Slide 1: 2004 Annual Enrollment
2004 Annual Enrollment 1
Slide 2: About this Presentation
About this Presentation This presentation is an overview of the ChoicePlus plan provisions for 2004. You will receive a Summary of Material Modification (SMM) with your Annual Enrollment Guide, which is the official document that describes the modifications to the ChoicePlus Plan for 2004 and modifi
Slide 3: Agenda
Agenda ! Enrollment Overview ! New for 2004 ! Benefits Overview and Changes ! Summary ! Questions and Answers 3
Slide 4: Part 1: Enrollment Overview
2004 Annual Enrollment Part 1: Enrollment Overview 4
Slide 5: 2004 ChoicePlus Enrollment
2004 ChoicePlus Enrollment ! October 6 - 17 ! Benefits Service Center - Via Web site at ngcbenefits.csplans.com - Dedicated annual enrollment telephone number • 1.866.879.7587 (toll-free) • Participant Services Representative if Web enrollment isn’t available, or for questions 5
Slide 6: ChoicePlus Enrollment Process Change
ChoicePlus Enrollment Process Change ! Each employee will receive an abbreviated enrollment kit at his or her home address: - Cover letter, 2004 ChoicePlus Annual Enrollment Confirmation Statement and Personal Enrollment Worksheet, Web map - Links to other materials will be e-mailed to you: Annual E
Slide 7: ChoicePlus Confirmation Changes
ChoicePlus Confirmation Changes ! The 2004 Annual Enrollment Confirmation Statement and Personal Enrollment Worksheet (PEW) will be your Confirmation Statement if you do not make changes ! If you make changes on the Web, you must print a Confirmation Statement ! Confirmation statements will only be
Slide 8: Enrollment Summary
Enrollment Summary ! Elections effective January 2004 Jan. 1, 2004 1 2 3 4 5 ! Before-tax payroll contributions and 6 7 8 9 10 11 12 spending account deposits 13 14 15 16 17 18 19 ! 2004 is the second year of 20 21 22 23 24 25 26 your dental and vision 27 28 29 30 31 elections 8
Slide 9: Part 2: New or changed for 2004
2004 Annual Enrollment Part 2: New or changed for 2004 9
Slide 10: New for 2004
New for 2004 !Annual Enrollment decision tools − *PlanCompare Tool - considers personal preferences and the needs of you and your family to help you select your optimal medical plan − *Health OnLine – this robust tool provides you access to personalized health guides to aide you with your health goa
Slide 11: Changes for 2004
Changes for 2004 Despite rising health care costs, we’re committed to providing you with comprehensive health care coverage that protects you and your family from the cost of expensive or unexpected illness, injury or catastrophic events. In 2003, we introduced a number of cost-saving provisions to
Slide 12: Part 3: Benefits Overview and Changes
2004 Annual Enrollment Part 3: Benefits Overview and Changes 12
Slide 13: Medical Coverage Options
Medical Coverage Options • Medical Plan I – Anthem Blue Cross and Blue Shield Preferred Provider Organization (PPO) Plan • Medical Plan II or III: Aetna Point- of-Service (POS) Plans • Medical Plan IV: Lumenos • HMOs • Waive medical coverage 13
Slide 14: Medical Plan I – Blue Cross and Blue Shield PPO
Medical Plan I – Blue Cross and Blue Shield PPO • Administered by Anthem Blue Cross and Blue Shield (BC/BS) • Benefits same as Plan II - Office visit co-payment $20 • Primary care physician selection not required • Access to medical care from network specialists without PCP referral 14
Slide 15: Medical Plans II and III
Medical Plans II and III • Reside in Aetna network area - In-network/out-of-network options (in-network benefits higher) - Primary care physician (PCP) for each enrolled family member - Plan III pays higher benefit levels and costs more - Office visit co-payments: $20/Plan II; $15/Plan III • Reside
Slide 16: Medical Plan IV
Medical Plan IV ! Lumenos Consumer-Driven Medical Plan - Offered in addition to Plans I (PPO), Plans II and III (POS) and HMOs - Encourages consumerism and provider choice - Lumenos provides on-line tools such as doctor search, a health coach and identifies doctors who offer discounts to Lumenos mem
Slide 17: Plan IV – Consumer-Driven Medical Plan
Plan IV – Consumer-Driven Medical Plan The Lumenos Program Has Four Main Components: ! Lumenos Health Savings Account (HSA) ! Bridge ! Traditional Health Coverage (PPO) ! Lumenos Health Toolkit 17
Slide 18: How the Lumenos Plan Works
How the Lumenos Plan Works Health Savings Account (HSA) $1,000 for employee only coverage Annual allocation by Northrop Grumman $1,500 for employee + 1 In You choose how to spend these dollars $2,000 for employee + 2 or more addition to the HSA, Bridge $500 for employee only coverage If expenses exc
Slide 19: Prescription Drugs
Prescription Drugs ! Medco Health Solutions administers program for Plans I, II and III ! Requires co-payment based on: - Type of medication (generic, brand name formulary or nonformulary) - Where obtained (network retail or mail service) 19
Slide 20: Mental Health/Substance Abuse Treatment
Mental Health/Substance Abuse Treatment • Medical Plans I, II and III use ValueOptions Network • All care must be authorized in advance by ValueOptions • Separate co-payments, out-of-pocket limits and benefit maximums • Medical Plan IV also includes Mental Health Benefits; however, they are not carv
Slide 21: Health Maintenance Organizations (HMOs)
Health Maintenance Organizations (HMOs) • HMO options listed on Personal Enrollment Worksheet • Some plan design changes for 2004 • “Opt-ins” not allowed • Require PCP election • Do not complete the HMO’s membership form • Prescription drug and mental health/substance abuse treatment benefits 21
Slide 22: HMOs Not Offered for 2004
HMOs Not Offered for 2004 ! The following HMOs will not be offered due either to small enrollment or the HMO’s refusal to quote: - Altius Health Plans (formerly PacifiCare of Utah) Utah - Arnett HMO Indiana - Care Choices Health Plan Michigan - CIGNA HealthCare of Massachusetts Massachusetts - Fallo
Slide 23: Dental and Vision Coverage
Dental and Vision Coverage ! No dental or vision changes except to add or drop dependents ! 2004 is second year of two-year election period 23
Slide 24: Flexible Spending Accounts
Flexible Spending Accounts • Use before-tax dollars to fund two separate accounts: - Health care expenses - Dependent Day care expenses • 2004 default is “zero” • IRS limits apply; deposits forfeited if not used by end of year • Employee Benefits Book has details 24
Slide 25: Long-Term Disability (LTD) Coverage
Long-Term Disability (LTD) Coverage ! Northrop Grumman Space & Mission Systems Corp. provides a 40% LTD benefit ! Additional 20% coverage available for a total benefit of 60% ! If coverage increased later: - Evidence of good health is required - Some pre-existing condition limitations apply 25
Slide 26: Accidental Death Coverage
Accidental Death Coverage • Payable in the event of accidental death • Coverage one to six times your annual compensation • Additional $10,000 seat belt benefit • Beneficiary Designation form 26
Slide 27: Other Company-Sponsored Benefits
Other Company-Sponsored Benefits • Company-paid life insurance of one-half eligible compensation • Business travel accident insurance of 5 times your eligible compensation • SurvivorSupport® for terminal illness or death 27
Slide 28: Group Universal Life (GUL) Insurance
Group Universal Life (GUL) Insurance • Insured by Aetna • Coverage of up to 6 times your eligible compensation • Spouse coverage up to $100,000 and $10,000 for each child • Cash accumulation fund and conversion available • Contact Marsh@Works for information 800.882.8395 28
Slide 29: Part 4: Enrollment Summary
2004 Annual Enrollment Part 4: Enrollment Summary 29
Slide 30: Summary of Enrollment
Summary of Enrollment • Step One: Review your enrollment materials & utilize tools • Step Two: Mark your enrollment worksheet • Step Three: Select your PCP, if necessary • Step Four: Enroll or make changes • Step Five: Check your Confirmation Statement • Step Six: Check your I.D. cards 30
Slide 31: Be Aware of Your Responsibilities
Be Aware of Your Responsibilities ! Read your enrollment materials ! Understand your benefits and their associated costs ! Utilize the tools available to you ! Changes restricted during the year ! Print 2004 Confirmation Statement after Web enrollment 31
Slide 32: Conclusion
Conclusion ! 2004 Annual Enrollment (Oct. 6 - 17) ! Enroll via Web site ! Contact Benefits Service Center with questions, or if the Web is not an option - 1.866.879.7587 (toll-free) 32
Slide 33: Part 5: Questions and Answers
2004 Annual Enrollment Part 5: Questions and Answers 33
Slide 34: ChoicePlus Medical Plan Pricing
ChoicePlus Medical Plan Pricing “How does ChoicePlus medical plan pricing work?” • Northrop Grumman Space & Mission Systems Corp. pays 80% of cost of base medical plan • You pay full cost difference between base and higher cost options • Your cost is in before-tax dollars, except for domestic partne
Slide 35: Medical Plan Options
Medical Plan Options “What’s the difference between PPO, POS, and HMO?” In/Out-of-Network Features: ! PPO – Self-referral to participating network providers ! POS – Care provided or referral coordinated by PCP In-Network Only: ! HMO – Referral coordinated by PCP 35
Slide 36: FSAs and HSAs
FSAs and HSAs “What’s the difference between an FSA and an HSA?” Flexible Spending Account Health Savings Account (FSA) (HSA) ChoicePlus feature Lumenos feature only Employee-funded with before-tax Company-funded dollars Must use by end of plan year for Unused amount at year-end eligible expenses or
Slide 37: HMO Choices and Coverage
HMO Choices and Coverage “What HMO choices are available and what are specific changes in coverage?” • HMO availability based on your home ZIP code • Some HMOs not available in 2004 • HMOs may have modified their plan benefits for 2004 • Check the Availability of Domestic Partner and COBRA-Like Bene
Slide 38: Medical Network/Provider Information
Medical Network/Provider Information “How do we find out about PCPs and medical network providers?” • Plans II and III POS: www.aetna.com - Select “Aetna Navigator” then “DocFind” then Physicians and Other Health Professionals” then choose “Managed Choice POS” as the health plan • Plan I PPO: www.an
Slide 39: Selecting a Primary Care Physician
Selecting a Primary Care Physician “How do I know if I need to choose a PCP for 2004?” • Changing medical plan and enrolling in a POS or HMO plan • Adding a dependent (in POS Medical Plan II, III or an HMO) 39
Slide 40: Medical Transition Care
Medical Transition Care “What if I am receiving care now from a physician and my plan is not available in 2004?” • Transition care process and criteria established • Continue for approved length of time at network benefit levels • Application from NGC HR/Benefits Office • Decisions made case-by-case
Slide 41: “Split Family” Coverage
“Split Family” Coverage “If I have a dependent living elsewhere, what are my options for health coverage?” • “Split family” coverage available in Medical Plans I, II, III or IV - You are covered by the network where you live - Your dependent is covered by network where he or she lives • Costs are ba
Slide 42: Domestic Partner Benefits
Domestic Partner Benefits “Are domestic partner benefits available at NGC?” ! Specific criteria for eligibility ! Enrollment through Participant Services Representative only 42
Slide 43: Increasing Long-Term Disability
Increasing Long-Term Disability “If I choose to increase my LTD benefits from 40% to 60%, how will I know if I am approved, and when does this change take effect?” • Evidence of good health required to increase to the 60% plan, if don’t enroll when first eligible • Form included with Confirmation St
Slide 44: If You Do Nothing…
If You Do Nothing… “If I don’t want to change my benefits, do I need to do anything?” No, unless: • You “opted-into” Aetna network plan • Your HMO is no longer available • You request an increase in LTD coverage • You elect a Flexible Spending Account 44
Slide 45: The Benefits Service Center
The Benefits Service Center “What is the role of the Benefits Service Center?” ! Centralized administration of ChoicePlus plans and Salaried Pension Plan - New employee enrollments and life status changes - Pension estimates and retirement processing ! Year-round: 1.800.859.4567 (option 2) ! Annual