1. Creating Your Path— Focusing on Your Future Retiree Health Care
BB&T | August 2014
[[Client Name] Presenter]
Welcome.
Thank you for coming and allowing us the opportunity to provide you with more information and the chance to ask questions about the changes ahead for you in terms of health care as a [Client Name] retiree.
Before we jump into the presentation, allow me to introduce myself and my colleague.

2. Content New Delivery Model for Medicare-Eligible Retirees
Today, we’ll give you:
An overview of the retiree benefit changes
Information about the continued Group Medical coverage for non-Medicare-eligible retirees
More details about the new way we’ll be delivering retiree medical benefits for Medicare-eligible retirees
Specifics about online access to benefit information, which is coming soon
And, finally, we’ll give you a chance to ask us questions. We do ask that you hold your questions until the end.

3. Overview of Retiree Benefit
For all BB&T retirees and spouses of retirees 65 or older:
If you are over age 65 and your spouse is under age 65, you may elect to cover your spouse through the BB&T Retiree medical coverage (Select or Consumer options ) through BCBS NC. BB&T will draft your account for the pre-65 coverage
If you elect the BB&T Retiree Life Insurance, BB&T will draft your account for the premium
You may have 2 different enrollment periods:
BB&T open enrollment for pre-65 Health care and for Life Insurance in November
If you and your spouse are both 65 or older, you will each make an election with Aon Retiree Health Exchange for your Medicare Supplement coverage and will be billed separately for coverage
In [month], we announced changes to Retiree Benefits for all associates—however, the changes impacted certain associate groups differently. Let me briefly recap those changes.
List changes here as to how this impacts [client name here] changes.
For all retirees:
[Client Name]’s contribution toward health care expenses likely will not keep pace with inflation, and
We’ll be establishing a new delivery model for current and future Medicare-eligible retirees, which will include selecting an individual plan to supplement Medicare. We’ll spend the majority of our time today talking about this new way of delivering medical benefits to our Medicare-eligible retirees.
These changes intentionally impact those furthest from retirement the most since they have more time to plan and save.
Most of these changes were made:
To help us better manage rising retiree health care costs,
To help us competitively price our insurance and financial services products, and
To most effectively use the contribution [Client Name] provides.

4. Support for Medicare-Eligible Retirees
Let me go into more detail about the support you’ll have with this new delivery model from Aon Retiree Health Exchange.

5. Introducing Aon Retiree Health Exchange
An independent insurance exchange
Offers Medicare insurance plans from quality carriers
Financially stable
“Staying power” in the marketplace
Name brands such as AARP, Blue Cross and Blue Shield, Humana, and United Healthcare
Broad range of products to meet individual needs
Employs licensed and certified benefit advisors
Are salaried; no incentive to steer individuals to specific carriers and/or plans for you!
Benefit advisors are licensed, certified, and experienced in Medicare related insurance.
Will assist you through the entire process and will remain your advisor ongoing
Aon Retiree Health Exchange is an independent insurance exchange, which means it offers Medicare insurance plans, such as Medicare Supplement, Medicare Advantage, and Medicare Prescription Drug Plans, from a variety of insurance carriers who meet certain quality standards. You’ll recognize some of the carriers, such as AARP, Aetna, BCBS, and others.
Aon Retiree Health Exchange offers a broad range of products to meet individual needs. They employ licensed and certified benefit advisors who take the time to talk with you and understand your preferences in order to find the best plan for you.
Retirees may purchase individual medical coverage through an independent agent. We’re making it clear that using Aon Retiree Health Exchange’ services is optional. Retirees remain eligible for the company contribution regardless of where they purchase individual medical insurance. The only disadvantage is that retirees who do not use Aon Retiree Health Exchange’ services will not have access to the advocacy services Aon Retiree Health Exchange offers after you enroll.

6. Why Aon Retiree Health Exchange?
Aon Retiree Health Exchange is one of the nation’s most trusted advisors in navigating Medicare—it’s advice you can count on
We have a reputation for providing expert, independent assistance to Medicare recipients who expect and deserve high-quality health insurance at an affordable price
Aon Retiree Health Exchange presents complex health insurance information in an objective manner via its Internet site and trained and licensed insurance professionals
The Benefit Advisors are located in Lincolnshire, Illinois, Charlotte, North Carolina, Orlando, Florida, The Woodlands, Texas and Winston-Salem, North Carolina
[Presenter direction: Transition to Aon Retiree Health Exchange presenter.]
Let me turn things over to [Name] from Aon Retiree Health Exchange. [He’ll/she’ll] be sharing more information with you about this service and what you can expect over the next several months.
[Aon Retiree Health Exchange presenter: Introduce yourself giving a little detail about prior work experience to build credibility.]
You may be wondering why [Client Name] selected us to help retirees navigate coverage options and enroll in health care plans. Well, they chose us in part for our reputation and experience:
We currently serve 2.4 million retirees—but at the same time, you’ll receive timely service and be given the attention and guidance you need.
We’ll provide Medicare coordination and Advocacy support for 10+ years.
We currently handle hundreds of Medicare enrollment calls daily.
In addition, Aon Hewitt already administers [Client Name]’s [list services here if applicable]

7. Medicare-Eligible Retirees
Now let’s talk about what happens when you come off the group plan. This section is for those who are or soon will be Medicare-eligible.
First, we’ll talk about why we’re changing the way we deliver retiree medical benefits.
Then, we’ll give you details about what you can expect this fall.

8. Enrollment Process for Medicare-Eligible Retirees
Getting Started
Confirm your appointment
Read materials in the education kit or online
Collect the following:
Medicare card
List of doctors
List of medications
Learn/Compare/Enroll
Talk with your benefit advisor
Complete necessary paperwork
Enroll over the phone
Now let me tell you what you can expect this fall to help you enroll in coverage.
You’ll receive materials in the mail, which include a letter and an education kit. The letter will include a specific date and time for you to talk to a benefit advisor. The kit includes a booklet like the one you have today, as well as some additional pieces. They describe what info you should have handy when it’s time for your telephone appointment—things like your Medicare card, a list of your doctors, and a list of your medications. [adjust depending on what materials will be available during the meeting]
It’s important that you confirm or change your appointment. Your benefit advisor will call you at home, and you’re welcome to have your spouse or trusted advisor on the call with you if you’d like.
We really feel like the greatest advantage of Aon Retiree Health Exchange is our experienced team of benefit advisors. They’ll take the time to help you choose the best plan for you and also help you through the enrollment process.

9. 2014 Medicare Part A (Inpatient Hospital Care)
What Is Covered
What You Pay
Part A covers part of the following services:
Inpatient hospital care
Inpatient care in a skilled nursing facility (not custodial or long-term care)
Hospice care services
Home health care services
Nursing home care
Enrollment in Medicare:
Part A is automatic for most people who have worked 40 quarters in their lifetime
Deductible: $1,216 per benefit period
A benefit period starts the day you leave the hospital and lasts 60 days
Part A has an $1156 deductible which applies when you are admitted into a hospital by a physician and spend the night. This is not an annual deductible but rather a re-occurring deductible which reoccurs after you have been out of the hospital for 60 consecutive days.
Part A monthly premium for those individuals who have not worked 40 quarters is $451. 9

10. 2014 Medicare Part B (Outpatient Hospital and Doctor Care)
What Is Covered
What You Pay
Outpatient care
Doctors’ visits
Outpatient hospital
Lab services
Preventive care
Emergency room visits
Mental health
Ambulance
Lab tests
Premium: $104.90
Social Security determines the premium amount based on the last 2 years of taxable income
Deductible: $147
Coinsurance:
Medicare pays 80%
Participant pays 20%
The 3M group plans pays as though you are enrolled in Medicare parts A & B. If you have not enrolled in A & B you should do it now as….
Most Medicare Supplement and Medicare Advantage Plans will require you to have Part B in place before you can enroll in them.

11. Medicare Supplement Plan + Rx Drug Coverage (Optional)
Current Plan
Original Medicare
Part A
(covers
hospital stays)
Part B
(covers doctors and
outpatient visits)
Government-Funded
Depending on how the group plan works
Medicare Supplement Plan + Rx Drug Coverage (Optional)

12. Medicare Insurance Plan Options
Original Medicare
Part A
(covers
hospital stays)
Part B
(covers doctors and
outpatient visits)
Government-Funded OR
Keep original Medicare and add:
Medicare Supplement Insurance
Replace Original Medicare with
Medicare Advantage
Medigap
(covers some or all of the costs
not covered by Part A or B)
MEDIGAP
Part C
(combines Part A and B
and may include prescription drugs)
You likely already know that enrollment in Medicare Part A (which covers hospital services) is automatic for most people, while enrollment in Medicare Part B (which covers physician and medical services) is optional.
Although Part B is optional, we strongly recommend that [Client Name] retirees enroll in Part B, if you haven’t already, so that your out-of-pocket expenses are reduced. Plus, most Medicare Supplement and Medicare Advantage plans will require you to have Part B in place before you can enroll in them. Once you’ve enrolled in both Parts A and B, you can then enroll in one or more of these individual plans—a Medicare Advantage plan, a Medicare Supplement plan, or a Medicare Prescription Drug plan. [Presenter talk about the differences and how Med Supps and Med Rx plans can work together and how Med Adv plans may already include Rx plans and other benefits. Be sure to include details about networks, OOP expenses, deductibles, copays, etc. Also remind retirees they’ll need to purchase Part D or be sure the Med Adv plan they choose has Part D if they need Rx coverage, since they’ll lose Rx coverage when they come off the group medical plan.]
An Aon Retiree Health Exchange benefit advisor can help you understand all the different plans, what each one is designed to cover, and what you’re required to have before enrolling in supplemental plans.
Offered by Private Companies
And/Or
If Part C of your plan
does not include prescriptions, consider adding Part D. +
Medicare Part D
Part D
(covers
prescriptions)
Offered by Private Companies
Offered by Private Companies

13. Medicare Supplement (Medigap) plans
In the open market, there are options known as Medicare Supplements.
Medicare Supplements supplement the Medicare coverage you already have
Medicare remains your primary; your Supplement is your secondary
With Medicare Supplement plans, you can go to any doctor, any medical facility in the country as long as the doctor/medical facility accepts Medicare and the service is Medicare approved (similar to what you currently have)
Plans are all federally regulated
Plans come with a range of coverage—Plans A through N
Plan F has highest level of coverage
Covers your deductibles and out-of-pocket expenses left over by Medicare
Plans from company to company are the same—only difference is price
Prices vary by company, age, and service area
Current group supplement is similar to Medigap Plan F—except for Part B deductible

14. Medicare Supplement Chart
Features A B C D F G K L M N
Medicare Part A Coinsurance and Hospital Costs (up to 365 days after Medicare
Benefits are used up)
Medicare Part A
Hospital Deductible
50%
75%
Skilled Nursing Facility Care Copay/Coinsurance
Part A Hospice Care
Coinsurance or Copayments
Medicare Part B
Deductible
Medicare Party B Coinsurance
(Generally 20%)
Excess Charges
Blood
(First 3 Pints)
Foreign Travel Emergencies
(up to Plan Limits)
Plan F has the highest level of coverage and is the most popular Medigap plan. It is the one Medigap plan where you simply pay a premium at the beginning of the month, and as long as the service is Medicare approved, there is no additional cost out of your pocket, no deductibles, and no co-pays.
While the benefits are rich for a Plan F plan the monthly premium is also on the higher end and that may not be the right situation for you. You may determine that your needs are not that broad and you don’t want to over insure yourself and may find that a Medicare Advantage plan would work better for you.
When determining what is the right Medigap plan for you, you should look for a reputable carrier at the lowest price available, because the plans act exactly the same from one carrier to the next. The only caveat is if a specific carrier is offering an added benefit that you find valuable for your life style, i.e., international travel benefits.
For illustrative purposes only.

15. Guaranteed Issue of Coverage for Medicare Supplement (Medigap)
“Guaranteed issue” means that during this special election enrollment period for retirees, you’re automatically accepted by the insurance plan without having to answer medical questions
You have guaranteed acceptance into any Medicare Supplement Plan, regardless of any pre­-existing health conditions
Enrolling in a Medicare Supplement Plan after this period, in most states, requires approval from the insurance company
This is a one-time chance for those age 65 and older
For those turning age 65 in the future, you have the same opportunity during your initial enrollment

16. 2014 Medicare Part D Plans (Prescription Drug Coverage)
Deductible $310
100% Paid by Participant
75% Paid by Plan
25% Paid by Participant
Initial Coverage Level $2,850 Limit
The Donut Hole
Exit at $4,550
BRANDS:
(50% Discount)
GENERICS:
72% Paid by Participant
28% Paid
by Plan
47.5% Paid
by Participant
2.5% Paid by Plan
All Part D plans and Medicare Advantage prescription drug plans work under the same basic structure, which is shown in this chart, also included in your handout. I’m going to give you a minute to locate that slide in case you want to follow along.
You will pay a small out-of-pocket monthly premium for Part D.
Let’s break it down.
15% Paid by Plan
80% by Medicare 5%
Catastrophic Coverage

17. Medicare Advantage Plans (Part C)
Obtain Medicare Parts A/B coverage through the Medicare Advantage Plan, not Original Medicare
Must pay:
Part B premium
Medicare Advantage Plan premium (if any)
Copays/coinsurance and deductibles, as applicable
Network-based:
PPO, HMO, HMO-POS, PFFS
Medicare Advantage Plans may offer extra coverage:
Vision, hearing, dental, health/wellness programs
Most plans include prescription drug coverage (Part D)

18. Choosing a Medical Plan Comparison
Supplement Plan (Medigap)
Medicare Advantage (Part C)
Can be higher premium/low to no cost on the back end
Can go to any doctor or medical facility in the country that accepts Medicare
Does not include prescription drugs
Most plans include foreign travel emergency coverage
Guaranteed issue under certain circumstances
Low to no monthly premium/Pay as you go
Network based plans/HMOs, PPOs
Typically includes prescription drugs copays, coinsurance, and deductibles
No medical underwriting

19. Choosing a Medical Plan
Even if you and your spouse are both Medicare-eligible, your health needs may differ—each eligible person can choose a medical or prescription drug plan
You may change your Medicare Advantage and Part D plans every year during the Annual Enrollment Period (AEP) October 15–December 7
You may change your Medigap plan at any time during the year. However – you may be subject to underwriting
Initial Enrollment Period (IEP) – Newly Eligible
Tricare and VA coverage
Each eligible person can choose a different plan.
A husband and wife don’t have to choose the same plan.
Available options include:
Medicare Advantage
Medicare Supplement
Prescription Drug Plan (if you choose a Medicare Advantage plan, it may include prescription coverage already)
You may change your plan each fall for the following year—just call Aon Retiree Health Exchange again! This year, the Medicare enrollment period is October 15 through December 31.
Most Medicare-eligible retirees will find they’ll pay less for individual medical coverage than they previously paid under the [Client Name] Group Medical Plan and out-of-pocket costs should be very similar—although out-of-pocket costs vary by the plan you choose. Your benefit advisor will give you all the details on out-of-pocket costs by plan when you speak with him or her in October.
Now let’s take a closer look at the types of plans you can choose.

20. Choices to Meet Retirees’ Needs
Telephonic Enrollment
Highly trained benefit advisor guides retirees through process
Retirees work with same benefit advisor throughout process (if desired)
Enrollments can be completed over the phone with telephonic signature
Preferred method—98%
Prefilled Paper
Many retirees prefer to review printed materials before making decision
Paper applications accepted via prepaid envelopes or fax
Online
Detailed summary of benefits information
Comparison of current plan and alternate plans
Online plan application collection up to signature requirements

21. Conveniently Paying for Your Coverage
Two options:
Pay your health insurance premium by check each billing period or
Have your premium automatically withdrawn from a checking or savings account
Most insurance providers allow automatic withdrawal as a convenient alternative to paper checks
Insurance companies may not take funds directly from your retiree HRA.
As a result, there two options for paying your premium:
Pay the premium by check.
Have your premium automatically withdrawn from a checking or savings account.
To have your premium automatically withdrawn, just provide your checking or savings account details to your benefit advisor when you apply.
Remember, too, that your premium will no longer be deducted from your pension check, which means your pension check will be larger!

22. Retiree Health Reimbursement Account (HRA) Highlights
Retiree HRA can only be used for reimbursement of eligible premiums for Medicare Supplement, Medicare Advantage, and/or Medicare Prescription Drug Plan, Medicare Part B and D coverage (including Part D penalties paid or surcharges)
Any additional premium expenses for the year would be paid by you
To help you pay for the individual medical plan you select, [Client Name] will provide a retiree Health Reimbursement Account / Arrangement (HRA) for you. These accounts will be established to reimburse you for the individual medical insurance premiums you pay.
Let’s review some of the highlights of how this account will work.
[Presenter direction: Review slide bullets.]

23. Premium Billing and HRA Reimbursement
Retiree
Carrier
Pays insurance premiums directly to carrier
Reports premium payments to Aon Retiree Health Exchange
Aon Retiree Health Exchange
Reimburses retirees for premiums
The HRA Claim Form Initiated Auto Reimbursement process is used when a retiree enrolls via AHN with a carrier who does not send premium files to AHN, premium increases midyear, and when AHN is unable to get the initial premium record from the insurance carrier. Once the initial Premium Auto Reimbursement claim form is received along with proof of premium payment, the retiree will receive their initial reimbursement and is setup for monthly automatic reimbursements the remainder of the year. 23 23 23

24. Premium Billing and Manual Claim HRA Reimbursement
Retiree
Pays insurance premiums directly to carrier and completes manual claim form each month for eligible expense and submits to Aon Retiree Health Exchange/Your Spending Account™
Aon Retiree Health Exchange
Retiree
Retiree receives premium increase from carrier and fills out a
manual claim form for premium increase and submits to Aon Retiree Health Exchange/Your Spending Account
Reimburses retirees for premiums
The HRA Claim Form Initiated Auto Reimbursement process is used when a retiree enrolls via AHN with a carrier who does not send premium files to AHN, premium increases midyear, and when AHN is unable to get the initial premium record from the insurance carrier. Once the initial Premium Auto Reimbursement claim form is received along with proof of premium payment, the retiree will receive their initial reimbursement and is setup for monthly automatic reimbursements the remainder of the year. 24 24 24

25. Advocacy—The Solution
Retirees Need Assistance
Advocacy Services
Access to care and prescription drugs
Claim denials and incorrect payments
Billing disputes
Authorization and referrals
Medicare coordination
Pioneered service in 1999
200 clients
3.6 million participants
Advocates average 18 years of industry experience 25 25

26. Medicare Advocacy Examples
PROBLEM
ROOT CAUSE
SOLUTIONS
Receiving unexpected bills from rheumatologist
Provider miscoded diagnosis and CPT code; as a result, charges were not eligible for Medicare reimbursement
Advocate worked with provider to correct and refile bill with Medicare
After bill was reprocessed, advocate communicated accurate liability to retiree
Erroneous CPT code
Incorrect Medicare claim denial
Medicare denied a claim, indicating Medicare was not the primary payer
Retiree did have additional coverage; however, Medicare was primary
Advocate facilitated refiling claim with Medicare, then forwarded EOBs to health plan for secondary payment
Benefit Advisors are different than Advisor. Draw
Goals for this slide
Bring the benefit of our Advocacy service to life
Share some examples of problems retirees might have if they don’t have an advocacy service included
It’s advocacy work like this that only Aon Hewitt includes in its retiree solution
Access to wheelchair
Medicare denied a retiree’s request for a wheelchair
Medicare denied claim as not medically necessary
Advocate collected medical records and forwarded them to Medicare
Once approved, advocate made arrangements for home delivery of wheelchair 26 26 26

27. Website Visit retiree.aon.com/bbt On the website, you can:
Confirm your appointment
Change you appointment
Add your prescriptions
Compare plans
Create a unique user ID

28. Website retiree.aon.com/bbt
Tina Maldonado
Proprietary & Confidential

29. Educational and Informative Content

30. Quick and Easy Plan Entry

31. Guided Tools, Including Personalized Rx Calculations

32. Simplified Browsing Experience

33. Side-by-Side Comparison Shopping—Comparing Apples-to-Apples

34. Prescription Profiler

35. Questions? If you have questions:
Call Aon Retiree Health Exchange at
Thank you for allowing us to speak with you today.
Now we want to give you an opportunity to ask any questions you may have.
[Presenters: Answer audience questions. Before closing, remind them that if they have additional questions not addressed today or if they want to discuss their personal situations with someone, Medicare-eligible retirees can call Aon Retiree Health Exchange, and non-Medicare-eligible retirees can call the Human Resources Services Center. ]