What Is Changing

What is changingWhat is not changingWhat is a Medicare Exchange and how does itwork?How does it differ from what we have today?BackgroundAdvantages for retireesNew processVia Benefits presentationQ&A2

Announcement sent to all retirees in May 2018RIT is changing the way Medicare-eligible retirees, LTDrecipients and their Medicare-eligible family membersaccess and enroll in medical, prescription drug, anddental coverageBeginning in 2019, RIT will no longer offer grouphealth coverage to supplement MedicareInstead, RIT will offer supplemental coverage through aprivate Medicare Exchange, Via Benefits.Great News! Benefit Advisors will help you pick theplan that is right for you.RIT will provide its financial support through a HealthReimbursement Arrangement (HRA).3

RIT will continue to provide access to quality healthcare coverage for ourretirees.RIT will continue to provide financial support for healthcare coverage for ourretirees.RIT will continue to offer a number of other benefits our retirees currentlyenjoy. You will find details on the RIT benefits website(www.rit.edu/benefits). Vision coverage, legal services coverage, and identity theft protection, with an annual openenrollment (Lifetime Benefit Solutions will continue to bill you for these benefits) Pet insurance and auto/homeowners insurance (you would continue to pay your premiumsdirectly to the insurance company) Tuition waiver for the retiree and eligible family members for RIT courses, 10% discount atBarnes & Noble @ RIT on most items if you show your RIT ID card (obtain an ID card atthe Registrar’s Office, 1st floor of Eastman Hall), access to RIT facilities, including theStudent Life Center if you want to work out and the Wallace Library, and the RARESdiscount card.4

Organized approach to the individual Medicare marketplaceRetiree has large selection of individual medical and prescriptiondrug plans from multiple carriers available in their geographic area,and including RIT’s current insurers, Excellus BlueCross BlueShieldand MVP Healthcare. The retiree and spouse/partner can each choose a different plan; this is greatnews for those couples who have very different healthcare needs. Trained advisors and modeling tools help retirees navigate andselect a plan to best meet their expected needs Advisors are all located in the U.S. and are objective, knowledgeable, and donot receive a commission for enrolling retirees. Employer (RIT) funds health reimbursement arrangements (HRA)to help retirees pay for their coverage. The HRA can be used forpremiums and qualifying out-of-pocket expenses. Your personalized annual amount is found in the mailing RIT sent to you inmid-August5

Employer Group ModelMedicare ExchangeModelEmployer selects a few plans toofferRetiree chooses from all plansavailable in the ExchangeEmployer performsadministrative responsibilities,including enrollment,communications, retiree billing,payment to carriersExchange performs alladministrative workRetiree/spouse/partner makepayments directly to Medicarecarrier(s)Employer subsidizes coveragewith cost often tied to annualpremium increases in aparticular planEmployer sets HRA amount andchanges as desired; not linked tohealthcare inflation6

Rapidly growing liability for retiree healthcare is unsustainableLack of control over cost escalation for RITLimited offerings with very rich benefits – expensive for RIT,retirees, and limited choice for retireesMedicare Exchange is relatively recent marketplace innovationWe explored for several years to ensure it was right for ourretireesAdded two retirees to our Benefits Advisory Group, which helpedus through the process to ensure we had input from faculty, staffand retireesConducted rigorous competitive bidding process, selected ViaBenefits Very first Medicare Exchange (different name), most experienced Works with largest number of employers Includes plans from Excellus BlueCross BlueShield and MVP Healthcare7

Expert advice: Access to individual marketplace in an organized manner withexpert help - decision support from U.S.-based licensed, non-commissionedMedicare experts and modeling tools ensures each retiree makes an informedchoiceMore choice and flexibility: Wider range of coverage available for retireesto better meet their medical and financial needs. Potential for having someout-of-pocket costs reimbursed from the HRA. Unused HRA funds carry overfor future use.Individual coverage: Retiree and spouse/partner can choose different plansfrom each other if they have different medical needs (which they cannot dounder the employer group model)Joint HRA: Retiree and eligible spouse/partner will have a joint HRA, whicheither or both can access (reimbursements for the domestic partner will betaxable to the retiree)Year-round support: Customer service and support advocates provide helpfor post-enrollment issues or concernsSustainability: RIT has more control over its cost, making it a moresustainable model for the future8

Enrollment through Via Benefits, not RIT, for medical, Rx and dental Will continue to enroll for vision, legal services, and identity theft protectioncoverage directly through RIT YOU MUST TAKE ACTION and ENROLL BY DECEMBER 31, 2018 INORDER TO HAVE MEDICAL AND RX COVERAGE IN 2019 (beyondMedicare Parts A and B) Group coverage will not carry over into 2019 Must enroll in a Medicare medical plan through Via Benefits to qualify for yourHRA Billing and payment for medical and Rx will be through your selectedMedicare plan(s), not RIT Reimbursement for eligible premiums and out of pocket expenses will beadministered by Via Benefits Lifetime Benefit Solutions will continue to bill retirees for RIT vision, legalservices, and identity theft protection coverage All questions about medical, Rx and dental must go to Via Benefits, notto RIT Before and during enrollment period During plan year9

You will be able to purchase dental coveragethrough Via Benefits effective January 1, 2019There are a number of dental plans available basedon your geographic areaMore flexible: you can enroll in future yearsNote that some carriers have waiting periods - askyour Benefit Advisor about the plan details duringyour enrollment callIf you are currently enrolled in RIT’s dentalcoverage with MetLife, you can continue thatcoverage directly with MetLife10

Same reminder as in past yearsDo NOT enroll in a separate Medicaremedical/Rx coverage outside of Via BenefitsIf you enroll in coverage outside of ViaBenefits Your coverage through Via Benefits will becancelled by the Centers for Medicare andMedicaid Services (CMS) (you cannot be enrolled inmore than one plan) You will not be eligible for reimbursement from theHRA or any other RIT financial support11

Legal requirement for HRAs that access must only be for retirees Law does not allow anyone who is an employee of RIT to access the HRA funds This rule applies whether it is you or your spouse/partner who is employed byRIT; if you decide to work at RIT after you have retired, neither of you would beable to use HRA funds for expenses incurred during your employment period Once you re-retire employment, you will regain access to all of your unused HRAdollars. The coverage and HRA deposits depend on the employee type andexpected duration Adjunct – you can keep your coverage through Via Benefits, but you cannot usethe HRA for premiums or out of pockets expenses incurred while you areemployed. There would be HRA deposits while employed. Regular full or part-time employee: If hired for less than 6 month assignment, same as adjunct If hired for 6 months or more, or if unknown at time of re-employment, you will haveRIT employee benefits Your coverage through Via Benefits needs to be cancelledYou may want cancel Medicare Part B so you don’t continue to pay the premiumNo annual HRA deposits will be made while you are employed, but will resume when you reretire. You will not have access to the HRA while you are employed; any funds in HRA willremain for you to access for future expenses when you re-retire.12

Helping You PrepareFor Your UpcomingMedicare Enrollment 2017 Willis Towers Watson. All rights reserved.willistowerswatson.com

Discussion Topics1 Who We Are2 Medicare — Plan Types3 Via Benefits Enrollment Process4 Health Reimbursement Arrangement (HRA)5 Action Items and Timelinewillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.14

Who We Arewillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.15

Experience That Counts for the People Who Need It Most#1100 The first andlargest Retirees frommore than560employerswillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.9 1014Retireesreported theywould workwith ViaBenefitsagainYear of serviceoutofTH16

Our Service CentersOperating Hours: Monday – Friday, 8:00am – 9:00pm ETSalt Lake CityPhoenixDallaswillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.17

Medicare — Plan Typeswillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.18

Plans & InsurersPLANSMedicare AdvantageMedicare Supplement(Medigap)Prescription Drug(Part D)INSURERSDental Plans Availablewillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.19

Your Future CoverageHow Medicare Coverage WorksOriginal MedicareParts A & B Additional CoverageMAPDMedigapMedicare Advantagewith Prescription Drugcoverage OR Prescription Drug Plans(Part D)Optional CoverageDentalPlanswillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.20

Your Future Supplemental Coverage OptionsMAPD PlansMAPDMedicare Advantagewith Prescription ferredProviderOrganizationwillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.21

Your Future Supplemental Coverage OptionsMedigap PlansMedigap PrescriptionDrug Plans(Part D)willistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.22

Medicare Supplement Insurance (Medigap): Lettered PoliciesMedicare Supplement Insurance (Medigap) 100%100%100%100%Medicare Part B coinsurance lood (first 3 pints)100%100%100%100%100%100%50%75%100%100%Part A hospice care coinsuranceor 0%100%80%80%Medicare Part A coinsurance andhospital costs (up to an additional365 days after Medicare benefits areused)Skilled nursing facility carecoinsurancePart A deductiblePart B deductible100%100%100%Part B excess chargesForeign travel emergency(up to plan limits)80%80%100%100%80%80%Source: CMSOut-of-Pocketlimit in 2018 5,240 2,620willistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.23

Part D Plans — 5 Tiers of Co-PaysTier 1- Preferred genericTier 2- Non-preferred genericTier 3- Preferred brandTier 4- Non-preferred brandTier 5- Specialty drugs or injectableswillistowerswatson.com 2018 Willis Towers Watson. All rights reserved. Proprietary and Confidential. For Willis Towers Watson and Willis Towers Watson client use only.24