your prescription for a healthy retirement 2009 health care choices for borgwarner retirees
DESCRIPTION
Your Prescription for a Healthy Retirement 2009 Health Care Choices for BorgWarner Retirees. Today’s Agenda. Recap of what’s changing Pre-Medicare information BorgWarner pre-Medicare benefits Preview of BorgWarner post-65 benefits Next steps for pre-65 retirees Medicare information - PowerPoint PPT PresentationTRANSCRIPT
Your Prescription for a Healthy Retirement
2009 Health Care Choices for BorgWarner Retirees
2
Call 1-800-929-2300
Today’s Agenda
Recap of what’s changing Pre-Medicare information
BorgWarner pre-Medicare benefits Preview of BorgWarner post-65 benefits Next steps for pre-65 retirees
Medicare information Introduction to UnitedHealthCare Medicare options education Next steps for Medicare retirees
3
Call 1-800-929-2300
Icons to Help You
= Important concept
= Alerts you on “to do” items
= Decision-support tools
www.BorgWarner.com/retirees
4
Call 1-800-929-2300
Recap of What’s Changing & Why
BorgWarner has NOT eliminated your coverage; it’s being delivered differently
Coverage is more flexible; choose individual coverage that meets your health care needs Plans can vary for you and your dependents
More choice and better options for coverage are now available to retirees over 65 United HealthCare’s role in helping you choose
Tax-free reimbursement accounts Retiree Reimbursement Accounts (RRA)
5
Call 1-800-929-2300
Recap of What’s Changing on 1/1/09
IF YOU ARE MEDICARE ELIGIBLEIF YOU ARE UNDER AGE 65
Medicare continues to be your primary coverage
Your BorgWarner supplemental coverage ends.
The company sets up a Retiree Reimbursement Account (RRA)
United HealthCare, our Retiree Plan Coordinator, is available to help you assess, select and enroll in the Medicare Supplement
plan that is right for you.
Continue BorgWarner medical and Rx coverage until Medicare eligible
If retired with 25 years of service or more:
You pay 10% BorgWarner pays 90%
If retired with less than 25 years of service:
You pay 15% BorgWarner pays 85%
The retiree’s benefit is based on the retiree’s age. The dependent’s benefit is based on dependent’s age. Plans are individual, not by household.
6
Call 1-800-929-2300
Borg Warner
Pre-MedicareCoverage
7
Call 1-800-929-2300
If you or your dependents are not eligible for Medicare…
You remain on a BorgWarner pre-Medicare health care plan until Medicare-eligible CIGNA is your plan administrator
You will be required to complete a 2009 enrollment form during 4th quarter 2008
Your Prescription Drug coverage will move to CIGNA health care from Express Scripts
Health Plan questions should be directed to: 1st - CIGNA 2nd – See your Wallet Card
Retiree Pre-Medicare Coverage - BorgWarner
8
Call 1-800-929-2300
Retiree Pre-Medicare Coverage - BorgWarner
*assumes 5% trend on 2007 BW PreMedicare Plan experience
Pre-Medicare 2008 2009
Plan Choices
1. PPO Plan2. Choice Health Fund
(for retirees after 1/1/07)
3. POS (some locations)
(same as active employees)
1. PPO Plan2. Choice Health Fund
(same as active employees)
Contribution Share
5 tiers based on years of service
2 tiers based on years of service
Monthly $ Contribution
$12 - $450 single$27 - $138 family
for PPO Plan
Estimated per member$52* @ 10%$78* @ 15%Compared
to 41% average
9
Call 1-800-929-2300
Retiree Pre-Medicare Coverage - BorgWarner
CORE PPO PLAN CHOICE HEALTH FUND
Medical In-network Out-of-network In-network Out-of-network
Deductible $400 single$800 family
$800 single$1,600 family
$1,500 single$3,000 family
$3,000 single$6,000 family
Coinsurance for most services
80% afterDeductible
60% afterDeductible
80% afterDeductible
60% afterDeductible
Company-paid HRA
N/A $750 single$1,500 family
Member Gap(Deductible - HRA)
N/A N/A $750 single$1,500 family
$2,250 single$4,500 family
Out-of-PocketMaximum(Includes deductible)
$3,000 single
$6,000 family
$6,000 single
$12,000 family
$3,000 single
$6,000 family
$6,000 single
$12,000 family
Plan details will be mailed to you during open enrollment
10
Call 1-800-929-2300
Retiree Pre-Medicare Rx Coverage - BorgWarner
Plan details will be mailed to you during open enrollment
Coverage LevelCIGNA Pharmacy(30-day supply)
CIGNA Mail-order Service(90-day supply/delivery)
Non-Specialty Drugs
Tier 1 - Generics $8 $16
Tier 2 - Preferred Brand (Formulary) $8 + 30% 30% to max of $150
Tier 3 - Non-Preferred Brand $8 + 50% 50%
Specialty Drugs (30 day supply/mail order delivery)
Tier 2 - Preferred Brand (Formulary) 30% to max of $50
Tier 3 - Non-Preferred Brand50% to max of $100
11
Call 1-800-929-2300
When you turn age 65…
Before Medicare Eligibility –
BW medical & Rx coverage
Age 65 or Disability –
BW coverage ends
• New RRA from BW helps pay for Medicare supplement coverage
• BW provides United HealthCare as a Retiree Health Care Coordinator to help you choose medical/Rx coverage and enroll
PRE-MEDICARE MEDICARE Age
12
Call 1-800-929-2300
Next Steps (For Pre-65)
Early October
2009 Enrollment Packet mailed
November 15th
BorgWarner Pre-Medicare Enrollment Enrollment Form Must Be Returned to Have Coverage
December Receive your CIGNA medical ID cards
January 1 Contribution changes take effect Begin sending premium payments to Premium Service Ctr
Now until age 65
Talk with others about their Medicare decisions Expect changes in the Medicare marketplace
3 months before you turn 65
Apply for Medicare Part A & B Talk with UHC’s Retiree Health Care Coordinator to
determine the type of coverage that is best for you Enroll in the Medicare Plans you choose
Age 65 Retirement Reimbursement Account established for you Medicare coverage begins
13
Call 1-800-929-2300
?
Rx for a Healthy Retirement
www.BorgWarner.com/retirees
Pre-Medicare
QUESTIONS?
14
Call 1-800-929-2300 August 2008
Medicare-Eligible Retirees
Prescription for a Healthy Retirement: PART 2
Medigap
RetireeReimbursemen
tAccount
Pre-MedicareCoverage
MedicarePart D
MedicarePart C
MedicarePart B
MedicarePart A
15
Call 1-800-929-2300
Introducing UnitedHealthcare
Private Insurance Provider of Medicare Products
Offers you Medicare Advantage (Part C), Rx (Part D) and Medigap Plan Options
Similar to other leading providers such as CIGNA, BlueCross BlueShield, AETNA, and Humana
RRA Administrator Manages the Retiree
Reimbursement Account (RRA)
Retiree Health Plan Coordinator
Access to call center and website
Expert guidance to help you choose Medicare Supplement Plan that’s right for you
16
Call 1-800-929-2300
RetireeReimbursem
entAccount
17
Call 1-800-929-2300
Overview An account that reimburses you for qualified health care premiums & expenses.
Credits to your account
When you become eligible for Medicare, the Company will make a credit to your account each month. When your spouse becomes eligible for Medicare, the Company will make a credit into your spouse’s account each month.
Amount of credits
$158.34/month for each Medicare eligible-person (may be adjusted periodically to help offset inflation).
Interest Your account does not earn interest.
Retiree Reimbursement Account
For Medicare-eligible employees, spouses and dependents
18
Call 1-800-929-2300
Tax advantages
You never pay taxes on the money credited to your account or when you are reimbursed for qualified expenses. More value to you than if the funds were paid to you as taxable income.
Using your account
Money is paid from your account when you submit a claim for reimbursement.
Eligible expenses
Funds can be used for premiums for private health insurance, for Medicare or Medigap premiums, and for any deductibles, copays or coinsurance that may be left after your health insurance pays. This includes Dental and Vision premiums not paid by the plans.
Year-end If you don’t use all the money in your account by year end, it is forfeited in March of the following year.
At Death Accounts are closed when the account-holder dies. If you die before your spouse, and your spouse is eligible for surviving spouse benefits, your spouse’s account continues for his or her lifetime.
Retiree Reimbursement AccountFor Medicare-eligible employees, spouses and dependents
19
Call 1-800-929-2300
Your RRA Account
If you have questions about your RRA, you can call the RRA Financial Call Center at 866-214-5385
20
Call 1-800-929-2300
Using Your RRA Account
BorgWarner credits your account monthly
You pay premiums* and out-of-
pocket medical
expenses
You send your receipt and claim form to UHC
You receive reimbursement
* If you choose UHC insurance, premiums will be deducted directly from your RRA
21
Call 1-800-929-2300
Retiree Health Coordinator: Needs Assessment
United HealthCare helps you choose the best Retiree Health Plan for you
How frequently do you access care?
Are you looking for a plan that is very similar to your current coverage? Or, are you more interested in lower monthly payments with predictable copayments?
Do you live in a different state for part of the year?
Do you travel frequently and/or internationally?
Would you prefer complete freedom in selection of the doctors you see?
Are you comfortable with using a network provider? Are there specific doctors that need to be in the network?
What specific medications you are taking to verify coverage under our plan?
22
Call 1-800-929-2300
Medicare Plan Options
Medicare Part A
•Hospital stays •Skilled nursing services
Medigap •Also known as Medicare Supplement Plan. Private insurers •“Fill in the gaps” of Medicare Parts A and B.
Medicare Part B
•Doctor’s visits •Outpatient medical services, such as labs.
Medicare Part C
•Also known as Medicare Advantage. •private insurers - PPOs, HMOs or other arrangements•You must enroll in and pay for Part B coverage to get Part C coverage
Medicare Part D
•Prescription Drug coverage •Private insurance companies
23
Call 1-800-929-2300
What Do Medicare Plans Cost?$0
$25
$50
$75
$10
0
$12
5
$15
0
$17
5
$20
0
Medicare Advantage “Part C Plan”
RX- “D”
AARP Medicare Supplement
Individual Alternatives for Post-65 Health Coverage
Monthly Health Care Cost Continuum
Opt
Out
/No
Cov
erag
e
24
Call 1-800-929-2300
Medicare Part A
Automatic enrollment when you apply for Social Security
Provides help with the cost of hospital stays Some skilled nursing services and care
25
Call 1-800-929-2300
Medicare Part B – 2008
Medicare Part B Overview: $135 deductible 80%/20% coinsurance Enrollment window
3 months prior to birthday month thru 3 months after birthday month
Be sure to
be in
Part B!
26
Call 1-800-929-2300
Medicare Part B – 2008
The Part B premium is determined by an income test
Medicare members annual income:
Medicare members joint tax return income:
Total monthly premium amount
≤ $82,000 ≤ $164,000 $96.40
> $82,000 and ≤ $102,000 > $164,000 and ≤ $204,000 $122.20
> $102,000 and ≤ $153,000 > $204,000 ≤ $306,000 $160.90
> $153,000 and ≤ $205,000 < $306,000 and ≤ $410,000 $199.70
> $205,000 > $410,000 $238.40
27
Call 1-800-929-2300
Part C Plans – Advantage Plans
Many Options offered by private insurers… Health Maintenance Organization Plans (HMOs) Preferred Provider Organization Plans (PPOs) Special Needs Plans (SNP) Private Fee for Service Plans (PFFS)
Annual enrollment period Replaces Medicare A&B
Must be enrolled in A&B to get Part C Plan
28
Call 1-800-929-2300
HMO-type plans• Network of doctors and hospitals• Primary care physician • Some plans include prescription drug
coverage and additional benefits
PPO-type plans• Have more freedom to choose • Use network of doctors and hospitals
to receive the maximum benefit• Outside the network a higher cost • Some plans include prescription
drug coverage and additional benefits
A Closer Look at HMO and PPO Plans
29
Call 1-800-929-2300
Special Needs Plans• Designed for people with
special health care needs• Residents of nursing homes• People eligible for both
Medicare and Medicaid• People with certain chronic
diseases such as diabetes or heart disease
• Focus on helping members receive more coordinated care• Holistic, proactive approach• Specialized care team• Enhanced education and
communication
Coordinated Care Plans
CARE TEAM
30
Call 1-800-929-2300
• Offered by private insurance companies
• No restrictions on which doctors or hospitals you can use EXCEPT
• Doctors and hospitals must accept the terms, conditions and payment rates of the private insurance company• Payment comes from the private fee-for-
service plan not Medicare• Important to make sure your doctor or hospital
will accept terms, conditions and payment rates from a specific plan each time you receive services
• Many plans may offer prescription drug coverage
• Many plans may offer additional benefits beyond traditional Medicare Parts A & B
Private-Fee-For-Service Plans
31
Call 1-800-929-2300
Medicare Advantage Plan Scenario #1
“Good Health” Hank – Age 67 – Illinois Generally in good health Takes 1 generic prescription drug each month, via mail order No hospitalizations 4 primary care office visits per year 2 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Annual Medical Premium $0 $0
Annual RX Premium $0 $0
Drug Cost Share (mail) $64 ($16 x 4 orders)
$48 ($12 x 4 orders)
Hospital Cost Share $0 $0
Office Visit Cost Share $430 ($400 deductible then 20%)
$88 ($8 PCP x 4, $28 Specialist x 2)
SUB TOTAL $494 $136
Annual RRA Credit $0 ($1,900)
TOTAL ANNUAL
COST TO YOU
$494 $0 with $1,764 remaining for other expenses
32
Call 1-800-929-2300
“Moderate” Mildred, Age 81, Central New York Takes 2 generic drugs and 1 preferred brand-name drug each month, via mail
order 1 hospital stay, length of 3 days 3 primary care office visits per year 8 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Annual Medical Premium $0 $0
Annual RX Premium $0 $0
Drug Cost Share $372 ($16 x 2 x 4 orders + $61 x 4 orders)
$482 ($12 x 2 x 4 orders + $84 x 4 orders)
Hospital Cost Share $1,024 ($400 deductible then 20%)
$975 ($325 daily copay x 3)
Office Visit Cost Share $245 (20%) $270 ($10 PCP x 3, $30 Specialist x 8)
SUB TOTAL $1,641 $1,677
Annual RRA Credit $0 ($1,900)
TOTAL ANNUAL
COST TO YOU
$1,641 $0 with $223 remaining for other expenses
Medicare Advantage Plan Scenario #2
33
Call 1-800-929-2300
Medicare Advantage Plan Scenario #3“Chronic Condition” Carol, Age 66, Michigan Takes 5 generic drugs and 2 preferred brand-name drugs each month, via mail
order 2 hospital stays, total of 5 days 12 primary care office visits per year 10 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Annual Medical Premium $0 $0
Annual RX Premium $0 $0
Drug Cost Share $808 ($16 x 5 x 4 orders + $61 x 2 x 4 orders)
$1,362 ($12 x 5 x 4 orders + $84 x2 x 4 orders +
$450 for brand in cvg gap)
Hospital Cost Share $1,900 ($400 deductible then 20%)
$625 ($125 copay x 5)
Office Visit Cost Share $0 (mbr reached annual OOP max) $260 ($5 PCP x 12, $20 Specialist x 10)
SUB TOTAL $2,708 $2,247
Annual RRA Credit $0 ($1,900)
TOTAL ANNUAL
COST TO YOU
$2,708 $347
34
Call 1-800-929-2300
Medicare Advantage Plan Scenario #4
“Specialty Drug” Sam, Age 69, Florida Takes 2 generic drugs at retail, plus 1 non-preferred specialty drug 1 hospital stay, length of 3 days 12 primary care office visits per year 5 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Annual Medical Premium $0 $0
Annual RX Premium $0 $0
Drug Cost Share $7,392 ($8 x 5 x 12 orders + 50% specialty drug @
$1200 per month)
$4,579 ($4 x 2 x 12 orders + 33% of specialty up to
gap + 5% specialty after OOP)
Hospital Cost Share $1,024 ($400 deductible then 20%)
$300 ($100 copay x 3)
Office Visit Cost Share $305 (20%) $220 ($10 PCP x 12, $20 Specialist x 5)
SUB TOTAL $8,721 $5,099
Annual RRA Credit $0 ($1,900)
TOTAL ANNUAL
COST TO YOU
$8,721 $3,199
35
Call 1-800-929-2300
Medigap
36
Call 1-800-929-2300
AARP Medigap Options
1] $4,440 maximum out of pocket, indexed to Medicare costs[2] $2,220 maximum out of pocket, indexed to Medicare costsX = Covered in Full
The above rates are monthly premium 2008 national weighted averages
“Best Seller/Value”
2008 AARP MEDICARE SUPPLEMENT PORTFOLIO
PLANA B C D E F G H I J K3 L4
Basic Benefits:Hospitalization: Part A coinsurance + 365 additional days after Medicare benefits endMedical-Expenses: Part B coinsuranceBlood: First three pints of blood each year
x x x x x x x x x x 1 2
Part A Deductible x x x x x x x x x 50% 75%
Skilled-Nursing Coinsurance x x x x x x x x 50% 75%
Foreign-Travel Emergency x x x x x x x x
At-Home Recovery x x x x
Part B Excess Charges 100% 80% 100% 100%
Part B Deductible x x x
Preventive Care x x x x
Average Monthly Premium(2008 nationally weighted averages)
$112 $146
$172 $157 $161 $171 $161 $158 $166 $178 $79 $113
2008 Membership - % of Total Enrolled 4% 4% 25% 2% 3% 42% 2% .7% 3% 13% .4% .3%
37
Call 1-800-929-2300
AARP Medigap Options
Enrollment Into Medigap
When turn 65 AND enroll in Medicare B, guaranteed right to buy a Medigap policy for next six months. Miss window, you can apply at later date but risk rejection for health history
or paying a higher premium
38
Call 1-800-929-2300
Medigap Plan Scenario #1“Good Health” Hank – Age 67 – Illinois Takes 1 generic prescription drug each month, via mail order No hospitalizations 4 primary care office visits per year 2 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Medigap Plan L +
Pfd Part D Rx Plan
Annual Medical Premium
$0 $0 $1,121 ($93.42 X 12)
Annual RX Premium $0 $0 $360 ($30 X $12)
Drug Cost Share $64 ($16 x 4 orders)
$48 ($12 x 4 orders)
$0 ($0 X $4 orders)
Hospital Cost Share $0 $0 $0
Office Visit Cost Share
$430 ($400 deductible then 20%)
$88 ($8 PCP x 4, $28 Specialist x
2)
$239 ($135 deductible then 25%)
SUB TOTAL $494 $136 $1,720
Annual Account Balance
$0 ($1,900) ($1,900)
TOTAL ANNUAL
COST TO YOU
$494 $0 with $1764 remains for other expenses
$0 with $180 remaining for other expenses
39
Call 1-800-929-2300
Medigap Plan Scenario #2
“Moderate” Mildred, Age 81, Central New York Takes 2 generic drugs and 1 preferred brand-name drug each month, via mail order 1 hospital stay, length of 3 days 3 primary care office visits per year & 8 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan Medigap Plan L +
Pfd Pt D RX
Annual Medical Premium
$0 $0 $1,200 ($100.26 x 12)
Annual RX Premium $0 $0 $358 ($29.80 x 12)
Drug Cost Share $372 ($16 x 2 x 4 orders + $61 x 4
orders)
$482 ($12 x 2 x 4 orders + $84 x 4
orders)
$300 ($0 x 2 x 4 orders + $75 x 4
orders)
Hospital Cost Share $1,024 ($400 deductible then 20%)
$975 ($975 ($325 copay x 3)
$256 (25% of Part D deductible)
Office Visit Cost Share $245 (20%) $270 ($10 PCP x 3, $30 Specialist x 8)
$407 ($135 deductible, 25%)
SUB TOTAL $1,641 $1,677 $2,524
Annual Account Balance
$0 ($1,900) ($1,900)
TOTAL ANNUAL
COST TO YOU
$1,641 $0 with $223 remains for other expenses
$624
40
Call 1-800-929-2300
Medigap Plan Scenario #3“Chronic Condition” Carol, Age 66, Michigan Multiple chronic illnesses Takes 5 generic drugs and 2 preferred brand-name drugs each month, via mail order 2 hospital stays, total of 5 days 12 primary care office visits per year & 10 specialist office visits per year
Current BorgWarner Plan
Medicare Advantage Plan
Medigap F + Enhanced Pt D RX
Annual Medical Premium
$0 $0 $1,348 ($112.35 x 12)
Annual RX Premium $0 $0 $768 ($64 x 12)
Drug Cost Share $808 ($16 x 5 x 4 orders + $61 x 2 x 4
orders)
$1,362 ($12 x 5 x 4 orders + $84 x2 x 4 orders+$450 for brand cvg gap)
$1,050
($0 generic x 5 x 4 = $75 x 2 x 4 + $450 brand drug in cvg gap)
Hospital Cost Share $1,900 ($400 deductible then 20%)
$625 ($125 copay x 5)
$0
Office Visit Cost Share $0 (mbr reached annual OOP max)
$260 ($5 PCP x 12, $20 Spclist x 10)
$0
(plan pays Pt B deductible & coinsurance)
SUB TOTAL $2,708 $2,247 $3,166
Annual RRA Credit $0 ($1,900) ($1,900)
TOTAL ANNUAL
COST TO YOU$2,708 $347 $1,266
41
Call 1-800-929-2300
Medigap Plan Scenario #4“Specialty Drug” Sam, Age 69, Florida Takes 2 generic drugs at retail, plus 1 non-preferred specialty drug 1 hospital stay, length of 3 days 12 primary care office visits per year 5 specialist office visits per year
Current BorgWarner Plan Medicare Advantage Plan
Medigap L + Enhanced Pt D Rx
Annual Medical Premium $0 $0 $1,200 ($100.03 x 12)
Annual RX Premium $0 $0 $732 ($61 x 12)
Drug Cost Share $7,392 ($8 x 5 x 12 orders + 50% specialty
drug @ $1200 per month)
$4,579 ($4 x 2 x 12 orders + 33% of
specialty up to gap + 5% specialty after OOP)
$4,651 ($7 x 2 x 12 + 33% specialty to
gap, 5% after OOP)
Hospital Cost Share $1,024 ($400 deductible then 20%)
$300 ($100 copay x 3)
$256 (25% of Part D deductible)
Office Visit Cost Share $305 (20%) $220 ($10 PCP x 12, $20 Specialist x 5)
$482 ($135 deductible + 25%)
SUB TOTAL $8,721 $5,099 $7,321
Annual RRA Credit $0 ($1,900) ($1,900)
TOTAL ANNUAL
COST TO YOU$8,721 $3,199 $5,421
42
Call 1-800-929-2300
MedicarePart D
43
Call 1-800-929-2300
Sample AARP MedicareRx Preferred – 2008 Part D Plan
• Benefits shown above apply until the total cost (paid by you and the Plan) of prescriptions received reaches $2,510 in eligible expenses. You will be responsible for 100% of the cost until your out of pocket expenses reach $4,050.
• Catastrophic coverage in accordance with Medicare regulations.
* Mail Order – up to 90 day supply; members may also obtain a 90 day supply at network retail pharmacies for the same copayment
Tier Type Member Cost
Monthly premiums vary by region: $26.60 - $38.30 per member
$0 annual deductible Retail Mail Order*
1 Generic $7 copay $0 copay
2 Preferred Brand $30 copay $75 copay
3 Non-Preferred Brand $69.15 - $80.70 copay $192 - $227 copay
4 Specialty Drugs 33% coinsurance 33% coinsurance
Ideal for 70%+ of BorgWarner seniors…
Great deal!
44
Call 1-800-929-2300
AARP MedicareRx Plan Offers A Broad Formulary
99% of Part D allowable drugs are in our current formulary structure
Drug exclusions include: Drugs ending in “am” used to treat anxiety
Alprazolam Clonazepam
Erectile dysfunction drugs Folic acid Cough/cold symptom relievers
45
Call 1-800-929-2300
AARP MedicareRx Plan
How does it work at the pharmacy? Brand preferred drug costs $75
You pay $30 copay Plan pays $45 $75 applies toward the $2510
Brand non-preferred drug costs $150 You pay $75.40 copay Plan pays $74.60 $150 applies toward the $2510
Generic drug costs $15 You pay $7 copay Plan pays $8 $15 applies toward the $2,510
Full cost of the Rx counts toward $2,510
46
Call 1-800-929-2300
RX Coverage – Donut Hole Example
Plan Pays
You Pay
$2,510You Pay
100% $4,050
Plan Pays95%
You Pay
=+
Cost Sharing “Donut Hole” Catastrophic
47
Call 1-800-929-2300
Choosing Rx Coverage
Annual enrollment period Comparing Prescription Drug options is
complicated Use calculator at www.medicare.gov Talk with UHC
Comparison-shop Be sure you understand how the prescription drug
plan you select works! If considering a Medicare Advantage (Part C) plan
that includes both medical & Rx coverage, you may not need a Part D plan – so consider it when comparison-shopping
48
Call 1-800-929-2300
Special Note about Rx
Be sure you arrange for prescription drug coverage for 2009 – enrollment is not automatic! Medicare Part C – Medicare Advantage Plan – with “built in”
prescription drug coverage; or Part D (AARP MedicareRx Preferred)
If you don’t enroll for 2009, you’ll generally have to pay a higher premium to receive coverage in future years
BW Rx coverage
12/31/08 – BW coverage ends
You need new Rx coverage for 2009!
49
Call 1-800-929-2300
Your Retiree Health Plan Coordinator
United HealthCare can provide expert guidance to help you choose and enroll in the health plan that is right for you Knowledgeable representatives who understand
retirees and retiree health care choices No cost – you do not receive a discount or pay
extra in premium for plans selected with the help of a Coordinator
Reach by phone or Web 1-800-929-2300 www.aarpmedicaresolutions.com
Remember, at the very least, enroll in Part B, and Part D or a Medigap Plan before 12/31/08!
50
Call 1-800-929-2300
Enrollment into Your Plan Choices
Once you’ve selected a plan you will receive a personalized enrollment kit sent to your home from United HealthCare
1-800-929-2300 number available to answer questions and/or provide assistance with application
Contact call center or refer to Medicare Made Easy booklet for Medicare enrollment periods
Once enrollment is processed, you will receive a Welcome Kit that includes your ID card
Enrollment is effective January 1st
51
Call 1-800-929-2300
What Happens Next
Now Access to UHC’s Retiree Health Plan Coordinator Call Center and online Decision Tools
Late August Educational letter and AARP Medicare Made Clear information mailed to you from UHC
Mid-September Retiree Packet outlining options and action items mailed to you from UHC
OctoberSpecial BorgWarner Retiree UHC Plan Enrollment Period
UHC will hold one-on-one sessions with Retiree Health Plan experts in major cities
Eligible to enroll in a Medicare Advantage or Prescription Drug plan
November 15-December 31Enrollment period for non-UHC Medicare plans
National Medicare open enrollment period (Every year, you automatically will be re-enrolled in your 2009 choice, unless you make a change)
December 31 BorgWarner post-65 coverage ends
January 1 Retiree Reimbursement Accounts opened New Medicare Plan starts
52
Call 1-800-929-2300
Summary
Watch for information in your mail box
Pre-Medicare – information from BorgWarner
Medicare – information from United HealthCare’s programs: Secure Horizons AARP Medicare Solutions Optum Health Financial Services
Refer to your wallet card
We expect that this retiree medical program will benefit our retirees for a long time into the future, but we reserve the right to change or even terminate the program if it becomes necessary or appropriate for business, legal or other reasons determined by BorgWarner
53
Call 1-800-929-2300
??
?
?? ?
?
Your Prescription for a Healthy Retirement
2009 Health Care Choices For BorgWarner Retirees
www.BorgWarner.com/retirees