EMERITI AS A STRATEGIC
RETIREMENT BENEFIT
University of Alaska System
July 2008
1
Broader Context of Retiree
Health Care
2
INSTITUTIONAL CONTEXT OF RETIREMENT PLANNING
 No mandatory retirement age
 Increasingly delayed retirement decisions
 Aging demographics coupled with expanded life expectancy
 Lost opportunity costs for institutional renewal
 Increasing end-of-career compensation pressures
 Escalating cost of retirement incentive programs
 Explosive trend in the active health care plan
 Rising health care utilization at the end of career
 Mounting unfunded obligations for defined benefit promise
3
BEHAVIORAL IMPACT OF RETIREE MEDICAL ACCESS
Faculty Stay 18-36 Months Longer
100%
80%
60%
34%
40%
28%
28%
39%
36%
Late (67>)
On-Tim e (64-66)
40%
20%
Retirement Date
Early (<63)
26%
36%
33%
0%
No Plan
No Plan
Some Support
Some Support
High Support
High Support
Source: Mellon Faculty Retirement Project (2000)
4
TYPICAL COMPENSATION IMPACT
Delayed Faculty Retirements
Total Cumulative Excess Costs (salary/benefits) Incurred with Delayed
Retirement for One Individual (monthly view)
$300,000
$250,000
$200,000
$150,000
$35,522
$100,000
$50,000
$3,600
$90,000
$37,495
$3,800
$39,469
$4,000
$41,442
$4,200
$43,416
$4,400
$45,389
$4,600
$47,362
$4,800
$49,336
$5,000
$51,309
$5,200
$53,283
$5,400
$55,256
$5,600
$57,230
$5,800
$59,203
$6,000
$61,176
$6,200
$63,150
$6,400
$65,123
$6,600
$67,097
$6,800
$69,070
$7,000
$71,044
$7,200
$180,000
$170,000$175,000
$160,000$165,000
$155,000
$150,000
$140,000$145,000
$130,000$135,000
$120,000$125,000
$115,000
$105,000$110,000
$95,000 $100,000
$month
18
month
19
month
20
month
21
month
22
Additional Salary
month
23
month
24
month
25
month
26
month
27
Additional Health Costs
month
28
month
29
month
30
month
31
month
32
month
33
month
34
month
35
Additional Disability/Life/Pension/403b
5
month
36
INDIVIDUAL PERSPECTIVES ON RETIREMENT SECURITY
 Dwindling employer commitments to retiree benefits
 Eroding retiree defined benefit plans in all sectors
 Escalating cost of and cost sharing on all medical services
 Worries about access to “good” insurance
 Anxieties about financial impact of a catastrophic illness
 Concerns about outliving pension assets
 Preoccupation with long-term care expenses
 Frustrations with complexities of Medicare
 Perceived lack of insurer commitments to local market
 Loss of control over health care decisions
6
HOW RETIREE HEALTH CARE
EXPENSES ARE PAID
Individual
Out-of-Pocket
20%
Private Insurance
19%
Other Gov’t
Programs*
10%
Medicare
51%
Source: The Employee Benefit Research
Institute (EBRI) 2006 estimates from the
2003 Medical expenditure survey.
*VA/Tricare 4%, Medicaid 4%, Other 2%
7
9
RETIREMENT INCOME EXPOSURE
(Medicare Cost Shares as a Percentage of Social Security Benefits)
65-year old retiree
Same retiree at 85
In 2006:
37.2%
64.5%
In 2025:
52.6%
80.2%
Source: Data from the Center for Medicare and Medicaid Services, Office of the Actuary, 2004.
8
ESTIMATED HEALTH CARE SAVINGS
REQUIRED FOR A COUPLE RETIRING TODAY
Age at
Retirement
55
60
65
Total Savings
Required
Annual Savings
Required
(starting at age 35)
Annual Savings
Required
(starting at age 45)
$395,000
$7,992
$25,247
$310,000
$3,926
$10,571
$225,000
$1,839
$4,553
Source: Retiree Health Care Costs: Addressing the Growing Gap, Fidelity Investments, March 2008
Amounts shown are annual savings required for a couple enrolled only in Medicare. The savings illustrations do not
include either employer sponsored group insurance or long-term care insurance coverage.
9
12
8
HOW THE EMERITI
PROGRAM PROVIDES
A SOLUTION
10
www.emeritihealth.org
EMERITI’S VALUE PROPOSITION
 A strategic purchasing alliance of, by, and for higher education
 An innovative retirement benefit paradigm
• tax-advantaged savings/investment accounts
• nationally accessible retiree medical plans
• reimbursement benefit for other health expenses
 An educational framework for integrating health planning into
retirement decision making
 A single source administrative structure
11
EMERITI PARADIGM SHIFT
Defined
Benefit
Promise
Defined
Contribution
Account
Social Security
+
403 (b) Pension Plan
Medicare
+
501 (c) (9) EMERITI PLAN
NOTE: Emeriti is made possible through the generosity of The Andrew
W. Mellon Foundation and The William and Flora Hewlett Foundation.12
EMERITI PROGRAM STRUCTURE
TAX ADVANTAGED
SAVINGS
Employer
Contributions
Employee Voluntary
Contributions*
TAX FREE
EARNINGS
INVESTED
ACCOUNTS
$
TAX FREE
DISBURSEMENTS
Medicare
Coordinated Group
Insurance
Retiree Medical
Expense
Reimbursement
*NOTE: Voluntary employee contributions are made post-tax.
13
EMERITI DELIVERY MODEL
EMERITI
TRUST STRUCTURE
VEBA Trusts
EMERITI
HEALTH ACCOUNTS
Lifecycle
Mutual
Funds
Grantor Trust*
$
Fidelity:
Trust Administrator
Fidelity:
Investment
Provider
*NOTE: Grantor Trust money can only be
used for Emeriti Insurance Options
EMERITI
INSURANCE OPTIONS
- Indemnity Medical Plans
- Rx Plans
- Medicare Part C Plan
- Dental Plan
Aetna:
Insurance Provider
EMERITI
REIMBURSEMENT BENEFIT
Eligible out-of-pocket
expenses incurred by
participants
Acclaris:
Claims Processor
14
TAX ADVANTAGES
Common Amounts into VEBA Trusts
Emeriti Plan
Who Pays
Contributions Earnings
Payout
Required
Employer
Pre-tax
Tax free
Tax free
Strongly
Encouraged
Employee
Voluntary
After-tax
Tax free
Tax free
Optional by
Plan
Employee
Mandated*
Pre-tax
Tax free
Tax free
*Depending on the organization, your employer’s contributions may also
include additional pre-tax amounts in lieu of compensation or other benefits.
15
TAX ADVANTAGES
Special Contributions into Grantor Trust
PAYER
EMPLOYER
ONLY (non-profit)
CONTRIBUTION
EARNINGS
PAYOUT
Pre-tax
Tax free
Tax free
Workforce Management Flexibilities
 Retirement Incentives
 Retention Opportunities
 Recruitment Strategies
 Special Transition Contributions
NOTE: These special employer contributions may be made
in any amount, but are limited to fully insured products.
16
ADVANTAGES OF FIDELITY
FREEDOM FUNDS
• Lifecycle funds geared toward retirement
• Actively managed portfolios of stocks, bonds
and money market funds
• Automatic rebalancing over your lifetime
• More conservative allocations as you move
closer to retirement
17
28
TAX ADVANTAGE OF THE
REIMBURSEMENT BENEFIT
Your tax-free earnings can be used for reimbursement of qualified medical
expenses, such as:








Pre-65 health insurance premiums
Supplemental insurance deductibles, co-insurance, co-pays
Vision, dental, hearing care
Over-the-counter drugs
Long-term care insurance
Medical expenses associated with nursing or in-home health care services
Medicare premiums and cost shares
Other post-65 insurance premiums (if Emeriti coverage is not elected)
Unlike a flexible spending account, any residual balance stays in your account and
continues to grow tax free for future use
NOTE: A wide range of health care expenses apply for tax-free reimbursement as
long as they satisfy the requirements of Section 213 (d) of the IRS Code.
18
ADVANTAGES OF EMERITI INSURANCE
 Guaranteed issue group health insurance







coverage
A menu of options to fit your personal needs
Catastrophic protection
Prescription drug coverage
Nationwide access
Annual enrollment choice
Foreign urgent or emergency care
Preventive care
 Builds on the foundation of Medicare
19
NEW in 2008
EMERITI’S BUILD YOUR OWN PLAN
APPROACH TO RETIREE INSURANCE COVERAGE
 Four Post-65 Medical Plans
Choice of Two Medicare Supplement Plans (Original Medicare)
Choice of Two Private Fee for Service Plans (Medicare Advantage)
 Three Medicare Part D Prescription Drug Plans
Choice of Formularies
Choice of Coverage in the “Gap”
Choice of mail order and retail pharmacy supply
 One Optional Dental Plan
 Pre-65 Retiree Health Plans (coming in 2009)
20
EMERITI EDUCATIONAL COMMITMENTS
1. Toll-free service center
2. Dedicated website
www.emeritihealth.org
3. Printed enrollment materials
4. Annual workshops on campus
5. Periodic newsletters to active employees
and to retirees
21
32
Emeriti Funding and
Design Issues
22
PROGRAM FUNDING CONSIDERATIONS
1.
Employer contribution must be at least ½% of benefit-eligible payroll
- Employer contributions are made on equal, flat dollar basis
- Minimal amount typically ranges from $300-$500 per person per year
2.
Employee contributions are voluntary
- Contributions may be made in any amount during service and in retirement
- Regular payroll reduction option
- Periodic lump-sum option electronically from personal bank accounts
3.
Employee mandated contributions are optional
- Mandated contributions are in lieu of salary and are a condition of employment
- Mandated contributions, like employer dollars, must be equal, flat dollar basis
23
20
CAMPUS POPULATIONS POTENTIALLY SERVED
I.
Prefunded Contributions for Active Employees
on a DC basis for all defined members of the benefits-eligible population
II. Transitional Funding Support for Older Employees
through a combination of DC and DB approaches
III. Insurance Access for Current Retirees
on retiree pay-all basis or through continuing employer DB premium
subsidies
24
20
KEY DECISIONS IN DEFINING YOUR PLAN

Participant Eligibility

Contribution Period

Prospective Funding Amount

Transition Support

Vesting Criteria

Retirement Definition

Employer Forfeitures

Current Retirees
(Who is eligible for the Emeriti benefit? And which dependents?)
(How long does the employer fund?)
(How much does the employer contribute on a flat-dollar basis?)
(Does the employer provide any catch-up amounts for older employees?)
(When does the employee own the employer’s contributions?)
(When does the employee become eligible for insurance in retirement?)
(How does the employer reallocate unspent dollars within its Plan?)
(Under what terms does the employer wish to invite current retirees into Emeriti insurance?)
25
20
MODELING OBJECTIVES
Prospective Funding Model






Document the first-year employer cost of the proposed DC plan
Project accumulated individual DC account balances over a long
period of time
Provide sensitivity analysis of altering fundamental parameters of
the proposed DC Emeriti plan
Estimate first-year flat dollar contributions for each eligible
participant based on age cohort
Forecast the last-year flat dollar contribution for each eligible
participant based on age cohort
Demonstrate the approximate account balance shortfall of older age
entry in the proposed DC Emeriti plan (a proxy for transition funding
needs at the individual level)
26
University of Alaska
Target Funding: 50% of Combo III
Age
Current Year
Contribution
2008
25
30
35
40
45
50
55
60
65
$560
$560
$560
$560
$560
$560
$560
$560
$0
$1,435
$1,435
$1,435
$1,435
$1,180
$970
$797
$655
$0
651
Contribution Starting Age: 25
2008 AMOUNTS FOR THE INDIVIDUAL
Last Contribution
Accumulated Fund
Future Value
Prior To Retirement
Balance
of EMERITI Combo III
at Retirement
Benefits At Retirement
2008 CASH FLOW FOR THE INSTITUTION
Population Count
Cash Flow
Under 30
141
$78,960
30-34
119
$66,640
35-39
113
$63,280
40-44
80
$44,800
45-49
55
$30,800
50-54
53
$29,680
55-59
43
$24,080
60-64
37
$20,720
65 & Older
10
$0
Grand Total
|
$358,960
$152,183
$108,505
$77,362
$55,158
$33,526
$19,136
$9,725
$3,713
$0
$307,803
$241,171
$188,964
$148,058
$116,008
$90,895
$71,219
$55,735
$43,065
Percentage of
EMERITI Combo III
Benefits Funded
50%
45%
41%
37%
29%
21%
14%
7%
0%
KEY ASSUMPTIONS FOR EMERITI PROGRAM
Target Retirement Age
Assumed Retirement Age
Funding Start Age
Investment Return
Annual Increase %
Combo Plan
Target Percentage
Healthcare Trend
Medical
Prescription Drugs
Geographic Area Factor
Medical
Prescription Drugs
Mortality
Funding Years
65
65
25
7.00%
4.00%
III
50%
8.0% for 2008 grading to 5%
11.5% for 2008 grading to 5%
120%
105%
Standard
2527
Emeriti provided these analyses and illustrations through prospective modeling tools developed by PricewaterhouseCoopers on behalf of
the Emeriti Program, as an informational service. Estimates used in these calculations are subject to change and actual results may vary
significantly from the illustrated outputs.
Organizations utilizing these tools are solely responsible for validating the assumptions and outputs for their plan by means of internal
analysis and/or through the support of independent consultants and attorneys. Further, any funding option must take into account applicable
legal restrictions, the satisfaction of which are also the responsibility of the organization.
These analyses and illustrations are for the exclusive use of institutions of higher education and higher education-related, not-for-profit
organizations evaluating membership in the Emeriti consortium.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
28
Emeriti Services and Fees
29
EMERITI SERVICES
 Legal Structure
 Plan Design
 Evaluation Tools (Funding Models)
 Plan Documents
 Regulatory Compliance
 Communications to employees and retirees
 Enrollment and ongoing education
 Negotiation of insurance rates and plan provisions
 Service and performance monitoring of partners
 Ongoing evaluation and feedback from members
30
EMERITI PROGRAM FEES
1.
Required one-time institutional implementation
fee: $25,000.
2.
Optional institutional cost sharing of
participant fees:
 Emeriti account fee: $4.00/mo.
 Fidelity record-keeping fee: Actives $1.67/mo., Retirees $6.25/mo.
 Fidelity investment management fees: variable
 Reimbursement benefit claims processing fee: first 4 submissions
free, thereafter $6.00/bundle of receipts
31
20
Next Steps with Emeriti
32
Institutional Decision Making Timeline
Institution Start Date: July 1, 2009
TARGET DATES
January
March and April
Spring
Summer and Fall
Jan. 29 Retirement
Committee
Presentation
Retirement
Committee Conf.
Calls on Plan
Design and
Funding Models
Obtain Ret.
Committee
recommendation to
move forward
Make final plan design
decisions; confer with IT
Late March/ April
Review Emeriti
Funding
Present Emeriti
Proposal to
Business Council;
obtain apoproval to
move forward
Go to Board of Regents in
Sept.; obtain approval to
declare membership
February
Update Funding
Models
Internal
Communications
with CFO
Consider inviting current
retirees into Em. insurance
at a future date
Jan. - June '09
Submit final plan
docs by Jan. 1
Kick off
Implementation
Call/Send
indicative data
Emeriti prepares
new plan
announcements/
mails info. packets
April
Hold on-site
workshops
Committee
Meeting/Approval
Sr. Team/Board Review
Implementation
Enrollment
Phase 2: Evaluation
Phase 3: Leadership Approval
Phase 4:
Implementation
Phase 5:Program
Launch
Follow-up with Ret.
Committee
Data Gathering
Consensus
Building
Phase 1: Data Gathering
Legal Review of plan docs
July 1, 2009
Launch Plan
Start making
employer
contributions
Prepare to offer
Em. Insurance to
existing retirees
for Jan. 2010 eff.
date
33
20
UNIVERSITY OF ALASKA
WHY EMERITI? WHY NOW? WHY NOT?
THINKING STRATEGICALLY
■
Talent Management: The Three “Rs”
- Recruitment
- Retention
- Retirement
■
Equity among Employee Groups
- ORP Tiers
- Value-added employee benefit
34
UNIVERSITY OF ALASKA
WHY EMERITI? WHY NOW? WHY NOT?
THINKING STRATEGICALLY
■
Systematic Build-up of DC Assets for Health Care
- Good time start now for Tier 2 and 3 ORP
- No unfunded liability issues
- Minimal employer funding (can be budget neutral)
■
Value of Group Sponsored Consortium Based Insurance
- Guaranteed issue, fully portable
- Flexible menu of options, annual choice
■
Single Source Solution
- Comprehensive approach (savings and insurance)
- Integrated service delivery; enrollment, communications,
education provided by Emeriti
- Minimal administrative responsibilities
35
EMERITI CONTACT INFORMATION
EMAIL
info@emeritihealth.org
PHONE
(866) 685-6565 (toll-free)
FAX
(866) 686-6565 (toll-free)
URL
www.emeritihealth.org
POST
EMERITI Retirement Health Solutions
103 Executive Drive – Suite 503
New Windsor, NY 12553
36
20
Emeriti Retirement Health Solutions provided this information and is responsible for its content.
The Emeriti Program, Aetna Life Insurance Company, Fidelity Investments, HealthPartners (in Minnesota), and Acclaris
Inc., are independent corporations and are not legally affiliated.
The full name of Emeriti Retirement Health Solutions is The Emeriti Consortium for Retirement Health Solution, an
Illinois Nonprofit Corporation.
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.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
37
Investment Adviser Status
Emeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options for the Emeriti Program,
selecting the investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to
plan participants. Emeriti does not provide advice to participants about their individual investment selections.
The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities
under various state securities laws. The offering of these Interests is subject to compliance with any applicable 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.
Investment Decisions
It is your responsibility to select and monitor your investments to make sure they continue to reflect your financial situation, risk tolerance and time horizon.
Most investment professionals suggest that you reexamine your investment strategy at least annually or when your situation changes. In addition, you may
want to consult an investment adviser regarding your specific situation.
Unless otherwise noted, transaction requests confirmed after the close of the market, normally 4 p.m. Eastern time, or on weekends or holidays, will receive
the next available closing prices.
Recordkeeping and shareholder services for the Emeriti Program are provided by Fidelity Investments Tax-Exempt Services Company, a division of Fidelity
Investments Institutional Services Company, Inc.
Strategic Advisers, Inc., a subsidiary of FMR Corp., manages the Fidelity Freedom Funds
Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this
and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.
An investment in a money market fund is not insured or guaranteed by the FDIC or any other government agency. Although money market
funds seek to preserve the value of your investment at $1 per share, it is possible to lose money by investing in these funds.
38
ADDENDUM
39
RETIREMENT BENEFIT DIFFERENCES
RETIREMENT INCOME
403(b) Plan
RETIREMENT HEALTH CARE
501(c) (9) Plan
General income protection
Dedicated health security
Unrestricted distributions for any
purpose
Qualified distributions for eligible
medical expenses
Tax-deferred earnings
Tax-free earnings
Fully taxed at distribution
Tax-free disbursements for qualifying
medical expenses
Taxable, unqualified death benefit
(assignable to any designated
beneficiary)
Tax-free lifetime asset distribution for
health care (assignable to eligible
spouse, partner, other federally defined
dependents)
Residual balance is payable to estate
Residual balance reverts to plan
40
University of Alaska
Target Funding: ½% of payroll - Combo III
Age
Current Year
Contribution
2008
25
30
35
40
45
50
55
60
65
$240
$240
$240
$240
$240
$240
$240
$240
$240
$615
$615
$615
$615
$506
$416
$342
$281
$240
651
Contribution Starting Age: 25
2008 AMOUNTS FOR THE INDIVIDUAL
Last Contribution
Accumulated Fund
Future Value
Prior To Retirement
Balance
of EMERITI Combo III
at Retirement
Benefits At Retirement
$65,221
$46,502
$33,155
$23,639
$14,368
$8,201
$4,168
$1,591
$257
2008 CASH FLOW FOR THE INSTITUTION
Population Count
Cash Flow
Under 30
141
$33,840
30-34
119
$28,560
35-39
113
$27,120
40-44
80
$19,200
45-49
55
$13,200
50-54
53
$12,720
55-59
43
$10,320
60-64
37
$8,880
65 & Older
10
$2,400
Grand Total
|
$156,240
$259,762
$203,530
$159,471
$124,950
$97,901
$76,708
$60,103
$47,027
$36,297
Percentage of
EMERITI Combo III
Benefits Funded
25%
23%
21%
19%
15%
11%
7%
3%
1%
KEY ASSUMPTIONS FOR EMERITI PROGRAM
Target Retirement Age
Assumed Retirement Age
Funding Start Age
Investment Return
Annual Increase %
Combo Plan
Target Percentage
Healthcare Trend
Medical
Prescription Drugs
Geographic Area Factor
Medical
Prescription Drugs
Mortality
Funding Years
65
65
25
7.00%
4.00%
III
1/2% Payroll
8.0% for 2008 grading to 5%
11.5% for 2008 grading to 5%
95%
105%
Standard
25
41
Emeriti provided these analyses and illustrations through prospective modeling tools developed by PricewaterhouseCoopers on behalf of
the Emeriti Program, as an informational service. Estimates used in these calculations are subject to change and actual results may vary
significantly from the illustrated outputs.
Organizations utilizing these tools are solely responsible for validating the assumptions and outputs for their plan by means of internal
analysis and/or through the support of independent consultants and attorneys. Further, any funding option must take into account applicable
legal restrictions, the satisfaction of which are also the responsibility of the organization.
These analyses and illustrations are for the exclusive use of institutions of higher education and higher education-related, not-for-profit
organizations evaluating membership in the Emeriti consortium.
A benefit program of, by, and for colleges, universities, and higher education-related tax-exempt organizations.
42
EMERITI MEDICAL COVERAGE
SELECT ONE:
Medicare
Supplement
Medicare
Supplement
Plan 1
2
$200 deductible
20% coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision & hearing)
$750 deductible
20%coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision and hearing)
$1,250 out-of-pocket
limit
$2,000 out-of-pocket
limit
Age-rated
Premiums*:
Age-rated Premiums*:
65-69 = $ 77.57
70-74 = $105.41
75+ = $137.95
65-69 = $ 91.01
70-74 = $123.55
75+ = $161.86
PFFS
Plan
Plan
PFFS
1
Plan 2
$300 deductible
15% coinsurance
100% preventive care
$500 deductible
20% coinsurance
100% preventive care
$2,750 out-of-pocket
limit
$3,500 out-of-pocket
limit
Community-rated
premiums*:
$98.70
Community-rated
premiums*: $64.90
*Anchorage, AK 99508
43
19
EMERITI Rx COVERAGE
SELECT ONE:
Rx Plan 1- High
Rx Plan 2 – Middle
Rx Plan 3 - Standard
Open Formulary
$100 deductible
Retail: 15%/30%/40%
Mail Order Drugs: 10%/25%35%
Full coverage in donut hole 100%
catastrophic coverage
Open formulary
$275 deductible
Retail: 15%/30%/50%
Mail
Order Drugs: 10%/25%/45%
Coverage in donut hole
95% catastrophic coverage
Closed formulary
$275 deductible
Retail: 15%/30%
Mail Order Drugs: 10%/25%
No coverage in donut hole
95% catastrophic coverage
Community-rated premium:
$158.90*
Community-rated premium:
$125.80*
Community-rated premium:
$32.90*
Alternate
Selection
Or elect Emeriti’s Rx Plan 3 as a stand-alone
option with no medical coverage
*Anchorage, AK 99508
44
20
EMERITI DENTAL COVERAGE
SELECT OPTIONALLY:
Annual Deductible
$100
Annual Benefit Maximum
$1,500
Preventive Services Coverage
100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums **
65-69 = $47.44
70-74 = $42.70
75+
= $38.43
* Six month waiting period applies, or evidence of continuing coverage.
**Anchorage, AK 99508
45
EMERITI MEDICAL COVERAGE
SELECT ONE:
Medicare
Supplement
Medicare
Supplement
Plan 1
2
$200 deductible
20% coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision & hearing)
$750 deductible
20%coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision and hearing)
$1,250 out-of-pocket
limit
$2,000 out-of-pocket
limit
Age-rated
Premiums*:
Age-rated Premiums*:
65-69 = $ 92.11
70-74 = $125.17
75+ = $163.82
65-69 = $108.07
70-74 = $146.72
75+ = $192.20
PFFS
Plan
Plan
PFFS
1
Plan 2
$300 deductible
15% coinsurance
100% preventive care
$500 deductible
20% coinsurance
100% preventive care
$2,750 out-of-pocket
limit
$3,500 out-of-pocket
limit
Community-rated
premiums*:
$98.70
Community-rated
premiums*: $64.90
*Fairbanks, AK 99775
46
19
EMERITI Rx COVERAGE
SELECT ONE:
Rx Plan 1- High
Rx Plan 2 – Middle
Rx Plan 3 - Standard
Open Formulary
$100 deductible
Retail: 15%/30%/40%
Mail Order Drugs: 10%/25%35%
Full coverage in donut hole 100%
catastrophic coverage
Open formulary
$275 deductible
Retail: 15%/30%/50%
Mail
Order Drugs: 10%/25%/45%
Coverage in donut hole
95% catastrophic coverage
Closed formulary
$275 deductible
Retail: 15%/30%
Mail Order Drugs: 10%/25%
No coverage in donut hole
95% catastrophic coverage
Community-rated premium:
$158.90*
Community-rated premium:
$125.80*
Community-rated premium:
$32.90*
Alternate
Selection
Or elect Emeriti’s Rx Plan 3 as a stand-alone
option with no medical coverage
* Fairbanks, AK 99775
47
20
EMERITI DENTAL COVERAGE
SELECT OPTIONALLY:
Annual Deductible
$100
Annual Benefit Maximum
$1,500
Preventive Services Coverage
100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums **
65-69 = $47.44
70-74 = $42.70
75+
= $38.43
* Six month waiting period applies, or evidence of continuing coverage.
** Fairbanks, AK 99775
48
EMERITI MEDICAL COVERAGE
SELECT ONE:
Medicare
Supplement
Medicare
Supplement
Plan 1
2
$200 deductible
20% coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision & hearing)
$750 deductible
20%coinsurance
Preventive Care:
$300 (annual physical)
$100 (vision and hearing)
$1,250 out-of-pocket
limit
$2,000 out-of-pocket
limit
Age-rated
Premiums*:
Age-rated Premiums*:
65-69 = $ 96.15
70-74 = $130.66
75+ = $171.00
65-69 = $112.81
70-74 = $153.15
75+ = $200.63
PFFS
Plan
Plan
PFFS
1
Plan 2
$300 deductible
15% coinsurance
100% preventive care
$500 deductible
20% coinsurance
100% preventive care
$2,750 out-of-pocket
limit
$3,500 out-of-pocket
limit
Community-rated
premiums*:
$128.80
Community-rated
premiums*: $95.00
*Juneau, AK 99801
49
19
EMERITI Rx COVERAGE
SELECT ONE:
Rx Plan 1- High
Rx Plan 2 – Middle
Rx Plan 3 - Standard
Open Formulary
$100 deductible
Retail: 15%/30%/40%
Mail Order Drugs: 10%/25%35%
Full coverage in donut hole 100%
catastrophic coverage
Open formulary
$275 deductible
Retail: 15%/30%/50%
Mail
Order Drugs: 10%/25%/45%
Coverage in donut hole
95% catastrophic coverage
Closed formulary
$275 deductible
Retail: 15%/30%
Mail Order Drugs: 10%/25%
No coverage in donut hole
95% catastrophic coverage
Community-rated premium:
$158.90*
Community-rated premium:
$125.80*
Community-rated premium:
$32.90*
Alternate
Selection
Or elect Emeriti’s Rx Plan 3 as a stand-alone
option with no medical coverage
* Juneau, AK 99801
50
20
EMERITI DENTAL COVERAGE
SELECT OPTIONALLY:
Annual Deductible
$100
Annual Benefit Maximum
$1,500
Preventive Services Coverage
100%
Basic Services Coverage
(e.g. fillings, standard crowns, extractions)
50%
Major Services Coverage*
(e.g. root canal therapy, surgical removals, dentures)
50%
Age-rated Premiums **
65-69 = $47.44
70-74 = $42.70
75+
= $38.43
* Six month waiting period applies, or evidence of continuing coverage.
** Juneau, AK 99801
51