benefits valerie smith benefits administration citgo petroleum corporation
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Benefits
Valerie Smith
Benefits Administration
CITGO Petroleum Corporation
Post-Retirement Life InsuranceReduction Example
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Before R
etirement
Initial Reduction
1st Anniversary
2nd Anniv.
3rd Anniv.
4th Anniv.
5th Anniv.
and Beyond
Dental Coverage
• Same as active employees
• May continue to age 65
• Coverage ends at age 65– May continue dental for dependents
under 65– COBRA coverage available
Retiree Medical Benefits Eligibility
10 Years Continuous Plan Participation
AND• Age plus Service equals 70 points
OR• Retire under Company retirement plan
OR• Age 55 or older and eligible to retire from
the Pension Plan
Retiree Medical Benefits Eligibility
• Can waive and re-enroll later– No pre-existing condition exclusions– Enroll at Annual Election or Change in
Status
• Other coverage primary
Retiree Medical BenefitsNot Medicare Eligible
• Same as active employees
• May continue in managed care plan
• Prescription drug program
• HMO (where available)
Terms
Carve-Out
Supplement
Coordination of Benefits (COB)
Crossover or Rollover
Coinsurance
Retiree Medical Benefitsafter Medicare Eligibility
• Medicare becomes primary payor
• Medicare carve-out
• Not eligible for managed care plan
• Prescription drug program
Retiree Medical Benefitsafter Medicare Eligibility
• Medicare carve-out
• Generally, no CITGO plan payment until deductible and out-of-pocket maximum met
• Prescription coverage not subject to deductible or out-of-pocket limit
Retiree Medical BenefitsSpouse Coverage
• Retiree becomes Medicare eligible before spouse– Not eligible for managed care plan– Coverage changes to 80% in options I or II
• Spouse becomes Medicare eligible before retiree– Coverage remains the same– Medicare becomes primary payer
• Retiree dies before spouse– Coverage continues– Eligibility for managed care depends on spouse’s age
Medicare
2001 Medicare Deductibles/CoinsurancePart A (hospital)
Days 1 - 60 $792
Days 61 - 90 $198/Day
Days 91 - 150 $396/Day
Part B (doctor) $100 annually
CITGO plan assumes you have enrolled in Medicare if you are eligible
Retiree Medical Benefitsafter Medicare Eligibility
CITGO Salaried Plan - 2001
(Non-Network Options)
Deductible
Out-of-Pocket
Maximum
Non-Network Option I $500 $3,000
Non-Network Option II $750 $5,000
No Network / No RX $1,000 $10,000
Example: Deductibles Not Met
Medicare CITGO PlanApproved $500 Approved $500
Part B Ded. 100 Deductible 500
Payment 320 Benefit 0
Patient Resp. $ 80 Balance $ 0
Net Patient Resp. $180
Applied to Plan ded. 500
Applied to OOP 0
Example: Deductibles Met
Medicare CITGO PlanApproved $500 Approved $500
Payment 400 Plan Benefit 400
Patient Resp. $100 Less Medicare -400
Net Plan Ben. 0
Net Patient Resp. $100
Applied to OOP 100
Example: Deductibles and OOP Met
Medicare CITGO PlanApproved $500 Approved $500
Payment 400 Plan Benefit 500
Patient Resp. $100 Less Medicare -400
Net Plan Ben. $100
Net Patient Resp. $0
Example: Part A without Deductible
Medicare CITGO PlanPart A ded. $792 Approved $792
Payment balance 80% Benefit 634
Patient Resp. $792 Net Patient Resp. $158
Applied to OOP $158
Prescription Drug Coverage
• Retirees have same coverage as actives– 70% at retail– $25 generic mail copay– $50 brand name mail copay
• No Network/No Rx Option does not have prescription drug coverage
Annual Election
• Each year– About two weeks– 1st part of November
• Change options, waive or re-enroll
• Critical that you read annual election material
Communications
• CITGO Benefits Bulletin
• The Spearhead
• Benefits HelpLine– Phone: 1-888-443-5707– E-mail: [email protected]– Fax: 1-918-495-5007