2011 U.S. Benefits Update
2011 Annual Enrollment Nov. 1 – 19, 2010
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AGENDA

U.S. Medical – Goals and Results

Consumer-Driven Health Care (HDHP) –
Putting you more in control

Helping You Control Your Costs –
HDHP with HSA, and New Tools on
Your Life Choices (YBR)

2011 Benefit Changes

Controlling Costs and Improving
Health

Health Risk Assessment and Biometrics

Dependent Eligibility Verification
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U.S. Medical – Goals and Results
U.S. Benefits Results and Goals

Claims have been significantly higher than premiums

Deliver effective medical benefits and protect employees from catastrophic financial loss

Goal of greater than 50% enrollment in HDHP
Consumer-Driven Health Care (HDHP)

Allows participants to use a tax advantaged Health Savings Account (HSA)

Gives participants an incentive to learn about the costs and quality of care before spending

Studies show HDHP participants are:
 Twice as likely as those in other medical options to learn about costs
 Three times as likely to choose a less expensive treatment option
 Chronic patients were 20% more likely to follow treatment
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ConocoPhillips Movement to the HDHP
In the last three
years:
Participant costs
reduced by $20
million

Active Enrollment History
60%
51%
50%
50%
40%
37%
34%
30%
Company costs
reduced by $25
million

Total savings of
$45 million!

38%
34%
31%
27%
25%
26%
21%
20%
10%
10%
6%
4%
3%
2%
0%
2008
2009
PPO
EPO
2010
HDHP
2011 Projected
Traditonal
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HDHP: When you pay…and when you don’t
(Network Benefits)
Phase One:
Preventive Care
Network Preventive
Medical Care is covered
at 100%

Certain Preventive
Prescription Drugs are
covered at 100% up to
$1,500/person/yr.

If you meet the $1,500
limit, then you pay 20%
until you reach the outof-pocket maximum.
Phase Two: Meet
your deductible
You pay 100% of
negotiated / discounted,
covered medical &
prescription drug costs,
until you meet your
deductible

All covered medical &
prescription drug costs
are applied to your
deductible


These amounts do not
apply to your deductible
(deductible waived).
 Annual
Deductible:
 $1,200 - “You only”
 $2,400 - other coverage
levels
Phase Three: Meet
your out-of-pocket
maximum
You pay 20% of the
negotiated / discounted costs
for covered network care and
prescription drugs until you
reach the out-of-pocket max.

 Annual
Out-of-Pocket
Max.: (amount includes
deductible):
 $4,000 - “You only”
 $8,000 - other coverage
levels
Phase Four: The
HDHP handles
the rest
The plan pays
100% of covered
medical services and
prescription drug
costs for the
remainder of the
calendar year

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How the HSA Works
Eligibility
Enrolled in HDHP


Employees must be
enrolled in the HDHP
with HSA
Cannot be covered by
any other medical
option that is not a
HDHP
Using the funds
It’s your money


 Medicare
Indian/Veterans
coverage
 Spouse’s
HMO/PPO
 Spouse’s general
FSA
Why is the
HDHP offered
without HSA?

Pay for eligible health
care expenses directly
from the account
Unused amounts roll
over from year to year ―
there’s no “use it or lose
it” rule and no maximum
account balance
Funding
You & ConocoPhillips

“Triple crown”
federal tax
savings

Tax deductible
contributions

You can contribute beforetax funds to your HSA
through payroll deduction

Tax-free earnings
(current interest rate
.40%)

Total 2011 contribution
(yours & ConocoPhillips)
can’t exceed the IRS
maximum of $3,050 /
$6,150

Tax-free withdrawals
when used for
qualified medical
expenses

Over 55 – You can
contribute an additional
$1,000
The money is yours ―
 You own the “bank”
account
 You can take it with
you when you leave
or retire, unlike an FSA
ConocoPhillips is
contributing $500 “You
only” or $750 “other
coverage levels”
Tax advantages
 Investment options
when your balance
reaches $2,000
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New YBR Tools

Still considering the switch to the HDHP with HSA? Check
out the new estimating and comparison tools on YBR.
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Medical Option Highlights (Network)
HDHP
2011 Increase
PPO
EPO
Traditional
0%
17%
15%
30%
Monthly Costs
Annualized
Individual/Family
$0 - $0
$1,152-$3,240
$1,380-$3,852
$1,812 - $5,064
HSA Company
Contribution
$500 / $750
$0
$0
$0
Deductible
Individual/Family
$1,200 (you only)
$2,400 (you + more)
$500 (indiv.)
$1,500(fam.)
$500 (individual)*
$1,500 (family)*
$900 (indiv.)
$2,700(fam.)
$3,000 (indiv.)
$6,000 (fam.)
100% coverage
thereafter
No limit on out-ofpocket expenses
$3,000 (indiv.)
$6,000 (fam.)
100% coverage
thereafter
(includes all medical
and prescription
drug costs)
Out-of-pocket
Maximum (includes
deductible)
Individual/Family
$4,000 (you only)
$8,000 (you + more)
100% coverage
thereafter
(includes all medical
and prescription
drug costs)
– which means your
costs continue
without ever hitting a
maximum limit
*Items new for 2011
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Medical Options Highlights (Network)
continued …
HDHP
Network
Preventive Medical
Care
Physician Visits (nonpreventive)
PPO
Networks are the same.
EPO
Traditional
Must use an Aetna
Select Network
provider or no
benefits will be paid
No network. You can
choose any doctor or
facility
No deductible. Network services covered at 100%
(annual wellness exam, mammogram, colonoscopy, etc.)
20% after
deductible
$25 copay (PCP);
$50 copay*
(specialist)
No deductible.
Services covered at
100%.*
$25 copay (PCP);
$50 copay*
(specialist)
20% after deductible
Outpatient Surgery
20% after deductible
$400 copay after
deductible*
20% after deductible
Inpatient
Hospitalization
20% after deductible
$400 per day up to a
$2,000 per admit
maximum after
deductible*
20% after deductible
Emergency Room
20% after deductible
$150 copay after
deductible*
20% after deductible
*Items new for 2011
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Other 2011 Benefit Changes (Medical)
Medical Changes
2010
2011
Dependent Requirements
Restrictions on over age
19 dependents (tax
dependents or students)
Children can be covered up to age 26
Penalty for not wearing a seatbelt
or helmet in a motor vehicle
accident
No Penalty
Out-of-pocket maximums double for
participants in the PPO, HDHP &
Traditional medical options. Inpatient
hospitalization per admission copay
doubles for the EPO medical option.
New Health Management
Administration
Aetna
Healthways
New Health Savings Account (HSA) Aetna
FSA and HSA Accounts
Can purchase over-thecounter drugs
JP Morgan Chase
As a result of health care reform, can
no longer use these accounts to
purchase over-the-counter drugs
without a prescription
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New in 2011! JPMorgan Chase (Chase) becomes direct
administrator of Health Savings Accounts (HSAs)

Welcome Kit
 Includes one debit card
 Deposit slip

Online access - www.chasehsa.com
 Need debit card to register
 Order up to three additional debit cards for family members over
18 years of age
 Balance and transactions
 Online bill payment
 Information on investment funds
Can I get more
than one HSA
card?
 Designate a beneficiary

No charge for 3 extra debit cards

Free Checks – contact number on back of debit card
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Other 2011 Benefit Changes (Rx)
Prescription Drug Changes
2010
2011
Brand / Generic Drug Cost
Difference – “Member Pays the
Difference” Program
Member pays the difference in Difference no longer applies to:
costs out-of-pocket
 Deductibles

Out-of-Pocket Maximums
Preventive Rx Allowance
($1,500)


Out-of-pocket Maximum for
Prescriptions
Diabetic testing meters and
strips
Maximum Coinsurance

Mail Order Preferred and
Retail Non-Preferred - $150

Mail Order Preferred and Retail
Non-Preferred - $200

Mail Order Non-Preferred $250

Covered under medical & Rx
benefits
Covered under Rx benefit
Mail Order Non-Preferred $400
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Other 2011 Benefit Changes (Dental)
Dental Option Changes
2010
2011
Preventive Dental Option
N/A
New option at $0 monthly cost to
cover preventive dental services
(exams, cleanings, x-rays etc.)
Annual Maximum and
$1,500
Orthodontia Lifetime Maximum
$2,000
Aetna Dental DMO
Option eliminated due to
employee concerns
Employee concerns about
shrinking network and dentist
wait
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Well-Being Assessment & Biometrics
Long-term strategy to increase participant awareness of health
risks:
1. 2011 – Know your numbers: take a well-being assessment and four
biometric screenings (blood pressure, cholesterol, body mass and
blood sugar)
•
Screenings at work locations or employee’s physician
•
Employees will receive a $600 discount on 2012 annual premium costs ($50 per
month)
2. 2012 – Take well-being assessment and biometric screenings and if at risk, take
action to receive a discount on premium costs in 2013
3. 2013 - Take well-being assessment and biometric screenings and if at risk, take
action and improve results: To the extent provided by law, employees are
incentivized, through 2014 premium discounts, to show improvements
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U.S. Dependent Eligibility Verification

Background
 2009 Communications resulted in a 4% drop in dependents
resulting in an average annual savings of almost $5 million
 Full dependent eligibility verification conducted by Hewitt; July
7 - August 6, 2010

Results and Next Steps
 2010 Dependent eligibility verification resulted in an additional
annual savings of $4.7 million
 Beginning January 1, 2011: all dependents added for medical
and dental coverage must provide documentation to support
eligibility
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Where can I find out more?

ConocoPhillips Benefits Center
 800-622-5501 or 718-354-1344,8 a.m. - 6 p.m. Central time, Monday - Friday
 Login to YBR through HR Express

Online benefits information also available at
http://hr.conocophillips.com (SPDs, Claim Forms, Benefit Highlights,
DocFind, Preventive Care brochure and more)

HDHP blog (through HR Express)

2011 Benefits Changes & New Tools Blog (through HR Express)

Health Care Reform - www.healthcare.gov

Annual Enrollment Materials – Delivered on November 1, 2010
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Disclaimer
This presentation is intended to be accurate, but if there is any
discrepancy between these materials or the presentation and
the terms of the official plan documents, the official plan
documents will control. In addition, although ConocoPhillips
intends to continue these benefit plans indefinitely, the
company reserves the right to amend, change or terminate any
of these benefit plans or provisions at any time.
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