© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Retiree Health Benefits Sample comprised of 321 randomly selected HR professionals. Analyzing 321 of s sent, s were received (response rate = 12%). Survey fielded January 3 – January 9, 2006; presentation generated on January 11, Margin of error is +/- 5.0%

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Do you currently offer retiree health benefits? n=321

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Do you currently offer retiree health benefits? ChoiceCountPercentage Answered Yes8225.5% No %

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Do you coordinate the retiree health benefits with Medicare eligibility, i.e. offer Medicare as the primary payer and the employer-sponsored plan as supplementary or secondary coverage? n=82

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Do you coordinate the retiree health benefits with Medicare eligibility, i.e. offer Medicare as the primary payer and the employer-sponsored plan as supplementary or secondary coverage? ChoiceCountPercentage Answered Yes5870.7% No2429.3%

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 If the law were changed to prohibit the coordination of an employer's health care plan with Medicare, would your employer-sponsored plan continue to provide retiree health care coverage? n=58

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 If the law were changed to prohibit the coordination of an employer's health care plan with Medicare, would your employer-sponsored plan continue to provide retiree health care coverage? ChoiceCountPercentage Answered Yes3160.8% No2039.2%

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Which of the four options under the Medicare Modernization Act do you plan to offer? (Check all that apply) n=82 Percentage will not add to 100% as multiple responses were allowed

© 2006 SHRM SHRM Weekly Online Survey: January 03, 2006 Which of the four options under the Medicare Modernization Act do you plan to offer? (Check all that apply) ChoiceCountPercent of Sample Retiree Drug Subsidy: Employer sponsors may seek federal subsidies by sponsoring and certifying equivalent prescription drug coverage through a group health plan % Contracting with a Prescription Drug Plan: Employer sponsors may contract with a prescription drug plan or Medicare Advantage prescription drug plan % Supplemental Coverage: Employer sponsors may encourage participants to become beneficiaries of Part D Coverage, and provide separate, prescription drug coverage that supplements, or “wraps around” the coverage offered under Part D plans % Drop Coverage: Employer sponsors may eliminate existing prescription drug coverage for retirees %