1. Your Emeriti Retirement Health Plan
2018 Benefits
Welcome and introductions
Your Emeriti Retirement Health Plan
Kalamazoo College

2. Helping you make the most of your healthcare choices
The Emeriti Program In Retirement
Helping you make the most of your healthcare choices
Manageable choice, easy to understand information, personalized support
Emeriti and Aetna are here to help you make the most of your healthcare choices in retirement.

3. Know the Facts
Medicare is Not Enough
Medicare covers only about 62% of total healthcare expenses in retirement.*
As you think about retirement – keep in mind that Medicare is not enough – only covering about 62% of your total healthcare expenses – NOT including long-term care.
Medicare does not include long-term care coverage.
*National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, 2013.

4. Healthcare In Retirement Adds Up
59%
For 66-year-old couple retiring today
Percentage of Social Security required to cover total retirement healthcare costs:
92%
For 55-year-old couple retiring today
Health expenses in retirement add up – let’s take a look at three scenarios and the relationship to Social Security benefits.
122%
For 44-year-old couple retiring today
SOURCE: HEALTHVIEW SERVICES: 2017 Retirement Health Care Costs Data Report

5. Emeriti Retirement Healthcare Plan
Know That You’re Covered
Retirement Plan
Emeriti Retirement Healthcare Plan
With Emeriti – you’re covered. You have your retirement plan for income replacement and your Emeriti Plan for healthcare replacement.
For general retirement expenses
Exclusively for healthcare expenses
Taxable distribution of pre-tax contributions
Beneficiaries
Assets may be passed to estate after death
Tax-free distribution
Dependents
Assets may be passed back to plan after death
Connecting health and financial well-being

6. Emeriti’s Three Pillars Of Retirement Healthcare Security
Tax-advantaged
Retirement Health Account
Use Assets Exclusively For Medical Expenses In Retirement
Tax-free
Reimbursement Benefit
For Qualified Out-of-Pocket Medical Expenses
Flexible
Group Health Insurance
Underwritten By Aetna (HealthPartners in Minnesota)
Emeriti provide three core components – health account, reimbursement benefit and group health insurance
For you and your dependents

7. A tax efficient way to help cover healthcare expenses in retirement
Managing Your Healthcare Expenses in Retirement
A tax efficient way to help cover healthcare expenses in retirement
Tax-free employer contributions
(After-tax employee contributions)
Your health account savings are tax-free savings.
Tax-free investment earnings
Tax-free reimbursement for qualified medical expenses in retirement

8. IRC Section 213(d) includes
How Your Contributions Can Be Used
IRC Section 213(d) includes
Co-pays
Deductibles
Prescription drugs
Health insurance premiums
Hospital & surgical expenses
Dental
Vision
You use your tax-free savings to help you pay for qualified medical expenses in retirement.
Reimbursement for qualified IRC Section 213(d) medical expenses
Benefits available to employee (retiree), spouse and eligible dependents

9. Tax Efficiencies In Action
$1,000 Medical Bill
Let’s look at an example. $1,000 medical bill. You pay dollar-for-dollar with your Emeriti health account assets – but you have to pay taxes if you use your retirement plan assets.
Tax-free withdrawal $1,000
Pay with Emeriti Health Account
Taxable withdrawal $1,389
Pay with retirement plan account
28% federal income tax bracket
This is a hypothetical example for illustrative purposes only. It assumes the retirement plan account does not include after-tax contributions. Actual tax consequences will vary based on a variety of factors, including your tax bracket and the type of contributions made to your retirement plan account. Please consult a tax advisor for assistance with your particular situation.

10. Employer will make annual contribution when you are age 35
Who Makes Contributions?
Employer will make annual contribution when you are age 35
Employee can make after-tax contributions anytime
Who makes contributions – your employer – and you may may after-tax voluntary contributions. Share specific information, based on each institution.
Utilize payroll deduction during active service
Use ACH transfer from your bank account – even after you terminate or retire
Your voluntary contributions will be made on an after-tax basis
All earnings will accumulate and be paid out tax-free to help pay for qualified medical expenses

11. When Can You Use Funds?
You can access the funds when you are age 55, and terminate employment with 10 years of service.
When can you access the funds – when you terminate with <<xx>> years of service – that is when you can start using the funds in your health account.

12. What Health Plans Are Available?
AETNA MEDICARE-APPROVED PRESECRIPTION DRUG PLANS
OPTIONAL DENTAL
AENTA MEDICARE ADVANTAGE PLANS
Emeriti offers three Medicare Advantage Plans, 3 Medicare-approved Part D prescription drug plans and an optional dental plan. You choose one medical and one Rx plan – and decide whether or not you want to add the dental plan.
Benefits available to employee (retiree) and spouse and eligible dependents

13. Meet Kalamazoo’s eligibility:
When Are You Eligible For Emeriti Health Insurance?
Meet Kalamazoo’s eligibility:
Age 55 with 10 years of service when you terminate
You’re eligible to enroll in Emeriti insurance when you turn 65 and are enrolled in Medicare Parts A and B
YOU CAN ENROLL
At age 65, after enrolling in Medicare Parts A & B

14. Building Blocks Of Medicare
Part A – (Hospital) and Part B (Medical) Original Medicare
Coverage provided by Medicare
Doctors and providers must accept Medicare
No monthly premium for Part A
Part B has a monthly premium - $134 in 2018
Part C – Medicare Advantage, PPO Plan Replaces Original Medicare
This is a busy slide. But the take-aways are pretty simple. There are four parts to Medicare – ABCD. Part A is hospital coverage and Part B is doctor coverage – together they represent ORIGINAL MEDICARE. If you don’t have any other insurance in retirement – you would rely on Parts A and B for your coverage. (REVIEW BULLET POINTS) Part C is Medicare Advantage - it replaces ORIGINAL MEDICARE. Instead of using Parts A and B – you use a Medicare Advantage insurance plan. (BULLET POINTS). Part D is your prescription drug coverage. You’re responsible for obtaining a Medicare-approved Rx plan. (Bullet Points). The good news is - Emeriti provides three different Medicare Advantage Plans and three different Medicare-approved Part D Rx plans. So you have a starting point from which to begin setting up your retiree health coverage.
Private insurers, approved by Medicare, provide Parts A & B coverage
You will get extra benefits
Most doctors and providers accept Medicare and the Medicare Advantage plans
Monthly plan premium - varies by individual carriers
Part D – Prescription Drug
Private insurers, approved by Medicare, provide coverage
Different plans cover different drugs at different levels
Monthly plan premium – varies by individual carriers

15. Aetna Retiree Health Insurance
Next
Aetna Retiree Health Insurance
Next – let’s review what health plans are available from Aetna through the Emeriti plan.

16. Aetna’s Medicare Advantage Plans
Aetna provides 4-star rated group Medicare Advantage health plans. Aetna leads national competitors with 87% of members in 4+ out of five (5) star plans.
Aetna offers Medicare Advantage plans that are 4-star rated.

17. Aetna is your primary insurance Your costs are simplified
How Medicare Advantage Plans Work
Aetna is your primary insurance
Aetna provides Medicare Parts A & B benefits
You use one Aetna card
You still get your Medicare card & you still pay Part B premium
Your costs are simplified
No plan deductibles
and no Medicare Parts A & B deductibles
You get extra benefits
Annual eye & hearing exams,
SilverSneakers, Resource for Living
Here’s how they work – Aetna is your primary insurance. You use one Aetna card. Your costs are simplified – no Medicare deductibles and no plan deductibles. And – you get extra benefits – this year, annual eye and hearing exams, SilverSneakers and Resources for Living.
Benefits available to employee (retiree), spouse and eligible dependents

18. How Prescription Drug Plans Work
Aetna is your Rx insurance provider
You use your Aetna card
Your costs vary based on plan and coverage tier
Emeriti’s Rx plans work in a similar fashion – Aetna is your provider. You use your Aetna card at the pharmacy. Your total Rx costs will vary based on prescription utilization and what coverage tier you reach as you utilize prescriptions. Aetna does provide an Emeriti-specific formulary for our members.
You use a drug formulary designed
for Emeriti
Benefits available to employee (retiree), spouse and eligible dependents
NOTE: A formulary is a list of Part D prescription drugs covered by the Aetna plan.

19. How Dental Plan Works
Aetna is your dental insurance provider; use Aetna dental card
One-time opt-in opportunity
12-month waiting period for major services*
Not available as a stand-alone plan
Dental coverage is pretty straight forward – Aetna is your provider and you use your Aetna dental card. There is a one-time opt-in – which means you can enroll when your first eligible or wait – but after you enroll, if you decide to dis-enroll – you will not be able to re-enroll. There is a 12 month waiting period on major services – unless you show evidence of prior continuing coverage – and you can only enroll in dental if you enroll in a medical and Rx plan.
Benefits available to employee (retiree), spouse and eligible dependents
*Twelve month waiting period applies for major services, but may be waived with evidence of continuing coverage.
Note: in the states of CA, OR, WA, the stand-alone Dental plan may be elected if the participant is enrolled in a Kaiser Permanente MAPD Plan, and with evidence of existing coverage.
Note: Dental not available in MD.

20. Providing choice, convenience and flexibility
National group plans follow you wherever you live in the U.S.
Private, one-on-one counseling services help you choose the plan that’s right for you
Easy online and telephone enrollment
Emeriti and Aetna are working to provide you with choice, flexibility and convenience. Go through the list on this slide.
Plans available with no network restrictions
Keep or choose any doctor who accepts Medicare and Aetna Medicare Advantage
Change plans each year without paying more or getting turned away because of a pre-existing condition

21. Not Sure What Plan Is Best For You?
CALL AETNA SPECIALISTS FOR PERSONALIZED COUNSELING
If you’re unsure about which plans to choose – call Aetna specialists who will provide personalized counseling for you and your dependents.

22. Retiree Insurance Timeline
ONGOING
Watch for information from Aetna, attend campus workshops
3 MONTHS BEFORE YOU RETIRE
Call Emeriti Service Center to request enrollment kit
As you countdown to retirement – watch for ongoing information from Aetna about Medicare and your Emeriti plan. 3 months before you retire, call the Emeriti service center to request an insurance enrollment kit. One month before you retire – enroll in the plans of your choice.
1 MONTH BEFORE YOU RETIRE
Enroll when you are first eligible
(Enroll later only if you have a qualifying life event)

23. Visit The New Emeriti Website
EmeritiHealth.org
Visit The New Emeriti Website
Built on TIAA’s platform
Easier to navigate
Easily download materials & calculate premiums
The Emeriti website is always available – and we’re happy to announce that we have a new website. We invite you to check it out – it’s a great resource with additional information.

24. Working Together
Emeriti and TIAA are working together to connect health and financial well-being
As we close – we want to remind you that Emeriti and TIAA are working closely together to connect health and well-being for you and your dependents.

25. ThankYou
FOR JOINING US
Thank you. Do you have additional questions?

26. Emeriti, TIAA, CBIZ Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations and are not legally affiliated. The full name of Emeriti Retirement Health Solutions is The Emeriti Consortium for Retirement Health Solutions, an Illinois Nonprofit Corporation.
Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.
The Emerti Program is delivered in collaboration with TIAA, CBIZ Savitz, Aetna Life Insurance Company, and Health Partners.CBIZ Savitz is Emeriti’s disbursement record keeper for Emeriti group insurance administration and Emeriti medical expense reimbursement processing.
CBIZ Savitz is a Philadelphia company with more than forty years of experience in full-service benefits services supporting employees and retirees in organizations nationwide.
Teachers Insurance and Annuity Association of America (TIAA) is Emeriti’s accumulation record keeper, trust services provider, and investment manager. TIAA is based in New York and has nearly one century of distinguished service to the non-profit community for financial services supporting retirement income security.
Aetna Life Insurance Company is the primary health insurer for the Emeriti Program, providing fully insured medical insurance and health-related products. For over 150 years, Aetna has been an innovator in the delivery of insurance solutions and is a nationwide provider of Medicare-approved Part D prescription drug services. For Minnesota institutions and their Minnesota-resident retirees, HealthPartners provides participants with medical insurance and health-related products. HealthPartners is the largest consumer-governed nonprofit health care organization in the nation.

27. Interests in any retiree healthcare plan discussed herein are offered solely by the employer.
Teachers Insurance and Annuity Association of America (TIAA) will
provide services to the plan and may issue plan communications on behalf of the plan sponsor, in its capacity as a plan record keeper.
TIAA Individual & Institutional Services, LLC serves as a broker-dealer with respect to underlying mutual funds only, and does not offer, market or sell interests in such plans or otherwise provide broker-dealer services with respect to the interests in such plans. TIAA products may be subject to market and other risk factors. See the applicable product literature, or visit TIAA.org for details. Investment, insurance and annuity products are not FDIC insured, are not bank guaranteed, are not deposits, are not insured by any federal government agency, are not a condition to any banking service or activity, and may lose value.
TIAA group of companies cannot and does not provide tax or legal advice and recommends that plan sponsors consult their own legal and tax advisors for such advice.
By communicating the information contained in this material, neither TIAA nor Emeriti are providing impartial investment advice or giving advice in a fiduciary capacity regarding any investment by, or other transaction of, the plan(s). TIAA and Emeriti are acting solely in a sales capacity with respect to an arms-length sale, purchase, loan, exchange or other transaction related to the investment of securities or other investment property.
FOR INSTITUTIONAL INVESTOR USE ONLY. NOT FOR USE WITH OR DISTRIBUTION TO THE GENERAL PUBLIC.
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