Are you ready to learn about the Medicare Exchange?

The Issue—and the Medicare Exchange SolutionACERA’s research and member feedback show that ACERA’s UnitedHealthcare Medicare insurance plans are costly and have been fraught with customer service issues. Lowering costs helps ACERA continue to offer healthcare benefits to our members—so how can ACERA provide expert customer service tailored to members’ individual Medicare insurance needs at reasonable rates? The answer is a Medicare Exchange—a marketplace where dozens of health insurance carriers offer competitive pricing on hundreds of supplemental insurance plans. The volume of insurers competing for customers in one marketplace generates significant cost savings.

Introducing Extend HealthAfter a careful and extensive review of retiree medical programs, ACERA has selected Extend Health, Inc. as our Medicare exchange. Headquartered in San Mateo, CA and the nation’s largest Medicare exchange, Extend Health was selected to reduce cost and increase flexibility in choosing a supplemental Medicare plan to best suit our members’ needs and budgets.

During Open Enrollment in November, you can call Extend Health and speak with one of their professional Benefit Advisors who will help you find the plan for 2013 that’s right for you, at a cost you can afford.

Who Should Read Further?

Are you Medicare eligible on/before February 1, 2013?

Are you currently enrolled with UnitedHealthcare through ACERA?

• You are NOT required to take any action at this time

• Feel free to review these materials carefully since you may qualify in the near future

You will make a new medical plan selection in November.

You will not need to make a new medical plan selection in November, but you can choose to.

• Review these materials carefully• Note the upcoming workshop dates• Call ACERA with any urgent questions

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Health is Wealth

Hilton Oakland Airport1 Hegenberger Road, Oakland, CA 94621 Validated Parking | BART shuttle offered

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October 29, 2012

9:00 am - 2:00 pm

Join us for our annual Health Fair! Enjoy health screenings, learn relaxation techniques, gain knowledge from experts, and reunite with colleagues. Free refreshments, gift bags, and more!

| Extend Health| SSDC| 1st United Services Credit Union| Extend Health

Health Fair 2012Your Health Plan Providers & Vendors: Kaiser, Delta Dental, Vision Service Plan (VSP), 1st United Services Credit Union, and many more!

Who is Eligible to Participate?A Medicare Exchange is for people who are “Medicare eligible,” which is most people age 65 or older or people who have a qualifying disability. Medicare-eligible ACERA members (and their spouses or surviving beneficiaries) may sign up for supplemental Medicare insurance through Extend Health during ACERA’s annual open enrollment period beginning in November 2012 for coverage that begins February 1, 2013.

All Medicare-eligible members who want medical coverage through ACERA in 2013 will choose between Kaiser Permanente’s Senior Advantage Plan and finding a plan through Extend Health. This means that members currently enrolled with Kaiser who want to stay in Kaiser need to take no action. Here are answers to a few questions members have been asking:

Question: I’m currently enrolled in one of the two UnitedHealthcare Medicare medical insurance plans and I want medical insurance through ACERA in 2013. What should I do? Answer: You will have two options in November:

a. Enroll in medical insurance through Extend Health for 2013

b. Enroll in Kaiser Permanente’s Medicare Senior Advantage Plan for 2013

Question: I’m currently enrolled in Kaiser Permanente’s Medicare Senior Advantage Plan; can I stay in Kaiser? Can I switch to the Medicare exchange?Answer: Kaiser’s Medicare Senior Advantage Plan will not be affected, so you may stay enrolled in it for 2013 if you wish. Simply take no action. If you wish to switch to the Medicare exchange, however, you may enroll with Extend Health during ACERA’s open enrollment period in November.

Question: I’m not currently enrolled in an ACERA medical plan but am Medicare eligible or will be before February 2013. May I sign up?Answer: Members who are Medicare eligible on or before February 2013 may enroll during the November 2012 open enrollment period for coverage that begins February 1, 2013. For members who will become Medicare eligible after February 1, 2013, ACERA will send you an invitation to one of our Medicare Transition Seminars in the months before your 65th birthday.

Will Coverage Change?ACERA members who want to enroll in the Medicare exchange through Extend Health will experience an increase in coverage options too numerous to list. In every case, ACERA’s goals are to reduce the cost of coverage by increasing enrollment options as well as provide the same level of coverage you currently have. If you don’t want to change plans, you may obtain the same UnitedHealthcare plan or an equivalent plan through Extend Health, and at a reduced cost to you. Here are answers to a few more questions members have been asking:

Question: Can I keep my current doctor?Answer: Yes. When you call Extend Health in November to enroll in a plan through the Medicare Exchange, tell your Extend Health Benefit Advisor you’d like to keep your current doctor, and they will help you find a plan that your doctor accepts.

Question: What happens to my dependents? Answer: If your dependents are Medicare eligible, they can also choose a plan through Extend Health. If your dependents are not Medicare eligible, their options are:

• Exercise the federal COBRA option which allows them to stay enrolled in their current plan(s) for up to 3 years, but must pay the full monthly premiums associated with the plan(s) and administration fee

• Get coverage through ACERA’s Kaiser HMO plan, but the retiree must enroll in ACERA’s Kaiser Senior Advantage Plan, not Extend Health

• No medical coverage through ACERA

What Will it Cost?Keeping costs as low as possible is important. ACERA strives to offer the most competitive insurance coverage to its membership at the most affordable prices.

If you’re currently eligible for ACERA’s Monthly Medical Allowance (MMA) that subsidizes the cost of being enrolled in one of ACERA’s medical plans, ACERA will continue to offer it to you. However, it will work a little bit differently. The highest cost of individual Medicare plan coverage any member will pay in the Medicare exchange will be around $340 per month, but many will pay a lower rate depending on age and location. The Monthly Medical Allowance to offset those costs will be offered as follows:

Years ACERA Service % of MMA

2013 Medicare Exchange MMA

Amount0-9 yrs. 0% $ 010-14 yrs. 50% $ 20015-19 yrs. 75% $ 30020+ yrs. 100% $ 400

Compare the $340 Medicare exchange medical plan cost with the $424 or $493 charged by UnitedHealthcare, times 12 months, times 1000+ people, and you can see how ACERA anticipates saving over $1 million a year in healthcare costs which we will pass on to you through the increased sustainability of the reserve that funds these benefits. You will also save money directly, as almost all members’ out-of-pocket costs will decrease, while you and your dependents can obtain the same level of coverage.

Special Note: MMA amounts for Kaiser enrollees will be the same as 2012. The amounts above are for Extend Health plans only.

How Will I Pay?When you call Extend Health in November, your Benefit Advisor will help you select the most suitable medical insurance plan for your needs. During this call, they will also help you set up monthly payment for the plan, which will work a bit differently than it does now.

You’ll pay your monthly premium directly to the insurance carrier. Your Extend Health Benefit Advisor will help you set up automatic payment for that premium from your bank account to the carrier. If you’re eligible for ACERA’s Monthly Medical Allowance, your bank account will be automatically reimbursed by ACERA for the premium within 48 hours, up to the amount of the Monthly Medical Allowance that you’re eligible for. That reimbursement will go from ACERA to you through a Health Reimbursement Account, so it will be tax free.

Any Monthly Medical Allowance left over can be used to pay deductibles and co-pays, and you’ll submit those claims to Extend Health for reimbursement up to your Monthly Medical Allowance reimbursement amount.

How Does the Process Work?If you are currently Medicare eligible, or will become eligible before February 2013, you can expect the following:

When What will happen? What should I do?

Early October You’ll receive a Getting Started Guide from Extend Health

Review the guide, gather your medical information, and fill out the worksheet for a quicker, easier enrollment.

Late October You’ll receive ACERA’s annual Open Enrollment Packet

Read through the ACERA Enrollment Guide and other materials for expanded information on your healthcare options.

Late October ACERA will hold Medicare ex-change workshops

Attend a workshop or watch a workshop video to get a better understanding of the process (see next page).

October 29, 2012 ACERA’s Health Fair & Wellness Center

Attend the Health Fair, which will include Medicare exchange and other workshops, refreshments, games, and health screenings.

November 1 – December 1 You’ll receive an Enrollment Guide from Extend Health by November 1

Read the Extend Health Enrollment Guide. Then call Extend Health to speak to a professional Benefit Advisor, who will help you either enroll in the same plan you currently have, or select among a wide range of others to find the plan that’s right for you.

February 1, 2013 Your new medical coverage begins

If you enrolled with Extend Health, feel free to contact your Benefit Advisor at any time for continuing assistance with your medical plan.

When Can I Learn More?ACERA and Extend Health will present a series of interactive workshops to provide information and expert answers to members’ questions. Please review the schedule below to determine the appropriate workshop to attend, and simply come to that workshop. Spouses, domestic partners, and caregivers are welcome.

Venue Address Date Who Should Attend Start Times*Castro Valley

Library3600 Norbridge Ave,

Castro Valley October 23Last Name A to L 9:30 AMLast Name M to Z 1:30 PM

ACERA 475 14th St., 11th Floor, Oakland

October 24Last Name A to D 9:30 AMLast Name E to H 1:30 PM

October 25Last Name I to L 9:30 AMLast Name M to P 1:30 PM

October 26Last Name Q to S 9:30 AMLast Name T to Z 1:30 PM

Airport Hilton (Health Fair) 1 Hegenberger Rd., Oakland October 29 Anyone

9:15 AM11:45 AM

Telephone Workshop

1-888-547-0443Conference ID: 56833450 November 12 Anyone 10:00 AM PST

Telephone Workshop

1-888-547-0443Conference ID: 56833450 November 14 Anyone 2:00 PM PST

Online Videos www.acera.org Starting Late October Anyone Available 24/7

* Note: each session is expected to last less than two hours.

Other Opportunities to LearnThere are more options if you are unable to attend one of the formal workshops. Instructional videos explaining the Medicare Exchange process will be available through www.acera.org in late October for 24/7 availability. In November, advisors from Extend Health and ACERA will be available to answer questions by phone. Finally, general questions about the Medicare Exchange may be addressed by ACERA’s knowledgeable staff by calling 510-628-3000 (press 1) or toll free at 1-800-838-1932 or by emailing info@acera.org.

© Copyright 2012 Alameda County Employees’ Retirement Association