Post-65 Retiree Health and Insurance Benefits FAQ

[Pages:7]Post-65 Retiree Health and Insurance Benefits FAQ

Retirement Coverage

When do my active health, dental, and/or vision benefits end? When you retire, your active health and/or dental benefits will terminate at the end of the month of your last day worked. Any vision benefits terminate on your last day worked.

What are my health and/or dental coverage options if I am under age 65? You and/or any eligible dependent(s) under age 65 can continue coverage in the Pre-65 group health and dental plans provided coverage was in place at the time of retirement. The health plan option is the Pre-65 CDHP. For dental, the options are Basic and Plus. If you were enrolled in the Basic option as an active employee, you will only have the Basic option available to you for retiree dental coverage.

What happens to my Pre-65 coverage(s) when I turn age 65? If you and/or an eligible dependent(s) are enrolled in the Pre-65 group health and/or dental plan, as you approach your 65th birthday, you'll need to enroll in Post-65 retiree benefits through Via Benefits. In the months leading up to reaching age 65, Via Benefits will begin to contact you by mail regarding the steps you need to take to continue coverage at age 65. Should you have questions before then, contact Via Benefits at 1-866-202-9582.

Remember ? to avoid a lapse in health coverage between when your Pre-65 group coverage ends and your Post-65 coverage begins, you need to be enrolled for Medicare Parts A & B at least 60 - 90 days before reaching age 65 and need to have Medicare coverage in place before you can elect a new health plan with the help of Via Benefits. In addition, to avoid any interruption in coverage, you should contact Via Benefits at least 45 days before turning age 65 to elect your coverage effective at age 65. Should there be a delay between the end of your Pre-65 group coverage and your enrollment in the marketplace coverage, you will have no coverage during this time. COBRA coverage is not available to cover any gap in coverage since you are in retirement status.

What are my health and/or dental coverage options if I am age 65 or older on my retirement date? If you retire after you have turned age 65 or you have an eligible dependent(s) who is at least age 65, you'll need to enroll in Post-65 retiree benefits through Via Benefits. Enrollment is not automatic. You will work with a highly trained licensed Via Benefits advisor to evaluate a variety of plan options and select the coverage that best meets your health needs and budget. Via Benefits is not an insurance company or carrier; it is an independent company whose goal is to provide you with free, unbiased advice so you can select coverage through the Via Benefits Medicare marketplace. You must be enrolled in medical and/or dental coverage at the time of retirement in order to receive the Health Reimbursement Arrangement (HRA), if eligible.

Important: If you and/or your eligible dependent(s) are eligible for the HRA, you have a two month window from your group coverage end date/Medicare start date to enroll in coverage through Via Benefits to qualify for the HRA. If you do not enroll in coverage through Via Benefits by the deadline, you will not be eligible for the HRA now or in the future.

Where can I review my retiree benefit options and costs? The BenefitConnect website shows your Pre-65 retiree benefit options and costs only (health and/or dental if applicable) and any life insurance coverage and costs. Cost and coverage for retirees age 65 and older is not displayed on BenefitConnect since those benefits are elected though the Medicare marketplace with assistance from Via Benefits (see below for more information).

Certain former divestiture and acquisition employees may not have access to see retirement information online via BenefitConnect. You will need to contact the Liberty Benefits Center directly (see phone number below) to determine your retirement benefits eligibility and the costs associated with your retiree benefits.

Do I need to enroll for retiree benefits? Yes, you have a one-time opportunity to enroll for retiree coverage for yourself and any eligible dependent(s). For Pre-65 retiree coverage, and you must enroll within 30 days of your employment termination date. If you do not enroll during this time, you will be defaulted into coverage based on Plan provisions outlined in the Summary Plan Description (SPD). If you waive, reduce, or drop coverage, you will not be eligible to enroll/re-enroll at a future date. For Post-65 coverage, you must elect coverage through Via Benefits within 60 days of eligibility or you will forfeit any qualification for HRA funding.

Note: You must be enrolled in active health and/or dental coverage up to your retirement date to be eligible to continue the coverage into retirement and to qualify for the Health Reimbursement Arrangement (HRA) if age 65 or older. Also, if you drop Pre-65 retiree benefits, you and your dependent(s) lose eligibility for receiving future Company-subsidized benefits at age 65, which includes HRA funding (see below for more information on the HRA).

When can I call Via Benefits to enroll for Post-65 Coverage? Your full record will be sent to Via Benefits after your retirement is processed by Liberty Mutual. However, you can speak with a Via Benefits representative about coverage options and enroll for coverage prior to your record being sent.

As you and/or your eligible dependent(s) near age 65 or are age 65 or older at the time of your retirement, it is important that you enroll for Medicare Parts A & B at least 60-90 days before your retirement date. You must have Medicare Parts A & B coverage in place before you can enroll in medical coverage through the Medicare marketplace. A delay in enrollment in Medicare Parts A & B, could cause a lapse in medical coverage between the time your Liberty Mutual group health coverage ends (end of the month in which you retire) and the start of the coverage you elect in the Medicare marketplace which is always the 1st day of the month. In addition, you need to elect new plans with the help of Via Benefits at least 45 days before your active group coverage ends to continue your coverage at age 65 or older with no interruption. As a new retiree, should you experience a lapse in coverage, you have the option to elect COBRA to cover the gap between the group coverage end date and the begin date of your marketplace coverage. Please contact Via Benefits at 1-866-202-9582 at your earliest convenience regarding the steps you need to take to continue your health care coverage at age 65 or older.

When should I stop contributing to the Health Savings Account (HSA) if I retire at age 65 or older and am eligible for the Health Reimbursement Arrangement (HRA)? To avoid a tax penalty, you should stop contributing to your Health Savings Account (HSA) at least six months before you apply for Medicare, even if you are still actively employed with Liberty Mutual. You stop contributions to your HSA at any time on the ConnectYourCare website.

Where can I find detailed information about my benefits? Summary Plan Descriptions (SPDs) containing detailed benefit plan information and are available on BenefitConnect at any time under Tools & Resources -> Plan Information Page.

Medicare

Do I need to report Medicare eligibility if I am under age 65 and covered by Medicare? If you or your eligible dependent(s) are under age 65 and covered by Medicare, you must inform the Liberty Benefits Center at the time of your retirement. Your individual health plan coverage will need to be coordinated with Medicare. Failure to report Medicare eligibility can significantly impact claim payments. Refer to the Summary Plan Description (SPD) for more information on coordination of benefits.

When is my Medicare start date? If you are a Pre-65 retiree, your Medicare start date is the first day of the month in which you or your eligible dependent turns age 65. If you are a grandfathered LTD participant, this date will be the first day of the month following your 65th birthday. If you are retiring and already over age 65, your Medicare start date for the purposes of enrolling in Medicare marketplace coverage through Via Benefits will be the first day of the month.

NOTE: If your birthday happens to fall on the first day of the month, your Medicare start date will be the first of the prior month.

Health Reimbursement Arrangement (HRA)

If over age 65, you and/or your dependent may be eligible to continue to receive financial assistance from Liberty Mutual through a Health Reimbursement Arrangement (HRA) provided you elect your post-65 coverage with assistance from Via Benefits.

What is the Health Reimbursement Arrangement (HRA) and how does it work? You and/or your eligible dependent may be eligible for tax-free funding through a program known as a Health Reimbursement Arrangement (HRA). You can use the funds in your HRA to reimburse yourself for medical, prescription drug, dental, vision, long-term care and Medicare Part B premiums, as well as copays and coinsurance you may incur with your new coverage, purchased through Via Benefits, up to the allocated amount.

The HRA is a tax-free account -- that is, you do not owe any taxes on the money in your HRA. Any unused HRA balance carries over from year to year as long as you remain enrolled in qualified coverage through Via Benefits. There are certain requirements that you must meet in order to qualify for the HRA funding. Three months prior to your expected retirement date, the Liberty Benefits Center can review your HRA eligibility and provide you with an estimated HRA amount. Via Benefits will not have this information until your retirement has been processed and loaded in their system which can take up to 6 weeks.

How do I qualify for the HRA? To qualify for the HRA you must choose new coverage using the services of Via Benefits.

? If you are losing group health coverage through Liberty Mutual, you must enroll in medical coverage through Via Benefits to qualify for funding.

? If you are only losing group dental coverage through Liberty Mutual, you only need to enroll in dental coverage through Via Benefits to qualify for funding.

How is the Health Reimbursement Account (HRA) Employer Contribution Determined? If you are eligible, Liberty Mutual may provide annual HRA dollars towards your Post-65 retiree benefits. There are several factors that go into these calculations:

? Years of Services (YOS), as of your retirement date o Your YOS are rounded down to the next full number

? Medical and dental HRA rates, as defined annually by Liberty Mutual o The initial HRA funding is based on 2018's rate, and for each subsequent plan year, the 2018 amount increases by 2.5%

? Your 2018 funding total can be calculated by multiplying your YOS and HRA rate o If you have medical coverage there is a onetime $50 annual deduction for catastrophic Rx coverage

Your HRA funding amount will be prorated based on your Post-65 benefits start date for your initial retirement. In subsequent years, you will receive the full annual amount.

Is the HRA an annual amount? Is it prorated? The HRA is an annual funding allocation provided by Liberty Mutual. The amount is prorated based on an effective start date and enrollment in qualifying coverage through Via Benefits. (For example: If your annual HRA allocation is $1,200 and you enroll in qualifying coverage through Via Benefits effective July 1st, the annual HRA will be prorated to $500.) If eligible, you will receive annual funding from Liberty Mutual. This tax-free amount will be available each year beginning in January. Each year, the annual HRA amount increases by 2.5%.

When will Via Benefits have my HRA eligibility and funding amount(s)? Your record will be sent to Via Benefits after your retirement is processed by Liberty Mutual. The Liberty Benefits Center can confirm your HRA eligibility prior to your retirement and prior to Via Benefits receiving your record. If you and/or any eligible dependent(s) is HRA eligible, the Liberty Benefits Center can provide your estimated HRA funding amount. It may take up to 6 weeks after your retirement date for your HRA amount to be available to you.

When will I receive information from Via Benefits about my Post-65 coverage and eligibility for Health Reimbursement Arrangement (HRA)?

Approximately two to four weeks after your information is loaded at Via Benefits, you will receive an Enrollment Guide in the mail. The Enrollment Guide provides you with more information about the transition to Via Benefits. Available coverage options are not included in the Enrollment Guide. Please call Via Benefits or go online to learn more about coverage options available to you.

Approximately two to four weeks after you have enrolled in qualifying coverage through Via Benefits, your HRA will be activated. You will receive the HRA Welcome Packet that includes the Funding Guide to Reimbursement which explains more about the HRA process, including eligible expenses and how to submit for reimbursement. Also included are personalized, barcoded reimbursements forms.

The Summary Plan Description (SPD) for the HRA will be mailed separately from the HRA Welcome Packet. The SPD will be mailed the month following the quarter after you have enrolled in qualifying coverage through Via Benefits and activated your HRA. (For example, if you qualified for the HRA on August 1st, the SPD will be mailed in October.)

Coverage Payment

Can I pay for pre-65 and Life Insurance coverage by Direct Bill? You will pay for any Pre-65 health and/or dental coverage and Life Insurance coverage via Direct Bill. You will be billed by BenefitConnect and payments are due at the end of the month in which the invoice is generated. You have a grace period of 30 days (1 invoice cycle) to submit payments that are past due. If your payment is overdue by more than 30 days, your coverage will be terminated retroactively to your last date of payment.

However, if you are set-up to receive a Liberty Mutual pension payment and that payment is enough to cover the cost of your monthly premiums, your payment method will automatically change to pension deductions. This change will occur a month (or two) after your first bill. If you want to review your current

billing status, log onto BenefitConnect at and walk through `View My Billing Details'. If you do not want deductions taken from your pension payment, please contact the Liberty Benefit Center at the number listed below.

For Post-65 coverage elected through the Medicare marketplace, you will pay the carrier(s) directly and premium payments for those coverages will not be taken from your pension check.

Note ? For any coverage purchased through the Medicare marketplace, you will pay the insurance carrier directly.

COBRA

How do Retiree Benefits and COBRA coordinate? At the time of retirement, you have the option to choose between enrolling in retiree health and/or dental benefits or temporarily continuing coverage through COBRA. However, enrolling for COBRA does not allow your retiree enrollment window to be deferred, meaning you can't enroll in COBRA health and/or dental coverage first and later change your election to retiree coverage

(Note - Once retired, vision coverage is only available through COBRA. Retirees over age 65 also have the option to purchase vision coverage through the Medicare marketplace).

Important Note: If there are discrepancies between this information and the legal documents, the legal documents will govern. The Company reserves the right to change or terminate any plan, the terms of any plans, or cost-sharing arrangement at any time.

Questions

If you have questions or need help enrolling, please use the contact information listed below. Representatives are available by phone to assist you.

Benefit Pre-65 Retiree Enrollment (BenefitConnect)

Website URL ount/Logon

Phone Number Liberty Benefits Center 1-800-758-4460 (Option 1) 8:30 am ? 8:00 pm ET

Retiree

Life

Insurance

Health Reimbursement Arrangement (HRA) Estimates Post-65 Retiree Enrollment (Via Benefits) Health Savings Account



COBRA



Via Benefits 1-866-202-9582 9:00 am ? 9:00 pm ET ConnectYourCare 1-866-506-7262 Any day, any time 1-877-29-COBRA (26272) 9:00 am ? 7:00 pm ET

Medicare



1-800-MEDICARE (1-800-633-4227)

Processing Your Retirement During the retirement process, not all transactions related to the setup and process of retiree benefits happens at once. To help set the appropriate expectations of timing, please refer to the key dates and tasks listed below:

Task

Retirement Status Received

Timing

The benefits system, BenefitConnect, will receive your retirement information from Liberty Mutual within 5 business days of your last day worked.

Overall Timing Post-Retirement

1 week

Initial HRA Information (POST-65 RETIREES ONLY)

Call Via Benefits to enroll in supplemental Medicare plans

Retirement Letter

COBRA Initial Enrollment Packet Your Eligibility is Sent to Via Benefits (POST-65 RETIREES ONLY)

Via Benefits Enrollment Guide (POST-65 RETIREES ONLY) Via Benefits HRA Funding Welcome Kit (POST-65 RETIREES ONLY) HRA Funding (POST-65 RETIREES ONLY) Retiree Enrollment Deadline First Billing Invoice Pension Deduction Cutoff COBRA Enrollment Deadline Via Benefits Enrollment Deadline for HRA Funding

Via Benefits will receive your eligibility for Post-65 coverage and the HRA from BenefitConnect approximately 2 to 5 weeks later. Since it may take several weeks for Via Benefits to receive your HRA funding amount, you can contact the Liberty Benefits Center to confirm the HRA funding amount(s) you will receive. You can contact Via Benefits in advance of your retirement date to discuss coverage options and enroll, but your record from Liberty Mutual will not be in the Via Benefits system for a few weeks. This letter will be mailed to your address on file within 2 business days of loading your employment termination date into BenefitConnect. This Packet will be mailed within 2 weeks after your last day worked. Your record will be sent from BenefitConnect to Via Benefits approximately 2-3 weeks after your last day of employment. After this timeframe, Via Benefits will have your information. The Enrollment Guide will be mailed to your address on file 2 to 4 weeks after your last day worked.

The HRA funding kit will be mailed 2 to 4 weeks after the qualifying coverage start date.

HRA funds are expected to be available for use 2 to 4 weeks after the qualifying coverage start date. 30 days after your last day worked.

Mailed around the 8th of month. On or before the 10th business day of each, for the following months pension check. You have 60 days to enroll from your notification date (found in your COBRA packet). You have 60 days from your group coverage end date/Medicare start date.

Up to 6 weeks

1 week

1 ? 2 weeks 2 ? 3 weeks 2 ? 3 weeks

2 ? 4 weeks

2 ? 4 weeks

2 ? 4 weeks 30 days

3 ? 4 weeks 1 ? 4 weeks

60 days 60 days

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