1 university of alaska system july 2008 emeriti as a strategic retirement benefit
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University of Alaska SystemJuly 2008
EMERITI AS A STRATEGIC RETIREMENT BENEFIT
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Broader Context of Retiree Health Care
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INSTITUTIONAL CONTEXT OF RETIREMENT PLANNING
No mandatory retirement age
Increasingly delayed retirement decisions
Aging demographics coupled with expanded life expectancy
Lost opportunity costs for institutional renewal
Increasing end-of-career compensation pressures
Escalating cost of retirement incentive programs
Explosive trend in the active health care plan
Rising health care utilization at the end of career
Mounting unfunded obligations for defined benefit promise
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Faculty Stay 18-36 Months Longer
No Plan Some Support High Support
Source: Mellon Faculty Retirement Project (2000)
Retirement Date
BEHAVIORAL IMPACT OF RETIREE MEDICAL ACCESS
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TYPICAL COMPENSATION IMPACTDelayed Faculty Retirements
Total Cumulative Excess Costs (salary/benefits) Incurred with Delayed Retirement for One Individual (monthly view)
$90,000 $95,000$100,000$105,000$110,000$115,000$120,000$125,000$130,000$135,000$140,000$145,000$150,000$155,000$160,000$165,000$170,000$175,000$180,000$3,600$3,800
$4,000 $4,200$4,400
$4,600$4,800
$5,000$5,200 $5,400
$5,600$5,800
$6,000$6,200
$6,400$6,600
$6,800$7,000
$7,200
$35,522$37,495
$39,469$41,442
$43,416$45,389
$47,362$49,336
$51,309$53,283
$55,256$57,230
$59,203$61,176
$63,150$65,123
$67,097$69,070
$71,044
$-
$50,000
$100,000
$150,000
$200,000
$250,000
$300,000
month18
month19
month20
month21
month22
month23
month24
month25
month26
month27
month28
month29
month30
month31
month32
month33
month34
month35
month36
Additional Salary Additional Health Costs Additional Disability/Life/Pension/403b
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INDIVIDUAL PERSPECTIVES ON RETIREMENT SECURITY
Dwindling employer commitments to retiree benefits
Eroding retiree defined benefit plans in all sectors
Escalating cost of and cost sharing on all medical services
Worries about access to “good” insurance
Anxieties about financial impact of a catastrophic illness
Concerns about outliving pension assets
Preoccupation with long-term care expenses
Frustrations with complexities of Medicare
Perceived lack of insurer commitments to local market
Loss of control over health care decisions
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HOW RETIREE HEALTH CARE EXPENSES ARE PAID
Other Gov’t Programs*
10%
*VA/Tricare 4%, Medicaid 4%, Other 2%
Source: The Employee Benefit Research Institute (EBRI) 2006 estimates from the 2003 Medical expenditure survey.
Individual Out-of-Pocket
20%
Private Insurance 19%
Medicare 51%
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RETIREMENT INCOME EXPOSURE
(Medicare Cost Shares as a Percentage of Social Security Benefits)
Source: Data from the Center for Medicare and Medicaid Services, Office of the Actuary, 2004.
In 2006:
In 2025:
65-year old retiree Same retiree at 85
37.2%
52.6%
64.5%
80.2%
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ESTIMATED HEALTH CARE SAVINGS REQUIRED FOR A COUPLE RETIRING TODAY
Source: Retiree Health Care Costs: Addressing the Growing Gap, Fidelity Investments, March 2008 Amounts shown are annual savings required for a couple enrolled only in Medicare. The savings illustrations do not include either employer sponsored group insurance or long-term care insurance coverage.
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Age at Retirement
Total Savings Required
Annual Savings Required
(starting at age 35)
Annual Savings Required
(starting at age 45)
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$395,000 $7,992 $25,247
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$310,000 $3,926 $10,571
65
$225,000 $1,839 $4,553
10www.emeritihealth.org
HOW THE EMERITI PROGRAM PROVIDES A SOLUTION
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EMERITI’S VALUE PROPOSITION
A strategic purchasing alliance of, by, and for higher education
An innovative retirement benefit paradigm
• tax-advantaged savings/investment accounts
• nationally accessible retiree medical plans
• reimbursement benefit for other health expenses
An educational framework for integrating health planning into retirement decision making
A single source administrative structure
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403 (b) Pension Plan
501 (c) (9) EMERITI PLAN
Defined Benefit
Promise
EMERITI PARADIGM SHIFT
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Defined Contribution
Account
Social Security
Medicare +NOTE: Emeriti is made possible through the generosity of The Andrew W. Mellon Foundation and The William and Flora Hewlett Foundation.
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EMERITI PROGRAM STRUCTURE
Employer Contributions
Employee Voluntary Contributions*
Medicare Coordinated Group
Insurance
Retiree Medical Expense
Reimbursement
TAX ADVANTAGED SAVINGS
TAX FREE EARNINGS
TAX FREE DISBURSEMENTS
*NOTE: Voluntary employee contributions are made post-tax.
INVESTED ACCOUNTS
$
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EMERITI TRUST STRUCTURE
EMERITI HEALTH ACCOUNTS
EMERITI INSURANCE OPTIONS
Lifecycle Mutual
Funds
EMERITI REIMBURSEMENT BENEFIT
EMERITI DELIVERY MODEL
Grantor Trust*
VEBA Trusts
Eligible out-of-pocket expenses incurred by
participants
Fidelity: Trust Administrator
Fidelity:
Investment Provider
Acclaris: Claims Processor
- Indemnity Medical Plans - Rx Plans - Medicare Part C Plan - Dental Plan
Aetna: Insurance Provider
*NOTE: Grantor Trust money can only be used for Emeriti Insurance Options
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Emeriti Plan Who Pays Contributions Earnings Payout
Required Employer Pre-tax Tax free Tax free
Strongly Encouraged
Employee Voluntary
After-tax Tax free Tax free
Optional by Plan
Employee Mandated*
Pre-tax Tax free Tax free
*Depending on the organization, your employer’s contributions may also include additional pre-tax amounts in lieu of compensation or other benefits.
TAX ADVANTAGES
Common Amounts into VEBA Trusts
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TAX ADVANTAGES
Special Contributions into Grantor Trust
Workforce Management Flexibilities
Retirement Incentives
Retention Opportunities
Recruitment Strategies
Special Transition Contributions
PAYER CONTRIBUTION EARNINGS PAYOUT
EMPLOYER ONLY (non-profit)
Pre-tax Tax free Tax free
NOTE: These special employer contributions may be made in any amount, but are limited to fully insured products.
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ADVANTAGES OF FIDELITY FREEDOM FUNDS
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• Lifecycle funds geared toward retirement
• Actively managed portfolios of stocks, bonds and money market funds
• Automatic rebalancing over your lifetime
• More conservative allocations as you move closer to retirement
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Pre-65 health insurance premiums
Supplemental insurance deductibles, co-insurance, co-pays
Vision, dental, hearing care
Over-the-counter drugs
Long-term care insurance
Medical expenses associated with nursing or in-home health care services
Medicare premiums and cost shares
Other post-65 insurance premiums (if Emeriti coverage is not elected)
NOTE: 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.
Unlike a flexible spending account, any residual balance stays in your account and continues to grow tax free for future use
TAX ADVANTAGE OF THE REIMBURSEMENT BENEFIT
Your tax-free earnings can be used for reimbursement of qualified medical expenses, such as:
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Guaranteed issue group health insurance coverage
A menu of options to fit your personal needs
Catastrophic protection
Prescription drug coverage
Nationwide access
Annual enrollment choice
Foreign urgent or emergency care
Preventive care
Builds on the foundation of Medicare
ADVANTAGES OF EMERITI INSURANCE
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Four Post-65 Medical PlansChoice of Two Medicare Supplement Plans (Original Medicare)
Choice of Two Private Fee for Service Plans (Medicare Advantage)
Three Medicare Part D Prescription Drug PlansChoice of Formularies
Choice of Coverage in the “Gap”
Choice of mail order and retail pharmacy supply
One Optional Dental Plan
Pre-65 Retiree Health Plans (coming in 2009)
EMERITI’S BUILD YOUR OWN PLAN APPROACH TO RETIREE INSURANCE COVERAGE
NEW in 2008
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1. Toll-free service center
2. Dedicated website www.emeritihealth.org
3. Printed enrollment materials
4. Annual workshops on campus
5. Periodic newsletters to active employees and to retirees
EMERITI EDUCATIONAL COMMITMENTS
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Emeriti Funding and Design Issues
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1. Employer contribution must be at least ½% of benefit-eligible payroll
- Employer contributions are made on equal, flat dollar basis
- Minimal amount typically ranges from $300-$500 per person per year
2. Employee contributions are voluntary
- Contributions may be made in any amount during service and in retirement
- Regular payroll reduction option
- Periodic lump-sum option electronically from personal bank accounts
3. Employee mandated contributions are optional
- Mandated contributions are in lieu of salary and are a condition of employment
- Mandated contributions, like employer dollars, must be equal, flat dollar basis
PROGRAM FUNDING CONSIDERATIONS
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I. Prefunded Contributions for Active Employees on a DC basis for all defined members of the benefits-eligible population
II. Transitional Funding Support for Older Employees through a combination of DC and DB approaches
III. Insurance Access for Current Retirees on retiree pay-all basis or through continuing employer DB premium subsidies
CAMPUS POPULATIONS POTENTIALLY SERVED
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Participant Eligibility (Who is eligible for the Emeriti benefit? And which dependents?)
Contribution Period (How long does the employer fund?)
Prospective Funding Amount (How much does the employer contribute on a flat-dollar basis?)
Transition Support (Does the employer provide any catch-up amounts for older employees?)
Vesting Criteria (When does the employee own the employer’s contributions?)
Retirement Definition (When does the employee become eligible for insurance in retirement?)
Employer Forfeitures (How does the employer reallocate unspent dollars within its Plan?)
Current Retirees (Under what terms does the employer wish to invite current retirees into Emeriti insurance?)
KEY DECISIONS IN DEFINING YOUR PLAN
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MODELING OBJECTIVES Prospective Funding Model
Document the first-year employer cost of the proposed DC plan
Project accumulated individual DC account balances over a long period of time
Provide sensitivity analysis of altering fundamental parameters of the proposed DC Emeriti plan
Estimate first-year flat dollar contributions for each eligible participant based on age cohort
Forecast the last-year flat dollar contribution for each eligible participant based on age cohort
Demonstrate the approximate account balance shortfall of older age entry in the proposed DC Emeriti plan (a proxy for transition funding needs at the individual level)
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University of Alaska Target Funding: 50% of Combo III | Contribution Starting Age: 25
Current Year Last Contribution Accumulated Fund Future Value Percentage of Age Contribution Prior To Retirement Balance of EMERITI Combo III EMERITI Combo III
2008 at Retirement Benefits At Retirement Benefits Funded
25 $560 $1,435 $152,183 $307,803 50%30 $560 $1,435 $108,505 $241,171 45%35 $560 $1,435 $77,362 $188,964 41%40 $560 $1,435 $55,158 $148,058 37%45 $560 $1,180 $33,526 $116,008 29%50 $560 $970 $19,136 $90,895 21%55 $560 $797 $9,725 $71,219 14%60 $560 $655 $3,713 $55,735 7%65 $0 $0 $0 $43,065 0%
2008 CASH FLOW FOR THE INSTITUTION KEY ASSUMPTIONS FOR EMERITI PROGRAMPopulation Count Cash Flow
Under 30 141 $78,960 Target Retirement Age 6530-34 119 $66,640 Assumed Retirement Age 6535-39 113 $63,280 Funding Start Age 2540-44 80 $44,800 Investment Return 7.00%45-49 55 $30,800 Annual Increase % 4.00%50-54 53 $29,680 55-59 43 $24,080 Combo Plan III60-64 37 $20,720 Target Percentage 50%65 & Older 10 $0
Healthcare TrendGrand Total 651 $358,960 Medical 8.0% for 2008 grading to 5%
Prescription Drugs 11.5% for 2008 grading to 5%
Geographic Area FactorMedical 120%Prescription Drugs 105%
Mortality StandardFunding Years 25
2008 AMOUNTS FOR THE INDIVIDUAL
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Emeriti provided these analyses and illustrations through prospective modeling tools developed by PricewaterhouseCoopers on behalf ofthe Emeriti Program, as an informational service. Estimates used in these calculations are subject to change and actual results may vary significantly from the illustrated outputs.
Organizations utilizing these tools are solely responsible for validating the assumptions and outputs for their plan by means of internalanalysis and/or through the support of independent consultants and attorneys. Further, any funding option must take into account applicablelegal restrictions, the satisfaction of which are also the responsibility of the organization.
These analyses and illustrations are for the exclusive use of institutions of higher education and higher education-related, not-for-profitorganizations evaluating membership in the Emeriti consortium.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
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Emeriti Services and Fees
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EMERITI SERVICES
Legal Structure
Plan Design
Evaluation Tools (Funding Models)
Plan Documents
Regulatory Compliance
Communications to employees and retirees
Enrollment and ongoing education
Negotiation of insurance rates and plan provisions
Service and performance monitoring of partners
Ongoing evaluation and feedback from members
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1. Required one-time institutional implementation fee: $25,000.
2. Optional institutional cost sharing of participant fees: Emeriti account fee: $4.00/mo.
Fidelity record-keeping fee: Actives $1.67/mo., Retirees $6.25/mo.
Fidelity investment management fees: variable
Reimbursement benefit claims processing fee: first 4 submissions free, thereafter $6.00/bundle of receipts
EMERITI PROGRAM FEES
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Next Steps with Emeriti
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Institutional Decision Making Timeline
Institution Start Date: July 1, 2009
TARGET DATES
Phase 5:Program Launch
EnrollmentData GatheringConsensus Building
Committee Meeting/Approval
Sr. Team/Board Review Implementation
Phase 1: Data Gathering Phase 2: Evaluation Phase 3: Leadership ApprovalPhase 4:
Implementation
January
Jan. 29 Retirement Committee Presentation
FebruaryUpdate Funding ModelsInternal Communications with CFO
March and April
Retirement Committee Conf. Calls on Plan Design and Funding Models
Late March/ AprilReview Emeriti Funding
Follow-up with Ret. Committee
Spring
Obtain Ret. Committee recommendation to move forward Present Emeriti Proposal to Business Council; obtain apoproval to move forward
Summer and Fall
Make final plan design decisions; confer with IT
Legal Review of plan docs
Go to Board of Regents in Sept.; obtain approval to declare membership
Consider inviting current retirees into Em. insurance at a future date
Jan. - June '09Submit final plan docs by Jan. 1Kick off Implementation Call/Send indicative data Emeriti prepares new plan announcements/ mails info. packetsAprilHold on-site workshops
July 1, 2009
Launch PlanStart making employer contributions
Prepare to offer Em. Insurance to existing retirees for Jan. 2010 eff. date
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THINKING STRATEGICALLY
■ Talent Management: The Three “Rs”
- Recruitment
- Retention
- Retirement
■ Equity among Employee Groups
- ORP Tiers
- Value-added employee benefit
UNIVERSITY OF ALASKA
WHY EMERITI? WHY NOW? WHY NOT?
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THINKING STRATEGICALLY
■ Systematic Build-up of DC Assets for Health Care- Good time start now for Tier 2 and 3 ORP- No unfunded liability issues- Minimal employer funding (can be budget neutral)
■ Value of Group Sponsored Consortium Based Insurance- Guaranteed issue, fully portable- Flexible menu of options, annual choice
■ Single Source Solution- Comprehensive approach (savings and insurance)- Integrated service delivery; enrollment, communications, education provided by Emeriti- Minimal administrative responsibilities
UNIVERSITY OF ALASKA
WHY EMERITI? WHY NOW? WHY NOT?
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EMAIL [email protected]
PHONE (866) 685-6565 (toll-free)
FAX (866) 686-6565 (toll-free)
URL www.emeritihealth.org
POST EMERITI Retirement Health Solutions 103 Executive Drive – Suite 503
New Windsor, NY 12553
EMERITI CONTACT INFORMATION
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Emeriti Retirement Health Solutions provided this information and is responsible for its content. The Emeriti Program, Aetna Life Insurance Company, Fidelity Investments, HealthPartners (in Minnesota), and Acclaris Inc., are independent corporations and are not legally affiliated.
The full name of Emeriti Retirement Health Solutions is The Emeriti Consortium for Retirement Health Solution, an Illinois Nonprofit Corporation.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
Summary Plan Description (SPD)This 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. 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.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
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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.
Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or holidays, will receive the next available closing prices.
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.
Strategic Advisers, Inc., a subsidiary of FMR Corp., manages the Fidelity Freedom Funds
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.
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds.
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.
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ADDENDUM
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RETIREMENT BENEFIT DIFFERENCES
RETIREMENT INCOME 403(b) Plan
RETIREMENT HEALTH CARE 501(c) (9) Plan
General income protection Dedicated health security
Unrestricted distributions for any purpose
Qualified distributions for eligible medical expenses
Tax-deferred earnings Tax-free earnings
Fully taxed at distribution Tax-free disbursements for qualifying medical expenses
Taxable, unqualified death benefit (assignable to any designated beneficiary)
Tax-free lifetime asset distribution for health care (assignable to eligible spouse, partner, other federally defined dependents)
Residual balance is payable to estate Residual balance reverts to plan
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University of Alaska Target Funding: ½% of payroll - Combo III | Contribution Starting Age: 25
Current Year Last Contribution Accumulated Fund Future Value Percentage of Age Contribution Prior To Retirement Balance of EMERITI Combo III EMERITI Combo III
2008 at Retirement Benefits At Retirement Benefits Funded
25 $240 $615 $65,221 $259,762 25%30 $240 $615 $46,502 $203,530 23%35 $240 $615 $33,155 $159,471 21%40 $240 $615 $23,639 $124,950 19%45 $240 $506 $14,368 $97,901 15%50 $240 $416 $8,201 $76,708 11%55 $240 $342 $4,168 $60,103 7%60 $240 $281 $1,591 $47,027 3%65 $240 $240 $257 $36,297 1%
2008 CASH FLOW FOR THE INSTITUTION KEY ASSUMPTIONS FOR EMERITI PROGRAMPopulation Count Cash Flow
Under 30 141 $33,840 Target Retirement Age 6530-34 119 $28,560 Assumed Retirement Age 6535-39 113 $27,120 Funding Start Age 2540-44 80 $19,200 Investment Return 7.00%45-49 55 $13,200 Annual Increase % 4.00%50-54 53 $12,720 55-59 43 $10,320 Combo Plan III60-64 37 $8,880 Target Percentage 1/ 2% Payroll65 & Older 10 $2,400
Healthcare TrendGrand Total 651 $156,240 Medical 8.0% for 2008 grading to 5%
Prescription Drugs 11.5% for 2008 grading to 5%
Geographic Area FactorMedical 95%Prescription Drugs 105%
Mortality StandardFunding Years 25
2008 AMOUNTS FOR THE INDIVIDUAL
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Emeriti provided these analyses and illustrations through prospective modeling tools developed by PricewaterhouseCoopers on behalf ofthe Emeriti Program, as an informational service. Estimates used in these calculations are subject to change and actual results may vary significantly from the illustrated outputs.
Organizations utilizing these tools are solely responsible for validating the assumptions and outputs for their plan by means of internalanalysis and/or through the support of independent consultants and attorneys. Further, any funding option must take into account applicablelegal restrictions, the satisfaction of which are also the responsibility of the organization.
These analyses and illustrations are for the exclusive use of institutions of higher education and higher education-related, not-for-profitorganizations evaluating membership in the Emeriti consortium.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
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EMERITI MEDICAL COVERAGE
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Medicare Supplement Plan 1
$200 deductible 20% coinsurance Preventive Care: $300 (annual physical) $100 (vision & hearing)
$1,250 out-of-pocket limit
Age-rated Premiums*:
65-69 = $ 91.01 70-74 = $123.55 75+ = $161.86
Medicare Supplement Plan 2
$750 deductible 20%coinsurance Preventive Care: $300 (annual physical) $100 (vision and hearing)
$2,000 out-of-pocket limit
Age-rated Premiums*: 65-69 = $ 77.57 70-74 = $105.41 75+ = $137.95
PFFS Plan 1
$300 deductible 15% coinsurance 100% preventive care
$2,750 out-of-pocket limit
Community-rated premiums*: $98.70
PFFS Plan 2
$500 deductible 20% coinsurance 100% preventive care
$3,500 out-of-pocket limit
Community-rated premiums*: $64.90
SELECT ONE:
*Anchorage, AK 99508
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EMERITI Rx COVERAGE
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Rx Plan 1- High Open Formulary $100 deductible Retail: 15%/30%/40% Mail Order Drugs: 10%/25%35% Full coverage in donut hole 100% catastrophic coverage
Community-rated premium: $158.90*
Rx Plan 2 – Middle Open formulary $275 deductible Retail: 15%/30%/50% Mail Order Drugs: 10%/25%/45% Coverage in donut hole 95% catastrophic coverage
Community-rated premium: $125.80*
Rx Plan 3 - Standard Closed formulary $275 deductible Retail: 15%/30% Mail Order Drugs: 10%/25% No coverage in donut hole 95% catastrophic coverage
Community-rated premium: $32.90*
Or elect Emeriti’s Rx Plan 3 as a stand-alone option with no medical coverage
SELECT ONE:
Alternate Selection
*Anchorage, AK 99508
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EMERITI DENTAL COVERAGE
Annual Deductible $100
Annual Benefit Maximum $1,500
Preventive Services Coverage 100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums ** 65-69 = $47.44
70-74 = $42.70
75+ = $38.43
* Six month waiting period applies, or evidence of continuing coverage.
SELECT OPTIONALLY:
**Anchorage, AK 99508
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EMERITI MEDICAL COVERAGE
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Medicare Supplement Plan 1
$200 deductible 20% coinsurance Preventive Care: $300 (annual physical) $100 (vision & hearing)
$1,250 out-of-pocket limit
Age-rated Premiums*:
65-69 = $108.07 70-74 = $146.72 75+ = $192.20
Medicare Supplement Plan 2
$750 deductible 20%coinsurance Preventive Care: $300 (annual physical) $100 (vision and hearing)
$2,000 out-of-pocket limit
Age-rated Premiums*: 65-69 = $ 92.11 70-74 = $125.17 75+ = $163.82
PFFS Plan 1
$300 deductible 15% coinsurance 100% preventive care
$2,750 out-of-pocket limit
Community-rated premiums*: $98.70
PFFS Plan 2
$500 deductible 20% coinsurance 100% preventive care
$3,500 out-of-pocket limit
Community-rated premiums*: $64.90
SELECT ONE:
*Fairbanks, AK 99775
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EMERITI Rx COVERAGE
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Rx Plan 1- High Open Formulary $100 deductible Retail: 15%/30%/40% Mail Order Drugs: 10%/25%35% Full coverage in donut hole 100% catastrophic coverage
Community-rated premium: $158.90*
Rx Plan 2 – Middle Open formulary $275 deductible Retail: 15%/30%/50% Mail Order Drugs: 10%/25%/45% Coverage in donut hole 95% catastrophic coverage
Community-rated premium: $125.80*
Rx Plan 3 - Standard Closed formulary $275 deductible Retail: 15%/30% Mail Order Drugs: 10%/25% No coverage in donut hole 95% catastrophic coverage
Community-rated premium: $32.90*
Or elect Emeriti’s Rx Plan 3 as a stand-alone option with no medical coverage
SELECT ONE:
Alternate Selection
* Fairbanks, AK 99775
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EMERITI DENTAL COVERAGE
Annual Deductible $100
Annual Benefit Maximum $1,500
Preventive Services Coverage 100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums ** 65-69 = $47.44
70-74 = $42.70
75+ = $38.43
* Six month waiting period applies, or evidence of continuing coverage.
SELECT OPTIONALLY:
** Fairbanks, AK 99775
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EMERITI MEDICAL COVERAGE
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Medicare Supplement Plan 1
$200 deductible 20% coinsurance Preventive Care: $300 (annual physical) $100 (vision & hearing)
$1,250 out-of-pocket limit
Age-rated Premiums*:
65-69 = $112.81 70-74 = $153.15 75+ = $200.63
Medicare Supplement Plan 2
$750 deductible 20%coinsurance Preventive Care: $300 (annual physical) $100 (vision and hearing)
$2,000 out-of-pocket limit
Age-rated Premiums*: 65-69 = $ 96.15 70-74 = $130.66 75+ = $171.00
PFFS Plan 1
$300 deductible 15% coinsurance 100% preventive care
$2,750 out-of-pocket limit
Community-rated premiums*: $128.80
PFFS Plan 2
$500 deductible 20% coinsurance 100% preventive care
$3,500 out-of-pocket limit
Community-rated premiums*: $95.00
SELECT ONE:
*Juneau, AK 99801
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EMERITI Rx COVERAGE
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Rx Plan 1- High Open Formulary $100 deductible Retail: 15%/30%/40% Mail Order Drugs: 10%/25%35% Full coverage in donut hole 100% catastrophic coverage
Community-rated premium: $158.90*
Rx Plan 2 – Middle Open formulary $275 deductible Retail: 15%/30%/50% Mail Order Drugs: 10%/25%/45% Coverage in donut hole 95% catastrophic coverage
Community-rated premium: $125.80*
Rx Plan 3 - Standard Closed formulary $275 deductible Retail: 15%/30% Mail Order Drugs: 10%/25% No coverage in donut hole 95% catastrophic coverage
Community-rated premium: $32.90*
Or elect Emeriti’s Rx Plan 3 as a stand-alone option with no medical coverage
SELECT ONE:
Alternate Selection
* Juneau, AK 99801
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EMERITI DENTAL COVERAGE
Annual Deductible $100
Annual Benefit Maximum $1,500
Preventive Services Coverage 100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums ** 65-69 = $47.44
70-74 = $42.70
75+ = $38.43
* Six month waiting period applies, or evidence of continuing coverage.
SELECT OPTIONALLY:
** Juneau, AK 99801