Transcript Annual Enrollment Guide

2008 Annual Enrollment
Training Presentation
April 2008
Agenda
 Overview of 2008-2009 benefits
– What’s new and/or changing July 1
 What you need to do
– Enrollment dates and My Benefits Access
 Benefits enrollment
 Questions?
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2008-2009 Benefits
Overview of 2008-2009 Health Benefits
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Medical
Dental
Vision
Flexible Spending
Accounts
Basic Life Insurance
Optional Life Insurance
Basic Accidental Death and
Dismemberment
Optional Accidental Death
and Dismemberment





Short-term Disability
(if offered by your sector)
Long-term Disability
Employee Assistance
Program
Group Legal
Voluntary Insurance
(through the Northrop
Grumman Federal Credit
Union)
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What’s Changing July 1
 Medical
– New carrier for Premium and Preferred PPOs
– Prescription drug changes under the PPO and EPO
options
– Reduced lifetime maximum of $12,500 for infertility
treatment under PPO and EPO options
 Flexible Spending Accounts  reduced annual
limit of $2,500 for highly compensated
employees
 Cost increases for Premium PPO and Cigna
EPP
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Anthem Blue Cross
 Provider network is the same as the Blue
Cross Blue Shield network
 New medical ID cards issued before July 1,
2008
 Access to Anthem’s care management
program, 360 Degree Health
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Prescription Drug Changes
 Generic preferred refills (PPO and EPO
options)
 Mandatory mail-order for maintenance
medications (PPO and EPO options)
 Step Therapy program for PPO participants
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Flexible Spending Accounts
 If you earn $100,000 or more in 2008,
your annual contribution limit to the
Dependent Care FSA will be reduced to
$2,500
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Employee costs
 Changes to how employee contributions
are calculated
 Significant cost increases for Premium PPO
and Cigna EPP options
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Lumenos HRA Plan
Preventive
Care (in-network)
• 100% coverage
for nationally
recommended
services
• No deductions
from the HRA
Preventive Care 100% Coverage
The Lumenos Program
Health
Reimbursement
Account
Bridge
Traditional
Health
Coverage
• Benefit plan year allocation from
Northrop Grumman
• Plan pays 100% when funds are
available
• Use it on HRA Extras
• Employee’s responsibility if
expenses exceed the benefit
plan year HRA allocation
• Paid only as expenses are
incurred
• Can be reduced or eliminated by
HRA rollover
• Additional protection covers the
services allowed by Northrop
Grumman
• You pay coinsurance for covered
services
• 100% coverage after coinsurance
maximum is met
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Lumenos HRA Plan
Preventive Care 100%
Plan Year Amounts
Health Reimbursement
Account (HRA)
Bridge
Employee
Employee +
Spouse
Employee +
Child(ren)
Family
$1,000
$1,500
$1,500
$2,000
$800
$1,200
$1,200
$1,600
90% covered for in-network providers
60% of R&C for out-of-network providers
Traditional
Health Coverage
Coinsurance Maximum
$4,200
Mental Health/Substance Abuse and prescription
drug benefits are covered under the plan.
$6,300
$6,300
$8,400
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Comparing the Medical Plan Options
PPO
I want to choose a PCP to
coordinate all my care and
specialist referrals
EPO
Lumenos
HRA Plan


(in most
cases)
I want to visit any provider I
choose, without referrals


I want to be able to go out of
network, even if it’s at a higher
cost (but still covered)


I want Northrop Grumman to
help me pay for some of my
expenses through a companyfunded HRA
HMO

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Comparing the Medical Plan Options
I want 100% coverage for
preventive care
I want the lowest paycheck
contributions
I am worried about health care
costs rising, and want a plan
that helps me manage that
better
PPO
EPO


(after a small
copay)
(after a small
copay)
Lumenos
HRA Plan
HMO


(after a small
copay)


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Example: Sharon
 Average user of health care benefits
 Family coverage
 Potential health care services/needs (with assumed
actual cost of service):
– Three routine preventive care visits ($125 each)
– Two specialist visits ($175 each)
– 20 physical therapy visits for treating sports-related
injury ($100 per visit)
– Two generic maintenance prescriptions filled monthly
($20 each per month)
– One preferred brand prescription ($60)
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Example: Sharon’s Costs
Preventive care
Lumenos
HRA Plan
Preferred PPO
Premium PPO
$0
3 visits @ $20 copay
= $60
3 visits @ $15
copay = $45
+
+
2 visits @ $175 per
visit = $350
2 visits @ $40 copay
= $80
+
+
2 visits @ $30
copay = $60
20 visits @ $100 per
visit = $2,000
5 visits @ $100 per
visit up to individual
annual deductible
= $500
3 visits @ $100 per
visit up to
individual annual
deductible = $300
Remaining 15 visits
@ 10% coinsurance
per visit = $150
Remaining 17 visits
@ 10%
coinsurance per
visit = $170 15
+
Specialist visit
Physical therapy
* This example assumes
in-network services only.
+
+
+
Example: Sharon’s Costs (cont.)
Prescription drugs
Lumenos
HRA Plan
Preferred PPO
Premium PPO
2 generic Rx each
month for 12 months
@ $20 retail cost =
2 generic Rx each
month for 12 months
@ $5 copay = $120
2 generic Rx each
month for 12
months @ $5
copay = $120
$480
+
1 preferred brand Rx
at $60 retail cost =
+
1 preferred brand Rx
at $20 copay = $20
Total
1 preferred brand
Rx at $20 copay =
$20
$60

$2,890
+

$930

$715
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Example: Sharon’s Costs (cont.)
Amount covered by Health
Reimbursement Account
(HRA) funded by Northrop
Grumman to help pay for
cost of coverage
Total out-of-pocket for
Sharon after using HRA
Annual paycheck cost
Lumenos
HRA Plan
Preferred
PPO
Premium
PPO
$2,000
(Sharon’s total
HRA at the
beginning of
the plan year
is $2,000)
$0
$0

$890

$930

$715
$
$$
$$$
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What You Need To Do
What You Need To Do
 Review
– Current benefits coverage and 2008-2009
options with eligible family members
– How you use your benefits, and what your
needs will be in the coming benefit plan
year
– Whether you could save money by choosing
a different (but still appropriate) option
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What You Need To Do (cont.)
 Enroll
– Use the tools and resources at My Benefits Access to
evaluate your options
– Make changes to current health benefits coverage
during your enrollment period
– If You Don’t Enroll
• Continue current coverage for medical, dental, vision,
life, disability, and AD&D (as applicable) at new plan
year costs
• Current coverage in following plans will continue unless
you make a change:
– Health Care and/or Dependent Care FSAs
– Group Legal plan
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Benefits Enrollment
Two Enrollment Periods
April 28  May 9
Corporate / Newport News / Integrated Systems /
Information Technology /Space Technology
May 12  May 23
Mission Systems / Electronic Systems /
Ship Systems / Technical Services
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How to Enroll > Online
 Go to Benefits OnLine at
http://benefits.northropgrumman.com and click on
the “Enroll With Your Sector” button
– Select your sector to review general benefits and
enrollment information
– Log into My Benefits Access
• First-time visitors will need to set up a user ID and
password
– Make your elections and print a confirmation
statement
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How to Enroll > By Phone
 No Web Access?
– Call the Northrop Grumman Benefits Center
(NGBC) at 1-800-894-4194 to enroll
• If hearing impaired, will need to use a relay
service through TTY/TDD provider
– Available Monday through Friday, 9:00 a.m.
to 6:00 p.m. Eastern time
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