Palomar Community College PPO Health Plan A Grandfathered Plan Summary Plan Booklet

Transcription

1 Palomar Community College PPO Health Plan A Grandfathered Plan Summary Plan Booklet This Booklet is a summary of your District's Grandfathered Self-Funded PPO Health Plan. This summary of the Health Benefit Plan is not to be construed or accepted as a substitute for the provisions of the Plan document. Therefore, in the event of an inconsistency between the terms of this Booklet and the terms of the Plan, the terms of the Plan shall prevail over this Booklet. The Plan and this Booklet may be amended at any time. PLEASE READ THIS BOOKLET CAREFULLY i

2 PALOMAR COMMUNITY COLLEGE FBC PPO Health Plan Benefit Highlights MEMBER PAYS CALENDAR YEAR DEDUCTIBLE PPO PROVIDERS NON PPO PROVIDERS The calendar year deductible must first be met prior to benefits being paid. Deductibles $100 Individual $200 Family ANNUAL OUT OF POCKET MAXIMUM PPO PROVIDERS NON PPO PROVIDERS Per member After the plan has paid $5,000 in covered expenses per member, per calendar year, the plan will pay 100% of covered expenses incurred by that member for the rest of the calendar year. LIFETIME MAXIMUM BENEFIT PPO PROVIDERS NON PPO PROVIDERS Per member Unlimited Members may choose from a network of available physicians and facilities (PPO Providers) or may choose a provider who is not in the network (Non PPO Providers). Payment for covered expenses are based on the allowable amount for the covered expense, which is the lesser of the charges billed or the following: PPO PROVIDERS the provider negotiated contracted rate(s). Member's are not responsible for the difference between the PPO providers charge and the negotiated discount amount. NON PPO PROVIDERS the usual, customary and reasonable (UCR) charge. The UCR is the amount determined by the plan to be the prevailing charge within Southern California (regardless of where services are rendered). Members are responsible for any amount determined to exceed the UCR amount in addition to any deductible or coinsurance. MEMBER PAYS PROFESSIONAL SERVICES PPO PROVIDERS NON PPO PROVIDERS Visit to a physician, physician assistant or nurse practioner 10% 30% of UCR Routine physicial examinations* 10% 30% of UCR Well Women care, including pap smear and mammography* (pap smear and mammography not subject to the $200 max) well baby/child care* (immunizations are not part of the calendar year max) 10% 30% of UCR 10% 30% of UCR Physician visits to hospital or skilled nursing facility 10% 30% of UCR Surgeon and assistant surgeon 10% 30% of UCR Administration of anesthetics 10% 30% of UCR Diagnostic x ray and laboratory procedures 10% 30% of UCR ii

3 Outpatient rehabilitative therapies Medically necessary physical, occupational, and speech therapy. Utilization review required after thirty (30) calendar days. Speech therapy is limited to treatment following surgery, injury or non congenital organic disease. 10% 30% of UCR *BASED ON FREQUENCY RECOMMENDED BY THE AMERICAN MEDICAL ASSOCIATION AND $200 MAXIMUM IN CALENDAR YEAR MEMBER PAYS HOSPITAL AND SKILLED NURSING FACILTY SERVICES (Precertification required for all inpatient admissions) PPO PROVIDERS NON PPO PROVIDERS Unlimited days of hospital care in a semi private room or ICU including ancillary charges Confinement in skilled nursing facility (confinement for non skilled or custodial care is not covered) 10% 30% of UCR 10% 30% of UCR Maternity care 10% 30% of UCR Outpatient surgery and services (except emergency room) 10% 30% of UCR MEMBER PAYS EMERGENCY CARE AND SERVICES** PPO PROVIDERS NON PPO PROVIDERS Use of emergency room facility (copay waived if admitted) 10% after $25 copay 30% of UCR after $25 copay Use of urgent care, facility and professional services 10% 30% of UCR ** EMERGENCY CARE COVERED AS DEFINED UNDER THE HEATH CARE REFORM REGULATIONS MEMBER PAYS MATERNITY CARE (Professional Services Only) PPO PROVIDERS NON PPO PROVIDERS Initial office visit 10% 30% of UCR Delivery 10% 30% of UCR Complication of pregnancy, including medically necessary abortions 10% 30% of UCR MEMBER PAYS OTHER SERIVICES PPO PROVIDERS NON PPO PROVIDERS Ground and air ambulance 10% 20% of UCR Durable medical equipment rental or purchase of medically necessary equipment and supplies 10% 30% of UCR Prosthetic devices 10% 30% of UCR Blood, blood plasma, blood factors and blood derivatives 10% 30% of UCR Nuclear medicine 10% 30% of UCR Chemotherapy 10% 30% of UCR Renal dialysis 10% 30% of UCR Home health care (limit of 100 visits per calendar year) 10% 30% of UCR Hospice Care inpatient and outpatient services (member life expectancy of 6 months or less and subject to utilization review every 60 days) 10% 30% of UCR MEMBER PAYS CHIROPRACTIC AND ACUPUNCTURE IN NETWORK OUT OF NETWORK Chiropractic / manual manipulation & acupuncture 10% 30% of UCR Up to $50 per visit. Maximum $1,000 per calendar year iii

4 MENTAL HEALTH AND SUBSTANCE ABUSE All in patient and out patient mental health and chemical dependency treatment is carved out and provided by a separate behavioral health provider. Please refer to the Behavioral Health Plan Benefit Summary. ORGAN AND TISSUE TRANSPLANTS Human organ and tissue transplants benefits are provided according to the terms and conditions set forth in a separate Organ & Tissue Transplant Policy that has been issued to the Plan. Transplant related benefits will be provided to each covered person during the transplant benefit period specified in the Transplant Policy. MEMBER PAYS RETAIL PRESCRIPTION DRUGS EXPRESS SCRIPTS RETAIL PHARMACIES IN NETWORK OUT OF NETWORK Member pays the following per 30 day supply based on the Express Scripts National Formulary: Generic $5 Not Covered Brand $10 Not Covered Members taking any medication that is a maintenance medication must use the Express Scripts Exclusive Home Delivery Program. Maintenance medication dispensed at retail pharmacy is limited to the first fill and one refill. Quantity limits may apply for any prescription regardless of what is prescribed. MAIL ORDER PRESCRIPTION DRUGS EXPRESS SCRIPTS MAIL SERVICE Member pays the following per 90 day supply based on the Express Scripts National Formulary: EXPRESS SCRIPTS MAIL ORDER MEMBER PAYS NON EXPRESS SCRIPTS Generic/Brand $5 Not Covered Members taking any medication that is a maintenance medication must use the Express Scripts Exclusive Home Delivery Program. Maintenance medication dispensed at retail pharmacy is limited to the first fill and one refill. Quantity limits may apply for any prescription regardless of what is prescribed. This is only a summary of the covered benefits and services. Please refer to the Summary Plan Booklet for detailed coverage information. iv

5 Palomar Community College PPO Health Plan Summary Plan Booklet TABLE OF CONTENTS Page I. INTRODUCTION... 1 II. EXTENSION OF BENEFITS... 5 III. TERMINATION OF COVERAGE IV. BENEFITS V. COVERED EXPENSES VI. PRESCRIPTION DRUG BENEFITS VII. EXCLUSIONS AND LIMITATIONS VIII. UTILIZATION MANAGEMENT IX. COORDINATION OF BENEFITS X. SUBROGATION XI. APPEAL RIGHTS XII. GENERAL PROVISIONS XIII. AMENDMENT OR TERMINATION OF THE PLAN XIV. IMPORTANT DEFINITIONS XV. QUESTIONS? v

6 I. INTRODUCTION Your Healthcare Plan A Grandfathered Plan Palomar Community College (the "District") is pleased to present it s medical benefit plan, a comprehensive plan to help you meet the needs of your family and to help protect you from the high cost of health care services. The Plan provides medical coverage for you and your Eligible Dependents. The Plan, as described in this Booklet, represents the District's continuing interest in helping you meet your financial responsibilities for your family's health care. This Booklet outlines eligibility requirements; services covered, and Plan limitations, as well as how to file a claim and how to find an answer when you have a question. We recommend that you read this entire Booklet because many of the topics are interrelated; reading just one or two parts may result in a misunderstanding. As you review the material, please note that words and phrases you find as defined terms are further explained in the section entitled "Important Definitions." If you have any questions that do not appear to be covered in this Booklet, please contact the Plan s Customer Services/Claims Department at (858) or (888) Preferred Provider Organization A preferred provider organization, commonly known as a PPO, is a network of hospitals or physicians (or both) who have agreed to offer health care services at a reduced rate (the PPO provider directory is available online at The PPO plan option allows you to exercise control over the cost of your health care by choosing an in-network provider. For example: Benefits for services at Participating Hospitals, Participating Physicians and other nonhospital services rendered by a member of the PPO are provided at a discounted Negotiated Rate. These discounts translate into savings for you because your coinsurance is based on a lower dollar amount. Benefits for services at Non-Participating Hospitals, Non-Participating Physicians and other non-hospital services rendered by a provider that is NOT a member of the PPO network are based on the Usual, Customary and Reasonable charges. You may receive services from an out-of-network provider; however, your claims will be reimbursed at a lower rate. You will be held responsible for your coinsurance, any deductible AND for any amounts billed over the Usual, Customary, and Reasonable charges. Refer to the section entitled "Benefit Highlights" for specific details. When you receive services from a PPO service provider, the provider will submit the claim to the Plan Administrator on your behalf. If services are obtained from a Non-PPO service provider, you will be responsible for submitting a fully-itemized claim to the Plan Administrator. Please review the section entitled Receipt of Claims listed in this Booklet under General Provisions for more details regarding the timeline for submitting claims. Notification Requirement Notification requirements are designed to ensure that you receive the most appropriate and cost-effective treatment. These requirements are described in detail in the section entitled "Utilization Management." Notification does not mean benefits are payable in all cases. Coverage depends upon the covered health services that are actually provided, your eligibility status, and any benefit limitations. 1

7 Rights and Limits This Booklet provides a general description of the Plan and your benefits. It is important to remember that: The description of benefits in this Booklet replaces and supersedes any other Booklet previously issued by the District for this Plan. All benefits are subject to the terms, conditions, and limitations of the Plan. No Plan provision is intended to provide employees, former employees, or Eligible Dependents with a vested right to any benefits under the Plan or any rights to continued employment. Your rights, if any, to benefits under the Plan depend upon whether you satisfy the eligibility requirements of the Plan and whether your submitted claims are Covered Expenses. Presumption of Exclusion This Plan provides for those expenses expressly described within, and any omission is presumed to be an exclusion. This Plan covers only those procedures, services, and supplies that are determined to be Covered Expenses. Women's Health and Cancer Rights Act This Plan complies with the Women's Health and Cancer Rights Act ("WHCRA") and provides the required benefits in connection with a mastectomy. For individuals receiving mastectomyrelated benefits, coverage will be provided in a manner determined in consultation with the attending Physician and the patient for: all stages of reconstruction of the breast on which the mastectomy was performed; surgery and reconstruction of the other breast to produce a symmetrical appearance; prostheses; and treatment of physical complications of the mastectomy, including lymphedema. These benefits are subject to the same deductibles and coinsurance applicable to other medical and surgical benefits provided under this Plan. Mental Health Parity Act This Plan complies with the Mental Health Parity Act, which generally requires parity between mental health benefits and medical/surgical benefits. 2

8 ELIGIBILITY AND PARTICIPATION REQUIREMENTS Eligibility for Employees Eligibility for Dependents and Domestic Partners All active employees, according to eligibility requirements set forth in bargaining unit contracts, Board Members, and early retirees are eligible to participate in this Plan. RETIREES MAY NOT ADD A SPOUSE OR DEPENDENTS TO THE COVERAGE AFTER RETIREMENT. Dependents eligible for Plan coverage include: (i) your Spouse or Domestic Partner (District policy allows for opposite sex domestic partnerships, but only if the two persons have been sharing a common residence for at least twelve (12) continuous months without interruption); (ii) children under age 26, unless eligible for coverage by another employer plan; (iii) unmarried dependent children whom you have adopted or who are legally placed for adoption with you; (iv) unmarried dependent children for whom you have been appointed legal guardian, but only if such children depend upon you for care and support; (v) unmarried dependent children for whom you, your Spouse or your Domestic Partner are required to provide coverage due to a Medical Child Support Order; (vi) unmarried enrolled child, incapable of self-sustaining employment because of mental or physical impairment that occurred prior to reaching the age limit for children may continue as a family member as long as disabled. A Physician must certify this disability in writing. This certification must be received within 31 days of the child's maximum age birthday and may be requested not more often than annually by the Plan. The Plan Administrator reserves the right to request proof of eligibility. Retirees and Spouses General Enrollment Special Enrollment Rights Group I retirees: Benefits terminate for retirees and their Eligible Dependents at the end of the retiree s life. Group II retirees: Benefits terminate for retirees and their Eligible Dependents at age 65 or death of the retiree, which ever occurs first. The District will provide you with information about your coverage and an enrollment form prior to the date you become eligible for coverage. In general, you must file an enrollment application with the District for yourself (including any Eligible Dependents) within 31 days after becoming eligible under this Plan. You must file an application to enroll a new Spouse, Domestic Partner or dependent children within 31 days of acquiring a new dependent. Unless special enrollment rights apply, discussed below, if you or your Eligible Dependents make an application to enroll for coverage under the Plan more than 31 days from the date of eligibility, you generally must wait until the next annual enrollment period. If you are covered under another group health plan and involuntarily lose that coverage (due to expiration of COBRA or loss of eligibility under the other group plan), you or your Eligible Dependents may enter the Plan under the special mid-year enrollment rights. You must request enrollment in writing within 30 days after the loss of other 3

9 Effective Date of Coverage coverage or the District's cessation of contributions for such other coverage. Coverage will begin on the first day of the month after the Plan receives the enrollment form. If you acquire a new Eligible Dependent, by marriage, Domestic Partnership, birth, adoption, or placement for adoption, you have a right to enroll yourself and the new Eligible Dependent in the Plan. You must complete and submit an enrollment form within 31 days of the marriage, registration of Domestic Partnership, birth, adoption, or placement for adoption. Additionally, pursuant to the Children's Health Insurance Program Reauthorization Act of 2009 and effective April 1, 2009, you and your Eligible Dependents are permitted to enroll in the Plan no later than 60 days after: (i) the date you or your Eligible Dependents lose coverage under Medicaid or the State Children's Health Insurance Program ("CHIP") due to loss of eligibility; or (ii) a favorable eligibility determination is made by Medicaid or CHIP to provide you or your Eligible Dependents with premium assistance under Medicaid or CHIP. An Eligible Employee's coverage under the Plan begins on the first day of the month on or following his or her date of hire with the District. If your application includes enrollment of Eligible Dependents, their coverage would begin on the same day that your coverage begins. For a new Spouse of an Eligible Employee already enrolled, coverage begins on the first day of the month following marriage, but only if an application for the Spouse has been filed within 31 days of marriage. For a new Domestic Partner of Eligible Employee already enrolled, coverage begins on the first day of the month following the date of Certified Declaration of Domestic Partnership, but only if an application for the Domestic Partner has been filed within 31 days of the Certified Declaration of Domestic Partnership. For a newly acquired Child of an Eligible Employee already enrolled, coverage begins on the first day of the month after acquiring the Child, but only if an application for the Child is filed within 31 days of acquiring the Child. For a Child born to an Eligible Employee who is already enrolled, coverage begins at birth, but only if an application to enroll the Child is filed within 31 days of birth. For an adoption, coverage begins effective with the date of adoption, or when a child is legally placed for adoption, and there is the assumption and retention by the Eligible Employee of a legal obligation for total or partial support of such child in anticipation of the adoption of such child. An application for the Child must be filed within 31 days of adoption or placement for adoption. 4

10 Qualified Medical Child Support Orders II. EXTENSION OF BENEFITS This Plan complies with all Qualified Medical Child Support Orders ("QMCSOs"). The QMCSO will require that the Plan cover the children even if you do not want to enroll the children in the Plan or wish to drop the children's medical coverage. Continuation of Coverage under FMLA and Other Laws Retirees/AB528 Continuation of Coverage for Military Leave The Plan allows for the continuation of coverage for a leave of absence, subject to the Family and Medical Leave Act of 1993 ("FMLA"), for up to 12 weeks in a 12-month period. The National Defense Authorization Act for Fiscal Year 2008 provides additional leave rights under certain circumstances for employees who are family members or next of kin of members in the armed forces. The Act provides for the spouse, son, daughter, or next of kin in the armed forces (including a member of the National Guard or Reserves) to take up to 26 work weeks of leave to care for the member who is undergoing medical treatment, recuperation, or therapy, is otherwise in outpatient status, or is otherwise on the temporary disability retired list for a serious health injury or illness. Under AB 528 passed in 1985, school districts, community colleges and county superintendents which provide health and welfare benefits or dental care benefits for certificated employees are required to permit former certificated employees, who were enrolled in these plans as active employees and retire under any public retirement system, the opportunity for continued coverage under these plans. If you retire and elect to continue coverage, you may also elect to include your Spouse/Domestic Partner but not your children. Also, if you retire or you are an active certificated employee who is contributing to STRS and is a member of STRS, your surviving Spouse/Domestic Partner may continue coverage under the Plan. Any election for continued coverage must be made within thirty-one (31) days of termination of active coverage; otherwise coverage under the Plan is forfeited. Reenrollment is not available if coverage is dropped. If you are called to active military duty, you and your Eligible Dependents may be eligible for coverage under TRICARE, the military service's health plan. You and your Eligible Dependents may also elect to continue benefits under this Plan if you were covered by the Plan at the time you were called to military duty. The Plan allows for the continuation of coverage for a military leave of absence, covered by the Uniformed Services Employment and Reemployment Rights Act of 1994 ("USERRA"). Coverage may be continued until the earlier of: 24 months after your absence from work begins, or the day after the date on which you fail to timely apply for or return to employment as required by USERRA. If you elect to continue coverage and your military service is less than 31 days, you are required to pay only your normal share of the premium for such coverage. If the length of your military service extends past 31 days, you must pay [102%] of the costs of the Plan for 5

11 Continuation of Coverage under COBRA similarly situated Plan participants who are not serving in military service. If you choose not to continue coverage under the Plan during your military service, you and your Eligible Dependents are eligible for reinstatement of coverage on the date you return with reemployment rights guaranteed under USERRA. However, the reinstatement of coverage will be subject to any waiting periods or any limitations for Pre-Existing Conditions that would have otherwise applied had you not left for military service. In addition, as permitted by USERRA, your coverage will not include any illness or injury determined by the Secretary of Veteran Affairs to have been incurred in, or aggravated during, performance of military service. Any other such illness or injury will be covered by the Plan, subject to all otherwise applicable conditions and limitations of the Plan. Note: After your USERRA continuation coverage expires, you will not thereafter receive 18 months of COBRA continuation coverage. However, if your USERRA coverage expires prior to 18 months (e.g., because you do not return to employment), you may be eligible for COBRA continuation coverage for the remainder of the original 18- month COBRA coverage period. Introduction The San Diego & Imperial County Schools Fringe Benefits Consortium PPO Health Plan (the "Plan") complies with the Consolidated Omnibus Budget Reconciliation Act of 1985 ("COBRA") (Public Law , Title X), which requires that companies continue health coverage under certain circumstances explained in this notice. If you have health coverage under the Plan, and if that coverage ends for a reason listed below, you may be able to continue your health coverage for a certain period of time. It is important that you, your covered spouse, and any covered child(ren) over the age of 18 read this notice carefully, as it outlines both your rights and your responsibilities under the law. If your coverage as an active employee under the Plan ends, please examine your options carefully before declining the continuation coverage available under COBRA. You should be aware that companies selling individual health insurance typically require a review of your medical history that could result in a higher premium, or you could be denied coverage entirely. This notice generally explains COBRA continuation coverage, when it may become available to you and your family, and what you need to do to protect the right to receive it. This notice is intended to provide you with summary information only. What is COBRA Continuation Coverage? COBRA continuation coverage is a continuation of Plan coverage when coverage would otherwise end because of a life event known as a "qualifying event." Specific qualifying events are listed later in this notice. After a qualifying event, COBRA continuation coverage must be offered to each person who is a "qualified beneficiary." You, your spouse, and your dependent children could become qualified 6

12 beneficiaries if coverage under the Plan is lost because of the qualifying event. Under the Plan, qualified beneficiaries who elect COBRA continuation coverage must pay for COBRA continuation coverage. Please note that your registered domestic partner (as defined under Section 297 of the California Family Code) and his or her dependents would not be eligible to elect COBRA continuation coverage due to their status as a domestic partner or a dependent of such domestic partner (they are not "qualified beneficiaries" under federal law). However, your domestic partner and his or her dependents would be eligible for COBRA continuation coverage if such domestic partner and/or his or her dependents were covered under the Plan immediately prior to the qualifying event and you elected to cover such individual or individuals as an eligible dependent. What is a Qualifying Event? A qualifying event is an event that causes you or your spouse and dependent child(ren) to lose health benefits. If you are an employee, you will become a qualified beneficiary if you lose your coverage under the Plan because either one of the following qualifying events happens: Your hours of employment are reduced, or Your employment ends for any reason other than your gross misconduct. If you are the spouse of an employee, you will become a qualified beneficiary if you lose your coverage under the Plan because any of the following qualifying events happens: Your spouse dies; Your spouse's hours of employment are reduced; Your spouse's employment ends for any reason other than his or her gross misconduct; Your spouse becomes entitled to Medicare benefits (under Part A, Part B, or both); or You become divorced. Your dependent children will become qualified beneficiaries if they lose coverage under the Plan because any of the following qualifying events happens: The parent-employee dies; The parent-employee's hours of employment are reduced; The parent-employee's employment ends for any reason other than his or her gross misconduct; The parent-employee becomes entitled to Medicare benefits (Part A, Part B, or both); 7

13 The parents become divorced; or The child stops being eligible for coverage under the plan as a "dependent child." When is COBRA Coverage Available? The Plan will offer COBRA continuation coverage to qualified beneficiaries only after the Plan Administrator has been notified that a qualifying event has occurred. For qualifying events that the District is aware of, such as the end of employment or reduction of hours of employment, death of the employee, commencement of a proceeding in bankruptcy with respect to the District, or the employee's becoming entitled to Medicare benefits (under Part A, Part B, or both), the District must notify the Plan Administrator of the qualifying event. However, for some qualifying events, you are required to provide notice to the District. You Must Give Notice of Some Qualifying Events For the other qualifying events (divorce of the employee and spouse or a dependent child's losing eligibility for coverage as a dependent child), you must notify the District within 60 days after the qualifying event occurs. What Do You Have To Do? Once the District receives notice that a qualifying event has occurred, COBRA continuation coverage will be offered to each qualified beneficiary. If you wish to elect coverage, you must follow guidelines detailed in the COBRA notice. Each qualified beneficiary will have an independent right to elect COBRA continuation coverage. Covered employees may elect COBRA continuation coverage on behalf of their dependents, and parents may elect COBRA continuation coverage on behalf of their children. If you decide to elect continued coverage, you must return your election form to the District within 60 days from the later of: the date your coverage would terminate due to the qualifying event; or the date on which the COBRA notice is initially postmarked. You then have 45 days to pay all of the necessary retroactive and current premiums. Any medical and other expenses you incurred will not be covered until you return all required election forms and pay the applicable premiums. Your coverage will be retroactively reinstated once the premium and all required re-enrollment forms are received, and any eligible medical claims will then be processed by the Plan. How Long Can Coverage Continue? 18 Months: If you are an employee or the spouse or dependent child of an employee you may elect up to 18 months of continued health coverage if you lose coverage due to the employee's: termination of employment (voluntary or involuntary except 8

14 for gross misconduct); or reduction in work hours to less than the minimum needed to remain covered by the plan. 36 Months: If you are an employee's spouse or dependent child, you may elect up to 36 months of continued health coverage if you lose coverage due to: death of the employee; or divorce; or Medicare entitlement of the employee. If you are a dependent child, you may elect up to 36 months of continued health coverage if you lose coverage due to: no longer satisfying the dependent eligibility requirements of a plan. Extension beyond 18 months: There are three additional circumstances when you can potentially continue COBRA coverage beyond 18 months. These events can be a second qualifying event only if they would have caused the qualified beneficiary to lose coverage under the Plan if the first qualifying event had not occurred. 1. Disability extension of 18-month period of continuation coverage. If you or anyone in your family covered under the plan is determined by the Social Security Administration to be disabled as of the date of the qualifying event or anytime during the first 60 days of COBRA continuation coverage, and you notify the District in writing in a timely fashion, you and your entire family can receive up to an additional 11 months of COBRA continuation coverage, for a total maximum of 29 months. You must make sure that the District is notified in writing of the Social Security Administration's determination within 60 days after (i) of the date of the determination or (ii) the date of the qualifying event, or (iii) the date coverage is lost due to the qualifying event, whichever occurs last. But in any event, the notice must be provided before the end of the 18-month period of COBRA continuation coverage. Your notice must include a copy of the Social Security Administration's determination. If these procedures are not followed, or the notice is not provided in writing to the District within the required 60-day period, then there will be no disability extension of COBRA continuation coverage. 2. Second Qualifying Event extension of 18-month period of continuation coverage. If your family experiences another qualifying event while receiving COBRA continuation coverage, the spouse and the dependent children in your family can get additional months of COBRA continuation coverage, up to a maximum of 36 months 9

15 (including the initial period of COBRA continuation coverage). If an employee's spouse or dependent child(ren) have a subsequent qualifying event during the initial 18 months of continuation coverage, he or she may continue coverage for up to 36 months total, from the date of the initial qualifying event. This extension is available if the employee dies, becomes entitled to Medicare, or gets divorced. The extension is also available to a dependent child who loses eligibility under the Plan as a dependent child. To obtain an extension of continuation coverage, the affected spouse or dependent child must notify the District within 60 days of the subsequent qualifying event. In all these cases, you must make sure that the District is notified of the second qualifying event, within 60 days after (i) the date of the second qualifying event or (ii) the date coverage is lost, whichever occurs last. If the second qualifying event is a divorce, your notice must include a copy of the divorce decree. If these procedures are not followed, or the notice is not provided to the District within the required 60-day period, then there will be no extension of COBRA continuation coverage. 3. Medicare Extension for Spouse and Dependent Children. If a qualifying event that is a termination of employment or reduction of hours occurs within 18 months after the covered employee becomes entitled to any part of Medicare, then the maximum coverage period for the spouse and dependent children is 36 months from the date the employee became entitled to Medicare (but the covered employees maximum coverage will be 18 months). When Does Coverage End? Your continuation coverage will terminate on the earliest of the following dates. In no event can coverage continue beyond 36 months from the original qualifying event date. When no group health coverage is provided by the District for any employees; or When you do not pay a premium for your continued coverage within the prescribed time limit; or When you become covered under another group health plan. Exceptions to this rule include if the new group plan contains any exclusion or limitation with respect to any preexisting condition that applies to you; or When you first become entitled to Medicare (assuming this occurs after you elect COBRA); or The date you or your dependent is no longer disabled if you have extended coverage for up to 29 months due to your disability, and Social Security has made a final determination that you or your dependent is no longer 10

16 disabled. (You must notify the District within 30 days of this Social Security determination). Michelle's Law III. The Plan does not provide an option for Individual Conversion following the expiration of COBRA benefits. How Much Does COBRA Coverage Cost? You are required to pay the entire cost of your continued health coverage to the District plus a 2% administration fee. The total premium is made up of the prior employee contribution plus the employer premium paid. Employee Contribution + Employer Contribution = Total Premium x 2% Administration Fee = COBRA Premium The cost of coverage during the 19 th -through the 29 th -month extension period for individuals who elect the Social Security disability extension may be up to 150% of the total cost. You have 45 days from the day you elect COBRA to pay your current premium plus any retroactive premiums back to the day you lost coverage. Thereafter, you have a grace period of 30 days for regularly scheduled premium payments. The Plan will comply with the Federal Michelle's Law. This generally means that coverage under the Plan will not be cancelled if your "qualifying dependent child" who is enrolled in the Plan (i) participates in a school-sponsored break during the school year; (ii) takes a medically necessary leave of absence from school (or takes a change in school enrollment that would otherwise result in a cancellation of coverage under the Plan) before the earlier of 12 months from the date such leave or change began or the date your "qualifying dependent child" would lose coverage under the Plan for other reasons. For this purpose, the term qualifying dependent child means your child who is a student at a post-secondary educational institution before the first day of the medical leave. TERMINATION OF COVERAGE Your coverage under the Plan is cancelled under the following conditions: On the date the contract between the District and the Plan is cancelled. On the date your premium is due after you no longer satisfy the eligibility requirements under the Plan. At the end of the period for which premium contribution charges have been paid when the required premium contributions for the next period has not been paid by you. On the next contribution due date after the Plan receives written notice of the 11

17 Employee s voluntary cancellation of coverage. If premium contributions are paid, your coverage may continue if you were granted a temporary leave of absence up to 6 months or a sabbatical year's leave of absence up to 12 months. Benefits terminate for early retirees and their Spouses/Domestic Partners at age 65. There are no conversion rights under the Plan upon termination of eligibility. Review the Continuation of Coverage under COBRA section for COBRA benefits. IV. BENEFITS Determinations Deductible Payment for Covered Expenses A Covered Expense is incurred on the date you receive the service or supply. In no event will a covered expense include: Any charge for services of a Participating Hospital or Participating Physician in excess of the Negotiated Rate. Any charge for services for a Non-Participating Physician or Non- Eligible Physician in excess of an Allowable Charge. Any charge in excess of the actual billed charges; including but not limited to the Medicare deductible, when billed after a Medicare DRG is paid which is in excess of the actual billed charges of a hospital. Any charge for services of a Non-Participating Hospital or Non- Participating Physician in excess of an Allowable Charge. You and each Eligible Dependent enrolled in the Plan must meet a deductible amount for Covered Expenses incurred during any calendar year. The amount of the deductible is $100 per individual/$200 family maximum. Once the deductible is satisfied, no further deductible would be required for Covered Expenses incurred for the remainder of that calendar year. Additionally, Covered Expenses incurred during the last 3 months of a calendar year that would apply toward the deductible for that calendar year may be carried forward and applied to help satisfy the following calendar year's deductible. This section addresses payment by the Plan for Covered Expenses exceeding the applicable deductible. No payment will be made by the Plan that exceeds the Usual, Customary and Reasonable charge. PAYMENT LEVELS In-Network After the calendar year deductible is met, payment is provided at 90% of the negotiated providers contracted rate for covered expenses incurred by a member when using a Participating Hospital or Participating Physician or Provider. Once a member reaches the in-network calendar year out-of-pocket maximum, no further coinsurance will be required for the remainder of that Calendar Year. Out-of-Network After the calendar year deductible is met, payment is provided at 70% of 12

18 Maximum Benefits the Allowable Charge for covered expenses incurred by a member when using a Non-Participating Hospital or Non-Participating Physician or Provider. Once a member reaches the Out-of-Network Calendar Year out-of-pocket maximum, payment will be provided at 100% of the Allowable Charge for covered expenses for that member for the remainder of the Calendar Year. Forced Providers After the calendar year deductible is met, payment is provided at 90% of the billed charge for a covered expense when the member is unable to choose the services of a Participating Provider for the following list of providers only. This provision applies only for services rendered when care originates at a PPO facility or PPO provider and when the patient has no choice in deciding which provider renders care: Emergency room physician when services are received in an innetwork facility Inpatient Physician hospital visits when member is confined in an in-network facility Anesthesiologist when the surgeon is an in-network provider Radiologist and laboratories when the member has no choice of provider Ambulance Service After the calendar year deductible is met, payment is provided at 90% (PPO provider) or 80% (Non-PPO provider) of covered charges incurred by a member, for medically necessary surface or air ambulance transportation. Emergency Room Facility After the calendar year deductible is met, payment is provided at either 90% of the negotiated providers contracted rate or 70% of the Allowable charge, less the $25 emergency room copayment. The co-payment is waived if member is admitted directly into the hospital. Out-of-Area After the calendar year deductible is met, payment is provided at 80% of the allowable charge for covered expenses incurred by a member outside the United States. LIFETIME MAXIMUM: Unlimited CALENDAR YEAR STOP-LOSS MAXIMUM (maximum out-of-pocket) After the Consortium Plan has paid $5,000 in benefits for covered expenses paid at 90% or 70% (excluding deductible), that a Member incurs during a Calendar Year, payment is provided at 100% of covered expense incurred by that Member for the remainder of the Calendar Year. This is an individual stop loss level with no family maximum. Deductibles, dollar co-pays, non-covered expenses, prescription drug charges, mental health and substance abuse charges, and any other charges in excess of the allowable charges do not apply toward the deductible or out of pocket maximum. 13

19 Benefit Reduction Due to Pre-Existing Condition MENTAL OR NERVOUS DISORDERS AND SUBSTANCE ABUSE All inpatient and outpatient Treatment of mental health and chemical dependency is carved out of the Plan and provided by the Plan s Behavioral Health Plan. Please refer to your Behavioral Health Plan Schedule of Benefits for a complete summary of benefits. Please contact the behavioral health plan at 1 (800) for confidential pre-authorization and in-network referral assistance. CHIROPRACTIC CARE/ACUPUNCTURE CARE In-Network: After the calendar year deductible is met, payment is provided at 90% of the negotiated providers contracted rate, up to a maximum of $50 per visit. Maximum payable is $1,000 per calendar year. Out-of-Network: After the calendar year deductible is met, payment is provided at 70% of the allowable charge, up to a maximum of $50 per visit. Maximum payable is $1,000 per calendar year. All Members enrolling after the Effective Date of the Plan shall be excluded from any benefit for any conditions for which Treatment was received during the 90 days immediately preceding the Member s Effective Date. This provision also applies to newly acquired Spouses/Domestic Partners. This limitation ceases to apply to any Member after twelve (12) consecutive months of membership in the Plan. However: It does not apply to a Member who was covered under another district sponsored plan (through the same district) and replaced by this agreement within 31 days of that Plan s termination. Also, it does not apply if your child is born while you are enrolled in the Plan and you enroll this child within 31 days of his or her birth. It does not apply to an adopted Child who is being adopted and is enrolled within thirty (30) days of birth, adoption or placement. It does not apply to dependent children under the age of 19. V. COVERED EXPENSES Hospital Covered Services Inpatient services and supplies provided by a Hospital, except private room charges over the prevailing two-bed room rate of the Hospital. Outpatient services and supplies provided by a Hospital, including those in connection with surgery performed at a licensed outpatient surgical center. Services provided by a licensed outpatient/ambulatory surgical center in a facility other than a medical or dental office, whose main function is performing surgical procedures on an outpatient basis. It must be licensed as an outpatient surgical center according to state and local laws and must meet all applicable legal and regulatory requirements of an outpatient surgical center 14

20 Psychiatric Health Facility Skilled Nursing Facility Home Health Care providing surgical services. Conditions of Service Services must be those that are regularly provided and billed by a Hospital. Benefits are provided only for the minimum number of days required to treat the Member s illness, injury, or condition. Please refer to the section entitled Mental or Nervous Disorder and Substance Abuse. Covered Services Inpatient services and supplies provided by a Skilled Nursing Facility, except private room charges over the prevailing two-bed room rate of the Skilled Nursing Facility. Conditions of Service The Member must be referred to the Skilled Nursing Facility by a Physician. Services must be those which are regularly provided and billed by a Skilled Nursing Facility. The services must be consistent with the illness, injury, degree of disability, and medical necessity of the Member. Benefits are provided only for the number of days required to treat the Member s illness or injury. The Member must remain under the active medical supervision of a Physician treating the illness or injury for which the Member is confined in the Skilled Nursing Facility. Admission to a Skilled Nursing Facility for non-skilled or custodial care is excluded. Covered Services Services of a registered nurse. Services of a licensed therapist for physical therapy, covered occupational therapy, or covered speech therapy. Services of a medical social service worker. Services of a Licensed Vocational Nurse who is employed by (or under arrangement with) a Home Health Agency or Visiting Nurse Association. Services must be ordered and supervised by a registered nurse employed by the Home Health Agency or Visiting Nurse Association as professional coordinator. These services are only covered if the Member is also receiving the services listed in the above first two points. Necessary covered medical supplies provided by the Home Health Agency or Visiting Nurse Association. Custodial care is excluded. 15

21 Professional Services Additional Services and Supplies Conditions of Service The Member must be confined at home under the active medical supervision of the Physician ordering home health care and treating the illness or injury for which that care is needed. Services must be provided and billed by the Home Health Agency or Visiting Nurse Association. Services must be consistent with the illness, injury, degree of disability, and medical needs of the Member. Benefits are provided only for the number of visits required to treat the Member s illness or injury, up to a maximum of one hundred (100) visits per calendar year. (A visit is a shift of eight (8) hours or less.) Services of a Physician or Physician Assistant as defined in another portion of the Plan. Services of an Anesthetist. Services of a midwife who is also a Licensed Registered Nurse acting within the scope of his/her license. Services of a Licensed Physical Therapist. Services of a Certified Registered Nurse Anesthetist. Services of a Registered Nurse. Services of a Licensed Vocational Nurse. Services of a Nurse Practitioner. Services of a Clinical Laboratory. Services of a Skilled Nursing Facility. Services of a Home Health Agency or Visiting Nurse Association. Services of a Licensed Ambulance Company. Services of a licensed retail pharmacy Following ambulance services: o Base charge, mileage, and non-reusable supplies of a licensed ambulance company for ground service to transport a Member to and from a Hospital for a medical Emergency, including ambulance services utilized by the 911 Emergency response system. o Base charge, mileage, and non-reusable supplies of an air ambulance from the area where the Member is first disabled to transport a Member to the nearest Hospital for a medical Emergency. o Monitoring, electrocardiograms (EKG s or ECG s), cardiac defibrillation, cardiopulmonary resuscitation (CPR), administration of oxygen and intravenous (IV) solutions, and other necessary services in connection with ambulance service. An appropriately licensed person must render the 16

22 services. Outpatient diagnostic radiology and laboratory services for Treatment of an illness or injury. Multiple non-emergency laboratory tests will be paid as Automated Multi-channel Tests. Radiation therapy, chemotherapy, hemodialysis, and other such FDA approved, Physician ordered, non-investigational or Experimental Treatment appropriate for the diagnosed illness or injury. Surgical implants, except devices used in non covered cosmetic procedures. Orthotic and Prosthetic devices, such as artificial limbs or eyes. This includes services of an orthotist and prosthetist in connection with evaluation or fitting of a covered orthotic or prosthetic device when services are billed as part of the charge for the device. This includes initial orthotic or prosthetic device and repair or replacement of existing devices when Medically Necessary. The first pair of contact lenses and the first pair of eyeglasses when required as a result of Medically Necessary eye surgery. Rental or purchase (depending on the expected duration of Treatment) of dialysis equipment and supplies. Rental or purchase of other durable medical equipment and supplies which are: (i) ordered by a Physician; (ii) of no further use when medical need ends; (iii) usable only by the patient; (iv) not primarily for the Member s comfort or hygiene; (v) not for environmental control; (vi) not for exercise; and (vii) manufactured specifically for medical use. Rental Charges that exceed the reasonable or negotiated purchase price of the equipment are not covered. The Plan determines whether the item meets the above conditions. If more than one choice exists, benefits will be provided for the least costly item determined to be medically adequate. Rental charges may not be billed in advance of delivery. Blood transfusions, including blood processing and the cost of unreplaced blood and blood products. Mastectomy, including breast reconstruction after mastectomy and complications from mastectomy. Surgery to perform a Medically Necessary mastectomy and lymph node dissection is covered, including prosthetic devices or reconstructive surgery to restore and achieve symmetry for the Member due to the mastectomy or lumpectomy. The length of a Hospital stay is determined by the attending Physician and surgeon in consultation with the Member, consistent with sound clinical principles and processes. Coverage includes any initial and subsequent reconstructive surgeries and prosthetic device for the diseased breast on which the mastectomy was performed and for a healthy breast if, in the opinion of the attending Physician and surgeon, this surgery is necessary to achieve normal symmetrical 17