City of Phoenix Retiree Benefits Overview 2015 Todays

City of Phoenix Retiree Benefits Overview 2015

Today’s Topics Rates Employer Sponsored Medicare Part D 2

2007 Changes § Before 2007, medical rates were the same for retirees and employees. § They were rated as one group. § To comply with GASB 45, retirees and employees were separated for medical rates beginning August 1, 2007. § 30% increase to rates. 3

2007 Changes § The Qualified City Contribution was created to reduce this rate increase. § Reduces the premium by $90 to $375 per month. § Includes a $50 per month reduction for family coverage. § A $15 million Retiree Rate Stabilization Fund was created for future retiree needs. 4

Setting Medical Rates Trends 5 Claims Costs ACA Stats

2015 Medical Rates 6 9. 4% • Full Rate Increase recommended by Actuaries. 9. 1% • Rate Increase after Health Care Reform costs are removed. 6. 1% • After the Retiree Rate Stabilization Fund contributes 3%.

2015 Retiree Medical Rates Savers Choice Plan Cigna HMO BCBS PPO Single – Not on Medicare $605. 57 $754. 92 $708. 90 Family – Retiree and 1 or more dependents not on Medicare $1, 672. 81 $2, 103. 29 $1, 970. 61 Family – Retiree not on Medicare, all dependents on Medicare $1, 118. 50 $1, 408. 33 $1, 318. 97 Single – On Medicare $511. 89 $638. 38 $599. 42 Family – Retiree on Medicare any dependent not on Medicare $997. 12 $1, 258. 46 $1, 177. 76 Family – Retiree and all dependents on Medicare $968. 72 $1, 221. 78 $1, 143. 77 7

2014 to 2015 Monthly Medical Rate Change Savers Choice Plan Cigna HMO BCBS PPO Single – Not on Medicare $40. 85 $49. 44 $46. 80 Family – Retiree and 1 or more dependents not on Medicare $117. 73 $142. 48 $134. 85 Family – Retiree not on Medicare, all dependents on Medicare $79. 25 $95. 92 $90. 78 Single – On Medicare $34. 60 $41. 88 $39. 64 Family – Retiree on Medicare any dependent not on Medicare $71. 41 $86. 43 $81. 80 $69. 20 $83. 75 $79. 27 Family – Retiree and all 8 dependents on Medicare

Save $25 per month Reduce your monthly premium by $25 each month when the retiree completes an online Health Risk Assessment. Find information in your City of Phoenix Benefits Guide – in your mailbox around October 18 th. 9

2015 Retiree Dental Rates Single Plus One Family Dental HMO Dental PPO $27. 44 $39. 95 $49. 58 $88. 78 $87. 38 $129. 84 § Retiree Dental Rates increase 5% § No plan changes 10

Legal Insurance • Enroll in the Legal Insurance Plan for $21. 90 per month. • New in 2015! Identity Theft Services. • Enroll directly with ARAG at • 1 -800 -247 -4184 • Find information at Arag. Legal. Center. com Access Code 16922 phx 11

New on January 1, 2015 Employer Sponsored Medicare Part D Pharmacy Plan Also called EGWP (egg-whip) 12

New on January 1, 2015 The City will provide a self-insured group sponsored Medicare Part D plan to its Medicare eligible retirees. The City will receive a direct subsidy from the Centers for Medicare and Medicaid Services (CMS) that will be larger than the retiree drug subsidy currently received. 13

Key Points o Medicare eligible retirees and their Medicare eligible dependents will automatically be enrolled in this employer provided Medicare Part D Prescription Drug Plan. IMPORTANT REMINDER! Retirees and their enrolled dependents are required to enroll in Medicare Part B as soon as they are eligible and provide a copy of the Medicare card to the Benefits Office. 14

Key Points DO NOT ENROLL in MEDICARE PART D! Your enrollment in the City of Phoenix medical and pharmacy drug coverage will automatically be considered to be Medicare Part D enrollment. If you are enrolled in another Medicare Part D Plan or a Medicare Advantage Plan with or without prescription drug coverage, Medicare will disenroll you from the City’s plan. 15

Key Points o You have the same co-pay structure: o $10 Generic o $25 Preferred Brand Name o $40 Non-Preferred Brand Name o $40 Specialty Drugs o Your prescription drug list will be bigger than the standard Medicare Part D list. o There will be no “Donut Hole. ” 16

Key Points CMS requirements may cause disruption with 1 -2% of the current prescriptions. You will be notified by mail in late October if you are affected and alternatives will be identified. If your spouse, qualified domestic partner or child is not eligible for Medicare, he or she will continue to be covered by the current Cigna prescription drug plan. They will receive a new ID card. 17

Key Points o You will get a new ID card from Cigna. Health. Spring in the mail in mid-December. Don’t use your new card until January 1 st 18

Key Points o You will have most of the same pharmacies in your current Cigna pharmacy network. o The VA Pharmacy is not permitted in the Medicare Part D network because you can receive benefits from only one government program at a time. 19

Key Points There will be no interruption in your coverage. Through December 31 st: Current Cigna Pharmacy 20 January 1, 2015: Cigna-Health. Spring Rx

Key Points o You continue to get your prescriptions filled at your local retail pharmacy or through the mail order pharmacy. o You can continue to get up a 90 -day fill at a retail pharmacy. o Open and Read the information you receive from Cigna-Health. Springs Rx. 21

Key Points o Get your prescriptions refilled in December through your current Cigna drug plan if possible. o Get a new prior authorization after January 1 st if needed. You will receive a letter in late October if this affects you. Please act quickly to make a doctor’s appointment if needed. Note! CMS does not allow more than a 30 -day transition fill. 22

Prior Authorizations o Cigna will transfer existing Prior Authorizations from the current plan to the new plan for Medicare Part D medications. o Prior Authorizations will not transfer for non. Medicare Part D drugs such as ED drugs, Rx vitamins, weight loss or weight gain drugs. 23

Coming in the Mail Mid-October: A newsletter from the City of Phoenix Benefits Office introducing the Employer Sponsored Medicare Part D Plan. Around October 20 th: A packet from Cigna. Health. Springs Rx which includes a letter, a Summary of Benefits, and a List of Covered Drugs (Formulary). 24 You don’t have to do anything!

Coming in the Mail The packet you receive from Cigna-Health. Spring Rx will tell you that you have the choice to optout of this plan per CMS requirements. We DO NOT RECOMMEND that you do this. Your prescription drug coverage is part of your City of Phoenix Retiree Medical Plan. If you optout of the Cigna-Health. Springs Rx plan you will lose your medical coverage AND drug coverage. 25

Coming in the Mail Mid-December: You will receive your new pharmacy ID card. Do not use this card until January 1, 2015. Your covered dependents may also receive new ID cards. 26

Coming in the Mail January 2015: You will receive a Welcome Kit from Cigna-Health. Springs Rx. This will include: § A pharmacy directory § Evidence of Coverage – details about the plan and your rights and responsibilities 27

Important Reminder If you enroll in another Medicare Part D plan or a Medicare Advantage Plan with or without prescription drug coverage, Medicare will disenroll you from the City’s plan. This means you and your covered dependents will lose retiree medical and prescription drug coverage immediately. 28

Customer Service Cigna-Health. Springs Rx Customer Service 1 -800 -558 -9562 8: 00 a. m. to 8: 00 p. m. AZ Time Seven Days a Week October 1, 2014 – February 14, 2015 After February 14, 2015 availability is Monday through Friday 29

Cigna Pharmacy On-site Representative Kim Baker Kim. Baker@phoenix. gov (602) 534 -5370 30

Questions? 31