax-advantaged savings for health care
The Flexibility of Emeriti’s Coverage Options
Go to any doctor or facility accepting Medicare
Choose from various levels of prescription drug benefits
Make an annual choice from the available insurance options
Secure your retirement assets through catastrophic insurance protection
Have access to short-term international coverage
Take advantage of preventive services for good health
SECTION 2
IN MINNESOTA
•Two Comprehensive Insurance Options
Underwritten by HealthPartners
•Two Prescription Drug Only Options
Underwritten by Aetna
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
Must maintain permanent
residence in Minnesota
Must have Medicare
Parts A and B
ELIGIBILITY
A Medicare Cost contract offered by HealthPartners
> where Medicare is Primary for Part A
> where HealthPartners is Primary for Part B
Use Original Medicare benefits
> out-of-network within Minnesota
Medicare Part D benefits also apply
PRODUCT DETAILS
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
More than 25,000 doctors in the network
No referral required (You can see any provider that is within the network)
Includes Mayo specialists without a referral
OPEN ACCESS NETWORK
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
PLAN 1 PLAN 2
Doctor Visits $15 co-pay $20 co-pay
Inpatient Hospital $100 co-pay per benefit period
$100 co-pay per benefit period
Emergency Room $50 co-pay $50 co-pay
Urgent Care $15 co-pay $20 co-pay
Routine Preventive Care
(physical, hearing, and eye exams)
100% coverage 100% coverage
Annual Out-of-Pocket Limit $1,500 $3,000
* See Summary of Benefits for additional details.
MEDICAL BENEFIT HIGHLIGHTS *
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
INITIAL COVERAGE TIERSYOU PAY: $12 copay for generic drugs
$24 copay for brand-name drugs
25% coinsurance for specialty drugs
PLAN PAYS: The Balance
CATASTROPHIC TIER YOU PAY: $2.15 for generic
$5.35 for brand-name
or 5% whichever is greater
PLAN PAYS: The Balance
$3,850 annual out-of-pocket requirement
PRESCRIPTION DRUG BENEFIT HIGHLIGHTS: PLAN 1
►
NOTE: Through Mail Order, a 3-month supply for 2 copays
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
$0
deductible
►
INITIAL COVERAGE TIER
YOU PAY: $10 copay for generic drugs
$31 copay for brand-name drugs
25% coinsurance for specialty drugs
PLAN PAYS: The Balance
CATASTROPHIC TIER
YOU PAY: $2.15 for generic
$5.35 for brand-name
or 5% whichever is greater
PLAN PAYS: The Balance
$3,850 annual out-of-pocket requirement
PRESCRIPTION DRUG BENEFIT HIGHLIGHTS: PLAN 2
►
NOTE: Through Mail Order, a 3-month supply for 2 copays
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
SECOND COVERAGE TIER “Gap”
YOU PAY: 100% for drugs
PLAN PAYS: $ 0
►$2,400
limit
►$0
deductible
IMPORTANT NOTICE
HealthPartners INCLUDES Medicare Part D in your comprehensive Emeriti insurance coverage.
You DO NOT need to enroll in a separate Medicare prescription drug plan.
HealthPartners will AUTOMATICALLY enroll you in enhanced Part D drug coverage through the Freedom Plans.
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
1. Extended Absence Benefit
2. Fitness Club Benefit
3. Dedicated Call Center
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
ADDED SERVICES AT NO ADDITIONAL COST
When you travel domestically, you take your health plan with you.
You receive your plan’s level of coverage while you are away from Minnesota for up to 9 months
Within the U.S, simply call Member Services to activate:
(952) 883-7979 Local
(800) 233-9645 Toll free
When you travel abroad, your health plan covers urgent and emergency care
You must keep your receipts for reimbursement.
EXTENDED ABSENCE BENEFIT
INTERNATIONAL COVERAGE
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
It’s easy to join. Here’s how:
Step 1: Select fitness club (YMCA or YWCA)
Step 2: Sign-up at the club and take a tour
Step 3: Workout at least 8 times in a month and HealthPartners pays
that month’s dues IN FULL.
FITNESS CLUB BENEFIT
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans
PLAN 1 PLAN 2
2007 Premium
$218.30 $137.30
2006 Premium
$204.85 $126.46
2007 PREMIUM RATES IN MINNESOTA FOR POST-65 RETIREES
NOTE: These rates are on a per person per month basis and apply to all Minnesota-resident, Medicare-eligible retirees and their Medicare-eligible spouses from Minnesota institutions.
Other Emeriti Coverage in Minnesota Other Emeriti Coverage in Minnesota through Aetna’s PDP Plansthrough Aetna’s PDP Plans
If you want only Medicare prescription drug benefits,
you may select from two Aetna drug plans:
> enhanced prescription drug plan with an open formulary
> a standard precription drug plan with a closed formulary
NOTE: These plans provide Medicare Part D benefits only, and do not include Medicare Part A and B coverage.
PRESCRIPTION DRUG ONLY OPTIONS
PLAN 3 PLAN 4
COVERAGE LEVEL Stand-alone drug enhanced benefit
Stand-alone drug standard benefit
PHARMACY ONLY
Your Deductible $125 $265
Your 1st Cost Tier 15% - 25% - 35% $5 - $35 – 25%
Your 2nd Cost Tier 100% 100%
Your 3rd Cost Tier 5% 5%
Formulary open closed
Plan Pays 52-54% 51.5%
NO MEDICAL Not applicable Not applicable
Other Emeriti Coverage in Minnesota Other Emeriti Coverage in Minnesota through Aetna’s PDP Plansthrough Aetna’s PDP Plans
PRESCRIPTION DRUG BENEFIT HIGHLIGHTS
PLAN 3 PLAN 4
2007 Premium
$57.50 $32.90
2006 Premium
$56.20 $33.60
Other Emeriti Coverage in Minnesota Other Emeriti Coverage in Minnesota through Aetna’s PDP Plansthrough Aetna’s PDP Plans
2007 Rx ONLY PREMIUM RATES FOR POST-65 RETIREES
NOTE: These rates are on a per person per month basis and apply to all Minnesota-resident, Medicare-eligible retirees and their Medicare-eligible spouses from Minnesota institutions.
COMPREHENSIVE PLANS (3) Very Enhanced D
Rich Medical Enhanced D
Standard DRX ONLY PLANS (2)
No Medical Enhanced D
Standard D
MEDICARE ADVANTAGE (1)
Private Fee-for-Service Plan Standard D
Please note that Emeriti coverage through the Aetna plans may not be available everywhere. Please ask for the summary of benefits.
Emeriti Coverage Options for Residents Outside of Minnesota
PLAN 1 PLAN 2 PLAN 3 PLAN 4 PLAN 5 PFFS *
Total 2007
Premium $238.00 $185.80 $124.80 $53.30 $29.80 $78.00
2006 Premium
$245.00 $194.00 $140.00 $52.10 $30.40 N.A.
Emeriti Coverage Options for Residents Outside of Minnesota
NOTE: These rates are on a per person per month basis and represent national average premiums for entry 65-year-olds. Rates will vary by residential location.
2007 PREMIUM RATES FOR POST-65 RETIREES
Educate Yourself
Read the Emeriti enrollment kit
Come to Emeriti workshops
Visit the Emeriti website
www.emeritihealth.org
also www.healthpartners.com/medicare
Phone the Emeriti toll-free call center1-866-EMERITI
Think Strategically about Your Health Needs
Check your Plan’s definitions of “vesting” and “retirement eligibility”
Be sure that you are enrolled in Medicare Parts A and B
Consider the Emeriti insurance coverage right for you
Identify which dependents get access to Emeriti benefits
Calculate your contributions for premiums / other out-of-pocket
medical expenses
Review which investment options are appropriate for you, if you
decide to add periodic lump sums to the Health Account
Make a Decision about Insurance
Currently enrolled participants
• Do nothing if you want to stay in the current plan
• Call if you want to change to another plan
Newly eligible participants
• Call to enroll and select your insurance option
Important Deadlines for Your Enrollment
Your Window for Enrollment:
Currently insured participants > by December 31, 2006
Newly eligible participants > by March 31, 2007
Organize Materials for Your Call
Have your Medicare Parts A and B cards
Have your social security number
Have dates of birth of any eligible dependents
Have social security numbers for eligible dependents
Have your bank account number for electronic transfers (ACH)
How to Enroll in Emeriti Coverage How to Enroll in Emeriti Coverage through the HealthPartnersthrough the HealthPartners®® Freedom PlansFreedom Plans
Easy 3-Step Process:
Step 1: Phone the Emeriti Call Center at 1-866-EMERITI (1-866-363-7484)
Step 2: Complete, sign and date the HealthPartners enrollment form
(You and your spouse must each complete a
separate enrollment form)
Step 3: Return your completed enrollment form
to HealthPartners Medicare Sales
in the enclosed postage-paid envelope
EMERITI CALL CENTER 1-(866)-EMERITI
Available Monday – Friday
8 a.m. to 12 a.m. (Midnight) EASTERN
HEALTHPARTNERS MEMBER SERVICES
(952) 883-7979 or 1-(800) 233-9645
Medical plan questions (Monday – Friday) 8 a.m. to 6 p.m.
Medicare prescription drug questions (seven days a week)
8 a.m. to 8 p.m. CENTRAL
Dedicated Call Center for Emeriti ParticipantsDedicated Call Center for Emeriti Participants
Paying for Emeriti Insurance Coverage
Where You Have a Continuing Employer Subsidy• Pays employer’s share automatically from the Health Account
• Pays your premium share electronically (ACH) from your bank account each month
• AND you may add lump sum amounts electronically (ACH) to the Health Account periodically
Where There Was No Prior Employer Subsidy• Pays your premium electronically (ACH) from your bank account
each month
• AND you may add lump sum amounts electronically (ACH) to the Health Account periodically
With Emeriti, there are no checks to write; set it up; the record-keeper does the rest.
Program Fees in Retirement
Recordkeeping Fee ($6.25 per month)
Participant Account Fee ($4 per month)
Reimbursement Benefit Processing Fee ($6 per bundled set of claims)
NOTE: Fees and expenses associated with Fidelity investment options also apply. Please request a mutual fund prospectus for more information about these fees.
Find Information with Emeriti Tools
Read the latest articles on the Emeriti website (www.emeritihealth.org)
Use the Emeriti online premium rate guide (www.emeritihealth.org)
Conduct searches on the HealthPartners website for retirees living in Minnesota
(www.healthpartners.com/medicare)
Visit Aetna’s Navigator website for retirees living in other states (www.aetna.com)
Explore the performance of Fidelity Freedom Funds (www. fidelity.com)
Do Independent Research
Read Medicare and You from the Centers for Medicare and Medicaid Services
Visit Medicare’s website for retirees (www.medicare.gov)
Get independent views from the Kaiser Family Foundation (www.kff.org)
Review research at the Employee Benefit Research Institute (www.ebri.org)
Legal Notices
Summary Plan DescriptionThis presentation is intended to provide you with a brief summary of some of the details of your Employer’s Emeriti Plan and the Emeriti Program generally. It is not a Summary Plan Description (“SPD”) and does not summarize all the terms of your Employer’s Emeriti Plan. For a full summary of the terms of your Employer’s Emeriti Plan you must consult the SPD, which will be provided to you upon enrollment or upon request.
Important Information about EmeritiThe full name of Emeriti Retirement Health Solutions is The Emeriti Consortium for Retirement Health Solution, an Illinois Not-for-Profit Corporation.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
Major Contributors to the Emeriti Benefit ProgramEmeriti Retirement Health Solutions, HealthPartners (in Minnesota), Aetna (other US regions), Fidelity Investments, and Acclaris are independent organizations and are not legally affiliated.
Investment Adviser StatusEmeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options for the Emeriti Program, selecting the investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to plan participants. Emeriti does not provide advice to participants about their individual investment selections.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under various state securities laws. The offering of these Interests is subject to compliance with any applicable state law. For residents of Georgia, the Interests are being offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the “Georgia Act”). The Interests may not be sold or transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.
Investment DecisionsIt is your responsibility to select and monitor your investments to make sure they continue to reflect your financial situation, risk tolerance and time horizon. Most investment professionals suggest that you reexamine your investment strategy at least annually or when your situation changes. In addition, you may want to consult an investment adviser regarding your specific situation.
Recordkeeping and shareholder services for the Emeriti Program are provided by Fidelity Investments Tax-Exempt Services Company, a division of Fidelity Investments Institutional Services Company, Inc.
Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.
©2005 FMR Corp. All rights reserved. 417000
Fidelity Investments Institutional Services Company, Inc. • 82 Devonshire St., Boston, MA 02109