MPC Benefits Open Enrollment Frequently Asked Questions

Transcription

1 MPC Benefits Open Enrollment The Company s policies, plans, practices, and procedures may be amended, terminated or changed at any time at the sole discretion of the Company. If that should occur, the material in this document will be superseded and the provisions of the official plan documents will be followed. If there are discrepancies between this document and the official plan documents, the official plan documents will always govern. This documents is intended to provide general information and not legal or tax advice. Questions regarding the HSA should be directed to Fidelity at or netbenefits.com or 401k.com.

2 General Health Plan Coverage 1. Do I have to enroll to receive health care coverage for 2016? Yes. Since we are introducing a health care program with two new Health Plan options for 2016, all employees who wish to be enrolled in the Health Plan must actively enroll to receive health care benefits for What are the new Health Plan options for 2016? For 2016, you may choose to participate in the Saver HSA option or Classic option. The Saver HSA option is a health savings account-qualified option (also referred to as a high deductible health plan or HDHP) that offers the opportunity to save money in a Health Savings Account (HSA). Under this option, you pay less in Health Plan premiums, but more in upfront out-of-pocket health care expenses until you reach the deductible. Under the Classic option, you pay more in premiums, but less in upfront out-of-pocket health care expenses. Unlike the Saver HSA option, under the Classic option you pay copayments for office and urgent care visits, as well as most prescription drugs. 3. Do we have to re-enroll in all of our other benefits, or just the Health Plan? Just the Health Plan. All other elections will carry over, with the exception of a Health Care Flexible Spending Account (Health Care FSA). If you enroll in the Classic option of the Health Plan and want a 2016 Health Care FSA, you will need to elect a new contribution amount. 4. If I only participate in dental and vision and not medical, do I need to take any action? No. 5. Is the Company providing any tools or resources to help me decide which of the two new Health Plan options will be the best choice for me? Yes. You will have access to ALEX, an online decision support tool. ALEX is smart, interjects humor, and will talk you through your options to help you choose what may be best for you. 6. How does ALEX work? ALEX gives you the opportunity to: Learn about your benefits from someone who will talk to you at your level instead of using insurance jargon. Answer a series of questions to determine your personal needs and preferences. Get recommendations for which benefit options you should choose based on your personal situation. Review your benefit options at home (or anywhere else there s an internet connection) so you can include your spouse and family members in the discussion. You can access ALEX via 2

3 7. I m a pre-65 retiree, will ALEX work for me? Yes, but keep in mind that the premiums used in ALEX are active premiums. We were unable to account for retiree premiums since not everyone has 100% of the company subsidy. The rates are still proportional between the two options so ALEX may give you a good estimate of which Health Plan option would be best for you. 8. Will I have to change doctors under these new Health Plan options? No. We are not changing our health care networks. The same networks will be available under the Classic and Saver HSA options. 9. My doctor often asks how to code preventive care so that it is covered at 100%. What should I tell him or her? Most doctors are becoming better at this since Health Care Reform required that preventive care be covered at 100%. However, be sure to tell your doctor that he or she should not use a diagnosis code for preventative care. 10. Are the two new Health Plan options designed to save the Company money? No. The Company will actually be investing additional money under the two new Health Plan options. We thought it was important to offer a Health Plan option with an HSA, and are even including a contribution to the HSA up front to help employees get started. We hope the new Health Plan options will promote healthy behaviors over the long term, thereby lowering our health care cost trend and keeping expenses in line both for employees and the Company. 11. What is the difference between the Health Plan s Classic option and the Saver HSA option? Under the Classic option your monthly premiums are higher, but your deductibles are lower and you have flat dollar copays for many services. Under the Saver HSA option, your premiums are lower, but your deductibles are higher and you have to pay more up front for medical services and prescription drugs until you reach the deductible. However, under the Saver HSA option you have the opportunity to contribute tax free to a Health Savings Account (HSA) to help pay for eligible health care expenses now or in the future. The Company will contribute money to your HSA ($350 for Employee Only and $700 for Employee + Spouse, Employee + Children or Employee + Family coverage) when you elect the Saver HSA option. You must elect the Saver HSA plan to receive the Company contribution. 12. Are premiums the same for full-time and part-time employees? Yes. 13. How does the aggregate or family deductible work under the Health Plan s Saver HSA option? In the Saver HSA option, the family deductible must be met by one family member or a combination of family members before coinsurance begins. For example, if you are enrolled in coverage other than Employee Only coverage, and only one person in the family incurs medical expenses, then that person must meet the full family deductible before the Plan begins to pay the 80% co-insurance. 3

4 14. How does the embedded or individual and family deductibles work in the Health Plan s Classic option? In the Classic option, there is both an individual and a family deductible under family coverage. Each covered family member must meet his or her deductible before coinsurance starts paying. However, when two members each meet their individual deductible of $500, then together they will have met the family deductible $1,000. At that point, no other member needs to meet any further deductible, and the Plan will start paying coinsurance for all members. 15. Under the Classic Plan, do my co-pays count towards my deductible? No. Under the Classic Plan, co-pays do not count towards your deductible, however they are applied to your total OOP maximums. 16. What applies to my out-of-pocket (OOP) maximum? If I meet my out-of-pocket (OOP) maximum, do I still pay co-pays? Medical and prescription drug expenses will apply toward meeting the OOP maximum. Any in-network or out-of-network benefit applies towards your OOP, respectively. Once you reach your OOP, there is 100% coverage in the medical plan and co-pays are no longer paid. You will want to inform your provider you have met your deductible. 17. If I go to the physician and other tests are completed during the visit, are those tests included in my co-pay? Anthem's standard benefit is when there is an office visit (or urgent care) copay, all remaining services reported by the same provider on the same day are payable at 100% after the copay. Any services on the same day provided by some other provider (like outside lab work, or x-ray, or charge for reading the x-ray) would not be included in the copay; this would apply to deductible/co-insurance. 18. What is the out-of-network coverage level? Most out-of-network coverage is paid at 60/40; meaning you would be responsible for 40% of the costs up to your OOP maximum. Please refer to the Health Plan document or Summary of Benefits Coverage for plan details. 19. My provider is out-of-network and reasonable and customary charges are applied to their services. Does that count towards my deductible? Charges above Anthem's allowance are excluded from the deductible and OOP maximum. 20. Do I still pay the full co-pay amount in the Classic plan if my prescription cost less? No. You will pay the lesser of the co-pay or the total cost of the drug. 21. How do I get my specialty medication prescriptions? Specialty medication prescriptions fall under the mail order preferred category. 4

5 22. What is a PCP and how does Anthem define who is a specialist? A PCP is your Primary Care Physician. The Standard PCP listing that Marathon and Speedway follows today is: Advanced Registered Nurse Practitioner Nurse Practitioner Nurse Practitioner Pilot Program Obstetrics Gynecology General Practice Family Practice Internal Medicine Obstetrics/Gynecology Pediatrics Clinical/Multi Specialty Group (Note: This provider specialty may employ PCP's as well as Specialties. Only one copay amount can be applied in benefits, therefore standard is to apply PCP copay amount to this provider specialty.) Physician Assistant Mental Health visit Other provider specialties would be considered specialists. Health Savings Account (HSA) 23. I met my deductible on the Saver HSA plan. What do I now pay for my prescriptions? For your retail or mail order prescriptions, you will owe 20% of the prescription cost. Once you meet your OOP maximum, your prescriptions will be covered at 100%. 24. Can I contribute to a Health Savings Account if I enroll in the Classic option? No. Government regulations stipulate that you can only contribute to a Health Savings Account if you are enrolled in a High Deductible Health Plan (like the Health Plan s Saver HSA option). 25. What is a Health Savings Account (HSA)? An HSA is an individual account used in conjunction with an HSA-eligible health plan (often referred to as a High Deductible Health Plan or HDHP). You can contribute to your HSA on a pre-tax basis, withdraw contributions to pay qualified medical expenses, and potentially grow your account on a tax-free basis by investing your savings in a range of investment options. (Depending on your state of residence, employee contributions may still be subject to state tax.) 5

6 26. Who can open an HSA? HSAs are regulated by the IRS and there are several eligibility requirements that must be met to qualify for an HSA: You must be covered under a high deductible health plan on the first day of the month in which you contribute. (If your Health Plan Saver HSA coverage doesn t take effect until May 15, you can t contribute to your HSA until June 1.) You cannot be covered by any other health plan that is not an HDHP. You cannot currently be enrolled in Medicare. You cannot be claimed as a dependent (other than as a spouse) on another person s tax return. Benefit-eligible employees who enroll in the Health Plan s Saver HSA option may choose to open an HSA if all of the above requirements are met. 27. If I have a supplemental insurance policy (i.e. cancer policy), can I enroll in the Saver HSA and have a HSA? Yes. You can reference IRS Publication 969 for additional information. 28. Who is the HSA custodian for MPC and Speedway? Fidelity administers the HSA. If you have questions about opening or managing your HSA you can log on to Fidelity NetBenefits at netbenefits.com or 401k.com using your existing username and password. You can also contact a Fidelity Representative at How do I open an HSA? Fidelity administers our HSA. Once Benefits Open Enrollment ends, employees will receive a communication from Fidelity telling them how to open an account. Employees will go directly to their Fidelity portal (which is already used for Thrift (401k) and Retirement) to open the HSA. 30. How much can I contribute to my HSA each year? Annual contributions to your HSA are limited to the maximum determined each year by the IRS. For 2016, total contributions are limited to $3,350 for individuals and $6,750 for Employee + Dependent(s).This maximum limit includes your contributions as well as the Company s contribution. Since the Company is contributing $350 if you elect Employee Only coverage or $700 if you elect Employee + Dependent(s) coverage, in 2016 you may not contribute more than $3,000 to your HSA if you elect Employee Only coverage or $6,050 if you elect Employee + Dependent(s) coverage. If you are age 55 or older (or will be by December 31, 2016) and not enrolled in Medicare, you may contribute up to an additional $1,000 in catch-up contributions in The additional $1,000 catch-up is for the employee. Your spouse would have to open their own account to receive the additional $1,000 catch-up. One family cannot have $2,000 catch-up contributed to the same account. Contribution limits for future years will be announced by the IRS and, again, you must be enrolled in the Health Plan s Saver HSA option to be able to contribute. There is no minimum contribution. 31. How often can I change my contribution to my HSA? You can change your elected contribution amount or stop contributing at any time. Changes will reflect on the next 1-2 regular payroll cycles. To make changes, logon to Fidelity at netbenefits.com or 401k.com. 6

7 32. Can I front-load my HSA (meaning deposit more at the beginning of the year? Yes. You will elect your HSA contribution amount directly through Fidelity. 33. Do I have to use Fidelity for my HSA when my local bank offers an HSA? The Company has elected to work with Fidelity to administer the HSA. After you open your HSA through Fidelity, the Company contribution will be deposited into your HSA as soon as administratively possible. If you choose to have payroll deductions, those funds also will be deposited into your HSA. You may then transfer your funds from your HSA at Fidelity to another HSA at any time. However, Company contributions and payroll deduction contributions will only be made to Fidelity administered HSAs. 34. If I already have an HSA from a previous employer, may I roll it over to Fidelity? Yes. Please contact Fidelity directly to set up this rollover. 35. What are catch-up contributions? Catch-up contributions are additional amounts you may contribute to your HSA if you are between age 55 and Medicare-eligible due to age. For 2016, the maximum catch-up contribution amount is $1,000. If you are enrolled in the Health Plan s Saver HSA option for the entire year, you may deposit the entire catch-up amount starting with the year you reach age When will the Company contribution be made to my HSA? The Company s full contribution will be made in January 2016, as long as you have a $0 cash balance in a 2015 Health Care Flexible Spending Account as of December 31, 2015 and you have registered your HSA with Fidelity. If you have a remaining balance in your 2015 Health Care Flexible Spending Account, your Company contribution will be made in April 2016, if you have registered your account with Fidelity. (Note: this also means that you will not be HSA eligible for the first three months of 2016 and therefore could only contribute 9/12 s of the annual IRS limit.) Please note that the Company cannot make any contributions (neither the employer contribution of $350 or $700 nor any payroll deduction contributions) until you open an HSA with Fidelity. The Company cannot open an account for you. 37. How do I contribute to my HSA? If you are eligible to contribute to an HSA, there are several ways to do so, including pre-tax and/or after-tax contributions: Pre-tax contributions. You may elect to contribute to your HSA through automatic payroll deductions on a pre-tax basis. You can elect your payroll contribution amount through the Fidelity portal and may change it through Fidelity at any time. Contributions made through payroll deductions are exempt from FICA tax. After-tax contributions. At any time, you may make an after-tax contribution to your HSA by check or by transferring money online between your bank and Fidelity by electronic funds transfer (EFT). After-tax contributions are tax-deductible to the extent you do not exceed your annual contribution limit. 7

8 You may also transfer assets from another HSA (provided the account type and registration are the same) or make a one-time qualified HSA funding distribution from an IRA. 38. When will my HSA payroll contributions be deposited in my HSA? HSA payroll deductions should be deposited into your HSA within 24 to 48 hours after your pay date. (pay schedules vary by location) 39. What happens if I exceed the annual contribution limit? Excess contributions are subject to standard income tax rates, plus a 6% tax penalty. However, if you request a distribution of any amounts contributed in excess of the annual contribution limit, there is no penalty as long as the distribution (i.e., the refund to you) is made before the tax filing deadline (generally April 15). The excess amount distributed to you must be included in your gross income for the taxable year in which the distribution is received, but the 6% excise tax (the tax penalty) will not apply as long as the excess contributions and any associated earnings (if applicable) are paid out before the tax filing deadline. 40. Do contributions to an HSA affect my ability to contribute to the Company 401(k) Savings Plan or an Individual Retirement Account (IRA)? No. Your HSA contributions will not affect your 401(k) or IRA contribution limits. 41. Can I rollover money from my Thrift account into my HSA? No. The IRS does not allow this type of rollover. 42. Are there any income limits affecting eligibility? No. 43. Can I have more than one HSA account? Yes. However, the total contributions to your accounts cannot exceed the annual maximum contribution limit. Please note, Marathon and Speedway employees will have only one account to which payroll and Company contributions will be directed. 44. When can I use HSA funds? Funds are available for withdrawal as soon as they are deposited. The money is always 100% vested, so you have total control over your account. However, withdrawals may not be more than your account balance on the date the withdrawal is requested. 45. Do my HSA funds roll over from year-to-year, or do I lose them on December 31? HSAs are not subject to IRS Use It or Lose It regulations. This means that funds in the account continue to accumulate over time. Any balance in your HSA as of December 31 will roll over to the next calendar year. There is no maximum account balance. 8

9 46. What expenses can be paid from my HSA? Your HSA can be used to pay for most qualified health care expenses, as defined by IRS Code 213(d). These expenses include, but are not limited to, Health Plan deductibles, diagnostic services, prescription drugs, LASIK eye surgery, dental, vision and some nursing services. You can request a copy of IRS Publication 502 by calling or by visiting the IRS website at and clicking on Forms and Publications. In general, qualified expenses eligible for reimbursement must be incurred on or after your HSA has been established. 47. Can I use my HSA to pay for non-health care expenses? Money in your HSA belongs to you. However, if you use your HSA to pay for non-qualified health or other expenses, the amount is considered taxable income. You will need to pay income tax, and a 20% tax penalty will also apply to the withdrawal amount (penalty will not apply if you are age 65 or older or disabled (as defined by IRS rules)). 48. Can I use my HSA to pay for health care services provided in other countries (e.g., Mexico or Canada)? Yes. You can use your HSA to pay for health care services incurred in other countries. 49. What if my health care expenses are more than the amount that is in my HSA? If your health care expenses exceed your HSA balance, you will need to pay the difference between the balance of your HSA and the health care expense out-of-pocket. 50. Can I reimburse myself from the HSA for out-of-pocket health care expenses? Yes. There are multiple ways to use your HSA for payment or reimbursement of qualified medical expenses, including: Fidelity HSA debit card. The Fidelity HSA debit card can be used to pay for known qualified healthcare expenses at the point of sale (such as pharmacy prescriptions). For convenience, you can request debit cards for your spouse and eligible dependents, too. Fidelity BillPay for Health Savings Accounts. This online bill paying service enables you to quickly and easily make payments to health care providers, companies, and individuals. You can also set up an automatic payment schedule, reimburse yourself for out-of-pocket qualified medical expenses, and keep track of all payments and activity. Fidelity HSA checkbook. Your Fidelity HSA checkbook can be used to pay for qualified medical expenses at the point of sale or to make a payment for an invoice you received in the mail. You can even write yourself a check to be reimbursed for qualified medical expenses. 9

10 51. Do I need to save my purchase receipts or documentation of withdrawals from my HSA? Yes. You should save all receipts and records for seven years. These records are not necessary in order to receive HSA reimbursements, but should be retained for IRS verification purposes. You, not the Company or your health care provider, are responsible for maintaining records related to your HSA. NOTE: Fidelity has a tool available called HealthExpense to allow for digital storage of your receipts and records. 52. What happens if I withdraw money from my HSA for an expense that I thought was a qualified health care expense, but then find out the expense is not a qualified health care expense? You can return the money to your HSA if there is evidence that your withdrawal was mistakenly made. You must repay the amount to your HSA before April 15 of the year following when you knew, or should have known, that the withdrawal was a mistake. 53. Are there any fees for having an HSA? The Company is covering the HSA administration fee for employees and retirees. However, if you leave the Company (other than as a retiree) and keep the account with Fidelity, you will need to pay the administration fee. If you chose to invest your HSA in the brokerage investments, there would be brokerage service fees. Please contact Fidelity to learn about brokerage investments. 54. Can I invest the funds in my HSA? Yes. When you open an HSA, your contributions will initially be invested in the core account (FDIC insured) through which all your HSA contributions are made and from which all distributions are taken. As your account grows, other investments are available. More information on your investment options will be available to you by Fidelity Investments. 55. What investments are available for my HSA? You can choose to invest in a wide variety of investment options depending on your investment objective, time horizon, and risk tolerance including more than 5,000 mutual funds, individual stocks and bonds, Treasuries, CDs, and more. You can visit Fidelity.com/guidance for an overview of essential investing concepts and to research investment options based on your needs. 56. Are HSA investments at risk? You can invest your HSA dollars in a wide variety of investments, from low risk to high risk depending on your investment strategy. Note that your HSA belongs to you and therefore you are responsible for your investment decisions. Any investment losses will be borne by you. 10

11 57. How are my contributions to the HSA taxed? Health Savings Accounts offer a Triple Tax Advantage. Employer contributions and your payroll deduction contributions to your HSA are tax-free (if within the annual allowable IRS limits). Any investment returns on your HSA are earned tax-free and money withdrawn to pay for qualified health care expenses from your account is also tax-free. (Depending on your state of residence, some contributions/earnings may be subject to state tax.) 58. Do I need to itemize my tax return if I participate in the HSA? Does the IRS require me to report contributions and withdrawals on my taxes? You do not have to itemize your tax return to receive the tax deduction. However, you do need to complete IRS Form 8889 with your income tax return. This form shows what your total withdrawals and deposits were from your account during the year for reporting purposes to the IRS. Fidelity will provide you with Form 1099-SA which details distributions and Form 5498-SA which reports contributions to your HSA account. The forms from Fidelity will be mailed to your home unless you opt for electronic delivery via your online account. 59. Can I pay for my dependents eligible health care with the HSA if they are covered under another Health Plan? Yes. Even if you are enrolled in employee only Health Plan coverage, you may use your HSA funds to cover eligible health care expenses for you, your eligible spouse and other eligible dependents, regardless of their coverage, but only to the extent those expenses are not covered by insurance or otherwise. If you claim your dependent(s) on your taxes, you can use your HSA funds to cover eligible health care expenses. 60. Can I pay for my domestic partner and/or domestic partner s children s health care expenses with my HSA? Your HSA can be used for expenses for your qualified tax dependents. We encourage you to consult with your tax advisor. 61. Both my spouse and I work at Marathon and/or Speedway, can we both participate in the Saver HSA option? Yes, if each of you is enrolled in a Saver HSA option, you each may also contribute to your own HSA; however the total amount of your and your spouse s contributions must not exceed the annual IRS limit. This means that if either of you has family coverage under the Saver HSA option, the total of your and your spouse s contributions (plus the contributions of each company) must be limited to $6,750 (plus any catch-up contributions for which you are eligible if you are between age 55 and Medicare-eligible age). If, on the other hand, you each have employee only coverage under the Saver HSA option, the total amount that you can each contribute to your HSA (plus the contributions of each company) cannot exceed $3,350 (plus any catch-up contributions for which you are eligible if you are between age 55 and Medicare-eligible age). 11

12 62. My spouse and I both work at Marathon and/or Speedway. If we choose the Saver HSA option under my name and I carry it as Family, could he and I separately still sign up for an HSA? Or would I only be allowed a HSA? Even though he would be covered through my policy, we would both want to deposit separately into our own HSA accounts. If you elected family coverage under your name for the Saver HSA option, then only your name would be provided to Fidelity for purposes of establishing an HSA and the $700 company contribution would go into that account. Your spouse would also potentially be eligible to open a separate HSA independently, but the annual IRS contribution limit would be a combined limit of $6,750 for both HSA's. 63. My spouse and I both work at Marathon and/or Speedway and are considering having separate Saver HSA policies, he with an Employee policy and me with an Employee and Children policy. Can we do this? If you elect separate coverage, you would each receive the respective HSA contribution, you $700 and he $350. You would still be limited to a total HSA family limit of $6,750. Something to keep in mind if you do elect separate coverage, you would each need to meet your own deductibles and out-of-pocket maximums (OOPM) which may not make it worth the additional $350 or the option to each have your own HSA. If separate, you would need to meet $2,700 before coinsurance kicks in for you and the children, and he would need to meet $1,350 before coinsurance kicks in for him. You would then have an OOPM of $5,000 individual or $10,000 family, but his expenses would not count towards that. He would have an OOPM of $5, If my spouse is in an HSA at his or her employer and contributing the federal maximum amount, am I able to pick the Health Plan Saver HSA option and participate in the HSA at full federal limit? If either of you has family coverage under your HDHP, then you are both treated as having family coverage and your account contributions must be combined so the total of your and your spouse s contributions (plus the contributions of each company) can be no more than $6,750 (plus any catch-up contributions for which you are eligible if you are between age 55 and Medicare-eligible age). 65. If I enroll in the Health Plan Saver HSA option and change to the Classic option in a subsequent year, what happens to my HSA balance? Your HSA balance is not affected by the option in which you enroll in subsequent years. Enrolling in the Classic option in a following year just means that you would not be able to make additional contributions to your HSA during that year. However, the funds in the HSA belong to you, and you can continue to use those HSA funds to pay for qualified health care expenses even if you enroll in the Classic option or other health plan in future years. 12

13 66. What happens to my HSA if I stop participating in the Saver HSA option midyear? If you end your coverage under the Health Plan s Saver HSA option, you can only contribute a pro-rated amount of the annual maximum to the HSA based on the number of months you were enrolled in the Saver HSA option. For example, the maximum HSA contribution for an employee who participated in the Saver HSA option for six months of the year is $1,675 for employee only coverage [($3,350/12) x6 = $1,675]. Catch-up contributions for employees age 55 or older must also be pro-rated using the same formula. If your contributions exceed that permitted amount, you can apply to have excess contributions returned to you. Keep in mind that mid-year Health Plan option changes are only permitted in limited circumstances involving qualifying life events. 67. What happens to my HSA if I leave the Company? All funds contributed to your HSA, including any Company contributions, belong to you. If you leave the Company, the money can stay in your account, transfer to another HSA with a new employer, or transfer to another qualified account. You will also be responsible for any associated fees. 68. What happens to my HSA upon my death? You should choose a beneficiary when you set up your HSA. What happens to that HSA when you die depends on whom you designated as beneficiary. If your spouse is the designated beneficiary, then your spouse will become the account holder after your death (and the transfer is non-taxable). If anyone other than your spouse is the designated beneficiary of your HSA, then the account stops being an HSA and the value of the account assets as of the date of your death (less any payments that are timely made from the HSA for qualified medical expenses that you incurred before your death) will be includible in the beneficiary s gross income in the year in which you die. If your estate is the beneficiary, the value will be includible in your gross income for the year of your death. Health Care Flexible Spending Account (HCFSA) 69. What is a Health Care Flexible Spending Account (FSA)? The Health Care FSA (previously referred to as the Health Care Spending Account) is used to pay for eligible health care expenses, such as medical, dental, vision and prescription drugs. It is available to all eligible employees who enroll in the Health Plan s Classic option, or those employees who waive Health Plan coverage. Employees who enroll in the Health Plan s Saver HSA option are not eligible to participate in the Health Care FSA. Instead, they are able to contribute to their HSA and use those funds, along with the funds contributed by the Company, to help pay for eligible health care expenses. 70. Who is the Health Care FSA administrator? PayFlex will replace ADP as the administrator of Health Care FSA as of January 1,

14 71. Will anything change with the switch to PayFlex for Health Care Flexible Spending Accounts? Yes, the auto reimbursement feature will no longer be available, however you will be able to use your PayFlex debit card at the doctor s office or pharmacy (both retail and mail order) to pay your copays and you won t need to fill out any additional paperwork to verify your expense. You can also use your debit card to pay other out-of-pocket medical, dental and vision expenses, but may have to validate such purchases. You can also pay with your personal debit/credit card and submit receipts to PayFlex for manual reimbursement. 72. Is it possible to contribute to both the HSA and the Health Care Flexible Spending Account? No. The Company s FSA is considered disqualifying coverage under IRS regulations, which means that anyone participating in the FSA is not eligible to also, at the same time, contribute to an HSA. If you enroll in the Health Plan s Saver HSA option, you cannot enroll in the Health Care FSA for If you have anything other than a zero cash balance in your 2015 FSA as of December 31, 2015, neither you nor the Company can contribute to your HSA until the month after the FSA grace period ends, which is April 1, What is the maximum contribution amount for the Health Care FSA in 2016? Under Health Care Reform, the amount of pre-tax contributions to all Health Care FSAs will be limited to $2,550 annually. The annual minimum amount is $ Can I enroll in the Health Care FSA if I m not enrolled in either the Saver HSA or Classic option, but am covered under my spouse s employer s plan? Yes, but participation in the Health Care FSA will render you and your spouse ineligible to contribute to an HSA. If your spouse s employer plan is a High Deductible Health Plan (HDHP) with an HSA component, like the Company s Saver HSA option, then you and your spouse would not be eligible to make (or have made on your behalf) contributions to an HSA while you are also participating in the Health Care FSA. 75. Can I pay for my dependents eligible health care expenses from my Health Care FSA? Yes. If you participate in the Health Care FSA, you may use the funds to cover eligible expenses for you, your spouse and eligible dependents, regardless of their coverage. 76. Do I need to save my receipts from purchases made with the Health Care FSA? Yes. You should save all receipts from purchases made with the Health Care FSA in case you are required to substantiate or validate that the expense is a qualified health care expense. Your debit card can be used to pay other out-of-pocket medical, dental and vision expenses, however you may have to validate such purchases. 14

15 77. Does the Health Care FSA have a grace period? Yes. You have until March 15 after the end of a Plan Year to incur expenses against your Health Care FSA and you have until May 31 after the end of the Plan Year to file claims for Plan Year reimbursements. Unused 2015 contributions to the FSA that are carried over into the grace period in 2016 will not count against the FSA contribution limit for Any 2015 claims submitted during this grace period need to be submitted to ADP for processing. Important to note: If you enroll in the Health Plan s Saver HSA option, and have anything other than $0 dollars in your 2015 Health Care FSA as of December 31, 2015, then you are not HSA eligible until the FSA grace period ends and neither you nor the Company can contribute to your HSA until April 1, This also means that for the year 2016, since you will not be HSA eligible for the first three months of the year, you will only be able to contribute 9/12 s of the annual contribution limit to your HSA [($3,350/12) x9 = $2, for employee only coverage]. However, under the IRS full contribution rule, you may be able to contribute the full annual contribution amount for 2016 if you are HSA-eligible on December 1, 2016 and remain HSA-eligible and in the same high deductible health plan for every month of Please contact your tax advisor to discuss the details. 78. Are Health Care FSA funds subject to the use it or lose it rule? Yes. Any unused funds left in your account after May 31 following the end of the Plan Year will be forfeited. 79. How do I make contributions to the Health Care FSA? You elect your desired annual contribution amount for the Health Care FSA during Benefits Open Enrollment. Your elected amount will be divided by the number of pay periods in the year and then deducted from your pay before taxes each pay period. 80. Does the Company make contributions to the Health Care FSA? No. Only employees contribute to the Health Care FSA. 81. Why is the Company eliminating the Dependent Care Spending Account (DCSA)? Participation in this account was extremely low. Fewer than 250 employees with MPC and fewer than 50 employees with Speedway contributed to this account in Given the time required to administer the account and the expense to comply with IRS rules and testing requirements, it was no longer cost effective to maintain this account. 82. Does the DCSA have a grace period for filing my 2015 claims? Yes. You have until March 15 after the end of a Plan Year to incur expenses against your Dependent Care Spending Account and you have until May 31 after the end of the Plan Year to file claims for Plan Year reimbursements. Any 2015 claims submitted during this grace period need to be submitted to ADP for processing. 15

16 83. Is Express Scripts remaining our pharmacy vendor for prescription drug benefits? If so, can we still only fill prescriptions at the retail pharmacy up to 3 times per year? Yes. Express Scripts remains our pharmacy vendor and you should continue to show your Express Scripts insurance card at the pharmacy, regardless of which Health Plan option you select. Express Scripts offers network pharmacy discounts and helps the pharmacist know if there are any potential drug interactions with other prescriptions you may have filled at other pharmacies. Prescription costs also are applied toward your deductible under the Saver HSA option. Yes. Our plan allows for 3 fills at the retail pharmacy for maintenance medications, so you will continue to be limited to 3 fills at a retail pharmacy per year. 84. Are there any changes to the Retiree Health Plan and do I have to enroll? Pre-65 retirees will be offered the same options (Classic and Saver HSA) as active employees. However, the premiums are determined differently for Retirees. Pre-65 retirees will not be grandfathered into a health plan. You must elect a health plan for If you choose to waive coverage for 2016, you can obtain coverage with a qualifying life event or during benefits open enrollment. 16

17 MPC 1. When is Benefits Open Enrollment? Benefits Open Enrollment (BOE) for 2016 MPC benefits coverage begins on Sunday, November 1, 2015 and ends on Friday, November 20, How do I enroll in benefits? All employees can make elections and changes via phone, or online. Salaried employees (exempt and non-exempt) may enroll online through MPCConnect to receive coverage in Enrolling online is quick, easy and can be done from work or home. Select Employee Center then SAP Online Services and sign on with your normal network logon. Select the HR Services tab; then select Benefits Open Enrollment under Quicklinks. Hourly employees can enroll via the Personalized Benefits Summary included in their enrollment packet, which will be mailed to homes the last week of October. This is in addition to phone, , and online enrollment. If you have questions about your benefits enrollment, call the Marathon Petroleum Benefits Service Center at Can I make changes to my 2016 benefit elections after November 20, 2015 when Benefits Open Enrollment ends? No. Outside of the Benefit Open Enrollment Period, there are very specific rules for starting, changing, or stopping your participation in the benefit plans. In general, you may make midyear changes permitted under each individual plan only if you have a Qualifying Event such as marriage, birth of a child or divorce, if your plan change is consistent with that change in status, and provided you complete and submit the Benefit Change Form and supporting documentation within 60 days after the qualifying event. Keep in mind that midyear Health Plan option changes are not permitted. 4. Why is MPC eliminating the current Health Plan options for 2016? The Health Plan s new Classic option offers many of the same features as the prior Traditional PPO option. Employees had expressed interest in changing to co-pays for prescription drugs and office visits (versus co-insurance) to better predict and manage their health care spending, therefore we incorporated that into the design of the Classic option for We remain committed to offering choice and found that many companies have started to include an HSA-qualified plan as an option for employees. The new Saver HSA option gives employees another avenue to meet their health care needs with the added ability to contribute to a tax advantaged Health Savings Account to help pay for eligible health care expenses now or in the future. We feel these two high quality and comprehensive Health Plan options offer employees a true choice in how they want to manage their health care going forward. 17

18 5. What will happen to my HRA balance? You will not lose any money you have accumulated in the HRA. Any remaining balance will remain and be converted to a Limited Purpose HRA. Employees will be able to use these funds going forward only for dental or vision expenses. You will not be able to use the funds for medical expenses incurred after December 31, In addition to dental and vision expenses, pre-65 retirees will be able to use the HRA funds for Retiree Health Plan, Pre-65 Retiree Dental Plan and Pre-65 Retiree Vision Plan premiums. These limitations are dictated by government rules and regulations. You can continue to access these HRA funds regardless of which Health Plan option you choose for 2016 as long as the above rules are satisfied. 6. Who will administer the HRA? PayFlex will be the administrator of the HRA. There will be a blackout period from December 18, 2015 January 10, 2016 while account balances are transferred from ADP to PayFlex. Claims can be submitted to PayFlex either online ( or by manual submission beginning January 11, Can I use my limited purpose HRA if I enroll in the Saver HSA option and open an HSA? Yes. If you have an HRA balance, you can use the Limited Purpose HRA only for dental and visions expenses, regardless of whether you enroll in the Health Plan s Classic or Saver HSA option. You may want to consider using your HRA balance for dental and vision expenses instead of using your HSA funds. 8. Is my Cigna Dental Plan changing? Premiums are increasing, but there are no other changes to the plan design for Is my Vision Plan changing? Premiums are increasing, but there are no other changes to the plan design for