Frequently Asked Questions: DuPont Retiree Health Plan Changes

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1 New questions and answers added after September 6th, 2012 are shown in blue. The following questions and answers are general in nature. Medicare eligible retirees with specific questions regarding the change should call Extend Health at Active employees and retirees who are not yet eligible for Medicare may call the MyInfo Service Center for assistance with current medical and dental benefit plan questions. General Questions G 1. G 2. G 3. G 4. G 5. G 6. G 7. Why is DuPont making this change? There are so many individual health insurance plans available to Medicare eligible retirees today that it no longer makes good business sense to continue to administer a custom group plan. DuPont is replacing the group plan with a Health Reimbursement Arrangement (HRA) that can be used toward the purchase of individual Medicare supplement plans and dental coverage. This new approach is expected to benefit both retirees and the Company. For participants, it provides more plan choices with more personal flexibility. For DuPont, the change will help stabilize plan costs, and simplify administration of DuPont retiree health care benefits. Who does the change impact? DuPont U.S. retirees and their covered dependents who are receiving medical and/or dental coverage from DuPont and are: Age 65 or older Under age 65 and eligible for Medicare due to a disability other than end-stage renal disease. Who is not impacted by the change? Active employees and their covered dependents (regardless of age) Retirees and their covered dependents who are under age 65 and not yet eligible for Medicare Employees and retirees of Pioneer, Danisco, Genencor, MECS, Solae and other DuPont affiliate companies Will retirees who declined DuPont medical or dental coverage in the past receive an HRA? No. The decline rules of the DuPont retiree medical and dental plans continue to apply. These rules are noted in the Summary Plan Description. If you have questions regarding the decline rules, please contact the MyInfo service center. The HRA is for Medicare-eligible individuals. What about retirees, spouses and dependents who are not yet eligible for Medicare? Retirees, spouses and dependents who are covered today will continue with coverage -- Medicare individuals will be eligible for the HRA and will need to enroll in individual plans through Extend Health. Pre-Medicare individuals will continue in the DuPont retiree group medical and dental plans that are offered today. Will retirees see an increase in their out of pocket expenses as a result of this change? In most cases, retirees out-of-pocket expenses should be lower when covered under an individual Medicare supplement plan than compared to what their out-of-pocket expenses would have been under the DuPont plan. Many Medicare Supplement plans provide benefits which pay the Medicare Part B deductible and 20% coinsurance amounts, items which the DuPont plan did not reimburse unless you had met the catastrophic stop loss amount. And, some Medicare Advantage plans include dental and vision benefits, providing even more opportunities for savings. Will retirees pay for their new insurance plans through a deduction in their pension checks? 1 P age

2 No. Insurance plans purchased through Extend Health will not be set up for premium deduction out of retirees pension checks. Retirees may discuss premium payment options such as automatic checking account deductions with Extend Health. G 8. G 9. G 10. G 11. G 12. How will this change stabilize costs for DuPont? Because the HRA is a flat amount and is not indexed to increase every year, DuPont annual costs are not subject to fluctuating claims experience. How many other companies have changed from self-funded health coverage to an HRA? Many large companies have made a similar change. Extend Health has assisted over 200 other companies, including GM, Ford, Honeywell, 3M and Caterpillar, in making similar Medicare retiree health plan changes. What other benefit changes are coming? As usual, changes to the employee and pre-medicare retiree health benefits will be announced during the fall annual benefits enrollment period. The Company continually reviews the benefit plans for competitiveness and updates plans as appropriate. What if I cover both a Medicare-eligible and a pre-medicare individual on my DuPont retiree medical and/or dental plan? DuPont will contribute an HRA amount based on the number of Medicare-eligible individuals covered on the retiree s medical and/or dental coverage. The Medicare-eligible individuals will need to enroll in individual plans through Extend Health. The pre-medicare individuals will remain on the DuPont group medical and dental coverage until they become eligible for Medicare. Contact MyInfo at with questions on health care coverage for pre-medicare individuals. I am an active employee who covers a Medicare-eligible dependent on my medical and dental plans. Will my Medicare-eligible dependent s coverage change? All active employees and their covered dependents remain in the DuPont BeneFlex plans with DuPont as the primary payer. Upon retiring from DuPont, you will be provided with an HRA contribution for your Medicare eligible covered dependent. Your Medicare eligible dependent must purchase coverage through Extend Health and you, as the retiree, must continue to participate in the DuPont medical and dental plans in order to receive the HRA contribution. G 13. How does this impact me if I m planning on retiring at the end of 2012 and am over age 65? Or what if I retire mid-year in 2013, when do I enroll? Once you ve submitted your intent to retire with DuPont Connection, you will receive information from Extend Health regarding your enrollment timing and process. If you retire mid-year and are age 65 or older, you will need to enroll in a new plan through Extend Health prior to retirement so that your new coverage takes effect the first of the month following your retirement. G 14. G 15. I am a Medicare eligible retiree and cover my spouse who is under age 65 and not yet eligible for Medicare. Will my spouse s premium for the DuPont medical and dental plans still come out of my pension check? Yes. Premiums for retirees or their dependents who are not Medicare eligible will continue to be deducted from the retirees pension check. For my prescriptions, will I be able to refill them or will I need to get a new prescription from my doctor? At a retail drug store, you can show your new ID card beginning January 1, 2013 and purchase a refill of an existing prescription on file at that same retail pharmacy. If you change pharmacies (for example from Walgreens to Rite Aid) then you will need to get a new prescription. 2 P age

3 If you have a mail order prescription at Medco, you will need to get a new prescription to obtain your medication beginning January 1, 2013 unless you choose the Express Scripts Medicare (PDP) as your prescription plan carrier. Express Scripts and Medco are now one company. As a result, the Medco Pharmacy is now part of the Express Scripts family of pharmacies and is included in the Express Scripts Medicare (PDP) network. If you choose a prescription plan other than the Express Scripts Medicare (PDP), you must get a new prescription from your physician. G 16. What happens if I don t enroll in a plan through Extend Health before December 31, 2012? If you are a Medicare eligible retiree and do not enroll in a plan through Extend Health during the enrollment period, you will lose coverage. The DuPont retiree medical plan coverage is ending on December 31, 2012 for Medicare eligible individuals and is being replaced with HRA accounts. G 17. G 18. G 19. G 20. G 21. G 22. Will our current Medicare part A and B coverage change? Our cost are taken out of our Social Security checks. Is this insurance replacing our current health insurance with Aetna? Your Medicare part A and B premiums will not change and will continue to be taken out of your Social Security checks. The medical plan you purchase through Extend Health will replace the DuPont retiree medical coverage (administered by Aetna) which was secondary to Medicare. You will still have Medicare coverage. Extend Health offers Medicare Supplement plans (also called Medigap plans) that pay benefits after Medicare has already paid its share. What if I only have DuPont retiree dental coverage and no DuPont retiree medical coverage? Do I still need to buy a plan through Extend Health or can I stay on the DuPont dental benefits? If you are Medicare eligible and have only dental insurance with DuPont, you will receive a HRA account for dental only ($200). You must buy a dental plan through Extend Health in order to qualify for the HRA. The DuPont retiree dental benefits for Medicare eligible individuals is ending on December 31, 2012 and being replaced with the HRA. (Note that purchasing a dental plan is optional for retirees who also have DuPont medical coverage.) Will HRA medical and dental plan participants be able to change insurance coverage as their needs change by selecting different carriers or plans? Once enrolled with a plan selection in 2013, can I change my plan selection for 2014? Yes. Each year during the Medicare annual enrollment period you may change plans through Extend Health. However, during these annual enrollment periods your current medical conditions may limit the plans available to you. Please contact Extend Health for details. I have not received the mailing. Who do I call? If you did not receive the DuPont announcement dated August 15 th, go to to obtain a copy. If you did not receive the subsequent Getting Started Guide or Enrollment Guide, please contact Extend Health toll free at Will the current life insurance with Prudential and the long-term care with MetLife still exist? Yes. The DuPont retiree life insurance and MetLife individual Long-Term Care insurance (for retirees who purchased a policy) continue and are not impacted by the change to DuPont retiree health benefits. What coverage options will be offered to retirees living outside the U.S. (who cannot use Medicare outside the U.S.)? Retirees living outside the U.S. may use their HRA to reimburse international health care expenses. Contact Extend Health for details. 3 P age

4 G 23. G 24. G 25. A local insurance broker/agent is asking me to buy a medical plan through their office. Do I have to buy through Extend Health? You must buy a medical plan through Extend Health (and not a local insurance broker, agent, or directly from the insurance company) in order to receive your HRA from DuPont. My spouse is still actively employed. Can I be covered on my spouse s medical plan instead of buying a plan through Extend Health? If I don t enroll in a plan through Extend Health, can I come back and get an HRA when my spouse s employment ends? DuPont allows retirees to decline medical and/or dental coverage. If you do not enroll in a plan through Extend Health, you will be considered to have declined coverage and will not receive an HRA. A decision to decline coverage is considered permanent and irrevocable except if you decline while covered under another group plan and request to be reinstated within 60 days of losing eligibility in the other group plan. For example, if your spouse covers you on his/her medical plan from the day you decline DuPont coverage until the day you lose eligibility for your spouse s coverage (such as when his/her employment terminates) then you qualify to be reinstated in the DuPont plan if you request reinstatement within 60 days of losing eligibility in your spouse s plan. Please contact the MyInfo Service Center to obtain more information about declining your DuPont coverage. There is currently a monthly deduction from my DuPont pension check for medical and dental insurance. Will this deduction be dropped when the new Extend Health plan begins on January 1, 2013? Yes. DuPont no longer takes a pension deduction for medical and dental coverage for Medicare eligible individuals beginning January 1, Medicare eligible individuals pay their premiums directly to the insurance company and should use the DuPont HRA account to reimburse premiums and other qualifying out-of-pocket health care costs. You will only have a pension deduction for medical and dental insurance if you or one of your dependents is not yet eligible for Medicare and therefore still covered on the DuPont group plan. Plan Design Related Questions P 1. P 2. P 3. Will the Extend Health plans be as good as the DuPont medical and dental plans? Individual Medicare plans work differently than group health insurance plans. Extend Health works with the top national and regional insurance companies to ensure that retirees will have quality individual plan options. The multiple options give retirees the ability to find a plan that closely matches their specific needs. Which medical plan available through Extend Health is most like the DuPont plan that Medicare-eligible retirees have now? It's impossible to make an apples-to-apples comparison of the DuPont medical plan with the medical plans available through Extend Health. For comparison purposes, the current DuPont plan is like a "lean" Medigap plan (e.g. Medigap Plan N or the high deductible version of Medigap Plan F). How do the health plans available through Extend Health compare to the current DuPont medical coverage? Currently, DuPont provides retiree medical benefits that pay on a secondary basis to Medicare. Our plan does not reimburse the Medicare Part B deductible or the coinsurance of 20%. For years, retirees have been questioning why our retiree medical plan doesn t cover those items the deductible and 20% coinsurance. By replacing our retiree medical plan coverage with an HRA, retirees will have flexibility to purchase the coverage they want while still having stop loss protection for high cost illnesses. 4 P age

5 A wide selection of Medicare supplement, Medicare Advantage, and prescription drug plans are available. Carriers and options vary by area. P 4. P 5. P 6. How do the dental plans available through Extend Health compare to the current DuPont dental coverage? Extend Health offers a choice of two plans in each state: a low coverage plan and a high coverage plan. Like both the DuPont Limited and Standard dental options, both plans cover preventive care at 100% with no deductible in-network. For restorative dental care, the dental plans offered by Extend Health cover a larger portion of the cost of care in-network. Coverage is also available out-of-network. DuPont provides an annual $200 HRA contribution for retiree dental. How will a preexisting medical condition impact my ability to obtain or the cost of my medical insurance? If you are over 65 and eligible for Medicare, a preexisting medical condition will not impact your ability to obtain or the cost of your medical insurance if you enroll prior to December 31, The initial 2012 enrollment for current Medicare eligible retirees is a special enrollment period during which the insurance carriers will provide policies to DuPont retirees on a guaranteed issue basis. Similarly, retirees under age 65 have a special enrollment period when turning age 65. The cost of the insurance varies based on the carrier, plan and area. Some Medicare Supplement plans also have costs that vary by age. Please contact Extend Health for questions regarding the medical plans and costs in your area. Do any of the medical plans provide catastrophic coverage (also called stop loss )? Yes. Note however that Medigap plans currently cover 100% of the cost of inpatient hospital care beyond the 150 days covered by Medicare, up to a maximum of 365 lifetime days. Details vary by Plan. Please ask Extend Health for details during your benefit enrollment session. P 7. The DuPont retiree prescription benefits didn t have a donut hole. Will we have one now? 5 P age

6 The Medicare Part D prescription benefit donut hole is gradually being filled in over the next few years, due to actions taken by the federal government. For 2013, the donut hole only applies to individuals who have over $2,970 in prescription drug expenses for the year. The brand-name drug manufacturers pay 50% of the cost of brand-name medications in the donut hole period and many Part D plans offer generic drug coverage during the donut hole. A variety of Part D plans are available. Please discuss plan options with Extend Health during your plan enrollment call. Health Reimbursement Arrangement (HRA) Questions HRA 1. How much will the annual HRA amount be? At the beginning of each calendar year, DuPont will place the following amounts into each Medicare eligible participant s HRA: HRA 2. How was the HRA amount determined? The HRA amount is based on the projected 2013 DuPont cost per person, on average. P 8. The DuPont annual HRA contribution for two persons is $2800 (medical & dental). Is each person limited to $1400 or can one person use more than $1400 of the contribution if the other person uses less? The HRA funds for the retiree and covered dependents are combined into a single account with no limit on the amount available for any one person. In the case of a retiree and spouse with a $2,800 HRA, the retiree and spouse may have different insurance needs and health care costs. The combined HRA gives the retiree the flexibility to use the funds for either spouse s eligible health care expenses. HRA 3. Will the HRA amount be prorated based on age and service factors? Yes. The same proration factor that currently applies to medical and dental premiums will be applied to the HRA. For example, if you have a 50% proration factor, you will receive an HRA contribution that is 50% of the standard amount. HRA 4. Will the HRA amount be prorated for individuals who become eligible for Medicare midyear? Yes. For example, if you age into Medicare on July 1 (which is 50% of the way through the year), you will receive an HRA contribution which is 50% of your normal annual HRA contribution amount. In subsequent years, you will receive your full HRA contribution amount. HRA 5. Will the HRA increase every year? No. The HRA is a flat amount and is not indexed to increase every year. 6 P age

7 HRA 6. What if costs go up? Will the HRA contribution amount increase proportionately? No one knows what the health care insurance market will be like in the future. However, given the fact that the Medicare supplement insurance market has been in place for many years, it has become highly efficient at providing insurance at a reasonable price. Based on this fact, the HRA contribution provides an adequate subsidy to assist retirees with meeting their health care insurance expenses. Therefore the HRA contribution will not increase. The wide variety of individual plans and premium levels allow retirees to control their costs through plan selection. Unused HRA amounts roll over from year to year, providing retirees with the ability to manage their account funds over time. HRA 7. Will DuPont's contribution to the HRA be enough to cover the premiums of an individual Medicare supplement plan? In most cases, DuPont s contribution will not cover the full premium cost of an individual Medicare supplement plan but will provide the opportunity for most retirees to save on the total of premiums and out-of-pocket costs. The costs of individual plans vary from plan to plan. Some plans have a low premium and require higher cost-sharing at the time services are used. Other plans have a higher premium but cover most out-of-pocket costs for care received. Retirees now have the ability to choose the plan that best suits their needs and use their HRA from DuPont to reimburse premiums, out-of-pocket costs for care, or both. HRA 8. Do I have to buy a medical plan through Extend Health in order to get the HRA? Yes. If you have DuPont medical coverage prior to the change and want to receive an HRA, you must replace your DuPont medical coverage with a medical plan purchased through Extend Health. If you have only dental coverage with DuPont and not medical coverage, you must buy a dental plan through Extend Health rather than a medical plan. HRA 9. I already have a Medicare Supplement plan. Will I have to buy a different one through Extend Health? Please discuss your personal situation and options regarding your existing Medicare Supplement plan with Extend Health during your enrollment call. HRA 10. What if I have Tricare (military) medical coverage, do I still have to buy a plan through Extend Health in order to get the HRA? Yes. HRA 11. Can I just buy a prescription plan (a Part D plan) and not a medical plan and still get the HRA? No. You must buy a medical plan through Extend Health in order to receive the HRA. (See HRA 8 above for exceptions.) Purchasing a prescription plan, a dental plan or a vision plan is optional and will not impact the amount of your HRA. HRA 12. What kinds of expenses can I use the HRA to reimburse? Expenses reimbursed from your HRA must be for the participant for whom DuPont is contributing to the HRA. For example, if both you and your covered spouse are receiving HRA amounts from DuPont, the HRA can be used to reimburse out-of-pocket health care expenses for you and your spouse but not for anyone else. In addition, the expenses must be of the types permitted by the IRS. These include: o Premiums for medical, prescription, dental and vision plans purchased through Extend Health o Deductible, coinsurance, and out-of-pocket amounts you pay for your own health care HRA 13. What kinds of expenses are not eligible for HRA reimbursement? o Expenses for individuals other than the HRA participants. 7 P age

8 o o o o Medicare Part B premiums Tricare (military) premiums Employer group premiums (if you are covered by another employer plan) Long Term Care insurance premiums or custodial care out-of-pocket expenses (such as residential care charges at a long term care facility) HRA 14. What forms do I have to send in to be reimbursed for the various expenses? Details on how to request reimbursement from your HRA will be sent to you from Extend Health in late December HRA 15. Will we be able to submit charges to collect HRA money during the year or just at the end of the year? You may be reimbursed from your HRA at any time during the year. HRA 16. If the retiree or spouse dies, what happens to the HRA account? In the event of a death, the couple s joint HRA balance may be used by the surviving retiree or the spouse if the spouse qualifies as Survivor*. Beginning the next year, DuPont will deposit only a single HRA amount (rather than a HRA amount for two people) into the account on an annual basis for the remaining eligible individual. *A spouse of a retiree who has named a parent or step-parent to receive the pension plan s Company- Paid Survivor Benefit would only be eligible for COBRA coverage upon the death of the retiree. HRA 17. If I receive a $1,400 HRA because I have DuPont medical and dental coverage, do I have to buy a dental plan through Extend Health or only a medical plan? You only have to buy a medical plan through Extend Health in order to receive your $1,400 HRA. Dental, vision, and prescription plans are optional. HRA 18. I have Veterans Administration (VA) drug benefits. Do I have to buy prescription benefits through Extend Health? You only need to buy a medical plan through Extend Health (i.e. a Medicare Supplement or Medicare Advantage plan). Purchasing a Medicare Part D prescription drug plan is optional. HRA 19. Is the HRA dollar amount based on earnings? No. The HRA dollar amounts do not vary by the amount of your pension. Note that if you are a low income retiree you may qualify for government assistance in helping to pay for your health care costs. Please contact the Social Security Administration for information regarding low income subsidies. Extend Health Related Questions EH 1. EH 2. What qualifications do the Extend Health Benefits Advisors have? The Extend Health Benefit Advisors are licensed insurance professionals. They have passed the state insurance exams and licensing criteria for the retiree s home state. Licensing requirements vary from state to state but generally require a background check, rigorous exams to ensure proficient knowledge, and appropriate experience. In addition, they have been trained to specifically service DuPont retirees and have been educated to understand the DuPont 2012 health plans and 2013 HRA. Will Medco (now Express Scripts) have a prescription plan available for retirees to purchase through Extend Health? Yes. Express Scripts is scheduled to have a prescription drug plan available through Extend Health. 8 P age

9 EH 3. Will the existing DuPont medical, dental, and pharmacy carriers be on the Extend Health list of plans? The insurance carriers and plans available through Extend Health will vary by local area. The 2013 list of plans will be available in early October. Extend Health is scheduled to offer dental plans through Delta Dental and Humana, rather than MetLife. They are also scheduled to offer the Express Scripts Medicare (PDP) prescription plan (Medco) as one of several prescription drug plans. Aetna and Cigna are also expected to have plans available in many locations. EH 4. EH 5. EH 6. Why isn t Medco listed in the pharmacy listing for signing up? Medco now goes by the company name Express Scripts. If you are interested in continuing to use Medco as your prescription drug plan carrier, ask your Extend Health Benefit Advisor about the Express Scripts Medicare (PDP) prescription plan options. Does a person who enrolls in a Part D prescription drug plan (e.g. Express Scripts) through Extend Health go through the prescription carrier s website to fill prescriptions or do they have to go through Extend Health s website to order prescriptions? When paying for medical care or prescriptions, show your medical and Part D pharmacy card to your doctor or pharmacist. In the case of prescription drugs delivered to your home, use the Part D prescription drug plan website, mail order service, or toll-free customer service to fill your prescription. For retail pharmacy purchases, show your Part D prescription drug card at the pharmacy. If you have difficulty dealing with your insurance carrier, you may call Extend Health and request that they assist you. There are a lot of DuPont retirees living in the Shady Grove or Erickson retirement communities. Will the Erickson Advantage plan be offered by Extend Health? Yes. Extend Health will be offering the Erickson Advantage medical plan to DuPont retirees for P age