Your Emeriti Retirement Health Plan 2017 Benefits Your Emeriti Retirement Health Plan KALAMAZOO COLLEGE

A more secure retirement includes healthcare planning

Your Emeriti Retirement Health Plan helps you address the gap Know the Facts Medicare is Not Enough Medicare covers only about 62% of total healthcare expenses in retirement.* 62% Your Emeriti Retirement Health Plan helps you address the gap *National Institute on Aging, Newsroom, Dramatic changes in U.S. highlighted in new census, NIH report, June 26, 2013.

Know That You’re Covered Retirement Plan Emeriti Retirement Health Plan For general retirement expenses Taxable distribution of pre-tax contributions Beneficiaries Assets passed to estate after death Exclusively for healthcare expenses Tax-free distribution Dependents Assets may be passed back to plan after death Connecting health & financial well-being

IRC Section 213(d) includes Emeriti Retirement Health Plan How Contributions Can Be Used IRC Section 213(d) includes Co-pays Deductibles Prescription drugs Health insurance premiums Hospital & surgical expenses Dental Vision Reimbursement for qualified IRC Section 213(d) medical expenses Benefits available to employee (retiree), spouse and eligible dependents

Your Emeriti Retirement Health Benefit Tax-advantaged Retiree Health Account Tax-free Reimbursement Benefit For Qualified Out-of-Pocket Medical Expenses Flexible Group Health Insurance Underwritten By Aetna (HealthPartners in Minnesota) For you and your dependents

Managing Your Healthcare Expenses in Retirement A tax efficient way to help cover healthcare expenses in retirement Triple tax free 1 2 3 Tax-free employer contributions (After-tax employee contributions) Tax-free investment earnings Tax-free reimbursement for qualified medical expenses in retirement

Tax Efficiencies In Action Pay with Emeriti Health Account Pay with retirement plan account Tax-free withdrawal $1,000 Taxable withdrawal $1,389 28% federal income tax bracket $1,000 Medical Bill 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.

Who Makes Contributions? Employer will make annual contribution when you are age 35 Employee can make after-tax contributions to Emeriti Health Account at any time 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

When Can You Use Funds? You can access the funds when you are age 55 with 10 years of service and have terminated employment

What Health Plans Are Available? 3 Medicare Advantage Plans 2 Medicare Supplement Plans 3 Medicare-approved Part D prescription drug plans Annual choice Guaranteed issue Optional dental plan Underwritten by Aetna Benefits available to employee (retiree) and, if the plan permits, spouse and eligible dependents

When Are You Eligible For Emeriti Health Insurance? You are age 55 or older with 10 years of service when you terminate employment Institution Eligibility Enroll at age 65, after enrolling in Medicare Parts A & B Emeriti Plan Eligibility

The Building Blocks of Medicare Next The Building Blocks of Medicare

How Medicare Works Part A (Hospital) and Part B (Medical) Original Medicare Medicare provides these coverages You have your choice of doctors & providers No monthly premium for Part A, Part B has a monthly premium - $121.80 in 2016 Part C - Medicare Advantage, PPO Plan Replaces Original Medicare Private insurers approved by Medicare provide Parts A & B coverage You may get extra benefits Monthly 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 premium – varies by individual carriers

Emeriti Retiree Health Insurance Next Emeriti Retiree Health Insurance

How Medicare Advantage Plans Work Aetna provides Medicare Parts A & B benefits Aetna is your primary insurance Use one Aetna card You still need to get your Medicare card You still pay Part B premium Extra Benefits Annual eye & hearing exams Silver & Fit Exercise & Healthy Aging Program Aetna Nurse Case Manager Wellness Coach No plan deductibles. No Medicare Parts A & B deductibles.

No extra benefits. How SRM Plans L & K Work Medicare Card. Aetna Card. Aetna plans coordinate with Original Medicare Parts A & B Medicare is primary insurance Medicare Card. Aetna Card. You pay Part B premium No extra benefits. No plan deductibles. You pay percentage of Medicare Parts A & B deductibles.

2017 Aetna POST-65 Medical Plans – CHOOSE ONE PLAN Aetna Medicare Advantage Premium ESA Aetna Medicare Advantage Plus PPO/ESA-PPO Standard Aetna SRM Plan L Plan K Plan Deductible $0 in- and out-of-network $0 Medicare Deductible 25% of Part A 100% of Part B 50% of Part A Primary Care $15 copay * 15% coinsurance (in-network) 25% (out-of-network) $15 copay (in-network) 30% coinsurance (out-of-network) 25% coinsurance 50% coinsurance Specialist $40 copay Hospital 100% by the Plan $500 per admission (in-network) 25% per admission $200 per day (1-7) (in-network) 30% per admission. Preventive Care Covered 100% $0 after Medicare 50% after Medicare Out-of-Pocket Limit $2,000 * $2,750 (in-network) $5,500 (out-of-network) $6,700 (in-network) $10,000 (out-of-network) $2,480 $4,960 2017 Aetna POST-65 Medical Plans – CHOOSE ONE PLAN 1 2 3 4 5 Medicare Advantage Premium Medicare Advantage Plus Standard Aetna SRM Plan L Plan K Plan Deductible $0* $0 Medicare Deductible 25% of Part A 100% of Part B 50% of Part A Primary Care $15 copay * 15% coinsurance in-network $15 copay in-network 25% coinsurance 50% coinsurance Specialist $40 copay in-network Hospital Covered 100% $500 per admission in-network $200 per day (1-7) in-network 25% of the Medicare Part A deductible 50% of the Medicare Part A deductible Preventive Care Some paid by Medicare Out-of-Pocket Limit $2,000 * $2,750 (in-network) $5,500 (out-of-network) $6,700 (in-network) $10,000 (out-of-network) $2,480 $4,960 Medicare Advantage replaces Medicare Parts A and B. SRM Plans coordinate with Original Medicare – and Medicare is the primary insurer. *In- and out-of-network For 2016, the SRM Plans are not available in VT, MD, MN, and U.S. Territories. For 2016, Part A Deductible - $1,288; Part B Deductible - $166, Part D Deductible - $400 NOTES: The ESA-PPO Plan has the same benefits as the In-Network PPO Plan. Aetna’s GMS Plans A and L will be offered in Florida in place of SRM Plans K and L.

2017 Aetna Part D Drug Plans – CHOOSE ONE PLAN Rx Premium Plan Rx Plus Plan Rx Standard Plan Open 2 Formulary GRP B2 Formulary $100 deductible $310 deductible Initial Coverage Limit: Coinsurance: 15% generic, 25% preferred brand, 40% non-preferred brand 50% non-preferred brand 25% preferred brand Coverage Gap: Same coverage at same coinsurance level 15% copay for Tier 1 generic drugs, 45% brand 58% generic, 45% brand Catastrophic Coverage: 100% coverage 95% coverage 2017 Aetna Part D Drug Plans – CHOOSE ONE PLAN 1 2 3 Rx Premium Rx Plus Rx Standard Open Formulary GRP B2 Formulary Deductible: $100 Deductible: $310 Initial Coverage Limit: 15% generic, 25% preferred brand, 40% non-preferred brand 50% non-preferred brand 15% generic, 25% preferred brand Coverage Gap: Same coverage, same coinsurance level 15% copay for Tier 1 generic drugs, 40% brand 51% generic 40% brand Catastrophic Coverage: 100% coverage, you pay nothing 95% coverage, you pay 5% The Medicare Coverage Gap Discount Program will continue to provide manufacturer discounts on brand name drugs to Part D beneficiaries who reach the Coverage Gap and are not already receiving “Extra Help.” A 50% discount on the negotiated price of preferred and non-preferred brand drugs (excluding the dispensing fee) will be available from manufacturers that have agreed to provide the discount. 2017 Initial Coverage limit: $3,700, True-Out-Of-Pocket Threshold: $4,950

2017 Aetna Dental Plan – Optional Preventive Service 100% coverage Annual Deductible (basic and major services) $100 Basic Services Coverage (fillings, standard crowns, extractions) 50% Major Services Coverage (root canal therapy, surgical removals, dentures) Annual Benefit Maximum $1,500 NOTES: Twelve month waiting period applies for major services, but may be waived with evidence of continuing coverage. One-time only opt-in opportunity. Dental is only available when you enroll in a combination Medical/Rx coverage, or elect the stand-alone Rx Standard Plan Please 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. Dental not available in MD.

Why Choose Emeriti Health Plans? NATIONAL PORTABILITY SPOUSE / DEPENDENT COVERAGE GROUP PLANS OFFER OPPORTUNITY FOR RICHER BENEFITS ENDORSED BY YOUR INSTITUTION; NOT AVAILABLE ON THE INDIVIDUAL MARKET Enroll in health insurance after age 65, upon retirement and after enrolling in Medicare Parts A & B. Post-65 retiree and their dependents can enroll in different plans NOTE: The employer’s plan establishes rules for vesting in the Emeriti Health Accounts and retirement eligibility for Emeriti insurance. *Independent domestic partners generally pay for insurance outside of the Health Account. **Determination of permanent disability also confers access to post-65 insurance for these individuals. Disability must occur before majority. GUARANTEED ISSUE, ANNUAL CHOICE DEDICATED PARTICIPANT SERVICE

Getting Ready To Enroll Enroll when you are first eligible Enroll later only if you have a qualifying life event Choose one medical plan Choose one Rx plan Consider adding dental Enroll in health insurance after age 65, upon retirement and after enrolling in Medicare Parts A & B. Post-65 retiree and their dependents can enroll in different plans NOTE: The employer’s plan establishes rules for vesting in the Emeriti Health Accounts and retirement eligibility for Emeriti insurance. *Independent domestic partners generally pay for insurance outside of the Health Account. **Determination of permanent disability also confers access to post-65 insurance for these individuals. Disability must occur before majority.

Enroll by phone or online Visit MyEmeritiBenefits.org Call the Emeriti Service Center 1-866-EMERITI (1-866-363-7484)

Working Together Emeriti & TIAA are working together to connect health & financial well-being

Thank You FOR JOINING US

How Primary Care Charge Works Medicare Advantage Premium Medicare Advantage Plus Medicare Advantage Standard Aetna SRM Plan L Plan K Primary Care Charge $200 Medicare Pays $0 $160 Aetna Pays $185 $170 $30 $20 You Pay $15 copay (in- and out-of-network) 15% coinsurance (in-network) – you pay $30 (in-network) $10 coinsurance $20 coinsurance Medicare covers 80% of the charge for Plans L and K.

Important information Emeriti Retirement Health Solutions provided this information and is responsible for its content. Emeriti, TIAA, CBIZ Savitz, Aetna Life Insurance Company, and HealthPartners are independent corporations and are not legally affiliated. Emeriti Retirement Health Solutions is not an insurance company, insurance broker or insurance provider.

TIAA-CREF 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. 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 recordkeeper. TIAA-CREF 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. The TIAA group of companies does not provide legal or tax advice. Please consult with your legal or tax advisor. c33830