Welcome! [benefits.cat.com] · 2017-09-08 · permitted by law, Caterpillar Inc. reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies or programs,

In the event that the content of this presentation or any representations made by any person regarding the plans conflict with or are

inconsistent with the provisions of the plan documents, the provisions of the plan documents are controlling. To the fullest extent

permitted by law, Caterpillar Inc. reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies or

programs, in whole or in part, at any time and for any reason, by appropriate company action.

Welcome!

2018 healthcare benefits for retirees age 65 and olderwho retired under the 2005 or later agreements between

Caterpillar and the UAW (and/or eligible spouses/partners)

New contract ratified March 27, 2017. Caterpillar is also extending same benefit changes to previous retirees who retired under 2005 and later agreements, unless they opt out.

You will be enrolled in the same healthcare benefit plan that management retirees age 65 and older participate in today.

A new Health Reimbursement Arrangement (HRA) will be available to help fund your healthcare coverage.

OneExchange will help you find and enroll in coverage that works for you.

What’s Changing?

Benefit dollars are

deposited into Health

Reimbursement

Arrangement (HRA)

account

Retiree purchases

health insurance to

supplement Medicare

and may use the

HRA for

reimbursement of:

• Premiums (Part B also)

• Eligible medical expenses

Unused amounts

roll over from

year to year

Health Reimbursement Arrangement

Caterpillar provides

annual benefit dollars

($3,000 each per

retiree and spouse)

PlanCaterpillar

PPO Plan

Caterpillar

EPO Plan

Medicare Part A $0 $0

Medicare Part B $134 $134

Caterpillar Premium $284 $284

Average Monthly OOP $122 $68

Total Monthly Cost to Retiree $540 $486

Average Annual Med B

Reimbursement($99.50) ($99.50)

Net Monthly Cost to Retiree $440.50 $385.50

Total Annual Cost to Retiree $5,284 $4,626

Plan

Cost to Retiree

(Highest

Coverage)

Cost to Retiree

(Average

Coverage)

Medicare Part A $0 $0

Medicare Part B $134 $134

Medical with Rx $164 $36

Dental $48 $23

Vision $14 $14

Average Monthly OOP

without Rx$0 $93

Average Annual Cost $4,320 $3,600

Caterpillar Annual HRA

Allowance$3,000 $3,000

Net Monthly Cost $110 $50

Total Annual Cost $1,320 $600

2017 Options - Caterpillar Plan (UAW) 2017 Options - One Exchange

Potential annual savings of over $4,600

Comparison Example (using 2017 data)

Introducing OneExchange

September 5, 2017

Helping You Prepare For Your

Upcoming Medicare Enrollment

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

OneExchange

© 2017 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only. 7

Who We Are

Your Future Coverage

OneExchange – For Your Benefit

A Deeper Dive – Benefit Advisors,

Private Exchange, Optimize Savings

Health Reimbursement for You

Next Steps

Questions and Answers

OneExchange Health Insurance Marketplace


Towers Watson

OVER1.7 millionRetirees served across

9 out of 10Retirees reported they would

work with OneExchange again

No fees for Our service

This will be our

12th annual enrollment season

Founded in 2004

Licensed advisor provides

guidance and

ongoing advocacy

nationwide network of insurers

More Choice, More Flexibility – Better Value

Personalized options with plans from a

560+ employers

OneExchange Service Centers


Operating hours:

Monday – Friday, 7:00 a.m. until 8:00 p.m. Central Time

100% Domestic WorkforceNo Outsourcing!

Salt Lake City,

UT

Dallas, TX

Phoenix, AZ


Plans and Insurers

Dental and Vision Plans Available

Medicare Supplement

(Medigap)

Prescription Drug

(Part D)

Medicare

Advantage





How Medicare coverage works

Primary Coverage

Medicare A and B

Additional Coverage (your choice)

* Medicare Advantage with

Prescription Drug (MAPD) or

* Medigap + Prescription Drug

Optional Coverage (your choice)

Dental Plans

Vision Plans

Your Medicare Options


Option 1:

Medicare Advantage with Prescription Drug coverage (MAPD)

* Note that Medicare Advantage plans are generally network based plans.

MAPDHMO PPO

Your Medicare Options


Option 2:

Medicare Supplement Insurance (Medigap) +

Part D Prescription Drug plan

MEDIGAP

PLANPART D

PDP

Note: You may need to pay your first premium when you enroll in coverage.


Medicare Supplement Insurance (Medigap) – Lettered Policies

Medicare Supplement Insurance (Medigap) Policies

Benefits A B C D F G K L M NMedicare Part A coinsurance

and hospital costs (up to an

additional 365 days after

Medicare benefits are used)

100% 100% 100% 100% 100% 100% 100% 100% 100% 100%

Medicare Part B coinsurance

or copayment100% 100% 100% 100% 100% 100% 50% 75% 100% 100%

Blood (first 3 pints) 100% 100% 100% 100% 100% 100% 50% 75% 100% 100%

Part A hospice care

coinsurance or copayment100% 100% 100% 100% 100% 100% 50% 75% 100% 100%

Skilled nursing facility care

coinsurance100% 100% 100% 100% 50% 75% 100% 100%

Part A deductible 100% 100% 100% 100% 100% 50% 75% 50% 100%

Part B deductible 100% 100%

Part B excess charges 100% 100%

Foreign travel emergency

(up to plan limits)80% 80% 80% 80% 80% 80%

Source: CMSOut-of-Pocket

limit in 2017

$5,120 $2,560

Part D Plans – 5 Tiers of Co-Pays


A prescription drug plan will typically break the formulary into

“tiers.” The tiers correspond to the copayment or coinsurance

the beneficiary will pay.

Cost-sharing increases with the tier number.

Tier 1 is the least expensive, tier 4 or 5 is the most expensive.

Tier descriptions:

Tier 1 - preferred generic

Tier 2 - non-preferred generic

Tier 3 - preferred brand

Tier 4 - non-preferred brand

Tier 5 - specialty drugs or injectable medicine

Medicare Prescription Drug Coverage 2018


Catastrophic Coverage

Coverage Gap

Initial

CoverageDeductible

You Pay Full Retail Until

Deductible is Met 2017 -

$0 to $405

You pay copays for your

plan coverage for the first

$3750 in actual costs of

Medications

You pay 35% of Brand Name

and 44% of Generics until

your out of pocket costs

reach $5000 Pharmaceutical

contributions will count

towards the $5000 TrOOP

You Pay $3.35 for

Generics and $8.35

for Brand Name or 5%

- whichever is greater

Only 25% reach

Donut Hole

Only 4% reach

Catastrophic

Payments made by insurance company to

discount drugs DO NOT count towards TrOOP

Insurance payments count

towards Coverage Gap

A Deeper Dive Into Our Process


The OneExchange process


Consultative

Process

Simplified

Selection

Effortless

Enrollment

Ongoing

Advocacy

Education


For those retirees losing group coverage

(retired beginning March 27, 2017)

Getting Started Guide:

Prepare for your enrollment

Pre-existing conditions will not

limit your plan selection*

Make an appointment to enroll

Call Toll Free 1-866-766-6087

medicare.oneexchange.com/caterpillar

*Except end-stage renal disease

Education


Enrollment/Advantage Guide:

Understand your options

Review Medicare basics

What to expect during your

enrollment call

FAQs

Appointment confirmation

Call Toll Free to enroll

1-866-766-6087


Benefit Advisors


Licensed / Certified / Appointed

OneExchange University™

Average age 43

Objective & unbiased

100% domestic workforce

Benefit advisors are available:

Monday – Friday, 7:00 AM. until 8:00 PM Central Time

Decision Support Tools


Prescription Profiler

medicare.oneexchange.com/caterpillar 24/7 access to your information

Load in your prescriptions –

Shorten your time on the phone with us!

Decision Support Tools


Help Me Choose comparison tool

Enrollment Process


Two Step Process:

1. Benefit Advisors

Benefit Advisors can discuss

coverage options with

anyone

2. Application Data Processors

Telephonic enrollment

100% of calls are recorded

Enrollment Process


Review the plan(s) that

you selected

The selection confirmation

letter will be sent shortly

after you enroll.

This letter confirms that

your applications have

been submitted.

Selection Confirmation Letter

Personal Guidance


Navigation

Enrollment

Prescription

changes

Affordability concerns

Reimbursement issues

Late enrollment

HRA

Annual plan review

An Ongoing Advocate

The plans you select continue on year to year. No need to

re-enroll in the fall unless you want to make a plan change.


Health Reimbursement Arrangement (HRA)



Your HRA funding

will be available

January 1, 2018

Unused funds DO roll

over

If you are eligible, Caterpillar will make

an annual contribution to a Health

Reimbursement Account (HRA)

You may use HRA funding to reimburse yourself for eligible

medical, prescription drug, dental, vision

and Medicare part B premiums, as well

as eligible out-of-pocket healthcare

expenses

Tax-free account used to reimburse

you for eligible health care expenses —

you pay first and then get reimbursed

Qualify for your Health Reimbursement Arrangement


ENROLL IN A PLAN THROUGH ONEEXCHANGE BEFORE THE END OF

YOUR ENROLLMENT PERIOD

DECEMBER 31, 2017

TO HAVE ACCESS TO YOUR HEALTH REIMBURSEMENT ARRANGEMENT

(HRA)

We recommend you schedule a call to enroll.

You can also go online to investigate your options once the enrollment

period begins.



You may be reimbursed up to the amount available in your HRA!



Options for Reimbursement

$ $

Option 1

Automatic

Reimbursement

Participant

OneExchangeInsurance

Carrier

Participant

OneExchangeInsurance

Carrier

Option 2

Manual*

Reimbursement

Up to the

amount

available in

your HRA

* Same for recurring reimbursement form


Next Steps

What You Need To Do: Action Required!


Make sure you have your

Medicare card when you call

Contact OneExchange

1-866-766-6087

Call now to complete your profile and

schedule an enrollment call

You will need your Medicare card,

prescription list, and doctor and

hospital information

Schedule a call to enroll


Call Now, We Are Ready!

1-866-766-6087


Thank you!

If you choose to opt out of the management plan

1. Call Caterpillar’s 2018 UAW healthcare

hotline to request an opt-out form

2. Return it postmarked by October 6, 2017

What you

need to do

(retirees who retired between January 2005 and March 26, 2017)


Questions and Answers

AQ

Documents

Welcome! [benefits.cat.com] · 2017-09-08 · permitted by law, Caterpillar Inc. reserves the right to amend, modify, suspend, replace or terminate any of its plans, policies or programs,