An Economical Solution to Providing Retiree Medical Insurance Benefits.

An Economical Solution to Providing An Economical Solution to Providing Retiree Medical Insurance BenefitsRetiree Medical Insurance Benefits

Retiree Medical Insurance CoverageRetiree Medical Insurance Coverage

Unfortunately, Medicare doesn’t cover everythingUnfortunately, Medicare doesn’t cover everything there are deductibles and coinsurance coststhere are deductibles and coinsurance costs

that must be paid that must be paid

As a result, many retirees look to their formerAs a result, many retirees look to their formerEmployer to provide Retiree Medical coverageEmployer to provide Retiree Medical coverage

after they retireafter they retire

Many retirees depend on Medicare as their only Many retirees depend on Medicare as their only source of health insurance when they retire source of health insurance when they retire

Retiree Medical Insurance CoverageRetiree Medical Insurance Coverage

However, as the costHowever, as the costof providing these of providing these benefits continues benefits continues to increase, many to increase, many employers are employers are reducing Retiree Medical reducing Retiree Medical Insurance Coverage or Insurance Coverage or have eliminated it all have eliminated it all togethertogether

Why is Retiree Medical so costly?Why is Retiree Medical so costly?

Increasing Costs of Prescription DrugsIncreasing Costs of Prescription Drugs

GAS and/or FAS 106 Liability is still a concernGAS and/or FAS 106 Liability is still a concern

Growing Retiree PopulationGrowing Retiree Population

High Utilization of this BenefitHigh Utilization of this Benefit Increasing Costs of Health Care ServicesIncreasing Costs of Health Care Services

The Solution!The Solution!

TAGCO Associates, LPTAGCO Associates, LPhas the has the economicaleconomical solution:solution:

The TAGCO Multiple Employer TrustThe TAGCO Multiple Employer Trustoffers Employers… offers Employers…

...a choice of Retiree Medical...a choice of Retiree Medical Insurance Plans underwritten by The Hartford*Insurance Plans underwritten by The Hartford*

……andand plans developed for retiredplans developed for retiredemployees and their spouses age 65 and olderemployees and their spouses age 65 and older

*The Hartford® is The Hartford Financial Services Group, Inc. and its subsidiaries, including issuing companiesHartford Life Insurance Company and Hartford Life and Accident Insurance Company.

……Offers Group Retiree Medical Coverage to Offers Group Retiree Medical Coverage to retired employees and their spouses 65+ who retired employees and their spouses 65+ who

are enrolled in Medicare Parts A & Bare enrolled in Medicare Parts A & B

……Requires a minimum participationRequires a minimum participationof of 2 retired2 retired lives lives

……Allows employers to choose fromAllows employers to choose from10 different10 different Retiree Medical Insurance Plans and Retiree Medical Insurance Plans and 2 or more Medicare Part D Employer PDP Options2 or more Medicare Part D Employer PDP Options

The TAGCO Multiple Employer TrustThe TAGCO Multiple Employer Trust

TAGCO Associates, LP will customize a specific TAGCO Associates, LP will customize a specific plan for employers with 250+ retireesplan for employers with 250+ retirees

The TAGCO Multiple Employer TrustThe TAGCO Multiple Employer Trust

How does the TAGCO MET make Retiree Medical How does the TAGCO MET make Retiree Medical Insurance Plans more economical?Insurance Plans more economical?

The TAGCO MET allows for The TAGCO MET allows for a minimum participation of a minimum participation of 2 retired2 retired lives and group lives and group rating is most often less rating is most often less costly than individual ratingcostly than individual rating

The TAGCO MET also allowsThe TAGCO MET also allowsfor for rating across companiesrating across companieswithin the same industrywithin the same industry, , which most often which most often reduces ratesreduces rates

What else makes Retiree Medical Insurance What else makes Retiree Medical Insurance Coverage more economical?Coverage more economical?

Retiree Medical Insurance Plans integrate with MedicareRetiree Medical Insurance Plans integrate with Medicareso employers can shift benefit costs on retired employees so employers can shift benefit costs on retired employees and spouses age 65+ from their current group health and spouses age 65+ from their current group health insurance coverageinsurance coverage

Retiree Medical Insurance Plans Retiree Medical Insurance Plans may help reduce annual may help reduce annual premium expense as well as premium expense as well as long-term GASB and/or FASBlong-term GASB and/or FASB106 liability106 liability

Additional Employer AdvantagesAdditional Employer Advantages

No enrollment forms*No enrollment forms* necessary necessaryon TAGCO MET Plans with 35% on TAGCO MET Plans with 35% or more Employer contributionor more Employer contribution

* Enrollment forms are necessary for both Mandatory and Voluntary Plans in Florida

TAGCO MET Plans are generallyTAGCO MET Plans are generallymore economical than the more economical than the employer’s group medical employer’s group medical coverage coverage

Retiree AdvantagesRetiree Advantages

Guaranteed IssueGuaranteed Issue to employees/retirees, to employees/retirees, spouses and surviving spousesspouses and surviving spouses

Pre-existing conditions clause waivedPre-existing conditions clause waivedif currently insuredif currently insured

Medicare Part D Employer PDP OptionsMedicare Part D Employer PDP Optionsand fully insured Rx coverage availableand fully insured Rx coverage available

Freedom to chooseFreedom to choose Doctors and Hospital Doctors and Hospital

TAGCO MET Retiree AdvantagesTAGCO MET Retiree Advantages

Electronic Claims ProcessingElectronic Claims Processing

30 Day 30 Day Free LookFree Look

Foreign TravelForeign Travel Medical Coverage Medical Coverage

Crossover Claims with MedicareCrossover Claims with Medicare

TAGCO MET Group EligibilityTAGCO MET Group Eligibility

Employers with 250 or fewer retirees have a choice ofEmployers with 250 or fewer retirees have a choice of

Mandatory Retiree Medical Insurance Plans (35% or moreMandatory Retiree Medical Insurance Plans (35% or moreEmployer paid)Employer paid)

Mandatory Retiree Medical Insurance Plan (35% or Mandatory Retiree Medical Insurance Plan (35% or more Employer paid) that include CMS creditable Rx coveragemore Employer paid) that include CMS creditable Rx coverage

Voluntary Retiree Medical Plans (less than 35% Employer paid)Voluntary Retiree Medical Plans (less than 35% Employer paid)

TAGCO MET Medicare Part D “Rx” OptionsTAGCO MET Medicare Part D “Rx” Options

Accepted nationwideAccepted nationwide at participating pharmaciesat participating pharmacies

Attractive retail and mailAttractive retail and mail order Co-Paysorder Co-Pays

Medicare Part D group rated Medicare Part D group rated Employer PDPEmployer PDP

First dollar coverage thruFirst dollar coverage thru Medicare Part D deductibleMedicare Part D deductible and donut holeand donut hole

Cont.Cont.

*This Medicare Part D Option is a separate plan and is NOT underwritten by The Hartford.

Affordable Retail Brand and Generic Affordable Retail Brand and Generic Co-PaysCo-Pays

Plan design and formulary optionsPlan design and formulary options

Attractive Mail order Attractive Mail order Co-PayCo-Pay optionsoptions

TAGCO MET Medicare Part D Options* offer TAGCO MET Medicare Part D Options* offer

Unlimited annual maximumUnlimited annual maximum

The TAGCO MET Retiree Medical Plans are underwritten by The Hartford*The TAGCO MET Retiree Medical Plans are underwritten by The Hartford*

The HartfordThe Hartford

*The Hartford® is the Hartford Financial Services Group and it’s subsidiaries, including issuing companies Hartford Life Insurance Company and Hartford Life and Accident Insurance Company.

The Hartford has been in the Senior Medical business The Hartford has been in the Senior Medical business for more than 20 yearsfor more than 20 years

The Hartford still retains its first Senior Medical InsuranceThe Hartford still retains its first Senior Medical Insurance Plan clientPlan client

Security and Stability of The Hartford Security and Stability of The Hartford

Industry Ratings as of 03/24/10:Industry Ratings as of 03/24/10:

A.M. BestA.M. Best A A Moody’s Moody’s A3A3

Standard & Poor’sStandard & Poor’s A A Fitch Fitch A-A-

TAGCO METTAGCO METApproved StatesApproved States

TAGCO MET PLANS & OPTIONSTAGCO MET PLANS & OPTIONS

Cont.Cont.

TAGCO MET Standard Plus Mandatory Plans without Rx TAGCO MET Standard Plus Mandatory Plans without Rx

Standard Plus Plan 3138*Standard Plus Plan 3138*Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides for excess coverage on unassigned Medicare claims; Plan pays for Part A for excess coverage on unassigned Medicare claims; Plan pays for Part A additional 365 days. additional 365 days. Plan 3138 is fully insured and underwritten by Plan 3138 is fully insured and underwritten by HartfordHartford Life & Accident Insurance CompanyLife & Accident Insurance Company and does not include Rx and does not include Rx coverage; Plan is composite rated;coverage; Plan is composite rated;

*THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE TO*THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE TOPERSONS WHO ARE AT LEAST 65 AND MEDICARE ELIGIBLEPERSONS WHO ARE AT LEAST 65 AND MEDICARE ELIGIBLE


TAGCO MET Standard Plus Mandatory Plans without Rx TAGCO MET Standard Plus Mandatory Plans without Rx

Standard Plus Plan 3136*Standard Plus Plan 3136* Pays the Medicare Part A and B deductible(s) and Part B coinsurance; Plan does Pays the Medicare Part A and B deductible(s) and Part B coinsurance; Plan does not pay for excess coverage on unassigned Medicare claims; Plan pays for Part not pay for excess coverage on unassigned Medicare claims; Plan pays for Part A additional 365 days. A additional 365 days. Plan 3136 is fully insured and underwritten by Plan 3136 is fully insured and underwritten by Hartford Life & Accident Insurance Company Hartford Life & Accident Insurance Company and does not include Rx and does not include Rx coverage; Plan is composite rated;coverage; Plan is composite rated;


TAGCO MET Standard Plus Voluntary Plans without TAGCO MET Standard Plus Voluntary Plans without RxRx

Standard Plus Plan 3141*Standard Plus Plan 3141*Pays the Medicare Part A and B deductible(s), Part B coinsurance and Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides for excess coverage on unassigned Medicare claims; Plan does not provides for excess coverage on unassigned Medicare claims; Plan does not pay for Part A additional 365 days; pay for Part A additional 365 days; Plan 3141 is fully insured and Plan 3141 is fully insured and underwritten by Hartford Life & Accident Insurance Company underwritten by Hartford Life & Accident Insurance Company and does and does not include Rx coverage; Plan is age and gender banded rated;not include Rx coverage; Plan is age and gender banded rated;



TAGCO MET Standard Plans without RxTAGCO MET Standard Plans without Rx

Standard Plan 3733* Standard Plan 3733* Pays the Part A and B deductible(s); Plan pays 10% (50%) of Part B Pays the Part A and B deductible(s); Plan pays 10% (50%) of Part B coinsurance up to $1,000 out-of-pocket expense by the insured; thereafter, it coinsurance up to $1,000 out-of-pocket expense by the insured; thereafter, it pays 100% of Part B coinsurance; Plan pays for Part A additional 365 days; pays 100% of Part B coinsurance; Plan pays for Part A additional 365 days; Plan pays 100% for excess coverage on unassigned Medicare claims; Plan pays 100% for excess coverage on unassigned Medicare claims; Plan is Plan is fully insured and underwritten by Hartford Life & Accident Insurance fully insured and underwritten by Hartford Life & Accident Insurance CompanyCompany and does not include Rx coverage; Plan is composite and age and and does not include Rx coverage; Plan is composite and age and gender banded rated;gender banded rated;


Cont.Cont.




Standard Plan 3734*Standard Plan 3734*Has a calendar year deductible of $500; such deductible applies to all Plan Has a calendar year deductible of $500; such deductible applies to all Plan benefitsbenefits; Plan pays the Part A deductible, but does not pay the Part B deductible; ; Plan pays the Part A deductible, but does not pay the Part B deductible; Plan pays 10% (50%) of Part B coinsurance up to $1,000 out-of-pocket expense by Plan pays 10% (50%) of Part B coinsurance up to $1,000 out-of-pocket expense by the insured; thereafter, it pays 100% of Part B coinsurance; Plan pays for Part A the insured; thereafter, it pays 100% of Part B coinsurance; Plan pays for Part A additional 365 days; Plan does not pay for excess coverage on unassigned additional 365 days; Plan does not pay for excess coverage on unassigned Medicare claims; Medicare claims; Plan is fully insured and underwritten by Hartford Life & Plan is fully insured and underwritten by Hartford Life & Accident Insurance CompanyAccident Insurance Company and does not include Rx coverage; Plan is and does not include Rx coverage; Plan is composite and age and gender banded rated;composite and age and gender banded rated;


Cont.Cont.



Standard Plan 3735*Standard Plan 3735*Pays the Part A and B deductible(s); Plan pays 16% (80%) of Part B coinsurance Pays the Part A and B deductible(s); Plan pays 16% (80%) of Part B coinsurance up to $500 out-of-pocket expense by the insured; thereafter, it pays 100% of Part B up to $500 out-of-pocket expense by the insured; thereafter, it pays 100% of Part B coinsurance; Plan pays for Part A additional 365 days; Plan pays 100% for excess coinsurance; Plan pays for Part A additional 365 days; Plan pays 100% for excess coverage on unassigned Medicare claims; coverage on unassigned Medicare claims; Plan is fully insured and underwritten Plan is fully insured and underwritten byby Hartford Life & Accident Insurance Company Hartford Life & Accident Insurance Company and does not include Rx and does not include Rx coverage; Plan is composite and age and gender banded rated; coverage; Plan is composite and age and gender banded rated;


Cont.Cont.



Standard Plan Standard Plan 3736*3736*Has a calendar year deductible of $500; such deductible applies to all Plan Has a calendar year deductible of $500; such deductible applies to all Plan benefitsbenefits; Plan pays the Part A deductible, but does not pay the Part B deductible; ; Plan pays the Part A deductible, but does not pay the Part B deductible; Plan pays 16% (80%) of Part B coinsurance up to $1,000 out-of-pocket expense by Plan pays 16% (80%) of Part B coinsurance up to $1,000 out-of-pocket expense by the insured; thereafter it pays 100% of Part B coinsurance; Plan pays for Part A the insured; thereafter it pays 100% of Part B coinsurance; Plan pays for Part A additional 365 days; Plan does not pay for excess coverage on unassigned additional 365 days; Plan does not pay for excess coverage on unassigned Medicare claims; Medicare claims; Plan is fully insured and underwritten by HartfordPlan is fully insured and underwritten by Hartford Life & Life & Accident Insurance Company Accident Insurance Company and does not include Rx coverage; Plan is and does not include Rx coverage; Plan is composite and age and gender banded rated;composite and age and gender banded rated;

*THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE *THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE TO PERSONS WHO ARE 65 AND MEDICARE ELIGIBLETO PERSONS WHO ARE 65 AND MEDICARE ELIGIBLE


Public Employer Plans without RxPublic Employer Plans without Rx

Public Employer Plan 3139 (01)* Public Employer Plan 3139 (01)* Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides for excess coverage on unassigned Medicare claims; Plan pays for Part A for excess coverage on unassigned Medicare claims; Plan pays for Part A additional 365 days; Plan provides for skilled nursing facility benefits; additional 365 days; Plan provides for skilled nursing facility benefits; Plan 3139 Plan 3139 (01) is fully insured and underwritten by Hartford(01) is fully insured and underwritten by Hartford Life & Accident Life & Accident Insurance CompanyInsurance Company and does not include Rx coverage; Plan is composite rated; and does not include Rx coverage; Plan is composite rated;


Cont.Cont.



Public Employer Plan 3141 (01)*Public Employer Plan 3141 (01)*Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides Pays the Medicare Part A and B deductible(s), Part B coinsurance and provides for excess coverage on unassigned Medicare claims; Plan does not for pay Part for excess coverage on unassigned Medicare claims; Plan does not for pay Part A additional 365 days; Plan provides for skilled nursing facility benefits; A additional 365 days; Plan provides for skilled nursing facility benefits; Plan Plan 3141 (01) is fully insured and underwritten by Hartford Life &Accident 3141 (01) is fully insured and underwritten by Hartford Life &Accident Insurance Company Insurance Company and does not include Rx coverage; Plan is age banded and does not include Rx coverage; Plan is age banded rated;rated;



Public Employer Plan 3137 (01)*Public Employer Plan 3137 (01)*Pays the Medicare Part A deductible, Part B coinsurance and provides for Pays the Medicare Part A deductible, Part B coinsurance and provides for excess coverage on unassigned Medicare claims; Plan does not pay Part B excess coverage on unassigned Medicare claims; Plan does not pay Part B deductible; Plan does not pay for Part A additional 365 days; Plan does not deductible; Plan does not pay for Part A additional 365 days; Plan does not pay skilled nursing facility benefits; pay skilled nursing facility benefits; Plan 3137 (01) is fully insured and Plan 3137 (01) is fully insured and underwritten by Hartford Life & Accident Insurance Company underwritten by Hartford Life & Accident Insurance Company and does and does not include Rx coverage; Plan is composite rated and age banded rated;not include Rx coverage; Plan is composite rated and age banded rated;

*THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE TO PERSONS*THIS CHART DESCRIBES COVERAGE THAT IS ONLY AVAILABLE TO PERSONSWHO ARE AT LEAST 65 AND MEDICARE ELIGIBLEWHO ARE AT LEAST 65 AND MEDICARE ELIGIBLE


TAGCO Associates, LP Is A TexasTAGCO Associates, LP Is A TexasBased Insurance Agency ProvidingBased Insurance Agency Providing

The National Marketplace With Group RetireeThe National Marketplace With Group RetireeMedical And Rx Insurance ExpertiseMedical And Rx Insurance Expertise

Who Is TAGCO Associates, LP?Who Is TAGCO Associates, LP?

TAGCO Associates, LPTAGCO Associates, LP(830) 336-3700(830) 336-3700(800) 866-8056(800) 866-8056

Post Office Box 4133Post Office Box 4133Bergheim, TX 78004Bergheim, TX 78004

An Economical Solution to Providing Retiree Medical Insurance Benefits.

Documents

Transcript of An Economical Solution to Providing Retiree Medical Insurance Benefits.