City of Phoenix Retiree Benefits Information Meeting Changes
City of Phoenix Retiree Benefits Information Meeting Changes effective January 1, 2016
What we’ll cover today. What is changing and why How this affects you Introducing One. Exchange Going forward Questions & Answers
Background Feedback from retirees over the years: Retiree healthcare premiums are too high. There needs to be a lower family premium for couples. More choice in plan designs is desired. Some retirees need to cover only a child or spouse.
What is Changing The City of Phoenix is changing the way it provides health benefits to retirees and their eligible family members to address the concerns shared by retirees over the years. A competitive bidding process occurred earlier this year and One. Exchange from Towers Watson was selected by a committee of retirees and staff to provide these services to City retirees. The Health Care Task Force, the Health Care Trust Board, the City Manager, and the City Council approved this change. Note: You pay no fees to One. Exchange to provide these services. One. Exchange staff do not receive commissions.
What is Changing You may choose to enroll you and your dependents as a family or you may choose plans as individuals based on your household income. MERP will be provided annually in January instead of monthly and will be held in a Health Reimbursement Arrangement (HRA) account administered by One. Exchange. Medical premium payments will not be deducted from pension checks for coverage after December 2015.
How This Affects You How you select a medical, dental and/or vision plan. A highly qualified Benefit Advisor will speak with you and your spouse by phone to understand your needs and identify a small selection of plans. How you enroll. You will work with One. Exchange via telephone to select and enroll in a plan and establish your HRA. Your support. Ongoing support will be available from One. Exchange for questions and concerns. Payment. You will make premium payments directly to your insurance carrier.
Helping You Prepare For Your Upcoming Health Insurance Enrollment 7
About One. Exchange Towers Watson over 100 Enrolled Hundreds of Thousands with a 94% Customer Satisfaction Rating Ongoing service, support and help years experience Personalized options with plans from a nationwide network of carriers Never a fee for our service Proprietary technology gives you safety and security Not Commissioned Licensed advisor provides knowledgeable guidance Bringing 9 years of private Medicare Exchange expertise to bear on Pre-65 Healthcare 8 © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Our Service Centers Hours Now through October 31 st 5 am to 6 pm AZ Time, M – F Salt Lake City, UT Hours Dallas, TX Beginning November 1 st 6 am to 7 pm AZ Time, M – F © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 100% U. S. Workforce 9
Plans and Partners Access to All "Metal" Plans Platinum Gold Silver Bronze Medical, Dental and Vision Plans Wide selection of plans from leading national / regional carriers © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 10
Your Experience Announcement & Education Consultation & Enrollment © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. Ongoing Help and Support 11
Key Points to Remember Select a plan from: Public Marketplace or Towers Watson’s One. Exchange The Public Marketplace is the only place to receive • • Premium tax credits (Federal Subsidy) Cost-sharing reductions Even without tax credits or cost sharing reductions you can save money each month on your medical premium! © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 12
Do You Qualify For Lower Costs? Number of people in your household 1 2 3 4 5 6 $11, 670 $46, 680 $15, 730 $62, 920 $19, 790 $79, 160 $23, 850 $95, 400 $27, 910 $31, 970 $111, 640 $127, 880 $11, 670 – $29, 175 $15, 730 – $19, 790 $39, 325 – $49, 475 $23, 850 – $59, 625 $27, 910 – $69, 775 You may qualify for lower premiums on a Marketplace insurance plan if your yearly income is between… See next row if your income is at the lower end of this range. You may qualify for lower premiums AND lower out-of-pocket costs for Marketplace insurance if your yearly income is between © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. $31, 970 – $79, 925 13
Plan Levels of Coverage Current City Plans fall between the Gold and Platinum Levels Out of Pocket Costs on Average Levels of Coverage Plan Pays on Average Platinum 90% 10% Gold 80% 20% Silver 70% 30% Bronze 60% 40% © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. In addition to the monthly premium 14
We’ll Help You to Explore & Consider H Medical Coverage Hospital Coverage Dental Coverage © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. Prescription Drug Coverage Vision Coverage 15
Benefit Advisors • Licensed / Certified / Appointed • One. Exchange University™ • Objective, unbiased, non commissioned • 100% U. S. workforce Licensed benefit advisors have no financial incentive or reward to sell one insurance company or type of plan over another. Benefit advisors are available Now through October 31 st: 5: 00 a. m. to 6: 00 p. m. AZ Time, M – F Beginning November 1 st: 6: 00 a. m. to 7: 00 p. m. AZ Time, M – F © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 16
Discuss Choices with a Benefit Advisor Pre-65 Retiree, Spouse or Child Federal Tax Credit Eligibility Determination Public Marketplace Qualified Health Plans w/ Federal Subsidy You cannot receive MERP and a Federal Subsidy/ Tax Credit. Public Marketplace QHPs w/o Federal Subsidy or Private Exchange QHPs Application forwarded to Public Marketplace Application Submitted to Carrier ID Cards sent to Retiree/Dependents © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 17
Your Enrollment Period November 1 – December 15 January 1, 2016 Coverage Begins 18 © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.
Special Election Periods (SEP) Certain qualifying future events may allow you to change plans outside of the Annual Enrollment Period For a 60 day period you may enroll in a new plan or make a change to their current coverage. You move outside the area covered by your health insurance plan towerswatson. com © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. You lose your health coverage due to a layoff, a divorce, turning 26 and no longer eligible to be on your parents’ plan, losing eligibility for Medicaid or CHIP, or other similar circumstances 19
Coming to Your Mailbox Call Toll Free 1 -844 -824 -7658 One. Exchange. com/phoenix © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 20
MERP and the Health Reimbursement Arrangement HRA towerswatson. com © 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only. 21
What is MERP? MERP is a monthly amount provided to qualified retirees to reduce their out-of-pocket healthcare expense. • Basic MERP: An amount of $117 to $202 per month. This is received no matter where you get your medical coverage. • Category MERP: An additional $100 per month for certain retirees based on union agreements. Category MERP is only available when you are enrolled in a medical plan through One. Exchange. • Supplemental MERP: This is an additional amount of $10 - $50 per month for those whose total annual pension is less than $25, 000. MERP continues, but beginning January 1, 2016 it is delivered in an annual amount to a Health Reimbursement Arrangement (HRA).
What is an HRA? Tax-free account used to reimburse you for eligible health care expenses — you pay first and then get reimbursed If you receive MERP today, you continue to receive it via an HRA. The City will make an annual contribution to your Health Reimbursement Account. You may use HRA funds to reimburse yourself for eligible medical, prescription drug, dental and vision premiums, as well as eligible out-of-pocket healthcare expenses No Double-Dipping If you elect to use MERP through the HRA Federal Regulations don’t allow you to also use tax credits for which you may be eligible. The Benefit Advisor will review this with you when you call in. Your HRA funding will be available January 1, 2016 Unused funds roll over 23
Health Reimbursement Arrangement You may be reimbursed up to the amount available in the HRA! 24
Prepare for your call with a Benefit Advisor Preparing for your call with a One. Exchange benefit advisor will help you select the right coverage for you and your family. Have your W-2 s and/or tax return ready Have your doctor and hospital info ready Have your Social Security card handy Have prescription info ready – name, dose, frequency 25
Schedule your call Contact One. Exchange 1 -844 -824 -7658 • • • Review the Your Guide booklet Gather medical and prescription info Call now to complete your profile and schedule a consultation. We are Ready! You may also go online to create your profile at oneexchange. com/phoenix 26
Call Now; We Are Ready! 1 -844 -824 -7658 27
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