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Retiree Enrollment Information
The following was authored by Laurie Marsh, Nalco HR. It
clarifies a number of issues related to Health Benefits for Nalco Retirees.
It explains that post 65 retirees will be enrolled programmatically after the
close of the election period. Many of the Hewitt customer service
representatives were not aware of the process. (It is fine if post 65
retirees enroll during the election period. It is just not necessary. Over
65 retirees will be automatically enrolled.)
For all other retirees, please remember that the
enrollment period runs November 8th through November 19th..
Laurie Marsh
Nalco Company
630-305-1753 (phone)
630-305-2983 (fax)
Thanks for taking the time to speak to me. I appreciate your willingness to
post some information on the Nalco retiree web site. If possible, would you
please consider posting the following information:
- We have received several retiree calls stating that they did not receive
an enrollment guide. We are working to get additional materials out to these
folks. In the interest of time would you also be willing to post the .pdf of
the retiree enrollment guide on the site? (see attached)
(See attached file:Nalco_EGR.pdf
- Despite what the Nalco retiree site is reporting, post 65 retirees do NOT
need to enroll. The post 65 retiree group only has one medical plan choice
(Medicare Primary) and we did not want to burden them with the worry of having
to enroll. Once the open enrollment site is closed we are planning to run a
computer program which will use the post 65 retiree's 2004 elections and
default that retiree to the same coverage for 2005. This is "why" the site
shows no enrollment data for the post 65 group. We have plans to populate the
website with those elections after the election period, not during.
- Below are a few FAQ's that may also be useful to the retirees.
FAQ's
- Open enrollment ends this Friday, November
19th. If you haven't already enrolled, you have until Friday to do so.
To enroll, visit
Your Benefits Resources
online at
http://resources.hewitt.com/nalco
today.
Way to Receive Your
Password Immediately So You Can Enroll Today
If you need an immediate password for Benefits
Express:
- Dial 1-800-6-NALCO-6 and remain silent on the
line. You will repeatedly be asked for a response; remain silent and the
system will automatically connect you to the main menu. Say "Health &
Insurance" and you will be connected to a live representative. After asking
some for some personal information (for verification purposes), the live rep
can give you the password over the phone (this will save time) or e-mail you a
new password if your e-mail address is already in their system.
For International Users:
- Dial 1-847-883-1010 and say the word
"representative." This will connect you to a live rep. After asking some for
some personal information (for verification purposes), the live rep can give
you the password over the phone (this will save time) or e-mail you a new
password if your e-mail address is already in their system.
How does the new Advocacy Service Work?
If you have medical access or claims issue that you
cannot resolve on your own, you can use the Participant Advocacy service by
calling the Your Benefits Resources
call center. Here’s how it works:
• You must first have made at least one attempt to
resolve the issue directly with the medical, dental, or vision plan.
• If your issue is still unresolved after discussing
it with your health plan customer service representative, you can then request
help from the Advocate Team.
• The Advocate Team, with your permission, will manage
the conversation and research with the health plan on your behalf.
I understand that wellness visits to my physician
are covered and are not subject to my deductible unless the cost of the visit
exceeds $500. But if my physician orders several lab tests, will they also be
covered as part of my wellness visit?
First, it’s important to note that, under the PPO Gold
Plan and EPO, your deductible will only apply to your wellness visit if it
exceeds $500 after our BlueCross and BlueShield discount has been applied. Next,
in terms of having additional services (lab, radiology) included in your
wellness visit, it all depends on how those services are coded by your health
care provider. You can help with this by ensuring that your health care provider
only codes services and diagnoses related to your visit as “wellness,” “routine”
or “preventive.”
Regarding the prescription drug coverage under
Caremark in 2005, is the prescription drug deductible of $100 per person or per
family, if you have family coverage?
The prescription deductible is per family (or whatever
dependents you have enrolled for coverage).
What does "prescription drug out-of-pocket maximum"
mean? If you reach the maximum does this mean there will be no copay on
additional prescriptions? Again, is this applied per person or per family?
Once the prescription drug out-of-pocket maximum,
which is applied per family, is met the Plan will pay 100 percent of
prescription costs.
When will I receive my new ID cards?
In late December.
What if I have a hospital stay that starts in 2004,
but I am released from the hospital in 2005?
The claims, whether they are disability or
Medical/dental, will be processed based on date of admit.
How much company-paid life insurance do I get when
I retire?
It depends on when you retire. If you retire before
age 62, you will be eligible for two times your salary at the time that you
retired until age 62. Once you become 62 years of age, your company-paid life
insurance will reduce to $10,000, payable to your designated beneficiary upon
death.
Does the new retiree medical cap mean that once
Nalco’s contributions to retiree medical premiums meet the cap, Nalco will no
longer subsidize retirees’ medical costs?
No. The cap is set at 2.5 times the company’s January
1, 2005 retiree medical coverage contribution. Once Nalco’s contributions meet
or exceed this cap Nalco’s contribution, the company’s contribution to retiree
medical premiums will remain fixed, and any future premium increases will be
absorbed entirely by retirees. This doesn’t mean that Nalco will stop paying for
retiree medical premiums; it means that the percentage of those premiums that
Nalco covers may decrease. In other words, today Nalco and retirees share the
cost of retirees’ medical premiums equally, at 50 percent and 50 percent. When
we meet the cap described above, the amount of money that Nalco contributes
would stay the same, but that amount would represent a smaller percentage, or
proportion, of the total retiree medical premium cost.
Can you explain further how the new retiree medical
caps will work?
The new retiree medical cap helps enable Nalco to
continue providing retiree health benefits while also meeting our financial
objectives. The cap places a future limit on company contributions toward the
cost of retiree medical benefits. The cap is set at 2.5 times the company’s
January 1, 2005 retiree medical coverage contribution. This means that once
Nalco’s contributions meet or exceed this cap – which could be more than 15
years from now, depending on health care trend rates and employee and retiree
consumer behavior – Nalco's contribution will remain fixed and any future
contribution increases would be absorbed entirely by retirees. In other words,
if and when this cap is met, the ratio of the amount Nalco contributes for
retiree medical premiums versus the amount retirees contribute would change,
causing an increase in the retirees’ contribution rate.
I am concerned about the legality of taking away a
person’s medical benefits after they have retired based on Nalco’s
interpretation of what may constitute a competitor. Can you comment?
It is important to recognize that other than federal
and state statutorily mandated employer benefits such as Social Security,
Unemployment and Workers Compensation, benefits are provided at the will of the
company. Medical coverage is provided to retirees at the will of the company
and, like most other companies, Nalco reserves the right to amend or terminate
these non-statutory benefits at any time. If a retiree works for a competitor
and they don't have to pay for medical insurance, it puts Nalco at a cost
disadvantage, and it undermines the company’s ability to fund retiree health
care for the vast majority of retirees who are not doing harm to our business.
It is important to note that if Nalco makes the determination that a retiree is
truly competing with the company, it will notify the retiree and cut off
benefits at the end of the month unless the competition has stopped. In
addition, a retiree’s passive, non-controlling investment in a competing company
will not be determined to be competition. If you have questions about how this
new policy – which became effective for all retirees beginning October 1st -- is
being implemented, call or e-mail HRConnect at 630-305-2834. They will work with
the Legal Department in responding to your questions.
Laurie Marsh
Nalco Company
630-305-1753 (phone)
630-305-2983 (fax)
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