annual want to ask questions? 2007 pre-65 retiree enrollment · updated prescription drug benefits...

It’s time for annualbenefits enrollment

Annual Enrollment Guide

2007Pre-65 Retiree

To enroll, please visit:www.freescale.com/rewards.For information, please call: 1-888-FSL-BENS (375-2367).

Want To Ask Questions? Freescale Rewards Customer Service representatives can answer your

questions about the plans, your choices and how you make them online.

Call them from 8 a.m. to 8 p.m. Central time at 1-888-FSL-BENS (375-2367).

For questions about specific plans:

• Humana Medical: 1-800-992-5802

• Humana Dental: 1-800-233-4013

• Caremark (prescription drugs): 1-877-505-8360

• APS Healthcare (behavioral health): 1-866-273-2884

• VSP (Vision Plan): 1-800-877-7195

• Health Net HMO (Phoenix area only): 1-800-289-2818

Your Benefit Resources™ is a registered trademark of Hewitt Associates, Inc.Nexium® and Prilosec® OTC are registered trademarks of Astra Zeneca.

Freescale™ and the Freescale logo are trademarks of FreescaleSemiconductor, Inc. All other product or service names are the propertyof their respective owners.© Freescale Semiconductor, Inc. 2006Doc #: H000042708

It’s Freescale Benefits Time!. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Updated Prescription Drug Benefits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

New Rx Step Therapy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Maternity Care Program Simplified . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Health Net HMO Offered in Phoenix Area . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

How Much Will You Contribute Next Year? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Dental Plan Contributions Increase . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Vision Coverage Changes, New Plan Added . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

Discounts for Non-Users of Tobacco. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11

How You Enroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Want To Ask Questions? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16

Table of Contents

For information, please call: 1-888-FSL-BENS (375-2367). Annual Enrollment Guide3

It’s Freescale Benefits Time!Your 2007 Pre-65 Retiree Enrollment GuideYour Freescale Rewards annual enrollment period for 2007 begins Monday,November 6 and ends Friday, November 17, 2006. That means it's time to thinkabout your Freescale benefits for the coming year.

Look inside for:

• Revised prescription drug coverage

• Changes in pre-65 retiree medical plans

• Discounts on contributions for tobacco non-users

• New Vision Plan to cover exam, eyeglasses and contact lenses

• Changes in dental contributions

Information about all the 2007 pre-65 retiree benefits will be available onlineduring Prepare to Enroll Week starting October 30 at: www.freescale.com/rewards.Follow the link to Compare Your Medical Plan Options for plan details and the costof each coverage option.

The changes described in this Guide do not applyto retirees and covered family members or survivorswho are eligible for Medicare. The new medicalplans for those age 65 and older are describedin materials from Humana. Copies are availablethrough December 31, 2006, at:www.freescale.com/retiree, or by calling Humana'snumber for the age 65+ plans: 1-800-733-6592.

Please do not call Freescale Rewards CustomerService or your Freescale Human Resourcesrepresentative about the new 65+ retiree medicalplans. Because these new plans are offeredthrough an insurance contract, questions aboutfeatures and benefits can be answered only by aMedicare-licensed insurance company representative.

To enroll, please visit: www.freescale.com/rewards.2

How You Enroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table of Contents

Look inside for:

How You Enroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table of Contents

Look inside for:

How You Enroll . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12

Table of Contents

Look inside for:

Updated Prescription Drug BenefitsAmong all the rising costs of health care, prescription drugs remain near the top ofthe list. The Zero Deductible, $750 Deductible and 50 Percent Network-Only coverageoptions next year will have updated coverage levels for prescription drugs. Newfeatures are in red.

Zero Deductible Option $750 Deductible OptionType ofPrescription Drug

Retail—up to a 30-day supply

• Generic drugs

• Preferred drugs

• Non-preferred drugs

Mail order*—90-day supply

• Generic drugs

• Preferred drugs

Annual benefit limit

You pay $5 copayment,plan pays the rest

You pay 30% up to $75,plan pays the rest

$6,000

New ID card for 2007Shortly before the end of the year, you will get a Caremark ID card for prescriptiondrugs. Use your Humana ID card for all other medical care. Hang on to your Humanamedical and dental ID cards—they will not be reissued unless you change yourcoverage option.

* Required for long-term, maintenance drugs—see your benefits book for details.

Note: The $750 Deductible Option in 2007 is not considered “creditable coverage” byMedicare. This may be important if you or your family member will become eligible forMedicare in 2007. If this applies to you, call Freescale Rewards Customer Service withyour questions at 1-888-FSL-BENS (375-2367).

50 Percent Network-Only OptionThe prescription drug benefits in this coverage option are the same as a basicMedicare Prescription Drug Plan (Part D). It does not have a $6,000 annualbenefit limit.

95% Coinsurance

Your 100% Share

75% CoinsuranceYour25%

Your5%

Share*

$265 Deductible

$5,451.25

$2,400

$3,850

$535.75

Your To

tal Sp

ending

*If greater than 5%, you pay $2.15 copayment for generic and multi-source drugs or$5.35 copayment for all other drugs.

New Rx Step TherapyPeople filling new prescriptions to treat high cholesterol or stomach ulcer conditionswill join the new “step therapy” program in 2007. It helps patients and doctors find theprescription drug treatment that is most effective—in terms of both health results andcost. This program is part of all the Freescale coverage options next year, but not theHealth Net HMO.

Step therapy is the practice of starting drug treatment for a medical condition with themost cost-effective and safest drug therapy. It then “steps up” to other more costlyand clinically-approved medicines if the traditional approaches do not work. Steptherapy programs have proven successful at helping patients save money and avoidmore-intensive treatments.

Example: Annie’s doctor prescribes Nexium® for her stomach problems. Because shehas not filled a prescription for this drug in the past 120 days, Caremark tells Annie’spharmacist that she is part of the step therapy program. The pharmacist will contactAnnie's doctor to arrange for an alternative to the costly Nexium—such as the genericomeprazole or Prilosec® OTC. If the conservative drugs do not work for Annie, theprogram will authorize more-costly drugs.

• Generic drugs

• Preferred drugs

• Generic drugs

• Preferred drugs

$6,000

95% Coinsurance

Your 100% Share

Your5%

Share*

$265 Deductible

$5,451.25

$2,400

$3,850

$535.75

Your To

tal Sp

ending

• Generic drugs

• Preferred drugs

• Generic drugs

• Preferred drugs

$6,000

95% Coinsurance

Your 100% Share

Your5%

Share*

$265 Deductible

$5,451.25

$2,400

$3,850

$535.75

Your To

tal Sp

ending

• Generic drugs

• Preferred drugs

• Generic drugs

• Preferred drugs

$6,000

95% Coinsurance

Your 100% Share

Your5%

Share*

$265 Deductible

$5,451.25

$2,400

$3,850

$535.75

Your To

tal Sp

ending

The Health Net HMO will continue to be offered to Phoenix-area participants in 2007.Health Net was ranked the #1 HMO in Arizona by “Ranking Arizona: The Best ofArizona Business”—two years in a row.

As a Health Net member, you choose a Primary Care Physician (PCP) from theirbroad provider network. Your PCP coordinates all your care, referring you to otherHealth Net-contracted specialists and hospitals. If you need emergency treatmentwhile you are traveling outside the state, you are still covered; call the CustomerContact Center or your PCP as soon as possible.

Health Net© HMO Offered in Phoenix Area

The objective of the Maternity CareProgram—part of the Freescale medicalcoverage options, but not the HealthNet HMO—is to promote early treatmentand healthy pregnancies. Today it offersexpectant parents three features: acomprehensive schedule of prenatal care,free information and baby-care supplies,and benefit incentives.

Starting January 1, 2007, your regularbenefit levels will apply to maternity care.The five percent coinsurance reward and10 percent coinsurance penalty will no longerapply. The remaining features of the programare valuable enough to continue to attractmoms-to-be to participate. But if you enrollby December 31, 2006 and comply with theprogram through delivery, you will qualifyfor the current coinsurance reward.

Maternity Care Program Simplified There are no deductibles or cost-sharing percentages with Health Net—you pay onlya copayment each time you need care. Look at these copayment examples:

• Office visits: $15

• Hospital admissions: $250

• Emergency room: $75 (waived if admitted)

• Urgent care: $50 ($75 at a non-Health Net facility)

• Outpatient imaging and testing—office or freestanding facility: $25

• Outpatient imaging and testing—hospital: $200

• Outpatient lab and x-ray—office or freestanding facility: No additional charge

• Outpatient lab and x-ray—hospital: $100

The Health Net out-of-pocket limit helps hold down your share of the cost. Yourout-of-pocket maximum is $1,000 per person or $2,000 per family in 2007. It does notapply to office visits or prescription drugs.

Health Net also has its own benefits for outpatient prescription drugs:

Retail PharmacyUp to 31-day supply

Mail-Order Pharmacy93-day supplyCategory

Generics

Preferred brand name

Non-preferred brand

You pay $10 copayment,Health Net pays the rest

Other Health Net HMO features:

• 57 hospitals across Arizona

• 5,300 network physicians

• 24-hour telephone access to a professional Health Coach

• Decision-support videos, online tools and clinical information

• Wellness programs and tools including discounts on health-relatedproducts and services

The Health Net formulary is different from the Caremark formulary used with theHumana coverage options.

Generics

Non-preferred brand

Generics

Non-preferred brand

Generics

Non-preferred brand

Please note:You and your family members are not eligible for Health Net if:

• Your home ZIP Code is not in the Health Net service area;

• You are a terminated, disabled participant; or

• You or a covered family member is covered by Medicare.

In addition, when any covered person in your family becomes covered by Medicare,Health Net HMO coverage is no longer available to you. When Medicare coveragestarts for you or your family member, all the covered people in your family not eligiblefor Medicare must choose a Freescale medical coverage option.

If you do not contact Freescale Rewards Customer Service at 1-888-FSL-BENS tochoose a new coverage option when Health Net coverage ends, all the coveredpeople in your family not covered by Medicare will be enrolled in the 50 PercentNetwork-Only option.

For more information:Call Health Net directly at1-800-289-2818, or see them online at: www.healthnet.com.

We are not offering an HMO option in Austin. The Texas HMO market is stilluncompetitive with our BYO coverage option.

Retiree–Only Retiree + FamilyGrandfatheredCoverage Option(before Dec. 1, 1992)

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Retiree–Only Retiree + FamilyNon-GrandfatheredCoverage Option(after Dec. 1, 1992)

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

HPV vaccinations for cervical cancer will be a covered medical expense for femalesage 9 to 26.

How Much Will You Contribute Next Year?Here is the schedule of monthly contributions for the pre-65 retiree medical coverageoptions in 2007.

Dental Plan Contributions IncreaseFew companies still offer dental coverage to retirees. In order to continue offering a retiree dentalplan, the contributions from participants will increase in 2007. Here are the new amounts:

• Retiree-Only: $30/month

• Retiree + Family: $65/month

In Arizona, benefits are insured and/or

administered by Health Net of Arizona,

Inc. for HMO plans and Health Net Life

Insurance Company for Indemnity plans

and life insurance coverage. The Health

Net of Arizona, Inc. service area includes

all Arizona counties. Health Net, Inc. is

the parent company of both Health Net of

Arizona, Inc. and Health Net Life Insurance

Company. Health Net of Arizona, Inc. is a

subsidiary of Health Net, Inc. Health Net®

is a registered trademark of Health Net,

Inc. All rights reserved.Save Money Now!Choose a dentist who participates in the Humana Dental PPO Network, wherecharges are discounted as much as 30 percent. Ask your dentist to call Humanaat 1-800-233-4013 to become a preferred provider.

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Zero Deductible

$750 Deductible

50% Network Only

Health Net HMO

Discounts ForNon-Users ofTobaccoTobacco use in any form is harmful toboth your health and your wallet. Peoplewho use tobacco are more likely to needcostly medical care and die sooner thannon-users. The scientific publicationHealth Affairs estimates that tobaccousers incur 21 percent more in healthcare costs than non-users.

Starting in January, non-users of tobaccowill have more money in their pocket.Your 2007 Freescale benefits offer amedical contribution discount to pre-65retirees and spouses/domestic partnerswho have not used tobacco for at leastsix months.

All medical coverage options will requirea contribution increase of $25 a monthfor each covered retiree andspouse/domestic partner. Non-usersof tobacco will earn a discount thateliminates this increase. The enrollmentsystem shows these individual $25contribution increases separately fromthe medical coverage options.

When you verify during annual enrollmentthat you and/or your coveredspouse/domestic partner have notused tobacco products for the pastsix months, the system removes thisincrease from your contributioncalculation. Mid-year changesare not allowed.

Let Freescale help you save moneyin 2008! Take advantage of thesetobacco cessation resources now, andyou’ll be a non-user by the 2008 enrollment:

• Freescale Medical Plan—covers officevisits for smoking cessation

• Rx Benefits—covers prescription drugsfor smoking cessation

See these websites for information aboutsmoking cessation programs:

• American Lung Association:www.lungusa.org

• American Cancer Society:www.cancer.org

• Nicotine Anonymous:www.nicotine-anonymous.org

• Quitnet:www.quitnet.com

• Life Care:www.lifecare.com

• Self-Help Works, Inc.:www.selfhelpworks.com

• Hummingbird Coaching Services:www.myhealthcoach.com

No change in Long-Term Care Insurance for 2007.

Vision Coverage Changes,New Plan AddedThe VSP vision care benefits will be offered through a separate plan in 2007. Visionbenefits will no longer be included in your Freescale or Health Net medical coverageoptions.

The 2007 Vision Plan offers you these benefits for treatment and materials from VSPproviders:

• Vision exam (once each calendar year): You pay $20 copayment, VSP pays the rest

• Eyeglass lenses (once each calendar year): You pay $25 copayment,VSP pays the rest

• Eyeglass frames (once every two calendar years): You pay $45 copayment,VSP pays up to $145; you then pay any remaining VSP-discounted charges

• Contact lenses (once each calendar year, in lieu of benefit for frames):VSP pays up to $110, you pay any remaining VSP-discounted charges

• Laser surgery: You pay discounted charges from selected VSP-contracted facilities

If you do not enroll in the new Vision Plan, your Humana or Health Net coverageoption will offer discounts for exams and vision materials from eye careprofessionals in the EyeMed network. Contact Humana or Health Net fordetails of their discount programs.

If you or others in your family need vision correction, estimate your needs forvision exams, lenses, and frames for next year. Then compare your share of thecost under the EyeMed discount with the contributions you pay and benefits youwould receive from the new Vision Plan.

How You EnrollYou enroll for Freescale benefits online at: www.freescale.com/rewards.

This takes you to the Your Benefit Resources™ (YBR) website. If you haven't

used this site before, follow the Register as a New User link to get started.

If you need help with the enrollment system, call 1-888-FSL-BENS (375-2367),

and say “representative.”

Dig through your EnrollmentDecision Toolkit to:

• Estimate your medical expenses—Review your 2006 claims and expenses,and compare up to three coverageoptions to see which might offer youthe best deal

• Find a health care provider—Searchfor doctors and hospitals whereveryou are

• Research hospitals' treatment historiesand inspection reports—Use HealthGrades before you decide where toget treatment

• Learn how to get and stay healthy—Search the information inYour Health Connection

See Your Options During Prepare to Enroll Week

Monday, October 30 is the first day you can Prepare to Enroll. Go online to see

all your 2007 benefit options with their corresponding prices, then experiment

by mixing and matching them to suit your needs. Find the mix that is best for you,

and save it for enrollment the following week. If you have questions, call Freescale

Rewards Customer Service: 1-888-FSL-BENS (375-2367).

Did Your Network Change?

The enrollment system shows the medical coverage options assigned to your

home ZIP Code. The service areas of the Humana and Health Net HMO provider

networks change from time to time. If these changes affect your ZIP Code,

the coverage options offered to you may also change.

Your APS provider network may also change. If you or your covered family member

expect to use behavioral health care in 2007, you may want to see if an APS

network provider is in your area. Go to: www.apshealthcare.com, and follow

the “member” links. Pull down Freescale in the “Employer” section and use “freescale”

(all lower case) as your user login to search their provider directory.

Or call APS at 1-866-273-2884.

If You Don’t Enroll

When you do not complete your enrollment online, you miss the chance to shape

your Freescale benefits to meet your changing needs. If you do not enroll before

11:59 p.m. Central time, November 17, 2006, your 2006 coverage options will carry

over to 2007. If you are currently enrolled for medical coverage, you will be enrolled

automatically for the Vision Plan. The enrollment system will also assume you and your

spouse/domestic partner are non-users of tobacco.

Please take the time to shape your benefits. Go to the website to learn about

your 2007 plans. You should also check your family's personal information in

the system, such as the accuracy of Social Security numbers and birth dates.

When your spouse/domestic partner becomes eligible for Medicare, coverage

under the age 65+ medical plans will be delayed if his/her Social Security

number is not on file.

Or call APS at 1-866-273-2884.

It’s time for annualbenefits enrollment

Annual Enrollment Guide

2007Pre-65 Retiree

To enroll, please visit:www.freescale.com/rewards.For information, please call: 1-888-FSL-BENS (375-2367).

Want To Ask Questions? Freescale Rewards Customer Service representatives can answer your

questions about the plans, your choices and how you make them online.

Call them from 8 a.m. to 8 p.m. Central time at 1-888-FSL-BENS (375-2367).

For questions about specific plans:

• Humana Medical: 1-800-992-5802

• Humana Dental: 1-800-233-4013

• Caremark (prescription drugs): 1-877-505-8360

• APS Healthcare (behavioral health): 1-866-273-2884

• VSP (Vision Plan): 1-800-877-7195

• Health Net HMO (Phoenix area only): 1-800-289-2818

Your Benefit Resources™ is a registered trademark of Hewitt Associates, Inc.Nexium® and Prilosec® OTC are registered trademarks of Astra Zeneca.

Freescale™ and the Freescale logo are trademarks of FreescaleSemiconductor, Inc. All other product or service names are the propertyof their respective owners.© Freescale Semiconductor, Inc. 2006Doc #: H000042708

annual want to ask questions? 2007 pre-65 retiree enrollment · updated prescription drug benefits...

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