www.emeritihealth.org

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THE EMERITI PROGRAM
A New Approach to Meeting Your Health Care Needs
in Retirement
www.emeritihealth.org
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• Emeriti Program Overview
• The A, B, C, Ds of Medicare
• Emeriti Insurance Options
• Emeriti Enrollment Process
• Other Emeriti Program Features
• Additional Information

TODAYS AGENDA

• Whats new in 2008?

• New menu of options

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ABOUT EMERITI

• Nonprofit consortium serving the higher education
  community
  
• Innovative defined contribution program for
  retiree health insurance
  
• Coordinated delivery with Fidelity and Aetna
• Generous grant support from the Andrew W. Mellon
  and William and Flora Hewlett Foundations

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ABOUT AETNA

• Oldest and leading insurance company in the
  United States
  
• 15.8 million medical members, 13.2 million dental
  members and 10.6 million pharmacy members
  
• Delivery of integrated medical, dental, pharmacy,
  group insurance products
  
• Certification to offer Medicare-approved Part D
  plans
  
• Commitment to seamless integration and delivery
  of the Emeriti Program

As of 7/07
This information is provided by Aetna Health
Insurance Company
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ABOUT FIDELITY

• Largest provider of workplace savings plans in
  the United States
  
• Management of 1.5 trillion in assets on behalf
  of 23 million individuals
  
• Service to 1100 higher education clients with
  840,000 participants
  
• Leading mutual fund company with solid long-term
  performance
  
• Commitment to seamless integration and delivery
  of the Emeriti Program

as of 5/31/2007 as of 6/30/2007
This information is provided by Fidelity
Investments
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THE EMERITI PROGRAM

• Emeriti Health Insurance Options
• Portable group health insurance options wherever
  you decide to live in retirement (underwritten by
  Aetna Health Insurance Company)
  
• Emeriti Reimbursement Benefits
• A tax-free method for you to pay for other
  qualified out-of-pocket medical expenses not
  covered by Medicare or Emeriti
  (administered by Acclaris Inc.)
• Emeriti Health Accounts
• A tax-advantaged way for you to invest and
  accumulate assets exclusively to help meet future
  retiree medical expenses (investment choices and
  administrative services provided by Fidelity
  Investments)

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HOW RETIREE HEALTH CARE EXPENSES ARE
PAID
Private Insurance 19
Individual Out-of-Pocket 20
Other Govt Programs 10
Medicare 51
Source The Employee Benefit Research Institute
(EBRI) 2006 estimates from the 2003 Medical
expenditure survey.
VA/Tricare 4, Medicaid 4, Other 2
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UNDERSTANDING MEDICARE

• The A, B, C, Ds of Medicare
• How Each Part Applies to You

www.emeritihealth.org
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THE A, B, C, Ds OF MEDICARE
MEDICARE PART C (Medicare Advantage)

• Provides Parts A B services
• Private insurers approved by Medicare provide
  this coverage
  
• Some plans may have networks
• You may get extra benefits

CHOOSE
OR
MEDICARE PART D (Prescription Drug)

• Choose from a variety of Rx coverages
• Private insurers approved by Medicare provide the
  coverage
  
• Medicare approves the formularies
• Different plans cover different drugs

SOURCE Medicare and You, on www.medicare.gov
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MEDICARE PART A (2008)
Part A has no premium. Contributions come
from FICA taxes paid by working Americans.
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MEDICARE PART B (2008)
Part B requires an annual premium, indexed to
total retirement income (minimum 96.40 per
month), whether youre in Original Medicare or
Part C (Medicare Advantage).
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WHAT ORIGINAL MEDICARE DOES NOT COVER

• Deductibles, coinsurance, and co-payments
  required on Medicare covered services
  
• Coverage while traveling abroad
• Custodial or long term care
• Routine physical exams (except upon entry into
  Medicare)
  
• Some shots, tests and lab tests
• Some diabetic supplies
• Routine foot care
• Dental care and dentures
• Routine vision and hearing care
• Most eyeglasses and hearing aids
• Acupuncture and certain chiropractic services
• Cosmetic surgery

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MEDICARE PART C (2008)

• Also called Medicare Advantage
• Provides Original Medicare Parts A and B services
  through a private insurer, approved by Medicare
  
• Different types of plans (HMOs, Private
  Fee-for-Service, Cost Plans)
  
• In some plans you must see providers within the
  network
  
• Offers extensive preventive services, typically
  at 100
  
• Sometimes you get extra benefits

Emeriti offers only Private-Fee-for-Service
plans, which are available nationwide
and have no networks.
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STANDARD MEDICARE PART D (2008)
TIER 1
TIER 2
TIER 3
DEDUCTIBLE
Initial Coverage Coverage Gap
Catastrophic Coverage
You pay 5
You pay 25 coinsurance
You pay first 275 as deductible
You pay 100 of drug costs
Medicare pays 95
Medicare pays 75 coinsurance
YOU PAY
YOU PAY
YOU PAY
275
558.75
3216.25
5 OF FURTHER COSTS
Total Plan Costs Through Tier 1 2510
Your True Out-of-Pocket (TrOOP) Through Tier 2
4,050
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WHY DO YOU NEED A HEALTH CARE SOLUTION BEYOND
MEDICARE?
The Advantages of Emeriti Health Insurance
1-866-EMERITI
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ADVANTAGES OF EMERITI INSURANCE

• Guaranteed issue group health insurance coverage
• Nationwide access
• A menu of options to fit your personal needs
• Annual enrollment choice
• Catastrophic protection
• Prescription drug coverage
• Foreign urgent or emergency care
• Preventive care
• Builds on the foundation of Medicare

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THE EMERITI INSURANCE PLAN DESIGN
MEDICAL COVERAGE
PRESCRIPTION DRUG COVERAGE
DENTAL COVERAGE
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CREATE YOUR OWN
MEDICAL AND Rx PLAN
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PRESERVE YOUR EMERITI OPTIONS
This option allows you to remain in the Emeriti
Program. Each year, you will be
able to add or change coverage, if you wish.
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EMERITI MEDICAL COVERAGE
SELECT ONE
Medicare Supplement Plan 1
200 deductible
20 coinsurance Prev
entive Care 300 (annual physical)
100 (vision hearing)
1,250 out-of-pocket limit
Medicare Supplement Plan 2 750 deductible
20 coinsurance
Preventive Care 3
00 (annual physical) 100
(vision hearing)
2,000 out-of-pocket limit
Private Fee-for-Service (PFFS)
Plan 1 300 deductible
15 coinsurance
100 Preventive Care 2,750
out-of-pocket limit
Private Fee-for-Service (PFFS)
Plan 2 500 deductible
20 coinsurance
100 Preventive Care 3,500
out-of-pocket limit
NOTE If you are in the Medicare Supplement
plans, you will be subject to the Parts A B
deductibles. In PFFS, you are not subject to
these deductibles. In all cases you pay the
Medicare Part B premium.
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EMERITI Rx COVERAGE
SELECT ONE
Rx Plan 1 Open Formulary
100 deductible
Retail 15 - 30 - 40
Mail Order Drugs 10 - 25 - 35
Continuing coverage in tiers 1 2

YOU PAY 0 (100 coverage in tier 3)
Alternate Selection
Or elect Emeritis Rx Plan 3 as a stand-alone
option with no medical coverage
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EMERITI DENTAL COVERAGE
CONSIDER OPTIONALLY
Six month waiting period applies, or evidence
of continuing coverage.
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THE AETNA ADVANTAGE

• Rich Medicare formulary
• National network of retail pharmacies (55,000)
• Mail-order service with
• Online tools Find a Pharmacy and Rx Home
  Delivery
  
• Drug-to-drug interaction monitoring

• Features at least two drugs in every class
• Includes all of the top 100 drugs seniors
  typically use

• Significant drug discounts
• Reduced coinsurance cost-sharing

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AETNAS APPROACH TO FORMULARIES
The number of brand drugs covered by the open
and closed formulary differs.
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CHOOSE A PLAN THAT MEETS YOUR NEEDS
The Right Emeriti Insurance Plan for You
www.emeritihealth.org
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HOW TO BEGIN THINKING ABOUT YOUR OPTIONS
Medical Exposure
Annual medical premiums for 2008 at the national
average rate NOTE You pay Medicare Part B
premium
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HOW TO BEGIN THINKING ABOUT YOUR OPTIONS Drug
Exposure

• Type of Formulary
• Deductible
• Level of Cost Share in each Tier

PREMIUM
CATASTROPHIC LIMIT
Annual Rx premiums for 2008 at the national
average rate.
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WHAT IS THE RIGHT MIX OF
MEDICAL AND Rx BENEFITS FOR YOU?
Ask yourself these questions

• What is my health status, and that of my
  spouse?
  
• Is my health likely to change?
• How often do I need to see the doctor?
• Do I take a lot of prescription drugs? Are they
  expensive?
  
• How much premium can I afford?
• How much out-of-pocket can I afford?
• How much financial security do I want?
• How is the current plan working for me?
• Is dental coverage important to me?
• Which of my dependents needs coverage?

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CASE STUDY ROBERT

• 69 years old
• Retired Director of Physical Plant
• Many physical problems hypertension, glaucoma,
  diabetes, high cholesterol
  
• Spent 5 days in the hospital for heart condition
• Has to take 10-12 prescription drugs, some are
  brand names and one is not on formulary
  
• Spent 3500 on prescription drugs last year

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CASE STUDY MARIA

• 65 years old
• Retiring Professor of Studio Art
• Very healthy
• Takes one maintenance prescription drug
• Spent 300 last year on prescription drugs
• Goes to doctor once a year for annual physical
• Needs a new dental crown next year

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HOW MUCH IS IT GOING TO COST ROBERT AND MARIA?
ROBERT Potential Scenarios
MARIA Potential Scenarios
1 Medicare Supplement Plan 1 and Rx
Plan 1
(Monthly Premium 94.90 149.51 244.41)
2 PFFS Plan 1 and Rx Plan 2 (Monthly
Premium 70.00 115.95 185.95)
1 PFFS Plan 2 and Rx Plan 3 and Optional Dental
(Monthly
Premium 40.00 33.56 28.58 102.14)
2 Medicare Supplement Plan 2 and Rx
Plan 2 and Optional Dental
(Monthly Premium 80.80 115.95
28.58 225.33)
All premium rates are illustrated at the national
average for retirees in the first age band
NOTE This individuals and their circumstances
are fictional and are provided for illustrative
purposes only
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THE EMERITI ENROLLMENT PROCESS

• Easy Steps to Enroll

1-866-EMERITI
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MAKE YOUR INSURANCE DECISION
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FIGURE OUT YOUR COST SHARE

• Any Contribution from Your Employer
• Any monthly premium subsidy
• Any annual prefunded amount
• Your Contribution Amount
• Set up a monthly electronic transfer from bank
  account
  
• Add periodic lump sum transfers from your bank
  account

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DECIDE ON YOUR
DEPENDENTS COVERAGE
Who can enroll?

• You
• Your spouse (pre- or post-65)
• Your domestic partner (pre- or post- 65)
• Your dependent children (before majority)
• Permanently disabled children

NOTE Your employers plan establishes specific
rules for vesting in the Emeriti account balance
and retirement eligibility for the Emeriti
insurance.
Domestic partners coverage is available only if
elected by your institution.
Determination of permanent disability confers
access to post-65 insurance for these individuals.
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NOW GET READY FOR YOUR CALL
If youre not currently enrolled

• Have your Medicare Parts A and B cards
• Have your social security number
• Have dates of birth of any eligible dependents
• Have social security numbers for eligible
  dependents
  
• Have your checkbook handy to provide bank account
  number to set up electronic transfers (ACH)

CALL NOW
1-866-EMERITI
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OTHER EMERITI PROGRAM ADVANTAGES IN RETIREMENT
Using the Emeriti Health Accounts
Using the Emeriti Reimbursement Benefit
www.emeritihealth.org
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HOW TO USE THE EMERITI HEALTH ACCOUNTS IN
RETIREMENT
Emeriti Reimbursement Benefits
Lump sums (100 or more) from your bank account
Regular electronic (ACH) transfers from your ban
k account for insurance premiums
Purchase an annuity, with a steady flow of incom
e into your account (25,000 minimum)
Emeriti Health Insurance Premiums
Your Emeriti Health Account

• Dollars contributed into the Health Account
  have tax-free earnings
  
• Dollars withdrawn from the Health Account are
  reimbursed tax-free

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HOW TO USE THE EMERITI REIMBURSEMENT BENEFIT IN
RETIREMENT
Your tax-free earnings can ALSO be used for
reimbursement of qualified medical expenses, such
as

• Pre-65 health insurance premiums
• Supplemental insurance deductibles, co-insurance,
  co-pays
  
• Vision, dental, hearing care
• Over-the-counter drugs
• Long-term care insurance
• Medical expenses associated with nursing or
  in-home health care services
  
• Medicare premiums and cost shares
• Other post-65 insurance premiums (if Emeriti
  coverage is not elected)

NOTE Unlike a flexible spending account, any
residual balance stays in your account and
continues to grow tax free for future use
NOTE A wide range of health care expenses apply
for tax-free reimbursement as long as they
satisfy the requirements of Section 213 (d) of
the IRS Code.
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UNDERSTANDING FEES AND GETTING MORE INFORMATION
www.emeritihealth.org
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EMERITI PROGRAM FEES IN RETIREMENT

• Emeriti service fee - 4.00/month
• Fidelity recordkeeping fee - 6.25/month
• Acclaris reimbursement fee fee is waived for
  the first four submissions in a calendar year,
  thereafter 6.00 per bundled set of receipts
  submitted
• Fidelity investment management fee
  (Please refer to the mutual fund
  prospectuses for more information about
  the investment fees)

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FIVE WAYS TO GET INFORMATION

• Call Emeriti Service Center
  1-866-EMERITI (1-866-363-7484) Speak to
  Emeriti specialists 800 am - 900 pm ET
  Monday through Friday
• Visit www.emeritihealth.org
• Read your enrollment kit
• Attend workshops on campus
• Read your Emeriti newsletter, mailed to
  you twice a year

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USEFUL RESOURCES AVAILABLE ON www.emeritihealth.or
g

• Emeriti online premium rate guide
• Fidelity retirement health care cost calculator
• Aetna Medicare Formulary
• Aetna Pharmacy Directory
• Fidelity Freedom Funds
  

Other resources www.medicare.gov Medicare and Y
ou 2007
from the Centers for
Medicare and Medicaid Services
www.kff.org Kaiser Family Foundation

www.ebri.org Employee Benefit R
esearch Institute

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Emeriti Retirement Health Solutions provided this
information and is responsible for its content.
The Emeriti Program, Aetna Life Insurance Compa
ny, Fidelity Investments, HealthPartners (in
Minnesota), and Acclaris Inc., are independent
corporations and are not legally affiliated.
The full name of Emeriti Retirement Health Solut
ions is The Emeriti Consortium for Retirement
Health Solution, an Illinois Nonprofit
Corporation. Emeriti Retirement Health Solution
s is not an insurance company, insurance broker
or insurance provider. Summary Plan Description
(SPD) This presentation is intended to provide y
ou with a brief summary of some of the details of
your Employers Emeriti Plan and the Emeriti
Program. For a full summary of the terms of your
Employers Emeriti Plan you must consult the SPD,
which will be provided to you upon enrollment or
upon request.
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Investment Adviser Status Emeriti Retirement Heal
th Solutions is a registered investment adviser
for purposes of selecting the range of investment
options for the Emeriti Program, selecting the
investment manager for employer and voluntary
employee contributions, and providing these and
other impersonal educational materials to plan
participants. Emeriti does not provide advice to
participants about their individual investment
selections. The participation interests in the
voluntary employee contribution VEBA trusts
associated with the Emeriti plans (the
Interests) may be treated as securities under
various state securities laws. The offering of
these Interests is subject to compliance with any
applicable state law. For residents of Georgia,
the Interests are being offered in reliance on
paragraph 13 of Code Section 10-5-9 of the
Georgia Securities Act of 1973, as amended (the
Georgia Act). The Interests may not be sold or
transferred except in a transaction which is
exempt under the Georgia Act or pursuant to an
effective registration under the Georgia Act.
Investment Decisions It is your responsibility to
select and monitor your investments to make sure
they continue to reflect your financial
situation, risk tolerance and time horizon. Most
investment professionals suggest that you
reexamine your investment strategy at least
annually or when your situation changes. In
addition, you may want to consult an investment
adviser regarding your specific situation.
Unless otherwise noted, transaction requests con
firmed after the close of the market, normally 4
p.m. Eastern time, or on weekends or holidays,
will receive the next available closing prices.
Recordkeeping and shareholder services for the E
meriti Program are provided by Fidelity
Investments Tax-Exempt Services Company, a
division of Fidelity Investments Institutional
Services Company, Inc. Strategic Advisers, Inc
., a subsidiary of FMR Corp., manages the
Fidelity Freedom Funds Before investing in any
mutual fund, please carefully consider the
investment objectives, risks, charges and
expenses. For this and other information, call
or write Fidelity for a free prospectus. Read it
carefully before you invest.
An investment in a money market fund is not
insured or guaranteed by the FDIC or any other
government agency. Although money market funds
seek to preserve the value of your investment at
1 per share, it is possible to lose money by
investing in these funds.
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A new approach to meeting your health
care needs in retirement
1-866-EMERITI (1-866-363-7484)
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