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Your Prescription for a Healthy Retirement. 2009 Health Care Choices for BorgWarner Muncie Salaried Retirees. Today’s Agenda. Recap of what’s changing Muncie Salaried & Non-Muncie Retirees Pre-Medicare information BorgWarner pre-Medicare benefits Preview of BorgWarner post-65 benefits

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slide1

Your Prescription for a Healthy Retirement

2009 Health Care Choices

for BorgWarner

Muncie Salaried Retirees

today s agenda
Today’s Agenda
  • Recap of what’s changing
    • Muncie Salaried & Non-Muncie Retirees
  • Pre-Medicare information
    • BorgWarner pre-Medicare benefits
    • Preview of BorgWarner post-65 benefits
    • Next steps for pre-65 retirees
  • Medicare information
    • Introduction to UnitedHealthCare
    • Medicare options education
    • Next steps for Medicare retirees
icons to help you
Icons to Help You

= Important concept

= Decision-support tools

= Alerts you on “to do” items

www.BorgWarner.com/retirees

recap of what s changing why
Recap of What’s Changing & Why
  • BorgWarner has NOT eliminated your coverage; it’s being delivered differently
  • Coverage is more flexible; choose individual coverage that meets your health care needs
    • Plans can vary for you and your dependents
  • More choice and better options for coverage are now available to retirees over 65
    • United HealthCare’s role in helping you choose
  • Tax-free reimbursement accounts
    • Retiree Reimbursement Accounts (RRA)
recap of what s changing on 1 1 09
Recap of What’s Changingon 1/1/09

IF YOU ARE UNDERAGE 65

IF YOU AREMEDICARE ELIGIBLE

Continue BorgWarner medical and Rx coverage until Medicare eligible

If retired with 25 years of service

or more:

You pay 10% BorgWarner pays 90%

If retired with less than 25 years

of service:

You pay 15% BorgWarner pays 85%

Medicare continues to be your primary coverage

Your BorgWarner supplemental coverage ends.

The company sets up a Retiree Reimbursement Account (RRA)

United HealthCare, our Retiree Plan Coordinator, is available to help you assess, select and enroll in the Medicare Supplement plan that is right for you.

The retiree’s benefit is based on the retiree’s age. The dependent’s benefit is based on dependent’s age. Plans are individual, not by household.

slide6

Borg Warner

Pre-MedicareCoverage

slide7

Retiree Pre-MedicareCoverage - Muncie

If you or your dependents are not eligible for Medicare…

  • You remain on a BorgWarner pre-Medicare health care plan until Medicare-eligible
    • Anthem is your plan administrator if Muncie Retiree
    • CIGNA is your plan administrator if non-Muncie Retiree
  • You will be required to complete a 2009 enrollment form during 4th quarter 2008
  • If your prescription drug coverage is currently with Express Scripts, it will move to CIGNA
  • Anthem Pharmacy stays with Anthem – no changes
  • Health Plan questions should be directed to:
    • First to Anthem or CIGNA
    • See Your Wallet Card
retiree pre medicare coverage borgwarner
Retiree Pre-MedicareCoverage - BorgWarner

Compared to 41% average

*assumes 5% trend on 2007 BW PreMedicare Plan experience

retiree pre medicare coverage muncie
Retiree Pre-Medicare Coverage - Muncie

Plan details will be mailed to you during open enrollment

retiree pre medicare rx coverage muncie
Retiree Pre-Medicare Rx Coverage - Muncie

Retail Drug Stores / Anthem Mail Order

Same as current coverage

Plan details will be mailed to you during open enrollment

*CIGNA max $150, $50, $100

retiree pre medicare rx coverage muncie1
Retiree Pre-Medicare Rx Coverage - Muncie

BorgWarner Family Pharmacy

Muncie Retirees - Same as current coverage

Plan details will be mailed to you during open enrollment

when you turn age 65
When you turn age 65…

PREMEDICARE

MEDICARE Age

  • New RRA from BW helps pay for Medicare supplement coverage
  • BW provides United HealthCare as a Retiree Health Care Coordinator to help you choose medical/Rx coverage and enroll

Before Medicare Eligibility –

BW medical & Rx coverage

Age 65 or Disability – BW coverage ends

slide14

Rx for a Healthy Retirement

www.BorgWarner.com/retirees

Pre-Medicare

QUESTIONS?

?

slide15

Prescription for a Healthy Retirement: PART 2

MedicarePart B

MedicarePart C

MedicarePart A

MedicarePart D

Medicare-Eligible Retirees

RetireeReimbursementAccount

Pre-MedicareCoverage

Medigap

August 2008

introducing unitedhealthcare
Introducing UnitedHealthcare

Private Insurance Provider of Medicare Products

  • Offers you Medicare Advantage (Part C), Rx (Part D) and Medigap Plan Options
  • Similar to other leading providers such as CIGNA, BlueCross BlueShield, AETNA, and Humana

Retiree Health Plan Coordinator

  • Access to call center and website
  • Expert guidance to help you choose Medicare Supplement Plan that’s right for you

RRA Administrator

  • Manages the Retiree Reimbursement Account (RRA)
retiree reimbursement account
Retiree Reimbursement Account

For Medicare-eligible employees, spouses and dependents

retiree reimbursement account1
Retiree Reimbursement Account

For Medicare-eligible employees, spouses and dependents

your rra account
Your RRA Account

If you have questions about your RRA, you can call the RRA Financial Call Center at 866-214-5385

using your rra account
Using Your RRA Account

BorgWarner credits your account monthly

You send your receipt and claim form to UHC

You pay premiums* and out-of-pocket medical expenses

You receive reimbursement

* If you choose UHC insurance, premiums will be deducted directly from your RRA

retiree health coordinator needs assessment
Retiree Health Coordinator: Needs Assessment

United HealthCare helps you choose the best Retiree Health Plan for you

How frequently do you access care?

Are you comfortable with using a network provider? Are there specific doctors that need to be in the network?

Would you prefer complete freedom in selection of the doctors you see?

Do you travel frequently and/or internationally?

Are you looking for a plan that is very similar to your current coverage? Or, are you more interested in lower monthly payments with predictable copayments?

What specific medications you are taking to verify coverage under our plan?

Do you live in a different state for part of the year?

what do medicare plans cost
What Do Medicare Plans Cost?

Individual Alternatives for Post-65 Health Coverage

AARP Medicare

Supplement

Opt Out/No Coverage

RX- “D”

Medicare Advantage

“Part C Plan”

Monthly Health Care Cost Continuum

medicare part a
Medicare Part A
  • Automatic enrollment when you apply for Social Security
  • Provides help with the cost of hospital stays
    • Some skilled nursing services and care
medicare part b 2008
Medicare Part B – 2008

Medicare Part B Overview:

  • $135 deductible
  • 80%/20% coinsurance
  • Enrollment window
    • 3 months prior to birthday month thru 3 months after birthday month

Be sure to

be in

Part B!

medicare part b 20081
Medicare Part B – 2008

The Part B premium is determined by an income test

part c plans advantage plans
Part C Plans – Advantage Plans
  • Many Options offered by private insurers…
    • Health Maintenance Organization Plans (HMOs)
    • Preferred Provider Organization Plans (PPOs)
    • Special Needs Plans (SNP)
    • Private Fee for Service Plans (PFFS)
  • Annual enrollment period
  • Replaces Medicare A&B
    • Must be enrolled in A&B to get Part C Plan
slide29

A Closer Look at HMO and PPO Plans

HMO-type plans

  • Network of doctors and hospitals
  • Primary care physician
  • Some plans include prescription drug coverage and additional benefits

PPO-type plans

  • Have more freedom to choose
  • Use network of doctors and hospitals to receive the maximum benefit
  • Outside the network a higher cost
  • Some plans include prescription drug coverage and additional benefits
slide30

Coordinated Care Plans

Special Needs Plans

Designed for people with special health care needs

Residents of nursing homes

People eligible for both Medicare and Medicaid

People with certain chronic diseases such as diabetes or heart disease

Focus on helping members receive more coordinated care

Holistic, proactive approach

Specialized care team

Enhanced education and communication

CARE TEAM

slide31

Private-Fee-For-Service Plans

  • Offered by private insurance companies
  • No restrictions on which doctors or hospitals you can use EXCEPT
  • Doctors and hospitals must accept the terms, conditions and payment rates of the private insurance company
    • Payment comes from the private fee-for-service plan not Medicare
    • Important to make sure your doctor or hospital will accept terms, conditions and payment rates from a specific plan each time you receive services
  • Many plans may offer prescription drug coverage
  • Many plans may offer additional benefits beyond traditional Medicare Parts A & B
medicare advantage plan scenario 1
Medicare Advantage Plan Scenario #1

“Good Health” Hank – Age 67 – Illinois

  • Generally in good health
  • Takes 1 generic prescription drug each month, via mail order
  • No hospitalizations
  • 4 primary care office visits per year
  • 2 specialist office visits per year
slide33

Medicare Advantage Plan Scenario #2

“Moderate” Mildred, Age 81, Central New York

  • Takes 2 generic drugs and 1 preferred brand-name drug each month, via mail order
  • 1 hospital stay, length of 3 days
  • 3 primary care office visits per year
  • 8 specialist office visits per year
medicare advantage plan scenario 3
Medicare Advantage Plan Scenario #3

“Chronic Condition” Carol, Age 66, Michigan

  • Takes 5 generic drugs and 2 preferred brand-name drugs each month, via mail order
  • 2 hospital stays, total of 5 days
  • 12 primary care office visits per year
  • 10 specialist office visits per year
medicare advantage plan scenario 4
Medicare Advantage Plan Scenario #4

“Specialty Drug” Sam, Age 69, Florida

  • Takes 2 generic drugs at retail, plus 1 non-preferred specialty drug
  • 1 hospital stay, length of 3 days
  • 12 primary care office visits per year
  • 5 specialist office visits per year
aarp medigap options
AARP Medigap Options

2008 AARP MEDICARE SUPPLEMENT PORTFOLIO

1] $4,440 maximum out of pocket, indexed to Medicare costs

[2] $2,220 maximum out of pocket, indexed to Medicare costs

X = Covered in Full

The above rates are monthly premium 2008 national weighted averages

“Best Seller/Value”

aarp medigap options1
AARP Medigap Options

Enrollment Into Medigap

  • When turn 65 AND enroll in Medicare B, guaranteed right to buy a Medigap policy for next six months.
    • Miss window, you can apply at later date but risk rejection for health history or paying a higher premium
medigap plan scenario 1
Medigap Plan Scenario #1

“Good Health” Hank – Age 67 – Illinois

  • Takes 1 generic prescription drug each month, via mail order
  • No hospitalizations
  • 4 primary care office visits per year
  • 2 specialist office visits per year
medigap plan scenario 2
Medigap Plan Scenario #2

“Moderate” Mildred, Age 81, Central New York

  • Takes 2 generic drugs and 1 preferred brand-name drug each month, via mail order
  • 1 hospital stay, length of 3 days
  • 3 primary care office visits per year & 8 specialist office visits per year
medigap plan scenario 3
Medigap Plan Scenario #3

“Chronic Condition” Carol, Age 66, Michigan

  • Multiple chronic illnesses
  • Takes 5 generic drugs and 2 preferred brand-name drugs each month, via mail order
  • 2 hospital stays, total of 5 days
  • 12 primary care office visits per year & 10 specialist office visits per year
medigap plan scenario 4
Medigap Plan Scenario #4

“Specialty Drug” Sam, Age 69, Florida

  • Takes 2 generic drugs at retail, plus 1 non-preferred specialty drug
  • 1 hospital stay, length of 3 days
  • 12 primary care office visits per year
  • 5 specialist office visits per year
slide44

Sample AARP MedicareRx Preferred – 2008 Part D Plan

Ideal for 70%+ of BorgWarner seniors…

Great deal!

  • Benefits shown above apply until the total cost (paid by you and the Plan) of prescriptions received reaches $2,510 in eligible expenses. You will be responsible for 100% of the cost until your out of pocket expenses reach $4,050.
  • Catastrophic coverage in accordance with Medicare regulations.

* Mail Order – up to 90 day supply; members may also obtain a 90 day supply at network retail pharmacies for the same copayment

aarp medicarerx plan offers a broad formulary
AARP MedicareRx Plan Offers A Broad Formulary
  • 99% of Part D allowable drugs are in our current formulary structure
  • Drug exclusions include:
    • Drugs ending in “am” used to treat anxiety  
      • Alprazolam
      • Clonazepam
    • Erectile dysfunction drugs 
    • Folic acid
    • Cough/cold symptom relievers
aarp medicarerx plan
AARP MedicareRx Plan

How does it work at the pharmacy?

  • Brand preferred drug costs $75
    • You pay $30 copay
    • Plan pays $45
    • $75 applies toward the $2510
  • Brand non-preferred drug costs $150
    • You pay $75.40 copay
    • Plan pays $74.60
    • $150 applies toward the $2510
  • Generic drug costs $15
    • You pay $7 copay
    • Plan pays $8
    • $15 applies toward the $2,510

Full cost of the Rx counts toward $2,510

rx coverage donut hole example
RX Coverage – Donut Hole Example

Cost Sharing “Donut Hole” Catastrophic

Plan Pays

You Pay

100%

Plan Pays

95%

$2,510

$4,050

+

=

You Pay

You Pay

choosing rx coverage
Choosing Rx Coverage
  • Annual enrollment period
  • Comparing Prescription Drug options is complicated
    • Use calculator at www.medicare.gov
    • Talk with UHC
  • Comparison-shop
    • Be sure you understand how the prescription drug plan you select works!
    • If considering a Medicare Advantage (Part C) plan that includes both medical & Rx coverage, you may not need a Part D plan – so consider it when comparison-shopping
special note about rx
Special Note about Rx
  • Be sure you arrange for prescription drug coverage for 2009 – enrollment is not automatic!
    • Medicare Part C – Medicare Advantage Plan – with “built in” prescription drug coverage; or
    • Part D (AARP MedicareRx Preferred)
  • If you don’t enroll for 2009, you’ll generally have to pay a higher premium to receive coverage in future years

You need new Rx coverage for 2009!

BW Rx coverage

12/31/08 – BW coverage ends

your retiree health plan coordinator
Your Retiree Health Plan Coordinator
  • United HealthCare can provide expert guidance to help you choose and enroll in the health plan that is right for you
    • Knowledgeable representatives who understand retirees and retiree health care choices
    • No cost – you do not receive a discount or pay extra in premium for plans selected with the help of a Coordinator
    • Reach by phone or Web
      • 1-800-929-2300
      • www.aarpmedicaresolutions.com

Remember, at the very least, enroll in Part B, and Part D or a Medigap Plan before 12/31/08!

enrollment into your plan choices
Enrollment into Your Plan Choices
  • Once you’ve selected a plan you will receive a personalized enrollment kit sent to your home from United HealthCare
  • 1-800-929-2300 number available to answer questions and/or provide assistance with application
    • Contact call center or refer to Medicare Made Easy booklet for Medicare enrollment periods
  • Once enrollment is processed, you will receive a Welcome Kit that includes your ID card
  • Enrollment is effective January 1st
summary
Summary
  • Watch for information in your mail box
    • Pre-Medicare – information from BorgWarner
    • Medicare – information from United HealthCare’s programs:
      • Secure Horizons
      • AARP Medicare Solutions
      • Optum Health Financial Services
  • Refer to your wallet card
  • We expect that this retiree medical program will benefit our retirees for a long time into the future, but we reserve the right to change or even terminate the program if it becomes necessary or appropriate for business, legal or other reasons determined by BorgWarner
slide54

Your Prescription for a Healthy Retirement

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    • 2009 Health Care
    • Choices For
    • BorgWarner
    • Retirees
  • www.BorgWarner.com/retirees

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