Download March Annual Meeting Presentation

Benefits
Valerie Smith
Benefits
Administration
CITGO Petroleum
Corporation
$4
8,
00
0
$6
0,
00
0
5th Anniv.
and Beyond
4th Anniv.
3rd Anniv.
$0
2nd Anniv.
$20,000
1st Anniversary
$40,000
Initial Reduction
$60,000
Before Retirement
$80,000
$7
2,
00
0
$100,000
$8
4,
00
0
$120,000
$1
08
,0
00
$9
6,
00
0
$140,000
$1
20
,0
00
Post-Retirement Life Insurance
Reduction Example
Dental Coverage
• Same as active employees
• May continue to age 65
• Coverage ends at age 65
– May continue dental for dependents
under 65
– COBRA coverage available
Retiree Medical Benefits
Eligibility
10 Years Continuous Plan Participation
AND
• Age plus Service equals 70 points
OR
• Retire under Company retirement plan
OR
• Age 55 or older and eligible to retire from
the Pension Plan
Retiree Medical Benefits
Eligibility
• Can waive and re-enroll later
– No pre-existing condition exclusions
– Enroll at Annual Election or Change in
Status
• Other coverage primary
Retiree Medical Benefits
Not Medicare Eligible
•
•
•
•
Same as active employees
May continue in managed care plan
Prescription drug program
HMO (where available)
Terms
Carve-Out
Supplement
Coordination of Benefits (COB)
Crossover or Rollover
Coinsurance
Retiree Medical Benefits
after Medicare Eligibility
•
•
•
•
Medicare becomes primary payor
Medicare carve-out
Not eligible for managed care plan
Prescription drug program
Retiree Medical Benefits
after Medicare Eligibility
• Medicare carve-out
• Generally, no CITGO plan payment
until deductible and out-of-pocket
maximum met
• Prescription coverage not subject to
deductible or out-of-pocket limit
Retiree Medical Benefits
Spouse Coverage
• Retiree becomes Medicare eligible before spouse
– Not eligible for managed care plan
– Coverage changes to 80% in options I or II
• Spouse becomes Medicare eligible before retiree
– Coverage remains the same
– Medicare becomes primary payer
• Retiree dies before spouse
– Coverage continues
– Eligibility for managed care depends on spouse’s age
Medicare
2001 Medicare Deductibles/Coinsurance
Part A (hospital)
Days 1 - 60
$792
Days 61 - 90
$198/Day
Days 91 - 150
$396/Day
Part B (doctor)
$100 annually
CITGO plan assumes you have enrolled in Medicare if
you are eligible
Retiree Medical Benefits
after Medicare Eligibility
CITGO Salaried Plan - 2001
(Non-Network Options)
Deductible
Out-ofPocket
Maximum
Non-Network Option I
$500
$3,000
Non-Network Option II
$750
$5,000
$1,000
$10,000
No Network / No RX
Example: Deductibles Not Met
Medicare
CITGO Plan
Approved
$500
Part B Ded. 100
Payment
320
Patient Resp. $ 80
Approved
Deductible
Benefit
Balance
$500
500
0
$ 0
Net Patient Resp. $180
Applied to Plan ded. 500
Applied to OOP
0
Example: Deductibles Met
Medicare
CITGO Plan
Approved
$500
Payment
400
Patient Resp. $100
Approved
Plan Benefit
Less Medicare
Net Plan Ben.
$500
400
-400
0
Net Patient Resp.
Applied to OOP
$100
100
Example: Deductibles and OOP Met
Medicare
CITGO Plan
Approved
$500
Payment
400
Patient Resp. $100
Approved
Plan Benefit
Less Medicare
Net Plan Ben.
Net Patient Resp.
$500
500
-400
$100
$0
Example: Part A without
Deductible
Medicare
CITGO Plan
Part A ded. $792
Payment balance
Patient Resp. $792
Approved
80% Benefit
Net Patient Resp.
$792
634
$158
Applied to OOP
$158
Prescription Drug Coverage
• Retirees have same coverage as actives
– 70% at retail
– $25 generic mail copay
– $50 brand name mail copay
• No Network/No Rx Option does not have
prescription drug coverage
Annual Election
• Each year
– About two weeks
– 1st part of November
• Change options, waive or re-enroll
• Critical that you read annual election
material
Communications
• CITGO Benefits Bulletin
• The Spearhead
• Benefits HelpLine
– Phone: 1-888-443-5707
– E-mail: [email protected]
– Fax:
1-918-495-5007