Welcome to RCRV’s presentation
of Rockwell Collins Insurance
Programs available to RC
retirees for 2014
10/8/2013
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RCRV Presenters
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Don Grimm
Harlan Hanson
James Wolfe
RCRV SHIIP Counselors for the Senior Health Insurance
Information Program of the State of Iowa Insurance Division
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Thank You
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RCRV
St Luke’s Hospital & Angela Berns for all the
handouts plus the reservations for today’s
meeting.
Rockwell Collins for providing our meeting
room as well as support from Cypress, CA.
Extend Health for joining us at several of our
meetings
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Disclaimer
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We do not make decisions for Rockwell
Collins (RC), we are here to present
information only
We will not discuss Rockwell Collins Policies
or Government Health Care Policy issues
Please hold all questions until the end
Save personal questions for one-on-one
discussions with a counselor at the end of the
presentations
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What is SHIIP?
Objective Information Source
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Part of the State of Iowa Insurance
Division
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Answers questions and provides
assistance
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Doesn’t recommend or endorse specific
companies, products or agents
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Rockwell Collins Medicare
Insurance Program
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Rockwell Collins (RC) has partnered with Extend
Health to provide coverage for Medicare-eligible
retirees and spouses
RC will continue to provide up to $669 for each
eligible retiree and their eligible spouse (based on 25
years of service with RC)
You will receive these funds in a Health
Reimbursement Arrangement (HRA) administered by
Extend Health
You can be reimbursed for your premiums only by
submitting claims to Extend Health
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Who is Extend Health?
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Extend Health is the largest private Medicare
exchange in the industry
They have over 2500 agents, located in Texas
and Utah who will work with you to enroll you
in a plan of your choice
This is Rockwell Collins third year with them
Insurance Questions--contact Extend Health
at 1-866-249-9924
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Extend Health’s 2014 Offerings
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13 Part D plans (from 3 carriers) will be offered by Extend Health.
Several plans have been discontinued or replaced by other plans. See
Extend Health’s website for details.
7 MAPD (Medicare Advantage with Prescription Drugs) plans by 3
carriers will be offered by Extend Health. Several HMO’s from $0 to $85
per month and 3 PPO’s from $0 to $37 per month are being offered. See
Extend Health’s website for details.
3 Medigap carriers plans will be offered by Extend Health. You will have
a choice of Plans C, D, F, or N plus High Deductible F. See Extend
Health’s website for details.
The above is for Linn County. Other counties may have more or less
plans available.
If you find a more economical drug plan than offered by Extend Health
(and have signed up for a Health plan with Extend Health), you may sign
up for a drug plan yourself, or through SHIIP or an agent of your choice
and still collect your HRA.
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Enrollment Period
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Medicare Open Enrollment is from 10/15/13 through
12/7/13
2014 information was available on Oct. 1, 2013 at
www.medicare.gov or
www.extendhealth.com/rockwellcollins.
You must enroll via Extend Health, or the HRA will not
be available to you now or in the future
If you are turning 65 and have under-65 dependents,
you must enroll prior to the month of your birthday or
risk the chance of having your dependent’s insurance
canceled by RC. See current contract info in future cell.
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If You Want To Stay With
Your Current Provider
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If you are already enrolled in a
plan through Extend Health and
wish to continue that plan, you
don’t need to do anything
We still recommend you review
your drug programs. Many
retirees can get a more economical
drug program if they just look!
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Health Reimbursement
Arrangement (HRA)
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RC will provide a HRA for each Medicare recipient
(you and your eligible spouse) if enrolled via Extend
Health
You will get this money by providing a claim form to
Extend Health for each premium paid along with
proof of payment. Use the recurring form for
monthly reimbursements for your Part B premium.
HRA funds can only be used for reimbursement of
premiums, not for copays or other medical costs
Put both retiree and spouse on a separate recurring
claim forms. Retiree info must be on the top of each
form!
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HRA Info (cont)
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Your Medicare Part B premiums ($104.90 for 2013)
can be reimbursed from the HRA. Proof of payment
can come from one of the following documents sent
to you by social security:
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Statement received in Dec of 2013 showing benefits and
deductions for the coming year, 2014
SA-1099 received in January 2015 for your 2014 income tax
records
If your spouse does not use all the money in his or
her HRA, you can claim your spouse’s portion
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HRA Info (cont)
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No carry over. You must claim all your HRA for 2014 (claims will
be accepted through 3/31/15) or you will lose it. (For 2013
dollars, you must claim by 3/31/14)
You must enroll in either a Medigap, Medicare Advantage or Part D
Drug Plan through Extend Health to be eligible for the HRA
If you had 25 years (or more) with RC, you will receive $669 each
for you and your spouse (if applicable)
If you had less than 25 years with RC you will receive notification
of your HRA amount at the time you retire and a balance indicator
as you receive funds from your HRA
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Bargaining Unit Insurance
current contract

If you retired under the current contract:
 Your coverage remains the same until 12/31/13, Then you
will transfer to Family Medical Care Plan (FMCP) offered by
the Union. If you turn 65 prior to 12/31/13, you must sign
up for Medicare Parts A and B. You must also sign up
for a supplement, MA plan and/or drug plan as well
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via Extend Health to be eligible for your HRA with an
effective date of 1/1/14.
If you retired during the current contract and do not reach age
65 until 2019, then you are covered until 12/31/2018 by your
contract.
If you or your spouse are under 65 and not Medicare eligible in
2014, then call FMCP directly at 1-877-937-9602.
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Bargaining Unit Insurance
prior contract (ended on
5/1/13)
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If you retired under prior contract that expired in May
of 2013, and are Medicare-eligible, you are covered
until 12/31/13 then you must follow the same Extend
Health/HRA program as non-bargaining unit retirees.
If you are under 65, then you will be covered via the
Collins-sponsored group medical plan through
December 31, 2013 as other bargaining unit retirees.
Then you will be offered the same PPO Plus Plan that
Rockwell Collins offers all retirees under Medicare
age effective 1/1/14.
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Rockwell Collins Insurance for
Under 65 Retirees
(Non Bargaining unit only)
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RC will continue to provide the PPO Plus
plan administered by Wellmark BCBS
This is a high deductible health plan
which is eligible for a HSA
HSA contributions must be made after tax
and claimed on your next year taxes
Letters will be sent out Oct 28, 2013 defining
RC’s offering.
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Split Families
(One Spouse under 65, the other on Medicare)
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People on Medicare will need to select a program via Extend Health (no
action required if you want the same plan from Extend Health in 2014
that you had in 2013)
Folks under 65 will continue to have the PPO Plus plan administered by
Wellmark BCBS
4 months prior to your 65th birthday, you will get a package from
Extend Health. You must enroll in a plan with the same effective date
as your Medicare effective date or risk not having insurance for your
dependents and you will not receive a HRA.
You must have a spouse covered under the RC plan if you want
coverage for other dependents. If you and your spouse are both
Medicare eligible, then RC insurance will not be offered to the
remaining dependents
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Medicare Info
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From this point forward, we will be reviewing
Medicare requirements. This is to provide
info to folks turning 65 next year and it is a
good review for the rest of you already on
Medicare.
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People Turning 65 in 2014
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In Iowa, over 40,000 people are turning 65 in 2013 and about
the same in 2014
Rockwell Collins retirees turning 65 will receive a package from
Extend Health 4 months prior to their birthday. To preserve
your eligibility for the RC HRA you must sign up for a health
insurance plan through Extend Health prior to your birthday.
Your plan must take effect on the same date as your Medicare
effective date
If not, you may lose your RC insurance for your dependents
who are not yet 65. You may also lose the HRA for both
yourself and your spouse now and in the future years.
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MEDICARE
Who Is Eligible?
Must be a U.S. citizen or
permanent resident for 5 years
MEDICARE
Age 65
and older
Disability
End-Stage
Renal
Disease
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Medicare Health
Insurance
MEDICARE
Part A
Hospital
Insurance
Part B
Medical
Insurance
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Monthly Medicare
Part A Premiums - 2013
Based on Work Credits
 40 quarters ----------------- Free
(Eligible for Social Security benefits)
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30-39 quarters ------------- $243
Less than 30 quarters -- $441
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Enrolling in
Medicare Part A
For people who have 40 work quarters of
credit, i.e., for whom Part A is free
 Enrollment is automatic if drawing
Social Security benefits
 No penalty for delaying Part A if it is
free. Can enroll during Initial
Enrollment Period or later
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Enrolling in
Medicare Part B
 Initial Enrollment Period
7 months, beginning 3 months before age 65
(Enrollment automatic if drawing SSA)
 General Enrollment Period
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January 1 through March 31 each year
Coverage effective July 1
Premium increases 10% for each 12-month
period you were eligible but did not enroll
Pay this penalty as long as you have Part B
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Medicare-Eligible
Retired & No Working Spouse
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Medicare is your primary coverage.
Need to enroll in Medicare
Part A and Part B.
Enrolling in Part B later can
result in higher premium and
a wait before getting coverage.
All Rockwell Collins Retirees at age 65 must
enroll in Part A and B unless your spouse is
working and you are covered on their insurance
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Medicare-Eligible and
You or Your Spouse Works
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Can continue on employer plan
Employer’s plan remains primary to
Medicare
Employer can’t offer alternatives
Don’t need to enroll in Medicare Part B
Can enroll in Part B when worker retires
regular premium & no delay in coverage
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Part B for Worker or Spouse
Special Enrollment Period
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For worker or spouse with
Medicare
Up to 8 months after worker
retires. (Rockwell Collins Retirees
must have insurance through Extend
Health with same effective date as your
Medicare effective coverage to get HRA
and to keep insurance for your under
age 65 dependents)
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You might want to delay Part A if
You are working or covered by a working
spouse and
the employer plan is a qualified high
deductible plan and you have a Health
Savings Account
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Your Medicare Coverage
Choices
Original Medicare
Part A & B
Part D Drug Benefit
Medicare Advantage
Part C = Parts A & B
Part D Drug Benefit
Medicare Supplement
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Medicare Part A
Hospital Insurance
Inpatient
Hospital
Skilled
Nursing
Facility
Home
Health
Care
Hospice
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Part A Inpatient
What You Pay (2013)
Days 1-60
Days 61-90
60 Lifetime
Reserve Days
Daily
Daily
Deductible Coinsurance Coinsurance
$296
$592
$1,184
Renewable
days
Renewable
days
Each day
available only
once
You
pay
all
costs
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Medicare Part B
$104.90 per Month (2013)
Medical Insurance
Doctor
Services
Outpatient
Hospital &
Emergency
Room
Home
Health
Care
Durable
Medical
Equipment
Other
Services &
Supplies
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Covered
Preventive Services
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Welcome to Medicare preventive visit
Annual wellness visit
Abdominal aortic aneurysm screening
Bone mass measurement
Cardiovascular screenings
Colorectal cancer screenings
Diabetes screening
Glaucoma tests
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Covered
Preventive Services (Cont)
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Mammograms (screening)
Pap test/pelvic exam/clinical breast exam
Prostate cancer screening
Flu shots, pneumococcal shots & Hepatitis B shots
Smoking cessation
Alcohol misuse counseling
Depression screening
Obesity screening & counseling
Behavioral Therapy for Cardiovascular
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Medicare Supplement
Insurance
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Health insurance policies sold by private
insurance companies
Also called “Medigap”
Cover “gaps” in Original Medicare Plan
10 standardized policies
Plans A, B, C, D, F, G, K, L, M, N
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Extend Health has Plans C, D, F, F High
Deductible and N available only
Costs may vary
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By plan
By company
Where you live
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Medicare Part D
Available to all people on Medicare
 Enrolled in Part A and/or Part B
 Includes those on Medicare due to
disability
 Don’t need part D if covered by current
bargaining unit contract plan until
1/1/2014 then must have signed up for
a Part D PDP (Prescription Drug Plan)
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Initial Enrollment Period
(IEP)
New Medicare Beneficiary – can join a drug
plan any time during the 7-month period
surrounding their Medicare eligibility
(Bargaining unit folks must have Medicare
A and B effective at time of their normal
Medicare Effectivity)
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O-5
Annual Coordinated Election Period
October 15 – December 7
During the Annual Election Period you can:
 Change prescription drug plans
 Enroll in a drug plan for the first time
 Drop Medicare drug coverage
 Enroll in a Medicare Advantage plan
 Change Medicare Advantage plans
 Disenroll from a Medicare Advantage plan or
 Keep your current coverage
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Monthly Medicare
Part D Premiums
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Income above:
$85,000 individual and
$170,000 joint –
you will pay a higher
premium
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Late Enrollment Penalty
Assessed 1% of base premium* for every
month you were eligible to enroll in
Medicare’s prescription drug coverage and
did not enroll.
 Pay penalty for your life time
Example: Did not enroll in 2006-your penalty
would be 91 months X 1% or 91% X
$32.42 per month in penalty or $29.50 per
month penalty (penalty goes up each year
if National averages go up)
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* $32.42 in 2014
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Standard Benefit-What You Pay,
2014 costs
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Deductible—cannot exceed $310
Co-payment or coinsurance until you reach the coverage
gap (or donut hole)--which is $2,850 in total drug costs
(what you pay and the plan pays)
Coverage gap—once you reach the gap, you get a 52.5%
discount on brand name drugs and 27% discount on
generics; when your true out-of-pocket costs reach $4,550
the gap ends
5% coinsurance after you leave the gap or $2.55/$6.35
whichever is cheaper
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Creditable Coverage
Notice
 Individuals receiving their
prescription drug coverage from an
employer, retiree or pre-standard
Medicare supplement plan will
receive a notice by September 30
each year telling them if their
coverage is “as good as or better
than Medicare coverage”
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Comparing Part D Plans
Premium
Deductible
Formulary
Cost
Coverage in the Gap
Pharmacy
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How do you compare
plans?
Information is Online
www.medicare.gov
SHIIP can help you compare plans!
Phone numbers later in presentation
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Medicare Advantage
(Part C)
$
Medicare
Medicare
Advantage Plan
$
Ambulance
Service
Dr. A
Other
Insurance
$
$
$
$
$
Dr. B
Hospital
Lab
Drugs
$
Home
Health
Agency
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Medicare Advantage
Eligibility
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Have Medicare Parts A & B
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Covers people on Medicare because of
disability
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Do not have end-stage renal disease
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Live in service area
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Medicare Advantage
A Private Solution
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Medicare contracts with a private company
on an annual basis
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Contracts require that plans provide
Medicare Part A & B services
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The plan handles claims
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You receive services and make payments
based on the private plan’s rules
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There are no supplements for these plans
and Medicare supplement insurance will not
pay
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Medicare Advantage
Out-of-Pocket Costs
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Must still pay Part B premium
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May pay additional monthly premium
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Pay other out-of-pocket costs
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Different from Original Medicare Plan
Vary from plan to plan
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Medicare Advantage
Annual Contracts
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Contract year is January 1 through
December 31
The plan can be renewed, changed
or terminated on an annual basis
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Medicare Advantage
Types of Plans
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HMO-Health Maintenance Organization
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POS—HMO with Point of Service Option
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PPO-Preferred Provider Organization

Cost Plan
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Medicare HMO/POS
Check that your providers will accept the plan.
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Generally must get care and services from
plan’s network
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May have to pay full cost of care outside of
plan’s network
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POS allows visits to “out-of-network”
providers
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May need to choose primary care doctor
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Need referral to see a specialist
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Medicare PPO
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Can see any doctor or provider
that accepts Medicare with some
exceptions, ask before you go!
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Don’t need referral to see specialist
Don’t need referral to see out-of-network
provider
Copayment amounts set by plan
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Will usually pay more for out-of-network care
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Initial Enrollment
Period
New Medicare Beneficiary –
Can join a Medicare Advantage plan any time during
the 7-month period surrounding their Medicare
eligibility.
If you are a RC retiree you must enroll via Extend
Health with a plan effective on the same date as
your Medicare effective date or you will not get the
HRA and if you have dependents under age 65,
they may have their insurance with RC canceled.
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Protection when
Enrolling in a MA Plan
If you enroll in a Medicare Advantage plan
when you first enroll in Medicare part B
at age 65 and disenroll within 12
months, you can go to Original Medicare
and get any Medicare supplement offered
in Iowa.
But these changes must be done via Extend
Health Counselors to assure HRA.
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Open Enrollment
Period
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October 15 – December 7
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Can choose new plan
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Medicare Advantage Plan
Medicare Prescription Drug Plan
Original Medicare Plan
New plan starts January 1
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Medicare Advantage
Disenrollment Period
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January 1 – February 14 each year
Can return to original Medicare
Can enroll in a stand alone
Part D drug plan
Change effective first day of following
month
Again, these changes must be done via
Extend Health
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Key Questions when
Shopping for MA Plans
 Will my doctors, hospital and other medical
providers accept payment from the MA plan?
 What are the deductibles, co-payments or
coinsurance for the benefits I’m most likely to
use?
 What is the annual out-of-pocket maximum?
 What is the premium?
 Do I live in the service area for the plan?
 Does the plan include prescription drug
coverage?
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For Assistance
Call for appointments
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Extend Health 1-866-249-9924
UnityPoint Health St Luke’s Hospital SHIIP 319-369-7475
Heritage AAA SHIIP 319-398-5559 or 1-800-332-5934
Mercy Medical Center SHIIP 319-861-7887
Witwer Center SHIIP 319-398-3636
Meth-Wick SHIIP, 319-297-8646 (Meth-Wick Residents only)
Jones County RSVP/SHIIP 319-560-0811
SHIIP Office, Des Moines 1-800-351-4664
Rockwell Collins Retirement Dept. 1-800-236-3071
Family Medical Care Plan (FMCP) 1-877-937-9602
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Thank you for Coming
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Any Questions
After group questions, we have several
SHIIP Counselors situated around the
room who will answer your questions
one on one
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