NJPSA Presentation

Retirement Health Benefits Webinar Eligibility Enrollment Coverage Medicare Payment of Coverage Costs

State Health Benefits Coverage at Retirement- Categories of Eligibility Members already covered by SHBP through employer. Premium cost to member if not eligible for State or employer paid coverage. Members with 25 years service credit in TPAF or on disability retirement (includes deferred with 25 years). State pays for health benefit cost. Medicare eligible members retired from BOE, Voc.Tech., Spec. Serv. Comm., not participating in SHBP and not eligible above, must be in employer’s plan and enrolled Medicare A and B. You pay full cost.

ENROLLMENT Offering Letter (about 3 months before retirement) Eligibility of coverage Coverage for you, your spouse/partner, and dependents Children to age 26 and 31 (Chapter 375) Disabled dependents (documentation required) Cost to you State paid Partial Pay (Chapter 78) – % based on amount of pension You pay in full

ENROLLMENT Complete the application (print out from the Division of pension Website) Retiree information. Medicare (check off and submit documentation) Plan Selection Coverage Waiver Dental – at additional cost Dependents and documentation to be attached to the application

Health Plans Medical Plan options (plan summaries on Division Web page) Prescription plans ( included with all plans) Dental – Available at additional cost.

SHBP Medical Plans (Effective January 1, 2016) Preferred Provider Organizations (PPO) ( H )NJ Direct 10 ( H )NJ Direct 1525 *Freedom 10 *Freedom 1525 ( H )NJ Direct 15 (H)NJ Direct 2030 *Freedom 15 *Freedom 2030 ( H) Administered by Horizon Blue Cross Blue Shield of New Jersey * Administered by Aetna Health Maintenance Organizations (HMO) Aetna HMO Aetna 1525 Aetna 2030 Horizon HMO Horizon HMO 1525 Horizon HMO 2030 HD- High Deductible Health Plan (New in 2014) AETNA VALUE HD4000 NJ DIRECT HD4000 **Medicare Eligible Retirees Cannot enroll in plans listed in RED

Horizon NJ Direct Aetna Freedom (Effective January 1, 2016) Nationwide service areas Primary care physician NOT required - No referrals Certain services require pre-certification In - network routine physical exams Immunizations Annual routine vision exam

Horizon NJ Direct 10/15 Aetna Freedom 10/15 (Effective January 1, 2016) Direct 10Direct 15 In-Network Copayments$10$15 Maximum Out-of Pocket In-Network $400 Individual$5,317 Individual $1,000 Family$10,634 Family Out-of-Network Coinsurance 20% R/C after30% R/C afterdeductible ($100/$250) Maximum Out-of-Pocket Out-of-Network$2,000 Individual$2,000 Individual$5,000 Family Maximum Covered Expenses Annual/Lifetime In-Network/Out-of-Network UNLIMITED Refer to Approved Medical Plan Design Chart for Other Local Education Retired Group Plans

Aetna HMO / Horizon HMO Nationwide service areas Primary care physician (PCP) required Referrals required Routine physical exams Immunizations Annual routine vision exam All services, except emergencies, coordinated through PCP Refer to Approved Medical Plan Design Chart for Other Local Education Retired Group Plans

Aetna HMO / Horizon HMO No deductibles or claim forms to file Copayments required for visits to PCP or a referred specialist In network OOP Max $5,317 Individual $10,634 Family No out-of-network benefits Copayment $10 per visit Emergency Room Copayment $35 Unlimited Maximum Plan Covered Expenses Annual/Lifetime

Retiree Dental Plans Eligibility:  Retiree and survivors enrolled in SHBP medical plan.  Waiver eligible due to other coverage as dependent of spouse or domestic partner, or own employment  Dependent eligibility same as medical plan eligibility

Retiree Dental Plans Enrollment: One opportunity to enroll days of retirement Waiver eligible must request coverage within 60 days of loss of coverage COBRA coverage does not apply Two Options – Dental Expense Plan (DEP) or Dental Plan Organization (DPO)

Retiree Dental Expense Plan Plan Summary Traditional indemnity fee for service plan $50 per person annual deductible/maximum $150 family Deductible waived for preventive services Benefit Tiers 1,2,3 for enrollees who have gone without group dental coverage Reimburses for covered services at % of reasonable and customary charges

Retiree Dental Expense Plan Covered Services (In Network) Preventive Care Tier 3 = 100% Basic Restorative Care Tier 3 =70% Major Restorative Care Tier 3 =50% No orthodontic services Maximum Annual Benefit $1500 per person Aetna Dental

Retiree Dental Plan Organization (DPO) 5 Companies – each with a network of providers Must use a network dentist in the DPO you select Diagnostic and preventive services are covered in full Eligible expenses require a co-payment (see handout) Orthodontic services are NOT covered May Change plans immediately if: Your dentist drops out of Network and none available within 30 miles of your home You move and your DPO cannot provide a dentist within 30 miles of your home

2016 Prescription Drug Coverage for Retirees - Administered by Medco-Express Scrips DrugAetna/Horizon HMO Direct 10/15 Pharmacy-30 day Generic$5$8 Preferred$13$20 Other$26$42 Mail Order-90 day Generic$2$3 Preferred$19$30 Other$31$52Max Out-of-Pocket Copayment $1,411 /personCopayment $1,411 /personAnnually

Miscellaneous Items Medicare Coverage – age 65 Multiple Coverage (in state plan prohibited) Changing Plans Survivor Enrollment

HEALTH CARE CONTRIBUTION Annual EarningsYear 1Year 2Year 3Year 4 Contribution Toward Cost of Single Coverage* (Percentage of Premium) $95,000 and Over8.75%17.50%26.25%35.00% Contribution Toward Cost of Member/Spouse* (Percentage of Premium) $100,000 and Over8.75%17.50%26.25%35.00% Contribution Toward Cost of Family Coverage* (Percentage of Premium) $110,000 and Over8.75%17.50%26.25%35.00% *No less than 1.5% of salary for health care coverage SHBP Employers- Based on Medical and Prescription Cost Non-SHBP Employers- Based on Medical, Prescription, Dental, Vision Cost New Hire After Expiration of CNA- Contribution at Year 4 Level

Chapter 78, P.L Cost Impact for Future Retirees Health Benefits With Less Than 20 Years of Service on 6/30/2011 Sections 125 Plans- Creation of Cafeteria Plans Employee Payments “Pre-tax” Permits Dependent Care Flexible Spending Accounts Employee Pension Contribution 6.5% with additional one percent phased in over 7 years Payment for Waiver of Health Benefits- Shall not exceed 25% or $5,000, whichever is less, of the amount saved by the employer. Waiver maximum applies to all new employees and to any existing employee who submits or renews a waiver on or after May 21, (Chapter 2, P.L. 2010)

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Robert Murphy Director Retirement Services 12 Centre Drive Monroe, NJ Phone: Fax: