Retiree Health Plan Update Julien Carter Vice President of Human Resources

Current Over 65 Retiree Health Plan Tufts University currently offers the following Over Age 65 group-sponsored plans: BCBS Medex Silver Medigap Plan (195 enrolled) Fallon Senior Advantage Plan (5 enrolled) Harvard Pilgrim Health Medicare Enhance Medigap Plan (100 enrolled) Tufts Health Plan Medicare Complement Medigap Plan (181 enrolled) Tufts Health Plan Medicare Preferred Advantage Plan (303 enrolled) Trending Issues General costs of medical benefits escalating for retirees and the university. Without changes to the retiree health plan, the university would had to have provided an additional $12.54 million to the voluntary employee benefit account. Increased costs to the retirees over the years is on the next slide. Seventy-five percent experienced premium increases between 11.2% and 19.4% Some retirees experience challenges paying for their health insurance. Many retirees are hesitant to change to more affordable plans without assistance.

Current Over 65 Retiree Health Plan CY 14 Monthly Premium CY 15 Monthly Premium CY 16 Monthly Premium CY 17 Monthly Premium BCBS Medex Silver Medigap Plan $378.51 $397.90 $426.81 $433.29 Fallon Senior Advantage Plan $278.00 $299.00 $322.00 $349.00 Harvard Pilgrim Health Medicare Enhance Medigap Plan $412.76 $445.12 $467.38 $558.00 Tufts Health Plan Medicare Complement Medigap Plan $420.00 $431.00 $470.00 $540.00 Tufts Health Plan Medicare Preferred Advantage Plan $252.00 $262.00 $267.00 $297.00

Current Retiree Health Plan Subsidy Retiree Group Current Retiree Monthly Subsidy For Tufts Sponsored Plans Spouse Retired by 12/31/1993 100% Retirees or Employees Hired prior to and Meeting Age/Service Eligibility Criteria as of 12/31/1993 $151.03 Retirees or Employees Hired prior to but Not Meeting Age/Service Eligibility Criteria as of 12/31/1993 None Retirees or Employees Hired After 12/31/1993

OneExchange Effective January 1, 2018, Tufts University will transition to plans offered on the OneExchange platform for Over Age 65 retirees. Retirees will have access to comparable plans which will result in lower costs for a significant number of retirees. Based on the lower premium rates for plans through OneExchange, the university will reduce its annual contribution to retiree health for those receiving partial subsidies. No impact to current Under Age 65 retiree health plan choices As was outlined in the August 15, 2017 letter

2018 Over Age 65 Subsidy Amounts Retiree Group  2018 Retiree Monthly Subsidy 2018 Spouse Monthly Subsidy Retired by 12/31/1993 $300 Retirees or Employees Hired prior to and Meeting Age/Service Eligibility Criteria as of 12/31/1993 $70   Retirees or Employees Hired prior to but Not Meeting Age/Service Eligibility Criteria as of 12/31/1993 None Retirees or Employees Hired After 12/31/1993

Statistics as of October 18 Of 784 retirees currently enrolled in retiree health: 78% of retirees have contacted One Exchange 55% have scheduled an appointment with One Exchange. 15% have selected 48 unique health plans from among 14 carriers. Satisfaction Scores (106 Respondents) 68 (64.2%) gave a score of “5”. 15 (14.2%) gave a score of “4”. 13 (12.3%) gave a score of “3”. 4 ( 3.8%) gave a score of “2”. 6 ( 5.7%) gave a score of “1”.

Statistics as of October 18 Top Medical Plans Harvard Pilgrim Health Care Tufts Health Plan AARP Medicare Supplement from United Healthcare Fallon Community Health Plan Anthem Blue Cross Blue Shield of New Hampshire Top Drug Plans Express Scripts Medicare Aetna Humana Silver Script

Changes To The Under 65 Retiree Health Plan In same insurance pool as active employees Current premiums do not represent actual health plan costs Increased premiums will be phased in 2019 – 2021 University will still provide subsidy of $151.03 adjusted by 2% each year. Starting January 1, 2018, retirees under the age 65 may opt out of the retiree health insurance program Allowed to participate in the over 65 retiree program if they enroll with One Exchange within 31 days of their 65th birthday

Retiree Dental Benefit The Retiree Dental Plan will remain a group sponsored plan choice through Tufts University. We are transitioning our third party administrator from Crosby/Wage Works to EPBA. Your current Dental insurance election will continue in 2018 unless you change it during the annual Open Enrollment Period November 1 – 15 EPBA will send you a 2018 Open Enrollment communication during the month of October.

Next Steps Continue to enroll retirees Continue to reach out to retirees who have not contacted One Exchange. November reminder postcards December certified letter Health Reimbursement Welcome Packet Mailed late December.

If you have not enrolled. . . Schedule an appointment by calling 1-844-353-0772 before December 29, 2017. Information is available at www.medicare.oneexchange.com/tuftsuniversity.