Preparing for Retirement
Your Institution’s Retirement Health Plan
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Putting the Pieces Together
Is my pension enough?
Will I need additional insurance?
What will Medicare cover?
What about out-of-pocket expenses?
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Medicare Coverage & Costs
*Source: National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, 2013.
Is Medicare Enough?
Medicare is the primary payer, but retirees also need supplemental health insurance
62%
Medicare is Not EnoughMedicare covers only about 62% of total healthcare expenses in retirement.*
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Medicare Expenses in Retirement Add Up
Annual deductible, copays & coinsurance
Part A - Hospital Annual premiums,
copays & coinsurance
Part B - Doctor
Annual premium, copays & coinsurance
Part C – Medicare Advantage Annual premium, deductible,
copays, coinsurance, Coverage Gap cost shares
Part D – Rx
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Healthcare Expenses in Retirement Add Up
Supplemental or Medicare Advantage premiums and deductibles
Medical equipment not covered by insurance
Vision & hearing
Long-term care
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Your Institution Has You Covered
• General retirement
expenses
• Taxble distribution
• Beneficiaries
• Assets passed to
estate
Retirement Plan
Retirement Health Plan
• Exclusively for
health expenses
• Tax-free
distribution
• Dependents
• Assets passed
back to plan
Income Security + Healthcare Security = Retirement Readiness
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Emeriti Retirement Health Benefit
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Institution makes tax-free contributions to your health account
You may make after-tax contributions
Upon separation of service, use assets, tax-free, for reimbursement of qualified medical expenses
Upon turning 65, enroll in the plan’s group health insurance
Pay premiums tax-free out of your health account
Triple Tax Advantage
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Reimbursement BenefitFor You & Your Dependents
Pre-65 & COBRA premiums
Supplemental Insurance, long term care and related nursing or in-home health services
Medicare premiums& cost shares
Vision, dental, hearing, and other post-65 insurance premiums
Dependent relatives
Permanently disabled children
Dependent children (to age 26)
Same sex and opposite sex domestic partner (pre- or post-65)
Spouse (pre- or post-65)
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2016 Post-65 Group Health Plans
5 Medical Plans
• Three Medicare Advantage PPO/ PPO ESA Plans
• Two Medicare supplemental plans ( L & K)
3 Part D Rx Plans
• Rx Premium Plan• Rx Plus Plan• Rx Standard Plan
Optional Dental
Plan
Available with medical/Rx combination or with the Rx Standard stand-alone plan
In and out-of-network coverage
Medicare-approved
One time enrollment
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How Medicare Advantage Plans Work
Aetna provides Medicare Parts A & B
benefits(Aetna is primary)
One plan. One card.(you still need to get your Medicare card.
You still pay Part B premium)
Ongoing support for health and wellness:Aetna Nurse Case Manager
Wellness Coach
Extra benefits at no additional cost:
Annual eye & hearing examsSilver & Fit Exercise
& Aging Program
Medicare Advantage
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How Standard Medicare Part D Works
You pay first $360 as deductible
You pay 25% of drug costs
You pay 45% of brand drugs(50% manufacturers discount and Plan pays 5%)
You pay 58% of generic drugs
You pay 5%• Greater of $2.95
or 5% for covered generic.
• Greater of $7.40 or 5% for all other drugs.
DeductibleInitial Coverage Period
Coverage Gap
Catastrophic Coverage
You reach the Coverage Gap at $3,310 in total Part D covered drug expenditures.
You reach Catastrophic Coverage at $4,850 in True Out-of-Pocket costs.
Baseline for how Aetna plans work
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2016 Post-65 Group Health Plans
Permanently disabled children**
Dependent children (to age 26)
Same sex and opposite sex domestic partner (pre- or post-65) plan*
Spouse (pre- or post-65)
Available for You and Your Dependents
Attain retirement status
Be age 65 +
Be enrolled in Medicare Parts A & B
When can you enroll in insurance?
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Your Emeriti Retirement Health Plan
Automatic Billing
Dependent CoveragePortability
Guaranteed Issue Annual Choice
Enroll spouse/dependents in plans of their choice.
Take plans wherever you live in
retirement.*
Switch between plans annually, with no medical
underwriting ever.
Premiums deducted from your health account.
*Based on state insurance requirements.
Emeriti’s Group
Insurance Advantage
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Next Steps
Let your Human Resources Director know and get
Emeriti’s nearing retirment kit.
Have a retirement date in mind?
Contact Social Security 3 months prior to your
retirement date to enroll in Medicare Parts A and B.
Ready to retire?
Contact the Emeriti Service Center to request an
insurance enrollment kit.
Already enrolled in Medicare?
1 2 3
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For More Information
Emeriti Service Center
1-866-EMERITI (1-866-363-7484)
Call or visit us online.
Visit the Emeriti website
www.EmeritiHealth.org
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Accumulation
Insurance
Dis
burs
em
ent
Overs
ight
Founded the Program, oversight, legal, insurance renewal.
EMERITI
TIAA-CREF
AETNA
SAVITZ
Emeriti’s Service Delivery
Accumulation record keeper, investment trust management.
Disbursement record keeper, insurance enrollment and billing, QME adjudication.
National insurance underwriter.
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ThankYouFOR JOINING US
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2016 Post-65 Group Medical PlansPlan Type Aetna Medicare
Advantage Premium ESA
Aetna Medicare Advantage
Plus PPO/ESA-PPO
Aetna Medicare Advantage
Standard PPO/ESA-PPO
Aetna SRM Plan L
Aetna SRMPlan K
Plan Deductible
$0 in- and out-of-network
$0 in- and out-of-network
$0 in- and out-of-network
$0 $0
Medicare Deductible
$0 $0 $0 25% of Part A100% of Part B
50% of Part A100% of Part B
Primary Care $15 copay * 15% coinsurance (in-network) 25% (out-of-network)
$15 copay (in-network) 30% coinsurance (out-of-network)
25% coinsurance 50% coinsurance
Specialist $15 copay * 15% coinsurance (in-network) 25% coinsurance (out-of-network)
$40 copay (in-network) 30% coinsurance(out-of-network)
25% coinsurance 50% coinsurance
Preventive Care
100% by the Plan 100% by the Plan 100% by the Plan Some preventive care paid by Medicare
Some preventive care paid by Medicare
Out-of-Pocket Limit
$2,000 * $2,750 (in-network)$5,500 (out-of-network)
$6,700 (in-network)$10,000 (out-of-network)
$2,470 (2015 calculation)
$4,940(2015 calculation)
*In- and out-of-network
NOTES: The ESA-PPO Plan has the same benefits as the In-Network PPO Plan.Aetna’s GMS Plans A and L will be offered in Florida in place of SRM Plans K and L.
For 2016, the SRM Plans are not available in VT, MD, MN, and U.S. Territories.
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Emeriti Retirement Health Solutions provided this information and is responsible for its content. Emeriti, TIAA-CREF, Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations and are not legally affiliated.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
Summary Plan Description (SPD)This presentation is intended to provide you with a brief summary of some of the details of your Employer’s Emeriti Plan and the Emeriti Program. For a full summary of the terms of your Employer’s Emeriti Plan you must consult the SPD, which will be provided to you upon enrollment or upon request.
Investment Adviser StatusEmeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options available under the Emeriti Program. Emeriti may provide non-personalized educational materials to plan participants relating to their and their employer’s contribution to their Emeriti Plan and the allocation of their Emeriti Health Account balances among available investment options. Emeriti does not provide personalized investment advice to participants.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under federal or various state securities laws. The offering of these Interests is subject to compliance with any applicable federal or state law. For residents of Georgia, the Interests are being offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the “Georgia Act”). The Interests may not be sold or transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.
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Interests in any retiree healthcare plan discussed herein are offered solely by the employer.
Teachers Insurance and Annuity Association of America (TIAA) will provide services to the plan and may issue plan communications on behalf of the plan sponsor, in its capacity as a plan recordkeeper.
TIAA-CREF Individual & Institutional Services, LLC serves as a broker-dealer with respect to underlying mutual funds only, and does not offer, market or sell interests in such plans or otherwise provide broker-dealer services with respect to the interests in such plans.
TIAA-CREF products may be subject to market and other risk factors. See the applicable product literature, or visit tiaa-cref.org for details. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
The tax information contained herein is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding tax penalties that may be imposed on the taxpayer. It was written to support the promotion of the products and services addressed herein. Taxpayers should seek advice based on their own particular circumstances from an independent tax advisor.
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addendum
Current Health Account Investment Options
Ticker Fund Name (Retirement Class)
TIEXX TIAA-CREF Money Market R
TLIRX TIAA-CREF Lifecycle Retire Income
TCLEX TIAA-CREF Lifecycle 2010 Retire
TCLIX TIAA-CREF Lifecycle 2015 Retire
TCLTX TIAA-CREF Lifecycle 2020 Retire
TCLFX TIAA-CREF Lifecycle 2025 Retire
TCLNX TIAA-CREF Lifecycle 2030 Retire
TCLRX TIAA-CREF Lifecycle 2035 Retire
TCLOX TIAA-CREF Lifecycle 2040 Retire
TTFRX TIAA-CREF Lifecycle 2045 Retire
TLFRX TIAA-CREF Lifecycle 2050 Retire
Make voluntary after-tax contributions via payroll deduction or online at tiaa-cref.org
Investments accumulate tax-free and are disbursed tax-free