Aon Retiree Health Exchange

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1 Meicare Insurance Guie Aon Retiree Health Exchange Recommene by

2 Why You Nee More Coverage I alreay have coverage. Aren t Meicare Parts A an B enough? For many people, Meicare alone oes not provie a comprehensive safety net for health care expenses. While Meicare Parts A an B help to provie coverage for some hospital an meical costs, the fact remains: For many people, it s often not enough. Because of potential gaps in coverage, many people purchase aitional Meicare insurance to help buil more complete coverage an provie a more comprehensive safety net. How We Can Help Builing more complete coverage Meicare Parts A an B Important notice Meicare Insurance Meicare Avantage (most plans inclue prescription rug coverage) OR Supplement (Meigap) + Meicare Part D Prescription Drug More complete, comprehensive coverage an better financial protection This guie is not intene to replace information available to all Meicare recipients in the Meicare & You hanbook available through Meicare. We encourage you to review this an all information available at which will provie you with complete etails about Meicare plans, incluing beneficiary rights, coorination of care, preventive services, how to change plans, state assistance options, efinitions, an more. With so many insurance options... how o you fin the right plan for you? The Aon Retiree Health Exchange TM gives you access to Meicare insurance proucts offere by over 90 Meicare insurance companies. You can explore these options on your own through our website or speak with one of our certifie an license Benefits Avisors to help guie you. Both our website an Benefits Avisors will: Provie the information you nee about the insurance plans in your area, in easy-to-unerstan language. Help you evaluate available options, fin the plan that fits your nees an buget, an then enroll in it. Continue to assist you an help re-evaluate your options, if necessary as your nees change over the years. All this comes to you at no cost. That s right: You pay nothing for the services we provie only for the insurance coverage in which you enroll. Please see your personalize letter inclue with this guie for the phone number an logon information you ll nee to contact us. In this guie Your Coverage Checklist 2 How to Apply Online 4 Learn About Meicare Parts A an B 5 Your Meicare Insurance Options 8 Option 1: Meicare Avantage 10 Option 2: Supplement (Meigap) + 14 Meicare Part D Prescription Drug Making the Right Choice: 22 Meicare Avantage or Supplement (Meigap)? Help After You Enroll 24 Contacts an Resources

3 Your Coverage Checklist Review this Meicare Insurance Guie. Verify your coverage in Meicare Parts A an B. You must have both in orer to enroll in a meical plan with us. Contact the Social Security Aministration at or by calling (TTY ) if you have not yet enrolle in Meicare Part B. Go online to the Aon Retiree Health Exchange website an activate your personal account. Complete any action items you see in your online account, incluing proviing the prescriptions you take. Confirm your personal information, incluing whether you have a Power of Attorney who will assist you through the process. If you nee personal assistance beyon our website, scheule or confirm your appointment with your Benefits Avisor. To prepare for your appointment: Make sure you have your Meicare insurance cars an ID cars for your other current health an rug plans. Collect your prescription etails, incluing rug names, osages, an frequency. Write own the names of your preferre octors, clinics, an hospitals, incluing their phone numbers an aresses. Determine how much you want to pay each month for a premium. What o you pay toay? Write own any features you like or islike about the plan you have toay to share with your Benefits Avisor. Compile a list of questions as you review your materials an other communications. If a Power of Attorney will be signing any enrollment forms on your behalf, be sure to have all legal ocumentation reay to submit to the insurance company an alert us when you call to confirm your appointment. Have your checkbook available for payment information (if require). Compare plans an choose: 1. Meicare Avantage Plan, or 2. Supplement (Meigap) an Prescription Drug Plan Enroll in your selecte plan: Enroll online or over the phone with your Benefits Avisor. If any forms are require, review, sign, ate, an return forms promptly. Choose automatic payment options available from the insurance company to ensure efficient payments of your premiums each month. Your new insurance company will contact you to verify your enrollment (a Meicare requirement intene to protect you). Please take requeste action promptly. Neglecting to o so coul elay your coverage. Receive an carefully review your insurance cars an plan information from your new insurance company. Begin making premium payments each month. Consier using automate payment methos when available. Carefully review information that you receive from your insurance company throughout the year. Plan prices an coverage levels can change. Now, let s get starte 4 5

4 Learn About Meicare Parts A an B Meicare is the nation s largest health insurance program. It s esigne to provie coverage for people age 65 an oler, people uner age 65 who have permanent isabilities, an people of any age with en-stage renal isease permanent kiney failure requiring ialysis. What are the primary elements of Meicare Parts A an B coverage? Coverage Meical Services Prescription Drugs Financial Protection How to Apply Online As a reminer, to enroll in a meical plan through the Aon Retiree Health Exchange, you must have coverage in BOTH Meicare Parts A an B. If you currently have this level of coverage, you can begin to learn more about Meicare, explore available meical an prescription rug coverage options, an enroll either with the help of a Benefits Avisor or on your own online by following the steps below. To access the website, you will nee your iniviual account logon information, which was inclue with this guie. 1 Beginning October 1, 2014, you can use Fin Plans to see the etails an prices of the meical an prescription rug coverage options available in your area for Use the sorting tools to focus on coverage features that are important to you. 2 Choose your coverage an a to your cart. 3 Be sure to complete all require fiels on the online application (some information will be prefille for your convenience) an then move on to checkout. 4 Once you complete your application, you will be instructe to call an confirm your enrollment by proviing verification over the phone. This voice signature is require by the Centers for Meicare & Meicai Services (CMS) an is esigne to protect you from unauthorize enrollments. You can actually complete this step uring your scheule appointment or whenever you re reay. 5 To learn more about iniviual ental an vision options, be sure to review the information provie in aitional proucts available online. Part A Part B Inpatient care in hospitals Limite skille nursing care Hospice care services Home health services Doctors fees Outpatient hospital care Meical equipment an supplies None Limite* Limite Limite * With a few exceptions, most prescriptions are not covere. Please refer to the complete Meicare & You hanbook, available at for a full review of Meicare Parts A an B coverage. What s not covere by Meicare Parts A an B? The simple truth is that Meicare Parts A an B o not cover everything. Even if Meicare Part A or Part B covers a service or item, you ll still generally have to pay euctibles, coinsurance, an copayments without any annual limit on those costs. Generally, services an items not covere by Meicare Parts A an B inclue: Most outpatient prescription rugs Routine vision care Long-term care Routine ental care Dentures Cosmetic surgery Acupuncture Hearing ais an exams for fitting hearing ais Visit or call MEDICARE ( ; TTY ) 24 hours a ay/7 ays a week or contact the Aon Retiree Health Exchange for more information about Meicare. Please note: Each eligible iniviual will nee to take these steps to enroll in meical an prescription rug coverage online. 6 7

5 Meicare Part A What is Part A? Part A is hospital insurance that helps cover inpatient care in hospitals, skille nursing facilities, an hospice, along with home health care. What oes Part A cover? In general, Part A covers: Inpatient care in hospitals (such as critical access hospitals, inpatient rehabilitation facilities, an long-term care hospitals) Inpatient care in a skille nursing facility (not custoial or long-term care) Hospice care services Home health care services Inpatient care in a religious nonmeical health care institution How much oes Part A cost? Most people on t have to pay a premium for Meicare Part A because they or their spouse pai Meicare taxes while working. This is referre to as premium-free Meicare Part A. If you are not eligible an nee to purchase Meicare Part A, you can expect to pay a premium of up to $426 (in 2014) per month base on your work history. In most cases, if you choose to buy Part A, you must also have Part B an pay monthly premiums for both. Meicare Part B What is Part B? Part B is meical insurance that helps cover meically necessary services like octors services, outpatient care, urable meical equipment, home health services, an other meical services. Part B also covers some preventive services. Check your Meicare car to fin out if you have Part B. What oes Part B cover? Part B covers two types of services: Meically necessary Services or supplies that are neee to iagnose or treat your meical conition an that meet accepte stanars of meical practice. Preventive Health care to prevent illness (like the flu) or etect it at an early stage, when treatment is most likely to work best. Before you can purchase Meicare insurance that inclues meical coverage, you must enroll in Meicare Parts A an B. To fin out if something specific is covere uner Part A an/or Part B, visit or call MEDICARE ( ; TTY ). Ways to sign up for Meicare Parts A an B Visit your local Social Security office Call Social Security at (TTY ) Apply on the Social Security website, If you worke for a railroa, call your local Railroa Retirement Boar office or Be aware There is no out-of-pocket cap for Meicare Parts A an B. That s why it s important to consier enrolling in a Meicare insurance plan that can help you manage these out-of-pocket costs. The Aon Retiree Health Exchange can help you unerstan your coverage uner Meicare Parts A an B, explore your insurance options, an fin a solution that provies the protection you nee. How much oes Part B cost? If you have Part B, you will pay a premium each month. Most people will pay the stanar premium amount, which is $ in Social Security will contact those iniviuals who have to pay more base on their income. If you on t sign up for Part B when you re first eligible, you may have to pay a late enrollment penalty. 8 9

6 Your Meicare Insurance Options While Meicare Parts A an B cover a range of hospital an meical costs, there may still be some gaps in coverage. For more complete coverage, many people purchase aitional Meicare insurance. The Aon Retiree Health Exchange is here to help you fin an insurance plan that provies the safety net you nee to control out-of-pocket expenses. Options to consier: Option 1 Option 2 Meicare Avantage Plans provie meical benefits as goo as those covere by Meicare Parts A an B, with greater financial protection. Most Meicare Avantage Plans also inclue Meicare Part D Prescription Drug coverage, although there are many plans available without that coverage (if esire). OR Supplement (Meigap) Plans are esigne to fill the gaps of Meicare Parts A an B. However, these plans o not cover prescription rugs. Meicare Part D Prescription Drug coverage helps pay for the prescription rugs you may nee. A quick comparison: Coverage Meicare Avantage Meical Services Covers at least the same services as Meicare Parts A an B an may cover aitional services or supplies Prescription Drugs More complete coverage (many plans) Financial Protection More complete coverage (many plans) Meicare Cost Plans (available in Minnesota, North Dakota, South Dakota, an Wisconsin) are a type of Health Maintenance Organization (HMO). These plans may work in much the same way as Meicare Avantage Plans an have some of the same rules. In a Meicare Cost (MC) Plan, if you go to a non-network provier, the services are covere uner Original Meicare. You woul pay the Meicare Part A an Part B coinsurance an euctibles. For further etails relate to MC Plans, please ask your Benefits Avisor. Supplement (Meigap) Helps pay for services an supplies not fully pai by Meicare Parts A an B an may cover other items No coverage No prescription coverage Special Nees Plans (SNPs) are plans specifically esigne for those who are eligible for both Meicare an Meicai, or who have been iagnose with chronic conitions such as iabetes or cariovascular isease. Contact a Benefits Avisor to better unerstan these plans an the options available in your area. Meicare Part D Prescription Drug None More complete coverage More complete coverage 10 11

7 Option 1: Meicare Avantage Meicare Avantage Plans, sometimes calle Part C or MA Plans, are offere by private insurance companies an are approve by Meicare. If you join a Meicare Avantage Plan, you still have Original Meicare. You will always have your Meicare Part A an Part B, but the insurance company is responsible for coorinating your care an paying claims. In all types of Meicare Avantage Plans, you re always covere for emergency an urgent care. Meicare Avantage Plans must cover all the services that Original Meicare covers except hospice care. Original Meicare covers hospice care even if you re in a Meicare Avantage Plan. Meicare Avantage Plans aren t supplemental coverage. Meicare Avantage Plans may offer extra coverage, such as vision, hearing, ental, an/or health an wellness programs. Most inclue Meicare Prescription Drug coverage (Part D). How much oes a Meicare Avantage Plan cost? In aition to your Meicare Part B premium, you will usually pay a monthly premium for your Meicare Avantage Plan. This premium may vary, epening on the services covere. Note that there may be plans available that have no monthly plan premium. In most cases there are no euctibles, an for most meical services you will pay a copayment instea of coinsurance. Each plan is ifferent, so you nee to unerstan the specifics before enrolling in any plan. Meicare Avantage Plans have an out-of-pocket maximum, which provies you with financial protection by setting a yearly cap on how much you ll have to pay for health services. This protection oes not mean less coverage, however; Meicare Avantage Plans must cover all the services that Meicare Parts A an B cover, with the exception of hospice care (which remains covere uner Meicare Part A). Be aware Nee prescription rug coverage? Be sure it s inclue! If you choose a Meicare Avantage HMO, Point-of-Service (POS), or Preferre Provier Organization (PPO) Plan, you will not be able to enroll in a stan-alone Meicare Part D Prescription Drug Plan. Be sure that your approach to Meicare insurance coverage inclues prescription rug coverage before you enroll. Important consierations for plans To enroll in a Meicare Avantage Plan, you must be enrolle in Meicare Parts A an B. To receive maximum benefits from a Meicare Avantage Plan, you will generally nee to receive care from the octors, health care proviers, facilities, or suppliers who participate in the plan s network (if the plan inclues network limitations). Before traveling, you shoul always check with your provier to unerstan benefits available to you. The esign an specifications of Meicare Avantage Plans incluing premiums, copayments, euctibles, an covere services may change each year. To ensure that your nees are met, review available plans online or set up an appointment with your Benefits Avisor to evaluate your options

8 Option 1 (continue) Meicare Avantage Plan comparison chart Type Doctors an Hospitals Referrals Prescription Drugs Notes Premiums Health Maintenance Organization (HMO) Plans In most HMOs, you can only go to octors, other health care proviers, or hospitals on the plan s list except in an emergency. You may also nee to get a referral from your Primary Care Physician (PCP). Your PCP may nee to provie referrals for hospital an specialize care. HMO members cannot enroll in a stan-alone Meicare Part D Prescription Drug Plan. Be sure the HMO Plan you select inclues prescription rug coverage before you enroll. These plans are often the least expensive an can provie excellent value an well-coorinate care in areas where there are strong HMO Plans with an extensive network of proviers. $ Meical Savings Account (MSA) Plans MSA Plans combine a high-euctible health plan with a bank account. Meicare eposits money into the account (usually less than the euctible). You can use the money to pay for your health care services uring the year. Typically, no referrals are neee for hospital or specialize care. You must enroll in a stan-alone Meicare Part D Prescription Drug Plan if you want rug coverage. Your MSA will be fune up to a preset ollar amount each year. You use these funs to pay for services (excluing prescriptions) until you meet your euctible, which is usually higher than in other plans. Once you reach the euctible, you re responsible for paying coinsurance (a percentage of the costs) until you reach the out-of-pocket maximum, after which your insurer pays 100%. Any money remaining in your account at the en of the year carries over into subsequent years. $ Point-of-Service (POS) Plans POS Plans may allow you to visit octors an hospitals outsie their network for some covere services, usually for a higher copayment or coinsurance. Some POS Plans o not require referrals for specialty services. In most cases, yes, but ask the plan. If you want Meicare rug coverage, you must join an HMO Plan that offers prescription rug coverage. $$ Preferre Provier Organization (PPO) Plans In a PPO, you pay less if you use octors, hospitals, an other health care proviers that belong to the plan s network. You pay more if you use octors, hospitals, an proviers outsie of the network. Typically, you on t nee a referral. However, you may nee plan approval for certain services. Check with your plan provier for full etails. PPO members cannot enroll in a stanalone Meicare Part D Prescription Drug Plan. Be sure the PPO Plan you select inclues prescription rug coverage before you enroll. PPO Plans offer flexibility to choose from a wie range of health care proviers, often for an afforable price. $$ Private Fee-for-Service (PFFS) Plans PFFS Plans are similar to Original Meicare in that you can generally go to any octor, other health care provier, or hospital as long as they agree to treat you. The plan etermines how much it will pay octors, other health care proviers, an hospitals, an how much you must pay when you get care. No referrals are neee for hospital or specialize care. However, you may nee plan approval for certain services. Check with your plan provier for full etails. You can elect a PFFS Plan that has prescription rug coverage, or enroll in a stan-alone Meicare Part D Prescription Drug Plan. Some health care proviers o not accept PFFS Plans. Check with your octors to make sure they accept PFFS Plans before enrolling. $$ Special Nees Plans (SNPs) SNPs are specifically esigne for those eligible for both Meicare an Meicai an anyone who has been iagnose with certain chronic conitions such as iabetes or cariovascular isease. You generally get care an services from octors, other health care proviers, or hospitals in the plan s network (except emergency care, out-of-area urgent care, or out-of-area ialysis). In most cases, yes. Certain services, like yearly screening mammograms, on t require a referral. Yes. All SNPs must provie Meicare Part D Prescription Drug coverage. Plans shoul coorinate the services an proviers you nee to help you stay healthy an follow octors or other health care proviers orers. If you have Meicare an Meicai, your plan shoul make sure that all the plan octors or other health care proviers you use accept Meicai. If you live in an institution, make sure that plan proviers serve people where you live. $$ Other Types of Meicare Health Plans Meicare Cost (MC) Plans MC Plans are a type of Meicare Health Plan available in certain areas of the country. No referrals are neee for hospital or specialize care. However, you may nee plan approval for certain services. Check with your plan provier for full etails. You can elect an MC Plan that has prescription rug coverage, or enroll in a stan-alone Meicare Part D Prescription Drug Plan. Available in Minnesota, North Dakota, South Dakota, an Wisconsin $$

9 Option 2: Supplement (Meigap) + Meicare Part D Prescription Drug Supplement (Meigap) As the name suggests, Supplement (Meigap) insurance is esigne to fill gaps in Meicare Parts A an B coverage by assuming responsibility for various costs not covere by Original Meicare. While there are a number of ifferent Supplement (Meigap) Plans, their benefits are stanarize in each state. This means that within your state, the coverage of each plan offere by one insurance company will be the same as the coverage for the same plan offere by any other insurance company. The ifference among the Supplement (Meigap) Plans within your state lies in the etails of how much coverage they offer an which gaps they fill. How much oes a Supplement (Meigap) Plan cost? You will pay a monthly premium for your Supplement (Meigap) policy in aition to your monthly Meicare Part B premium. Premiums vary base on the plan you choose. Insurance companies may charge ifferent premiums for exactly the same coverage. Supplement (Meigap) Plans an their benefits: All states except Massachusetts, Minnesota, an Wisconsin The table below is a summary of what each stanarize Supplement (Meigap) Plan (A to N) covers. Most people consier Plan F the gol stanar. With Plan F, you only pay the monthly premium an pay nothing aitional for a Meicare-covere proceure when you see a octor or go to a hospital that accepts Meicare. (A check mark [] inicates areas where the plan pays 100% of the benefit cost.) 2014 Supplement (Meigap) Plans Supplement (Meigap) Benefits A B C D F 1 G K 2 L 2 M N 3 Meicare Part A Coinsurance an Hospital Costs (up to 365 ays after Meicare benefits are use up) Meicare Part A Hospital Deuctible 50% 75% 50% Skille Nursing Facility Care Copay/Coinsurance 50% 75% Be aware Supplement (Meigap) Plans o not cover prescription rugs. If you choose a Supplement (Meigap) Plan, consier enrolling in a Meicare Part D Prescription Drug Plan as well. Part A Hospice Care Coinsurance or Copayments 50% 75% Meicare Part B Deuctible Meicare Part B Coinsurance (generally 20%) 50% 75% 3 Meicare Part B Excess Charges Bloo (first three pints) 50% 75% Foreign Travel Emergencies (up to plan limits) 1 Some insurance companies offer a high-euctible version of Plan F, which requires you to pay a euctible of $2,140 before these costs are covere (in 2014). 2 Maximum out-of-pocket expenses of $4,940 for Plan K an $2,470 for Plan L apply (in 2014). 3 Plan N pays 100% of the Part B coinsurance, except for a copayment of up to $20 for some office visits an up to a $50 copayment for emergency room visits that on t result in an inpatient amission (in 2014)

10 Option 2 (continue) Supplement (Meigap) Plans an their benefits: Massachusetts, Minnesota, an Wisconsin only In these three states, stanar Supplement (Meigap) benefits work a bit ifferently. If you live in Massachusetts, Minnesota, or Wisconsin, please refer to the following information: Massachusetts benefits Inpatient Hospital Care: Covers the Meicare Part A (hospital insurance) coinsurance plus coverage for 365 aitional ays after Meicare coverage ens Meical Costs: Covers the Meicare Part B (meical insurance) coinsurance (generally 20% of the Meicare-approve amount) Bloo: Covers the first three pints of bloo each year Part A hospice coinsurance or copayment Massachusetts: Chart of stanarize Supplement (Meigap) policies (A check mark [] inicates that the benefit is covere.) Massachusetts Supplement (Meigap) Benefits Core Plan Basic Benefits Meicare Part A: Inpatient Hospital Deuctible Meicare Part A: Skille Nursing Facility Coinsurance Meicare Part B: Deuctible Foreign Travel Emergency Supplement (Meigap) 1 Plan Inpatient Days in Mental Health Hospitals 60 ays per calenar year 120 ays per benefit year State-Manate Benefits (annual Pap tests an mammograms; check your plan for other state-manate benefits) Minnesota benefits Inpatient Hospital Care: Covers the Meicare Part A coinsurance Meical Costs: Covers the Meicare Part B coinsurance (generally 20% of the Meicare-approve amount) Bloo: Covers the first three pints of bloo each year Part A hospice an respite cost sharing Parts A an B home health services an supplies cost sharing Minnesota: Chart of stanarize Supplement (Meigap) policies (A check mark [] inicates that the benefit is covere.) Minnesota Supplement (Meigap) Benefits Basic Plan Extene Basic Plan Manatory Riers Basic Benefits Insurance companies can offer Meicare Part A: Inpatient Hospital Deuctible Meicare Part A: Skille Nursing Facility (SNF) Coinsurance Meicare Part B Deuctible Provies 100 ays of SNF care Foreign Travel Emergency 80% 80%* Outpatient Mental Health 20% 20% Usual an Customary Fees 80% * Meicare-Covere Preventive Care Physical Therapy 20% 20% Coverage While in a Foreign Country State-Manate Benefits (iabetic equipment an supplies, routine cancer screening, reconstructive surgery, an immunizations) Provies 120 ays of SNF care 80% * four aitional riers that can be ae to a Basic Plan. You may choose any one or all of the following riers to esign a Supplement (Meigap) policy that meets your nees. Meicare Part A: Inpatient Hospital Deuctible Meicare Part B: Deuctible Usual an Customary Fees Non-Meicare Preventive Care *Pays 100% after you spen $1,000 in out-of-pocket costs for a calenar year. Minnesota versions of Supplement (Meigap) Plans K, L, M, N, an high-euctible F are available. Important: The Basic an Extene Basic benefits are available when you enroll in Part B, regarless of age or health problems. If you return to work an rop Part B to elect your employer s health plan, you will get another 6-month Supplement (Meigap) Open Enrollment Perio after you retire from that employer, when you can elect Part B again

11 Option 2 (continue) Wisconsin benefits Inpatient Hospital Care: Covers the Part A coinsurance Meical Costs: Covers the Part B coinsurance (generally 20% of the Meicare-approve amount) Bloo: Covers the first three pints of bloo each year Part A hospice coinsurance or copayment Wisconsin: Chart of stanarize Supplement (Meigap) policies (A check mark [] inicates that the benefit is covere.) Wisconsin Supplement (Meigap) Benefits Basic Plan Optional Riers Basic Benefits Meicare Part A Skille Nursing Facility Coinsurance Inpatient Mental Health Coverage Home Health Care 175 ays per lifetime in aition to Meicare s benefit 40 visits in aition to those pai by Meicare Insurance companies are allowe to offer the following aitional riers to a Supplement (Meigap) policy: Part A Deuctible Aitional Home Health Care (365 visits incluing those pai by Meicare) Part B Deuctible Part B Excess Charges Foreign Travel Emergency Important consierations for plans in all states To enroll in a Supplement (Meigap) Plan, you must be enrolle in Meicare Parts A an B. Although most Supplement (Meigap) Plans cover expenses from any health care provier that accepts Meicare, some Supplement (Meigap) companies also offer a Meigap SELECT Plan. Meigap SELECT Plans provie coverage only within a efine network of proviers. Before you purchase a Meigap SELECT Plan, check to make sure that your hospital is inclue in that particular plan s network. Most Supplement (Meigap) Plans on t require a copayment or coinsurance for hospital charges. If you buy coverage when you first become eligible at age 65, or if your company stops proviing a group retiree health plan, you are guarantee to qualify for a wie variety of Supplement (Meigap) Plans an may not be require to pass any health screening by the Supplement (Meigap) insurer. State-Manate Benefits 50% Part A Deuctible Part B Copayment or Coinsurance 20 21

12 Option 2 (continue) Meicare Part D Prescription Drug Meicare Part D Prescription Drug coverage helps you pay for prescription rugs that are not covere by Meicare Parts A an B. Meicare Part D Prescription Drug coverage is insurance available from an insurance company or other private company that is approve by Meicare. How much oes Meicare Part D Prescription Drug coverage cost? The cost of Meicare Part D Prescription Drug coverage varies with the plan you choose. As with most other insurance plans, you must pay a monthly premium for your Meicare Part D Prescription Drug Plan, upon which the coverage works as follows: Expense Description Your Cost (varies by plan; 2014 approximate ranges) There are two ways in which you can obtain the prescription rug coverage you nee: Meicare Part D Prescription Drug Plans (PDPs) can be ae to Meicare Parts A an B, an while most commonly ae to Supplement (Meigap) Plans, they can also be ae to other types of Meicare Plans (Meicare Avantage, Cost Plans, etc.). Meicare Avantage Prescription Drug (MAPD) Plans are Meicare Avantage Plans (see page 10 for etails) that inclue prescription rug coverage. If you enroll in a Meicare Avantage Prescription Drug Plan, you will not nee to enroll in a separate PDP. Note that while most Meicare Avantage Plans cover prescription rugs, some plan types allow you to a rug coverage if it s not alreay inclue. Premium This is the monthly cost of your Meicare Part D Prescription Drug Plan coverage in aition to your Part B premium. Regarless of whether you use your plan to purchase prescription rugs, you will be responsible for paying this premium. $0 $100 per month Important consierations for plans Deuctible Coinsurance This is the amount you pay out of pocket for your prescriptions each year before your plan begins to pay. Some plans on t have a euctible. Once you ve satisfie your euctible (if require), you an the Meicare Part D Prescription Drug Plan share the cost of your prescriptions. This is a percentage of the total cost of the prescription. The amount may vary epening on whether you require a bran-name or generic prescription. $0 $310 per year Depens on plan You must be enrolle in Meicare Part A an/or Part B before you can enroll in a Meicare Part D Prescription Drug Plan. Unless you have coverage from another source that is consiere comparable to Meicare s (known as creitable coverage), you may pay a penalty if you on t enroll in Meicare Part D Prescription Drug coverage when you are first eligible. Each Meicare Part D Prescription Drug Plan has a formulary, which is a list of approve rugs. All rugs liste on your plan s formulary will be covere by the plan. The goo news is that all Meicare Part D Prescription Drug Plans must cover meications that treat almost every meical conition. If you have limite income an assets, you may be eligible for the Extra Help program to pay your premiums an rug costs. Contact the Social Security Aministration at or by calling (TTY ) for more information. If you have other prescription rug coverage, such as Veterans Affairs (VA) coverage, you may not nee aitional Part D rug coverage. Be sure to iscuss any other rug coverage you have with your Benefits Avisor. Copayment Coverage Gap, or Donut Hole Catastrophic Coverage Some plans require that you pay a set ollar amount for each prescription, as oppose to a percentage of its cost (see Coinsurance above). This amount may vary epening on whether you require a bran-name or generic prescription. Coinsurance an copayments are often either/or, so you ll rarely have to pay both. Most Meicare Prescription Drug Plans have a coverage gap, or onut hole. This means that after you an your plan have spent a certain amount of money for covere prescriptions, you may have to pay higher costs out of pocket for other prescriptions, up to an annual limit. If, over the course of a calenar year, your spening on covere prescription rugs excees a preset limit, your plan s catastrophic coverage will begin to provie a safety net for you. Once that happens, the Meicare Part D Prescription Drug Plan will cover about 95% of the cost of your prescriptions. The exact amount you nee to spen before catastrophic coverage begins epens on the type of prescriptions you require. Depens on plan Once you enter the coverage gap, you pay 47.5% of the plan s costs for covere bran-name rugs an pay 72% of the plan s cost for covere generic rugs until you reach the en of the coverage gap. Some plans provie aitional coverage in the onut hole. There will be aitional savings in the coverage gap each year through After your out-of-pocket costs (incluing the rebate for bran-name rugs purchase in the coverage gap) reach $4,550 (in 2014), you will then pay only a small percentage of your prescription costs

13 Making the Right Choice: Meicare Avantage or Supplement (Meigap)? Fining the right Meicare insurance can be challenging, but your Benefits Avisor is reay to help you explore your options, unerstan the ifferences between iniviual plans, an help you enroll all at no cost to you. In short, we are eicate to helping you fin a plan that fits your nees an protects you against the rising cost of health care services an prescriptions. The result: You have greater peace of min. Compare Meicare Avantage an Supplement (Meigap) Plans: Typical Monthly Premium Copayments/ Coinsurance/ Deuctibles Average Annual Maximum Out-of-Pocket Expense Health Care Provier Prescription Drug Coverage Other Consierations Meicare Avantage (with prescription rug coverage) About $50 on average $150 $300 Varies by plan Supplement (Meigap) + Meicare Part D Prescription Drug Plan Varies by plan $3,000 $6,700 Varies by plan Varies by plan; some restrictions or network pricing for certain proviers may apply Yes (often inclue or available via enrollment in a stan-alone Meicare Part D Prescription Drug Plan) Can be a goo value for many retirees since less expensive than Supplement (Meigap) Plans Plans can change every year Some plans have extra benefits available Meical unerwriting not require See any Meicare provier Yes (via enrollment in a stan-alone Meicare Part D Prescription Drug Plan) Generally a goo value if you nee frequent meical care Plans are stanarize Covers Meicare services only Meical unerwriting may be require Important plan information The benefit information provie in this guie is a brief summary, not a complete escription of benefits. For more information, contact the appropriate plan. Limitations, copayments, an restrictions may apply. Benefits, formulary, pharmacy network, premium, an/or copayments/coinsurance may change on January 1 of each year. Be sure to rea any information sent to you by your selecte insurance company. You must continue to pay your Meicare Part B premium to maintain enrollment in a meical plan. A Private Fee-for-Service (PFFS) Plan is not a Supplement (Meigap) Plan. Proviers who o not contract with the plan are not require to see you except in an emergency. Meical Savings Account (MSA) Plans combine a high-euctible Meicare Avantage Plan an a trust or custoial savings account (as efine an/or approve by the IRS). The plan eposits money from Meicare into the account. You can use this money to pay for your health care costs, but only Meicare-covere expenses count towar your euctible. The amount eposite is usually less than your euctible amount, so you generally have to pay out of pocket before your coverage begins. Meicare MSA Plans on t cover prescription rugs. If you join a Meicare MSA Plan, you can also join any separate Meicare Prescription Drug Plan. There are aitional restrictions to join an MSA Plan, an enrollment is generally for a full calenar year unless you meet certain exceptions. Those who isenroll uring the calenar year will owe a portion of the account eposit back to the plan. Contact the plan for aitional information. Meicare has neither reviewe nor enorse this information. Might Make Sense if You Are open to potentially changing your octors since the network is efine Visit your octors rarely an on t min paying per-visit copayments an coinsurance Woul prefer to receive your benefits from one plan, have one car, an pay one premium Want flexibility in choosing your octors since Supplement (Meigap) is accepte by all octors who accept Meicare Visit your octors frequently since copayments an coinsurance for visits are generally covere by your premium, epening on the plan you select Travel extensively since Supplement (Meigap) is wiely accepte 24 25

14 Help After You Enroll Services through the Aon Retiree Health Exchange o not stop after you enroll. If you have questions about your plan or problems resolving an issue with your insurance plan provier, help is just a phone call away. If you enrolle in a Meicare insurance plan through us, our avocacy services are available to you free of charge. Our avocates are experience with Meicare insurance plans, billing proceures, claims an appeals, an solving access-to-care problems. Beyon their professional expertise, they also unerstan how frustrating an stressful any issues you encounter can be. That s why they re eicate to proviing expert guiance an the solutions you nee, whenever you nee them. What to o if you have questions or issues 1 First, start by contacting your insurance plan provier. If you have an issue regaring a bill or have a coverage question, always call your insurance company first to attempt to resolve the issue. 2 Next, contact your Benefits Avisor. Your Benefits Avisor will be your primary contact for Meicare insurance-relate questions. However, you can also call our team of professional avocates to help resolve your issue whether that means fining a solution themselves or connecting you with someone who can. Overview of what avocates can o for you Help resolve Meicare insurance claims, billing isputes, an other issues. Research an resolve tough health care an benefits issues, incluing access to care, eligibility, claims, an Meicare questions. Apply their comprehensive unerstaning of your benefits plan to research, ientify, an implement solutions to help resolve your challenge. We are here to help you Your personalize letter inclues a special phone number that will connect you to a license Benefits Avisor, as well as logon information for our website. You can also contact us at: Phone: Web: (TTY use 711 relay), Monay Friay, 8 a.m. 8 p.m. Central time. Close on holiays. retiree.aon.com What to expect going forwar Generally, you o not nee to enroll each year, provie you continue to like your plan an can continue to pay the premiums if they were to change. However, here are a few things to consier each fall: We will sen you a reminer that the Meicare Open Enrollment Perio is approaching. The Meicare Open Enrollment Perio is usually October 15 December 7 each year. Your insurance provier is require to sen you information about plan or pricing changes as well. Always open, review, an save information provie by your insurance carrier(s). If you are comfortable with those changes, no action is require. If you wish to consier new options, tools are available to you online that will help you compare your options an apply for new coverage. If you nee assistance from your Benefits Avisor, please call or go online to scheule an appointment

15 Contacts an Resources Call my Benefits Avisor: Notes Meicare Call MEDICARE ( ; TTY ), available 24 hours a ay/7 ays a week Go online Social Security Visit your local Social Security office Call (TTY ) Go online Railroa Retirement Benefits Call your local Railroa Retirement Boar office or Go online Other special resources: 28 29

16 You Nee More Coverage have coverage. Aren t Meicare Parts A an B enough? Notes people, Meicare alone oes not provie a comprehensive safety net for re expenses. While Meicare Parts A an B help to provie coverage for some n meical costs, the fact remains: For many people, it s often not enough. of potential gaps in coverage, many people purchase aitional insurance to help buil more complete coverage an provie omprehensive safety net. more complete coverage re an B Meicare Insurance Meicare Avantage (most plans inclue prescription rug coverage) OR Supplement (Meigap) + Meicare Part D Prescription Drug More complete, comprehensive coverage an better financial protection Important notice This guie is not intene to replace information available to all Meicare recipients in the Meicare & You hanbook available through Meicare. We encourage you to review this an all information available at which will provie you with complete etails about Meicare plans, incluing beneficiary rights, coorination of care, preventive services, how to change plans, state assistance options, efinitions, an more

17 About Us Private Aon Retiree Health Exchange services are available through Aon Hewitt Health Market Insurance Solutions Inc, a thir-party marketing organization (TMO), retaine to sell or promote a plan sponsor s Meicare proucts on the plan sponsor s behalf who hols the contract with the feeral government. Aon Hewitt Health Market Insurance Solutions Inc is an Aon Hewitt company. Aon Hewitt is the global leaer in human capital consulting an outsourcing solutions. The company partners with organizations to solve their most complex benefits, talent, an relate financial challenges, an improve business performance. Aon Hewitt esigns, implements, communicates, an aministers a wie range of human capital, retirement, investment management, health care, compensation, an talent management strategies. With 30,000 professionals in offices across six continents, Aon Hewitt makes the worl a better place to work for clients an their employees. For more information on Aon Hewitt, please visit Copyright 2014 Aon Hewitt Health Market Insurance Solutions Inc Aon Retiree Health Exchange is available through Aon Hewitt Health Market Insurance Solutions Inc California Agency License Number: 0E97576, Arkansas Agency License Number: , DBA in North Dakota: Aon Hewitt Health Insurance Agency Solutions Inc, Fictitious Name in New York Aon Hewitt Health Insurance Agency Solutions While every attempt is mae to keep this information correct an up to ate, nothing containe herein is to be construe as a guarantee that it is. We take no responsibility or liability for any actions taken as a result of using the information presente in this booklet. We will not be liable as a company or as iniviuals for amages, losses, or other expenses incurre as a result of reaing this material or for any other reason. 32 RHX