u.s. retiree benefits overview - dow chemical company u.s. benefits overview 2 . ... though it is an...

Dow Corning INTERNAL

U.S. Retiree Benefits Overview


• The brief summaries of benefits contained in this presentation

provide only general information.

• You should refer to the plan document and summary plan

description (SPD) of the applicable plan(s) for a more

complete description of a plan’s terms and to see if you are

eligible for that plan.

• If there is any conflict between (a) the information provided in

this presentation (or any other oral or written representations

made by anyone regarding a plan) and (b) the legal

documents of a plan, including the plan document or SPD for

the applicable plan, then the plan's legal documents will

govern.

• Dow reserves the right to amend, modify and terminate the

plan(s) described herein at any time in its sole discretion.

U.S. Benefits Overview

2


• Dates – November 2-18, 2016

• Communications:

– What’s New document mailed annually – details changes

– Communications available on Dow Friends website –

includes What’s New and Rate/Coverage charts

• Expectations:

– For 2017: All pre-Medicare retirees are expected to

complete the enrollment process

– Review enrollments and beneficiaries annually

– Complete working spouse/domestic partner verification

annually if spouse is pre-Medicare

Open Enrollment

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Medical & Health Insurances


Retired before January 1, 1995 (Post-65 EGWP Retirees)

• No premium changes

Retirees who retired after January 1, 1995

Post-65 Aon Retirees

• Aon will continue to communicate the enrollment process

• HRA continues to be funded, for those eligible

Split Families

• Pre and Post-Medicare families

• Costs based on individual enrollment

Pre-Medicare Retirees

• New plan options

Dow Retiree Eligibility

5


Post-65 EGWP Retirees (Retired Before 1/1/1995)

6

2017 Plan Design MAP Plus Option 1 –

Low Deductible

Deductible

• Individual

• Family

• $250

• $500

Out-of-Pocket Maximum

• Individual

• Family

• $1,750

• $3,500

Monthly Premiums*

• Retiree Only

• Retiree + Spouse

*If you retired with a zero or fixed premium, the

costs above do not apply to you. You will remain

grandfathered at the same cost.

• $50

• $100


Post-65 EGWP Retirees Plan Differences

7

Dow DCC

Deductible • $250 Medical (ind.) • $350

Out-of-Pocket Maximum

• Individual

• Family

• $1,750

• $3,500

• $1,750

• $3,500

Office Visit Copay 20% after deductible $15 Primary Care Visit

$30 Specialty

Coinsurance 20% for most services 10%

Prescription Drugs

Retail – Generic /

Brand Formulary /

Brand Non-Formulary

10% / 20% / 35% $10 / $20 / $35

Mail Order* – Generic /

Brand Formulary /

Brand Non-Formulary

$5 / $80 / $150 $25 / $50 / $85

*90 day preferred mail order through CVS/Caremark


• National vendor is Aetna rather than

BC/BS.

• Coverage very similar but specifics

available in the Summary Plan

Description (SPD) via Dow Friends

website.

• Retirees who waive coverage at age

65 or over, and later seek to re-enroll,

will not be eligible unless they can

show proof of active employer

coverage or coverage from a

discontinued employer retiree plan

immediately prior to enrolling in Dow

retiree coverage

Post-65 EGWP Retirees Medical Plan Differences

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• Communications continue to be directly through Aon

• Dow will fund the Health Reimbursement Account (HRA);

$2,020 per person in 2017

• Effective January 1, 2018:

Retirees who waive coverage at age 65 or over, and later

re-enroll, will not be eligible for the Dow funded HRA

contribution unless they can show proof of active employer

coverage or coverage from a discontinued employer retiree

plan immediately prior to joining an Aon plan through the

Dow offering.

Post-65 Aon Retirees Retired on or After 1/1/1995

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• Split Family – when 1 covered member is Medicare eligible and

the other is not

• Dow treatment effective January 1, 2017:

Members will elect two different plans, one pre-Medicare and

one post-Medicare, and pay split contract rates until all reach

Medicare eligibility

Once set up to do so, post-Medicare member will move to

Aon while pre-Medicare member continues on Dow pre-

Medicare plan until they reach Medicare eligibility

Once eligible for Medicare, member will move to Aon

Split Family Retirees Retired on or After 1/1/1995

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Split Family Retirees Retired on or After 1/1/1995

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Coverage Tier Both Spouses in MAP 1 One Spouse in MAP 1

and Other in MAP 2

Retiree + Spouse $809 $387

Family $1,449 $605

Mapping Process from Dow Corning plan to Dow plan:

• Retiree is Post-65 and Spouse/DP is Pre-65 – Both will

move to MAP 1 plan under Dow and pay higher premium.

• Must actively elect MAP 1/MAP 2 coverage

• Retiree is Pre-65 and Spouse/DP is Post-65 – If enrolled in

Dow Corning CDHP, will move to MAP 2/MAP 1 coverage


National Preferred Provider Organization

(PPO) plans administered by Aetna

• Medical Assistance Program = MAP

• MAP Plus Option 1 Low Deductible

─ Higher monthly premium

─ Lower out-of-pocket costs at point of service

• MAP Plus Option 2 High Deductible

─ Lower monthly premiums

─ Higher out-of-pocket costs at point of service

Health Maintenance Organization (HMO) and other plans

• In-network coverage only (narrow network)

• Eligibility based on ZIP code

• Generally higher monthly premium and lower out-of-pocket

costs

Pre-Medicare Retirees Retired on or After 1/1/1995

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Pre-Medicare Eligibility and Enrollment Differences

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Eligibility/Enroll

ment Provision Dow DCC

Pre-Medicare

Working

Spouse/Domestic

Partner (DP)

If spouse/DP works full time or

is retired from employment and

is offered subsidized employer

coverage, then must enroll as

primary

If spouse/DP works more than

17.5 hours/week and offered

subsidized employer

coverage, then must enroll as

primary

Grandchild

Dependents

Must be legal dependent of

Retiree – grandfathering those

currently covered (new rule

effective 1/1/2017)

Eligible if parent of grandchild

is Retiree’s eligible dependent

child

Enrollment Change

Notification

90 days to enroll or change

coverage after Qualifying Life

Event Change

60 days to enroll or change

coverage after Qualifying Life

Event Change

Life Event Enrollment

Changes

Make changes online or by

calling the Retiree Service

Center

Complete enrollment form


• Dow Corning, like Dow, implemented a contribution cap years ago

• The following note has been taken from the Dow Corning Retiree

open enrollment booklets

IMPORTANT NOTE REGARDING PRICING AND CREDITS…

Dow Corning provides a subsidy of up to $6,000 for retiree only,

$12,000 for retiree plus one and $18,000 for retiree plus two or more

toward the cost of health care coverage. Your premium is the

difference between the actual cost of the plan and this subsidy. The

cost of every plan now exceeds this subsidy so all future health care

inflation will cause your premium to escalate significantly. Retirees

who retired prior to reaching 85 points or 30 years of service or age

60 with 10 years of service have a pro-rated subsidy so the premium

increases are even more substantial.

A Note About Retiree Rates

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• Trends (medical inflation) for the Dow Corning pre-Medicare

retiree population and the Dow Chemical pre-Medicare retiree

population were very disappointing: • Very difficult Specialty Pharmacy claims

• An increase in the number of catastrophic cases

• Affordable Care Act

• In view of these costs and the contribution caps, regardless of

the change in ownership structure of the company, Dow

Corning retiree rates were going to increase dramatically

A Note About Retiree Rates (Continued)

15


Pre-Medicare Retirees Medical Plan

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2017 Plan

Design

MAP Plus Option 1

Low Deductible

MAP Plus Option 2

High Deductible HMOs

In-Network Out-of-

Network In-Network

Out-of-

Network

Deductible

• Individual

• Family

• $125/$100 (Rx)

• $375/$300 (Rx)

• $500/$100 (Rx)

• $1,500/$300 (Rx)

• $2,000

• $4,000

Max of $2,600

for one person

• $4,000

• $8,000

None or

minimal

Out-of-Pocket Max

• Individual

• Family

• 4% of last base

annual salary

• 8% of last base

annual salary

Max of $7,150

per person

• 8% of last base

annual salary

• 12% of last base

annual salary

• $4,000

• $8,000

Max of $4,000

for one person

• $8,000

• $16,000

Varies

Full Service

Premiums

• Retiree Only

• Retiree + Spouse

• Retiree + Child(ren)

• Family

Monthly

• $ 640

• $1,281

• $1,281

• $1,921

Monthly

• $218

• $437

• $437

• $655

Varies

1) In-Network Out-of-Pocket Maximum is limited to $7,150 / $14,300.


Pre-Medicare Retirees Medical Plan PPO Differences

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Dow DCC

Deductible • $125 Medical (ind)

• $100 Pharmacy

• $350

Out-of-Pocket

Maximum

• Individual

• Family

Based on percentage of salary: • 4% individual of last base annual salary

• 8% family of last base annual salary

Max of $7,150 per person

• $1,750

• $3,500

• $5,250

Office Visit

Copay

$20 Primary Care Visit

$50 Specialty

$15 Primary Care Visit

$30 Specialty

Coinsurance 15% for most services 10%

Prescription Drugs

Generic / Brand Formulary

/ Brand Non-Formulary 20%* / 20%* / 30%* $10 / $20 / $35

• After an initial retail prescription and two refills, the coinsurance will move to 50% unless you use mail order.

• Maintenance Choice Program allows you to get your mail order

prescriptions at CVS.


Pre-Medicare Retirees Medical Plan HDHP/CDHP Differences

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Dow DCC

Deductible • $2,000 Individual

• $4,000 Family

• $1,300 Individual

• $2,600 Family

Out-of-Pocket

Maximum


• $8,000 Family


• $5,200 Family

Coinsurance 20% in-network for

most services 10% in-network

Prescription Drugs

Generic / Brand

(Formulary/Non-

Formulary)

20% / 20% / 20% $10 / $20 / $35

• There is no financial incentive to use mail order, though it is an available option for HDHP/CDHP participants.

• Maintenance Choice Program allows you to get your mail order prescriptions at CVS.


• National vendor is Aetna rather than BC/BS.

• Blue Care Network is also available in Great

Lakes Bay Region Area.

• Coverage very similar but specifics available in

the Summary Plan Description (SPD) via Dow

Friends website.

• Working spouse information must be given

every year as part of annual enrollment for all

pre-Medicare spouses. Your spouse will be

dropped from coverage if not completed.

• Four coverage tiers instead of three:

Retiree, Retiree+S/DP, Retiree+Child(ren),

Retiree+Spouse/DP+child(ren).

Pre-Medicare Retirees Medical Plan Differences (all plans)

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• Retirees who waive coverage at age 65 or over, and later seek to re-enroll,

will not be eligible unless they can show proof of active employer coverage

or coverage from a discontinued employer retiree plan immediately prior to

enrolling in Dow retiree coverage


• No employer contribution to HSA.

• Make individual contributions - no payroll deductions

Important HSA Information

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Health Equity Fees

Monthly

Administration

Free – however, balances below $2,500 will incur

a $3.95 monthly fee

Paper Statement $1.00 per statement

Account Closure $25.00


• Check to make sure your provider is in the Aetna network, if

you choose an Aetna plan, by accessing Doc Find online or by

calling Aetna.

• Pre-Medicare working spouse reminder: If spouse/DP works

full time and is offered subsidized employer coverage, then

they must enroll in their employer coverage as primary. You

must complete the working spouse verification during annual

enrollment each year.

Important Reminders

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Dental Plan • Dental is no longer offered as a group plan with pension deductions

• Enroll directly through Delta Dental – mysmilecoverage.com/dow or call Delta Dental directly at 800-971-4108

Vision Plan*

• Vision is no longer offered as a group plan with pension deductions

• Administered by VSP – in-network and out-of-network coverage

• Enroll directly with VSP – go to dowretirees.vspforme.com or call VSP

directly at 800-400-4569

2017 Premiums: Monthly

Retiree Only $12.80

Retiree + 1 $25.61

Family $30.10

Dental and Vision Plans

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* Coverage for an eye exam each year continues to be available through a Dow medical

plan if you do not elect to participate in the vision program.


Other Insurances and Programs


• Not offered to retirees going forward

• If currently enrolled, your coverage will end December 31, 2016

• Legal Plan coverage may be continued with Hyatt Legal

Services for 30 months at the same rate offered today, but you

must pay the entire premium upfront, in full – Premium for 30 months is $397.50 ($13.25 x 30 months)

– Continue coverage by contacting Hyatt Legal Services Plan at 800-

821-6400 within 30 days of loss of coverage

Legal and AD&D Plans

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Retiree Life Insurance Group Term Life Policies – Administered by MetLife

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Coverage Retiree Life Coverage

Company-

Paid

• Pre-65: 1X final base salary + $5,000

• Post-65: ─ Ages 65-69, coverage reduces from 1X final base

salary + $5,000

─ Age 70 and older is $5,000

Retiree-Paid • Current coverage will continue to age 65, if

premiums are paid

• Any life coverage currently in place will transition over from

Minnesota Life to MetLife

• For life insurance lost or reduced, conversion/portability options

offer opportunities for you to continue coverage through a

separate policy with MetLife


• Provides counseling and services to help you cope with any major loss,

such as death, divorce, serious medical diagnosis, loss of pet, etc.

─ Receive confidential support from licensed professional counselors,

either in person or by phone.

─ You, your dependents and beneficiaries are eligible for up to 5

counseling sessions per event, at no cost to you.

─ Additional services and information are also available from research

specialists if needed.

─ Call 1-855-609-9989 (24/7 toll-free number), or log onto

https://griefcounseling.harrisrothenberg.net/default.aspx

─ Username: MetLife

─ Password: grief

Grief Counseling Available to Retirees with Company-Paid Life

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Will Preparation/Estate Resolution Services Available to Retirees with Pre-65 Retiree Optional Life

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• Will Preparation Service

─ Prepare or update a standard will at no cost, using one of Hyatt

Legal Plans’ more than 10,000 network attorneys.

─ Using a non-network attorney, receive partial reimbursement for will

preparation - current reimbursement limits are:

─ $150 for employee will, and

─ $175 for employee and spouse will

─ Call Hyatt Legal Plans (1-800-821-6400) – state you are a Dow

retiree with Optional Life coverage, Group Number 11700, and are

calling about Will Preparation Service.

• Estate Resolution Service

─ Provides assistance to your executor, beneficiaries, etc. in settling

your estate – available by calling Hyatt Legal


Omada uses a multi-faceted approach that includes:

Expert one-on-one Health Coaching

Small Group Support with private online peer groups for

encouragement

Health Data Monitoring

Interactive Program that adapts to you

Weekly Online Lessons to educate and inspire

• Dow covers the cost of the program; you pay nothing ($700 value).

• Your participation in the program is voluntary and your responses will

be handled confidentially.

• No individually identifiable data will be shared with Dow.

• If you have questions, please contact your local Health Services

representative or call the Retiree Service Center at (800) 344-0661.

Pre- Medicare Retirees Omada Diabetes Prevention Program

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Benefits Tools and Resources


Company-Paid and Retiree-Paid Life Insurance

• Life insurance beneficiaries on file with Minnesota Life will be

transferred to MetLife in January 2017.

– Beneficiaries selected for the Company-Paid Life Insurance plan

will be used for all insurances unless you designate a different

beneficiary for other plans.

>> Through December 2016, change beneficiaries with Minnesota

Life.

>> From January 2017 forward, designate beneficiaries with

MetLife at https://mybenefits.metlife.com/MyBenefits, or click on

“Change My Beneficiaries” on the Dow Benefits website.

Retirees’ Savings Plan

• Register beneficiary information on Fidelity’s web site at https://nb.fidelity.com/public/nb/dow/home or rely on defaults defined in Summary Plan Description (SPD)

Beneficiary Designation

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https://mybenefits.metlife.com/MyBenefits


DowFriends Website • General retiree plan information and retiree forms for health and

insurance plans are available on the DowFriends website

(http://www.dowfriends.com).

Retiree Service Center (for health and insurance benefits) • (877) 623-0661

• E-mail: Dow Benefits website, “Message Center”

• 8:00 a.m.- 6:00 p.m. ET (Monday-Thursday)

• 8:00 a.m.- 5:00 p.m. ET (Friday)

Aetna • https://www.aetna.com

• 1-800-US-AETNA (1-800-872-3862)

• 8:00 a.m. - 7:00 p.m. ET

Resources

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http://www.dowfriends.com/

https://www.aetna.com/


Questions?

32


Thank You

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