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City of Phoenix Retiree Benefits 2018

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City of Phoenix Retiree Benefits 2018

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  1. City of PhoenixRetiree Benefits 2018 City of Phoenix Benefits Division September 2017

  2. Agenda • 1. ARAG Legal Insurance – all retirees • 2. Cigna Dental Coverage – all retirees • 3. OneExchange – all retirees • 4. Catastrophic Rx Reimbursement Program – Medicare retirees • 5. Public Safety Subsidy – Public Safety retirees • 6. If You Are on COBRA • 7. 2017 Retiree Medical Plans – non-Medicare retirees

  3. Questions If you have a general question or need clarification, please let us know during the presentation. Personal questions should be directed to Benefits Office staff at 602-262-4777 or

  4. Arag legal insurance Legal insurance gives you access to • a national network of attorneys to provide a wide range of legal services at no cost. • Documents, forms, tools and resources online. Legal insurance can be used by the retiree, spouse or domestic partner, and children under age 26.

  5. ARAG Legal Insurance • Adoption • Consumer Protection • Defense of Civil Damage Claim • Driving Privilege Protection • Driving Privilege Restoration • Easements • Eminent Domain • Foreclosure Defense • Guardianship/Conservatorship • Defense of Insanity/Incompetency • IRS Audit Protection • IRS Collection Defense • Neighbor Disputes • Personal Bankruptcy • Prenuptial Agreement • Purchase/Sale of a Residence • Social Security/Medicare • Wills and Trusts

  6. ARAG Legal Insurance • Dissolution of Marriage Contested (15 hrs.) • Dissolution of Marriage Uncontested • Estate Administration and Closing (9 hrs.) • Inheritance Rights Protection (6 hrs.) • Minor Traffic Offenses • Post Decree Modification (8 hrs.) • Credit Records and Correction • Tax Services; Property Tax; State Tax Audit • Tax Services – unlimited advice by phone

  7. Legal Insurance: what’s New for 2018 • Insurance Disputes • Refinancing – Secondary Residence • Property Tax – Secondary Residence • State and Local Tax Collection Defense • Elder Law • Equity Loan – Primary and Secondary Residence • Child Custody/Child Support Agreement • $24.40 per month • Retiree, spouse, dependent children

  8. Cigna dental coverage • Administered by Allegiance, a Cigna subsidiary • You enroll directly with Allegiance • You pay your premium directly to Allegiance • Find the enrollment/change form in the Retiree Guide Book mailed out in early to mid-October. • Make premium payment by check, cashier’s check, or automatic payment from a checking or savings account. • Credit card and debit card payments are not accepted. • Enrollment is for a calendar year.

  9. Cigna dental coverage • New for 2018 • Dental PPO includes coverage for implants • $1,500 per person annual benefit maximum • 20% rate increase • Dental HMO has a 3.50% rate increase

  10. Cigna Dental Rates for 2018

  11. Non-Medicare Medicare October 15 to December 7 1-844-824-7657 • November 1 to December 15 • 1-844-824-7658 Call 6:00 a.m. to 7:00 p.m. MT

  12. Catastrophic Rx reimbursement program • When you are enrolled in a Medicare Part D pharmacy drug plan, there are four progressive levels of coverage: • 1. Deductible • 2. Co-Pays • 3. Coverage Gap also known as the Donut Hole • 4. Catastrophic Coverage

  13. Catastrophic rx reimbursement • The City of Phoenix provides this assistance to Medicare retirees, their spouses, and survivors. • Your out-of-pocket Catastrophic Coverage costs are reimbursed up to $25,000 per year. • You must fill out a form and provide documentation from your Medicare Part D pharmacy plan showing your Catastrophic Coverage level out-of-pocket expense. • You are reimbursed with your MERP payment. • Call the Benefits Office for more information at 602-262-4777.

  14. Public safety subsidyfor public safety retirees and survivors Are there any public safety retirees or survivors here? • Arizona State Statute 38-857 provides for a monthly subsidy to reduce retiree health premium costs. • This subsidy ranges from $100 to $260 per month. Payment is added to MERP. • The City of Phoenix has agreed to take on the responsibility to administer this program for City public safety retirees to allow all of them to participate, if eligible. • Retireesmust notify Cianna Rodriguez in the Phoenix Benefits Office promptly if there is a change in his/her current address, telephone number and/or circumstances relating to their enrollment status and premium amounts at 602-262-4777 or

  15. Public safety SubsidyFor public safety retirees and survivors Updates for 2017/2018: • You are eligible for the PSPRS State subsidy if your medical coverage is provided through COBRA, OneExchange, a private broker, direct enrollment with an insurance carrier or by an employer. Tax implications may apply. • If this applies to you and you are not currently receiving subsidy, call Cianna and she will assist you. • Your subsidy payment begins after criteria required by State Statute is met. • Retirees must requalify each year to continue receiving subsidy.

  16. Public safety SubsidyFor public safety retirees and survivors • Contact the City of Phoenix Benefits Office with all questions or concerns: • Cianna Rodriguez, Public Safety Subsidy Analyst • Do not contact the PSPRS office with questions.

  17. Non-Medicare retiree healthcare 2018 • For City of Phoenix retirees and their eligible dependents, including: • Legally married spouse • Qualified Domestic Partner (QDP) • Child to age 26 • If the retiree is Medicare eligible, the spouse can enroll alone. • If the retiree and spouse are not eligible for Medicare, the retiree must be enrolled for the spouse to be enrolled.

  18. Premium setting process • Outside actuaries analyze two years of medical and pharmacy claims data for covered retirees and dependents enrolled in 2017. Future claim costs are projected. Local and national trends for medical and pharmacy costs are factored into the calculations. After this process was complete, it was concluded that a 23.4% rate increase was needed for these reasons: • The City now covers only non-Medicare participants. Historically, the City’s Medicare rates subsidized the non-Medicare rates. The loss of this subsidization represents a large portion of the rate increase. • The retirees and dependents enrolled in the City’s retiree medical plan in 2017 use benefits more heavily than the larger group that was enrolled in prior years.

  19. Premium setting process • WHAT IS THE FINAL RATE INCREASE FOR 2018? • The preliminary rate increase was 23.4% as explained, above. A decision to use a portion of the Retiree Rate Stabilization Fund further reduced the rate increase to 11.9%. A decision to use a portion of the Health Care Benefits Trust Reserves further reduced the rate increase to 8.4% Final Medical Plan Rate Increase for 2017: 8.4%

  20. Non-medicare retiree healthcare 2018 • What does not change? • You continue to have three unique plans: HMO, PPO and High Deductible Health Plan. • You have the same large provider networks. • You have the same large prescription formulary. • You are not required to use mail order to fill prescriptions. • You have comprehensive coverage that includes basic vision coverage. • The Savers Choice Plan is exactly the same.

  21. Non-medicare retiree healthcare 2018 • What’s changing? • Dental PPO now includes implants coverage with a PPO rate increase of 20% • Overall rate increase of 8.4% • Savers Choice enrollees have Cigna Pharmacy (look for new ID cards in mid-to-late December) • NOTHING ELSE IS CHANGING!

  22. DO I NEED TO DO ANYTHING? • I’VE REVIEWED THE PLAN CHANGES FOR 2018 AND HAVE DECIDED TO CONTINUE MY CURRENT MEDICAL PLAN COVERAGE WITH THE CITY. DO I NEED TO DO ANYTHING? • If you are currently enrolled in a City retiree medical plan and you decide to continue that coverage for 2018, you don’t need to do anything, your enrollment rolls forward. If you are planning to make changes, or adding or dropping dependents, you must contact the Benefits Office during Open Enrollment, between October 16 and November 3 between 8 a.m. and 5 p.m. Arizona Time at 602-262-4777.

  23. Medical premiums 2018

  24. What does the future hold? We will continue to work closely with Arizona State Retirement System (ASRS) • This system provides retiree benefits to more than 100,000 retired from state agencies, cities, counties, universities and school districts. • Public safety retirees (Police and Fire) already have access to ASRS retiree benefits because their retirement system, PSPRS, is a state agency. • Efforts are still underway to expand the State Statute governing who can be included in ASRS benefits. • We hope that the State Statute will be amended and the ASRS will be willing to include Phoenix civilian retirees.

  25. Questions?