city of phoenix retiree benefits information meeting changes effective january 1, 2016

City of Phoenix Retiree Benefits

Information Meeting Changes effective January 1,

2016

What we’ll cover today.

What is changing and why

How this affects you

Introducing OneExchange

Going forward

Questions & Answers

Background

Feedback from retirees over the years:

Retiree healthcare premiums are too high. There needs to be a lower family premium for couples.More choice in plan designs is desired.Some retirees need to cover only a child or spouse.

What is Changing

The City of Phoenix is changing the way it provides health benefits to retirees and their eligible family members to address the concerns shared by retirees over the years.

A competitive bidding process occurred earlier this year and OneExchange from Towers Watson was selected by a committee of retirees and staff to provide these services to City retirees. The Health Care Task Force, the Health Care Trust Board, the City Manager, and the City Council approved this change.

Note: You pay no fees to OneExchange to provide these services. OneExchange staff do not receive commissions.

What is Changing

You may choose to enroll you and your dependents as a family or you may choose plans as individuals based on your household income.

MERP will be provided annually in January instead of monthly and will be held in a Health Reimbursement Arrangement (HRA) account administered by OneExchange.

Medical premium payments will not be deducted from pension checks for coverage after December 2015.

How This Affects YouHow you select a medical, dental and/or vision plan.

A highly qualified Benefit Advisor will speak with you and your spouse by phone to understand your needs and identify a small selection of plans.

How you enroll. You will work with OneExchange via telephone to select and enroll in a plan and establish your HRA.

Your support. Ongoing support will be available from OneExchange for questions and concerns.

Payment. You will make premium payments directly to your insurance carrier.

Helping You Prepare For Your Upcoming Health Insurance Enrollment

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About OneExchange

Towers Watson

over100

years experience

Bringing 9 years ofprivate Medicare Exchange expertise to bear on Pre-65 Healthcare

Personalized options with plans from

a nationwide network ofcarriers

Ongoing service, support and help

Enrolled Hundreds of Thousands with a 94% Customer Satisfaction Rating

Proprietary technology gives you safety and security

Not CommissionedLicensed advisor

provides knowledgeable

guidance

© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Never a fee for our service

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Our Service Centers

Salt Lake City, UT

Dallas, TX

100% U.S. Workforce© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

HoursNow through October 31st 5 am to 6 pm AZ Time, M – F

HoursBeginning November 1st 6 am to 7 pm AZ Time, M – F

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Wide selection of plans from leading national / regional carriers

Plans and Partners

Platinum Gold Silver

Access to All "Metal" Plans

Medical, Dental and Vision Plans

Bronze


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Your Experience

Announcement &Education

Consultation & Enrollment

OngoingHelp and Support


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Key Points to Remember

Select a plan from:

Public Marketplace or Towers Watson’s OneExchange

The Public Marketplace is the only place to receive• Premium tax credits (Federal Subsidy)• Cost-sharing reductions

Even without tax credits or cost sharing reductions you can save money each month on your medical premium!


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Do You Qualify For Lower Costs?


Number of people in your household

1 2 3 4 5 6

You may qualify for lower premiums on a

$11,670 -

$15,730 -

$19,790 -

$23,850 -

$27,910 -

$31,970 -

Marketplace insurance plan if your

yearly income is between…

$46,680 $62,920 $79,160 $95,400 $111,640 $127,880

See next row if your income is at the lowerend of this range.

You may qualify for lower premiums ANDlower out-of-pocket costs for Marketplace insurance if your yearly income is between

$11,670–$29,175

$15,730 –$39,325

$19,790 – $49,475

$23,850 –$59,625

$27,910 –$69,775

$31,970 –$79,925

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Plan Levels of Coverage

Current City Plans fall between the

Gold and Platinum Levels


Levels of Coverage

Plan Pays on Average

Out of Pocket Costs on Average

In addition to the monthly premium

Platinum 90% 10%

Gold 80% 20%

Silver 70% 30%

Bronze 60% 40%

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We’ll Help You to Explore & Consider

HHospital

Coverage


Medical Coverage

PrescriptionDrug Coverage

Dental Coverage

VisionCoverage

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Benefit Advisors

• Licensed / Certified / Appointed• OneExchange University™• Objective, unbiased, non

commissioned• 100% U.S. workforce

Licensed benefit advisors have no financial incentive or reward to sell one insurance

company or type of plan over another.

Benefit advisors are available

Now through October 31st: 5:00 a.m. to 6:00 p.m. AZ Time, M – FBeginning November 1st: 6:00 a.m. to 7:00 p.m. AZ Time, M – F


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Discuss Choices with a Benefit Advisor

Application forwardedto Public Marketplace

Application Submittedto Carrier

ID Cards sent to

You cannot receiveMERP and a

Federal Subsidy/ Tax Credit.

Pre-65 Retiree, Spouse or Child

Public Marketplace QHPs

w/o FederalSubsidy

Private Exchange

QHPsor

Federal Tax Credit

Eligibility Determination

Public MarketplaceQualified Health Plans

w/ Federal Subsidy

Retiree/Dependents© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

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Your Enrollment Period

November 1 – December 15


January 1, 2016

Coverage Begins

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towerswatson.com© 2015 Towers Watson. All rights reserved. Proprietary and Confidential. For Towers Watson and Towers Watson client use only.

Special Election Periods (SEP)

For a 60 day period you may

enroll in a new plan or make a

change to their current coverage.

Certain qualifying future events may allow you to change plans outside of the Annual Enrollment Period

You lose your health coverage due to a layoff, a divorce, turning 26 and no longer eligible to be on your parents’ plan, losing eligibility for Medicaid or CHIP, or other similar circumstances

You move outside the area covered by your health insurance plan

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Coming to Your Mailbox

Call Toll Free1-844-824-7658OneExchange.com/phoenix


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towerswatson.com


MERP and the Health Reimbursement

Arrangement HRA

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What is MERP?

MERP is a monthly amount provided to qualified retirees to reduce their out-of-pocket healthcare expense.

• Basic MERP: An amount of $117 to $202 per month. This is received no matter where you get your medical coverage.

• Category MERP: An additional $100 per month for certain retirees based on union agreements. Category MERP is only available when you are enrolled in a medical plan through OneExchange.

• Supplemental MERP: This is an additional amount of $10 - $50 per month for those whose total annual pension is less than $25,000.

MERP continues, but beginning January 1, 2016 it is delivered in an annual amount to a

Health Reimbursement Arrangement (HRA).

What is an HRA?

Tax-free account used to reimburse you for eligible health care expenses — you pay first and then get reimbursed

If you receive MERP today, you continue to receive it via an HRA. The City will

make an annual contribution to your Health Reimbursement Account.

You may use HRA funds to reimburse yourself for eligible medical, prescription drug, dental and vision premiums, as well as eligible out-of-pocket healthcare expenses

No Double-DippingIf you elect to use MERP through the HRA Federal Regulations don’t allow you to also use tax credits for which you may be eligible. The Benefit Advisor will review this with you when you call in.

Your HRA funding will be availableJanuary 1, 2016Unused funds roll over

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Health Reimbursement Arrangement

You may be reimbursed up to the amount available in the HRA!

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Prepare for your call with a Benefit Advisor

Have your W-2s and/or tax return ready

Have your Social Security card handy

Have your doctor and hospital info ready

Have prescription info ready – name, dose, frequency

Preparing for your call with a OneExchange benefit advisor will help you select the right coverage for you and your family.

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Schedule your call

Contact OneExchange 1-844-824-7658

• Review the Your Guide booklet

• Gather medical and prescription info

• Call now to complete your profile and schedule a consultation.

We are Ready!

You may also go online to create your profile at

oneexchange.com/phoenix26

Call Now; We Are Ready!

1-844-824-7658

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city of phoenix retiree benefits information meeting changes effective january 1, 2016

Documents

towers watson client

city retirees

oneexchange staff

health benefits

city manager

city council

committee of retirees

changingthe city of