For Minnesota Higher Education and Its Retirees A NEW APPROACH to your retiree medical benefits

For Minnesota Higher Education and Its Retirees

A NEW

APPROACH

to your retiree

medical benefits

AGENDA

Program Overview

Emeriti Insurance Options – In Minnesota

Emeriti Insurance Options – Out Of State

Enrollment Planning

Enrollment Process

Additional Resources

SECTION 1

PROGRAM OVERVIEW

Who are Emeriti’s collaborators?

How does the Emeriti Program work?

About Emeriti Retirement Health Solutions

First-ever, comprehensive retiree medical benefits program

Not-profit consortium serving the higher education community

Forty-one current member institutions and growing

Generous grant support from The Andrew W. Mellon Foundation

Headquartered in Hudson Valley, New York State

Commitment to education and integrated retirement planning

Source: This information is provided by

Emeriti® Retirement Health Solutions as of September 1, 2006.

5

ABOUT HEALTHPARTNERS

Largest consumer-governed, non-profit health care organization in the nation

630,000 medical members and 210,000 dental members in Minnesota and Wisconsin

Integrated health care organization delivering medical, dental, pharmacy, and group insurance products

Largest contracted network in Minnesota with more than 15,000 physicians at nearly 40,000 clinics, including HealthPartners Clinics

Headquartered in Bloomington, Minnesota

Commitment to seamless integration and delivery of Emeriti Program

This information is provided by HealthPartners as of June 30, 2006.

ABOUT AETNA

Oldest and leading insurance company in the United States

15.4 million medical members and 10.2 million pharmacy members

Delivery of integrated medical, dental, pharmacy, group insurance products

Certification to offer Medicare-approved Part D plans in all fifty states

Headquartered in Hartford, Connecticut

Commitment to seamless integration and delivery of the Emeriti Program

This information is provided by Aetna as of June 30, 2006.

ABOUT FIDELITY

Largest provider of workplace savings plans in the United States

Management of $1.3 trillion in assets on behalf of 22 million individuals*

Leading mutual fund company with goal of solid long-term performance

Service to 900 higher education clients with 840,000 participants**

Headquartered in Boston, Massachusetts

Commitment to seamless integration and delivery of the Emeriti Program

This information is provided by Fidelity*as of 7/31/2006** as of 8/31/2006

Comprehensive Benefit Paradigm

Emeriti Health Insurance OptionsPortable group health insurance options wherever

you decide to live in retirement

Emeriti Reimbursement BenefitsA tax-free method for you to pay for other qualified out-

of- pocket medical expenses not covered by Medicare or Emeriti

Emeriti Health Accounts A tax-advantaged way for you to invest and accumulate assets exclusively to help meet future retiree medical expenses

Distributions For Health Care In Retirement

Distributions for Insurance Coverage in Minnesota

COMPREHENSIVE PLANS (2) Very Enhanced D

Rich Medical Standard D

RX ONLY PLANS (2) Enhanced D

No Medical Standard D

Distributions For Reimbursement Benefits

Payment of Medicare premiums and cost shares

Payment of supplemental insurance deductibles, coinsurance, and copayments

Payment of vision, dental, hearing care

Payment of long-term care insurance

Payment of medical expenses associated with nursing or in-home health care services

Payment of over-the-counter pharmaceuticals

Payment of other insurance (if Emeriti coverage not elected)

A wide range of health care expenses apply for tax-free reimbursement as long as they satisfy the requirements of Section 213 (d) of the IRS Code.

The Value of Emeriti’s Comprehensive Benefits

Range of group insurance designs coordinating with Medicare

National access to insurance

Flexibility of the reimbursement benefit for other medical expenses

Opportunities to set aside tax-advantaged savings for health care

The Flexibility of Emeriti’s Coverage Options

Go to any doctor or facility accepting Medicare

Choose from various levels of prescription drug benefits

Make an annual choice from the available insurance options

Secure your retirement assets through catastrophic insurance protection

Have access to short-term international coverage

Take advantage of preventive services for good health

SECTION 2

IN MINNESOTA

•Two Comprehensive Insurance Options

Underwritten by HealthPartners

•Two Prescription Drug Only Options

Underwritten by Aetna

Emeriti Coverage through Emeriti Coverage through HealthPartnersHealthPartners®® Freedom Plans Freedom Plans

Must maintain permanent

residence in Minnesota

Must have Medicare

Parts A and B

ELIGIBILITY

A Medicare Cost contract offered by HealthPartners

> where Medicare is Primary for Part A

> where HealthPartners is Primary for Part B

Use Original Medicare benefits

> out-of-network within Minnesota

Medicare Part D benefits also apply

PRODUCT DETAILS


More than 25,000 doctors in the network

No referral required (You can see any provider that is within the network)

Includes Mayo specialists without a referral

OPEN ACCESS NETWORK


PLAN 1 PLAN 2

Doctor Visits $15 co-pay $20 co-pay

Inpatient Hospital $100 co-pay per benefit period

$100 co-pay per benefit period

Emergency Room $50 co-pay $50 co-pay

Urgent Care $15 co-pay $20 co-pay

Routine Preventive Care

(physical, hearing, and eye exams)

100% coverage 100% coverage

Annual Out-of-Pocket Limit $1,500 $3,000

* See Summary of Benefits for additional details.

MEDICAL BENEFIT HIGHLIGHTS *


INITIAL COVERAGE TIERSYOU PAY: $12 copay for generic drugs

$24 copay for brand-name drugs

25% coinsurance for specialty drugs

PLAN PAYS: The Balance

CATASTROPHIC TIER YOU PAY: $2.15 for generic

$5.35 for brand-name

or 5% whichever is greater


$3,850 annual out-of-pocket requirement

PRESCRIPTION DRUG BENEFIT HIGHLIGHTS: PLAN 1

►

NOTE: Through Mail Order, a 3-month supply for 2 copays


$0

deductible

►

INITIAL COVERAGE TIER

YOU PAY: $10 copay for generic drugs

$31 copay for brand-name drugs

25% coinsurance for specialty drugs


CATASTROPHIC TIER

YOU PAY: $2.15 for generic

$5.35 for brand-name

or 5% whichever is greater


$3,850 annual out-of-pocket requirement

PRESCRIPTION DRUG BENEFIT HIGHLIGHTS: PLAN 2

►

NOTE: Through Mail Order, a 3-month supply for 2 copays


SECOND COVERAGE TIER “Gap”

YOU PAY: 100% for drugs

PLAN PAYS: $ 0

►$2,400

limit

►$0

deductible

IMPORTANT NOTICE

HealthPartners INCLUDES Medicare Part D in your comprehensive Emeriti insurance coverage.

You DO NOT need to enroll in a separate Medicare prescription drug plan.

HealthPartners will AUTOMATICALLY enroll you in enhanced Part D drug coverage through the Freedom Plans.


1. Extended Absence Benefit

2. Fitness Club Benefit

3. Dedicated Call Center


ADDED SERVICES AT NO ADDITIONAL COST

When you travel domestically, you take your health plan with you.

You receive your plan’s level of coverage while you are away from Minnesota for up to 9 months

Within the U.S, simply call Member Services to activate:

(952) 883-7979 Local

(800) 233-9645 Toll free

When you travel abroad, your health plan covers urgent and emergency care

You must keep your receipts for reimbursement.

EXTENDED ABSENCE BENEFIT

INTERNATIONAL COVERAGE


It’s easy to join. Here’s how:

Step 1: Select fitness club (YMCA or YWCA)

Step 2: Sign-up at the club and take a tour

Step 3: Workout at least 8 times in a month and HealthPartners pays

that month’s dues IN FULL.

FITNESS CLUB BENEFIT



PLAN 1 PLAN 2

2007 Premium

$218.30 $137.30

2006 Premium

$204.85 $126.46

2007 PREMIUM RATES IN MINNESOTA FOR POST-65 RETIREES

NOTE: These rates are on a per person per month basis and apply to all Minnesota-resident, Medicare-eligible retirees and their Medicare-eligible spouses from Minnesota institutions.

Other Emeriti Coverage in Minnesota Other Emeriti Coverage in Minnesota through Aetna’s PDP Plansthrough Aetna’s PDP Plans

If you want only Medicare prescription drug benefits,

you may select from two Aetna drug plans:

> enhanced prescription drug plan with an open formulary

> a standard precription drug plan with a closed formulary

NOTE: These plans provide Medicare Part D benefits only, and do not include Medicare Part A and B coverage.

PRESCRIPTION DRUG ONLY OPTIONS

PLAN 3 PLAN 4

COVERAGE LEVEL Stand-alone drug enhanced benefit

Stand-alone drug standard benefit

PHARMACY ONLY

Your Deductible $125 $265

Your 1st Cost Tier 15% - 25% - 35% $5 - $35 – 25%

Your 2nd Cost Tier 100% 100%

Your 3rd Cost Tier 5% 5%

Formulary open closed

Plan Pays 52-54% 51.5%

NO MEDICAL Not applicable Not applicable


PRESCRIPTION DRUG BENEFIT HIGHLIGHTS

PLAN 3 PLAN 4

2007 Premium

$57.50 $32.90

2006 Premium

$56.20 $33.60


2007 Rx ONLY PREMIUM RATES FOR POST-65 RETIREES

NOTE: These rates are on a per person per month basis and apply to all Minnesota-resident, Medicare-eligible retirees and their Medicare-eligible spouses from Minnesota institutions.

SECTION 3

OUT OF STATE

Emeriti Insurance Options

Underwritten by Aetna

COMPREHENSIVE PLANS (3) Very Enhanced D

Rich Medical Enhanced D

Standard DRX ONLY PLANS (2)

No Medical Enhanced D

Standard D

MEDICARE ADVANTAGE (1)

Private Fee-for-Service Plan Standard D

Please note that Emeriti coverage through the Aetna plans may not be available everywhere. Please ask for the summary of benefits.

Emeriti Coverage Options for Residents Outside of Minnesota

PLAN 1 PLAN 2 PLAN 3 PLAN 4 PLAN 5 PFFS *

Total 2007

Premium $238.00 $185.80 $124.80 $53.30 $29.80 $78.00

2006 Premium

$245.00 $194.00 $140.00 $52.10 $30.40 N.A.

Emeriti Coverage Options for Residents Outside of Minnesota

NOTE: These rates are on a per person per month basis and represent national average premiums for entry 65-year-olds. Rates will vary by residential location.

2007 PREMIUM RATES FOR POST-65 RETIREES

SECTION 4 GET READY

FOR ENROLLMENT

Educate Yourself

Read the Emeriti enrollment kit

Come to Emeriti workshops

Visit the Emeriti website

www.emeritihealth.org

also www.healthpartners.com/medicare

Phone the Emeriti toll-free call center1-866-EMERITI

Think Strategically about Your Health Needs

Check your Plan’s definitions of “vesting” and “retirement eligibility”

Be sure that you are enrolled in Medicare Parts A and B

Consider the Emeriti insurance coverage right for you

Identify which dependents get access to Emeriti benefits

Calculate your contributions for premiums / other out-of-pocket

medical expenses

Review which investment options are appropriate for you, if you

decide to add periodic lump sums to the Health Account

Make a Decision about Insurance

Currently enrolled participants

• Do nothing if you want to stay in the current plan

• Call if you want to change to another plan

Newly eligible participants

• Call to enroll and select your insurance option

Important Deadlines for Your Enrollment

Your Window for Enrollment:

Currently insured participants > by December 31, 2006

Newly eligible participants > by March 31, 2007

Organize Materials for Your Call

Have your Medicare Parts A and B cards

Have your social security number

Have dates of birth of any eligible dependents

Have social security numbers for eligible dependents

Have your bank account number for electronic transfers (ACH)

SECTION 5 NOW TAKE ACTION

AND ENROLL

How to Enroll in Emeriti Coverage How to Enroll in Emeriti Coverage through the HealthPartnersthrough the HealthPartners®® Freedom PlansFreedom Plans

Easy 3-Step Process:

Step 1: Phone the Emeriti Call Center at 1-866-EMERITI (1-866-363-7484)

Step 2: Complete, sign and date the HealthPartners enrollment form

(You and your spouse must each complete a

separate enrollment form)

Step 3: Return your completed enrollment form

to HealthPartners Medicare Sales

in the enclosed postage-paid envelope

EMERITI CALL CENTER 1-(866)-EMERITI

Available Monday – Friday

8 a.m. to 12 a.m. (Midnight) EASTERN

HEALTHPARTNERS MEMBER SERVICES

(952) 883-7979 or 1-(800) 233-9645

Medical plan questions (Monday – Friday) 8 a.m. to 6 p.m.

Medicare prescription drug questions (seven days a week)

8 a.m. to 8 p.m. CENTRAL

Dedicated Call Center for Emeriti ParticipantsDedicated Call Center for Emeriti Participants

Paying for Emeriti Insurance Coverage

Where You Have a Continuing Employer Subsidy• Pays employer’s share automatically from the Health Account

• Pays your premium share electronically (ACH) from your bank account each month

• AND you may add lump sum amounts electronically (ACH) to the Health Account periodically

Where There Was No Prior Employer Subsidy• Pays your premium electronically (ACH) from your bank account

each month

• AND you may add lump sum amounts electronically (ACH) to the Health Account periodically

With Emeriti, there are no checks to write; set it up; the record-keeper does the rest.

Program Fees in Retirement

Recordkeeping Fee ($6.25 per month)

Participant Account Fee ($4 per month)

Reimbursement Benefit Processing Fee ($6 per bundled set of claims)

NOTE: Fees and expenses associated with Fidelity investment options also apply. Please request a mutual fund prospectus for more information about these fees.

SECTION 6 ADDITIONAL

RESOURCES

Find Information with Emeriti Tools

Read the latest articles on the Emeriti website (www.emeritihealth.org)

Use the Emeriti online premium rate guide (www.emeritihealth.org)

Conduct searches on the HealthPartners website for retirees living in Minnesota

(www.healthpartners.com/medicare)

Visit Aetna’s Navigator website for retirees living in other states (www.aetna.com)

Explore the performance of Fidelity Freedom Funds (www. fidelity.com)

Do Independent Research

Read Medicare and You from the Centers for Medicare and Medicaid Services

Visit Medicare’s website for retirees (www.medicare.gov)

Get independent views from the Kaiser Family Foundation (www.kff.org)

Review research at the Employee Benefit Research Institute (www.ebri.org)

Legal Notices

Summary Plan DescriptionThis presentation is intended to provide you with a brief summary of some of the details of your Employer’s Emeriti Plan and the Emeriti Program generally. It is not a Summary Plan Description (“SPD”) and does not summarize all the terms of your Employer’s Emeriti Plan. For a full summary of the terms of your Employer’s Emeriti Plan you must consult the SPD, which will be provided to you upon enrollment or upon request.

Important Information about EmeritiThe full name of Emeriti Retirement Health Solutions is The Emeriti Consortium for Retirement Health Solution, an Illinois Not-for-Profit Corporation.

Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.

Major Contributors to the Emeriti Benefit ProgramEmeriti Retirement Health Solutions, HealthPartners (in Minnesota), Aetna (other US regions), Fidelity Investments, and Acclaris are independent organizations and are not legally affiliated.

Investment Adviser StatusEmeriti Retirement Health Solutions is a registered investment adviser for purposes of selecting the range of investment options for the Emeriti Program, selecting the investment manager for employer and voluntary employee contributions, and providing these and other impersonal educational materials to plan participants. Emeriti does not provide advice to participants about their individual investment selections.

The participation interests in the voluntary employee contribution VEBA trusts associated with the Emeriti plans (the “Interests”) may be treated as securities under various state securities laws. The offering of these Interests is subject to compliance with any applicable state law. For residents of Georgia, the Interests are being offered in reliance on paragraph 13 of Code Section 10-5-9 of the Georgia Securities Act of 1973, as amended (the “Georgia Act”). The Interests may not be sold or transferred except in a transaction which is exempt under the Georgia Act or pursuant to an effective registration under the Georgia Act.

Investment DecisionsIt is your responsibility to select and monitor your investments to make sure they continue to reflect your financial situation, risk tolerance and time horizon. Most investment professionals suggest that you reexamine your investment strategy at least annually or when your situation changes. In addition, you may want to consult an investment adviser regarding your specific situation.

Recordkeeping and shareholder services for the Emeriti Program are provided by Fidelity Investments Tax-Exempt Services Company, a division of Fidelity Investments Institutional Services Company, Inc.

Before investing in any mutual fund, please carefully consider the investment objectives, risks, charges and expenses. For this and other information, call or write Fidelity for a free prospectus. Read it carefully before you invest.

©2005 FMR Corp. All rights reserved. 417000

Fidelity Investments Institutional Services Company, Inc. • 82 Devonshire St., Boston, MA 02109

Documents

For Minnesota Higher Education and Its Retirees A NEW APPROACH to your retiree medical benefits