OneExchange Transition Texas Annual Conference RETIREE HEALTH BENEFITS OneExchange Transition Texas Annual Conference

Agenda Why The Texas Conference is changing Post-65 Health Benefits Through OneExchange Choosing a Plan Paying for a Plan Plan Texas Conference Funding Health Reimbursement Account (HRA) Medicare Basics – and the best news yet! Next Steps

Why Are Individual Plans Attractive? Many UMC conferences have found that offering access to individual plans with HRA funding meets both individual and conference needs. Choice Cost Effective Important to remember that Medicare exchanges are much different than active exchanges, in part because so highly regulated by Medicare. It’s important to separate that in your mind with all of the “news” about active exchanges. Individual plans through OE has allowed UMC conferences to give choice and flexibility to participants, while controlling costs for long term sustainability. A win-win for conference and participants. Flexibility Sustainable Retiree exchanges are considerably different than exchanges for active employees.

One Exchange and Choosing a Plan

New Post-65 Retiree Medical Offering Individual Medicare Supplement plan through Towers Watson’s OneExchange May be eligible for HRA—funded by the conference if you meet conference requirements Action required to select a plan!

What Is OneExchange? Leading provider of health care solutions for Medicare-eligible retirees Connect Medicare-eligible participants with local Medicare supplement (“Medigap”) or Medicare Advantage plans 90+ health plan carriers available, 670+ unique plans Objective and trusted U.S.-based licensed benefit advisors (LBAs) Objectively support each participant to make informed and confident decision about plan choice

Personalized Telephonic Support Licensed Benefit Advisor 100% domestic workforce Objective advocacy Neutral compensation Licensed and certified by state UMC cultural sensitivity training Individualized telephone support Education about different plans, including costs Advice and decision-making support based on current coverage and future needs Assistance with enrolling in medical, prescription drug, dental and vision plans

Medicare Advantage, Medicare Supplemental, Part D Prescription, Dental, Vision OneExchange offers plans from national and regional carriers

UMC Enrollment Stats 994 unique plans chosen 23 plan sponsors (2012 – 2017) 7,245 eligible members 994 unique plans chosen 92 different insurance carriers Over the last 6 years we have guided implementation of 23 UMC groups—most are annual conferences. You can see the variety of the plans and carriers that were available to our members—that is something that an individual employer just cannot offer with respect to variety. There is an excellent contact and enrollment rate—OE takes connecting with everyone very seriously and if they don’t get ahold of someone, they work with Wespath and the conference to try harder. Some do choose not to make an election because it doesn’t align with their needs. Typically they then forgo their HRA.

Retiree Enrollment Experience Identify needs— (network, Rx, financial) with support from OneExchange outreach and communications Discuss options with Licensed Benefit Advisor (call length unlimited) Select and enroll in a plan with support from OneExchange (participant and spouse can choose different plans) Just a brief overview of the retiree enrollment experience. #1: The retiree gets information from Wespath and OE to give them a sense of how to think about their needs (their doctors, what meds they are on, whether they travel a lot). #2: Then they discuss those needs and various plan options with a benefit advisor. #3: Once they select a plan, an enrollment specialist from OneExchange helps them enroll in the plan.

Personal Guidance for a Lifetime Lifetime advocate Navigation Enrollment Claim issues Denied policies Affordability concerns Prescription Late enrollment HRA Annual plan

OneExchange Plan Selection Resources Telephonic support Online decision support tool medicare.oneexchange.com/wespath 24/7 access to your information

Health Reimbursement Accounts (HRAs)

Health Reimbursement Account Primer Tax-advantaged account that can be used to reimburse eligible health care expenses As a retiree, includes premiums and out-of-pocket expenses Joint accounts for couples when both covered by OneExchange plans Account administered by OneExchange Must select a plan through OneExchange to access HRA Funding levels determined by Texas Annual Conference

Health Reimbursement Account Primer Must meet conference’s eligibility requirements to qualify for HRA Entire HRA amount is available as of 1st of the month you enroll Prorated if enrolled mid-year Unused funds roll over from year to year and accumulate No limit as long as enrolled in a OneExchange plan If you run out of funds in one year: Can request to have claims reimbursed from next year’s funding

Health Reimbursement Arrangement You may be reimbursed up to the amount available in the HRA! © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

Health Reimbursement Arrangement Options for Reimbursement Option 1 Automatic Reimbursement (including recurring premiums) Option 2 Manual Reimbursement Participant OneExchange Insurance Carrier Participant OneExchange Insurance Carrier $ $ If you are interested, the next steps are: Scheduling a financial modeling review We ask that you let us know if you are planning to transition in April, if possible, but we don’t need a final signed agreement until after AC in June. We will try to work with you in May/June on defining your eligible group Workshops supported by OE and Wespath in the fall in advance of enrollment season! © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

HOW MEDICARE WORKS Medicare Advantage Plan Medicare Supplement Plans (Medigap plans) Medicare prices? Age? Health? Where you live?

How Medicare Works

Optional Coverage (your choice) Your Future Coverage 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 © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

Your Medicare Options MAPD HMO PPO Option 2: MAPD: Medicare Advantage + Prescription Drug plan MAPD HMO PPO * Note that Medicare Advantage plans are generally network based plans. © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

Prescription Drug Plan Your Medicare Options Option 1: Medicare Supplement Insurance (Medigap) and Prescription Drug plan Medicare Supplement Insurance Prescription Drug Plan Note: You may need to pay your first premium when you enroll in coverage. © 2016 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson client use only.

Standardized Medigap Policies 10 Standardized Medicare Supplement Plans Designated letters for plan types (Plan A, Plan B, etc.) Specific set of basic and extra benefits Plan bought from one insurance company has same basic benefits as same plan bought from any other insurance company Carriers can only compete on price – price based on age and zip code

Access and Minimum Plan Costs— Texas Conference Retirees: Top 10 Areas Number of Plan Options Offered Minimum Monthly Premiums MSA MAPD Medigap PDP Medigap* Houston-Sugar Land-Baytown, TX MSA 12-37 20-27 18 $0 $225 $17 TX NONMETROPOLITAN AREA 4-23 21-27 Tyler, TX MSA 19 25 Longview, TX MSA 7-19 25-27 College Station-Bryan, TX MSA 17-18 27 Dallas-Fort Worth-Arlington, TX MSA 21-24 $232 Austin-Round Rock, TX MSA 22-28 Texarkana, TX-Texarkana, AR MSA 5 Beaumont-Port Arthur, TX MSA 21-26 $246 San Antonio, TX MSA 15-23 If you are interested, the next steps are: Scheduling a financial modeling review We ask that you let us know if you are planning to transition in April, if possible, but we don’t need a final signed agreement until after AC in June. We will try to work with you in May/June on defining your eligible group Workshops supported by OE and Wespath in the fall in advance of enrollment season! Based on the census information provided, Texas Annual Conference retirees would have access to a meaningful variety of plan choices in the individual market. * Medigap premium is based on lowest premium available to a 75-year-old male for Plan F (i.e., the richest and most popular Medigap plan).

So, What’s Next?

Timeline and Next Steps August Communications Letter from Texas Annual Conference Letter from Wespath Mailing from OneExchange Getting Started Guide Enrollment Guide Schedule enrollment call with OneExchange If you are interested, the next steps are: Scheduling a financial modeling review We ask that you let us know if you are planning to transition in April, if possible, but we don’t need a final signed agreement until after AC in June. We will try to work with you in May/June on defining your eligible group Workshops supported by OE and Wespath in the fall in advance of enrollment season!

Timeline and Next Steps October—Medicare Open Enrollment Begins Review plan choices online (optional) Complete enrollment call with OneExchange Enroll in a plan before December 31, 2017 Receive new ID cards If you are interested, the next steps are: Scheduling a financial modeling review We ask that you let us know if you are planning to transition in April, if possible, but we don’t need a final signed agreement until after AC in June. We will try to work with you in May/June on defining your eligible group Workshops supported by OE and Wespath in the fall in advance of enrollment season! January 1, 2018 Your new plan benefits begin

Questions and Answers

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