# Presentation: 667398

## Retiree Medical Coverage Retiree Meetings

- Welcome

## Agenda 

- Retirees impacted by this change
- What has changed?
- Why has it changed?
- Rates
- Payment of Premiums
- Annual Enrollment
- Insurance Plan Changes
- Medicare
- Summary

## Retirees Impacted by this Change 

- All retirees who are participants in the Fermilab Retiree Medical Plan
- Rate changes apply to all plans, all Medicare-eligible retirees age 65 or older
- Rates for non-Medicare (under age 65)
- All retirees will be charged the current active rate effective October 1, 2008. This rate will also change on January 1, 2009 with the active employee rate change

## What has Changed?

- The plans have not changed
- The manner in which premium rates for retirees is calculated has changed
- Medicare-eligible retirees (65+ years) will pay 17% of the total cost for coverage (total cost includes claims and administrative fees for this group)
- Non-Medicare eligible retirees (under 65) will pay the active employee rate

## Why has it changed? 

- Fermilab is required by its contract with DOE to maintain competitive benefits
- The Laboratory has subsidized benefits above the market norm
- Medical costs continue to increase at approximately 10% or more per year
- The prior rate for Medicare-eligible retirees was offset by the Part B Medicare Premium. The Part B Medicare Premium is determined by Medicare. Fermilab will determine premiums based on the experience of the retiree group (claims and administrative expenses)

## Slide 6

| Fermilab Percentage of Cost Share Compared to National Average   | Retiree-Only Percentage of Total Costs 
(amount of retiree premium)  | Retiree Family 
Percentage of Total Cost 
(amount of retiree premium)
 | Active Employees 
Percentage of Total Cost 
(cost-share amount) |
| --- | --- | --- | --- |
| Fermilab 
Percentage of total cost  | 17% | 17% | 18% Average   |
| National Average  
Retirees under age 65 * | 47% | 45% | 19% |
| National Average Retirees age 65 and older * | 46% | 48% | 22% |

- *Towers Perrin 2007 Health Cost Survey

## Rates 

- What  will you pay?
- How does it relate to the market?

## Rates 

-  **Single Coverage** -  ***Retirees 65 and older ***
***Cost per month***
- Market Cost (Based on National Survey)       $131.00
- Argonne National Laboratory                         $  66.00
***Fermilab Rates***** Effective (10/01/2008-12/31/2009)**
- OAP                                           $67.55
- Blue Advantage HMO                $49.31
- HMO IL                                      $55.65

## Rates  

** ****Family Coverage -**  ***Retirees 65 and over****** ***
***Cost per month***
- Market Cost (Based on National Survey)     $277.00
- Argonne National Laboratory                        $126.00
***Fermilab Rates*****  Effective (****10/01/2008-12/31/2009)**
- OAP                                            $133.59
- Blue Advantage HMO                 $  98.61
- HMO IL                                        $111.30

## Rates 

- Family Split-Rates
- One member over 65 Medicare-eligible and one member under 65 non-Medicare eligible
- 	      Argonne National Laboratory      $173.00
**Fermilab Rates (Effective 10/01/2008-12/31/2009) **
- Cigna Open Access Plus              $147.34
- Blue Advantage                             $101.51
- HMO IL                                          $114.57

## Payment of Premiums 

## Payment of Premiums 

- Premiums are due on the first business day of the month
- Premium payments for October will be withdrawn on Wednesday, October 1, 2008
- Complete and return the Automatic Withdrawal Authorization to the Benefits Office by September 15, 2008

## Payment of Premiums

- Retirees should notify the Benefits Office of any changes in bank information. These changes should be sent to the Benefits Office by the 15th of the month prior to the date the change takes effect
- The Benefits Office will notify retirees of any issues with payments
- Payment issues will be resolved within 30 days of issue

## Annual Enrollment 

## Annual Enrollment

- Retirees will be able to change their plan (Blue Cross plans are HMO plans that offer coverage in Illinois)
- Retirees will not add dependents to coverage
- Notification of Annual Enrollment and any plan changes will be sent to your home in November
- If you change plans your new plan will be effective January 1, 2009

## Annual Enrollment 

- Insurance Plan Changes
- The plan provisions –medical care covered, deductible, co-payments, coinsurance- are reviewed on an annual basis
- Plan provision changes are communicated with annual enrollment materials
- The changes for October 1, 2008 are rate changes; there are no plan changes during this time period

## Medicare 

## Medicare 

- Medicare is the primary carrier for retirees 65 and older
- Retirees who turn age 65 should enroll in Part A&B Medicare (the plan will reduce your benefit as if you have Medicare Part B even if you do not enroll)
- The Benefits Office will send you a notice regarding changes to your rate prior to your 65th birthday

## Summary 

## Summary 

**Complete and return the Automatic Withdrawal Authorization Agreement to the Benefits Office by September 15, 2008**
- Your coverage continues under the same plan with the same plan provisions until 12/31/2008
- Changes to the plan or provisions will be effective with annual enrollment on January 1, 2009
- Rates for Medicare-eligible retirees age 65 and older are effective for a 15-month period (10-01-2008 through 12-31-2009)
- Rates for non-Medicare eligible retirees will be effective until 12/31/2008

## Benefits Web-site 

- _[http://wdrs.fnal.gov/index.html](http://wdrs.fnal.gov/index.html)_

## Fermi National Accelerator Laboratory

**Benefits Administration Office**
**P.O. Box 500, MS 126**
**Batavia, IL  60510**
***Automatic Withdrawal***
***Authorization Agreement***
**Type of Agreement for Automatic Withdrawal Agreement**
- 		New Agreement - Not currently paying for Medical Coverage
- 		Revised Agreement - Changes to premiums result in new payment amount
- 		Revised Agreement - New banking information
- 		No change - Paying active coverage rate
- 		Cancel Agreement - Cancel coverage *I understand my coverage cannot be reinstated*
- Name:  ____________________________________________  Fermilab I.D. #:  ______________			        PLEASE PRINT
- Home Telephone Number:  ________________   Last 4 digits Social Security Number:  __________
- 			                (include area code)
- I hereby authorize Fermi National Accelerator Laboratory to withdraw fund from my checking account for payment of my insurance premiums and, if necessary, make adjustments to withdraw to correct any errors or to facilitate changes to premium amounts.
- I understand that this authorization will remain in effect until I provide written notification of modification or termination to Fermi National Accelerator Laboratory. Written notification must be received by Fermilab Benefits Office by the 15th of the month prior to the change effective date. Notification received after the 15th of the month will be processed the following month. I understand that I will be responsible for all non-paid premiums resulting from rejected withdrawals by my financial institution (due to insufficient funds, account closed, etc.) and any service fees incurred as a result of the rejected transaction. I understand that my insurance may be canceled for non-payment of premiums and that all payment discrepancies must be resolved within 60 calendar days of occurrence.
**Signature**:  ________________________________________	**Date**:  __________________
**Return completed form to:****	****Fermi National Accelerator Laboratory**
**	****	****	****	****Benefits Office**
**	****	****	****	****P.O. Box 500 MS 126**
**	****	****	****	****Batavia, IL  60510**
- Please provide the requested account information below related to the Financial Institution from which you authorize Fermi National Accelerator Laboratory to initiate fund withdrawals and/or initiate withdrawal adjustments.
- Financial Institution (Bank Name):  _________________________________________________
- City and State Location of Bank: ____________________________________________________
_**PLEASE ATTACH A VOIDED CHECK**_