What is Medicare?

1. Medicare 101 What is Medicare? • Medicare is a government program developed for the nation’s aged to provide financial benefits for health related occurrences. Typically, you qualify for Medicare when you: • Turn age 65 • Become permanently disabled • Diagnosed with End Stage Renal Disease (kidney failure)

2. Medicare 101 The Four Parts of Medicare... • Part A – Inpatient Hospital • No cost • Benefit period deductible $1,184 • Part B – Outpatient Services • $104.90/month • Annual deductible, $147 • After deductible, 80/20 Coinsurance • Part C – Medicare Advantage Plans • Type of Medicare insurance plan • Assignment of benefits • Purchase through a private insurance company • Part D – Prescription Drug Program • Deductible/No deductible • Level 1 coverage (cost sharing until $2,970 is spent) • Level 2 coverage (“donut hole”, cost sharing until $4,750 is spent) • Level 3 coverage (catastrophic coverage) • Purchase through a private insurance company Original Medicare

3. How to enroll in the four parts of Medicare Initial Coverage Election Period (ICEP) 7 month window for newly eligible Medicare beneficiaries Enrollment is done through Social Security Administration Special Election Period (SEP) Allows for special circumstances Part B General Enrollment Period 1/1 – 3/31, coverage begins 7/1 Annual Election Period (AEP) 10/15 – 12/07 Penalties for late enrollment Part B: 10% of the Part B premium for each year you were eligible, but didn’t enroll Pard D: 1% of the Part D benchmark for each month you were eligible, but didn’t enroll Medicare 101

4. Group Prime Solutions Enrollment • Minneapolis Public School Retiree Plan through Medica • Monthly premium of $242 per month • Offers prescription coverage through the ‘gap’ • Low medical copayments with a max out of pocket of $1000.00 • Value Added Benefits • Silver Sneakers • Medication Management Therapy • Extended Absence Option • Eyewear and Hearing aid Benefit

5. Group Prime Solutions Enrollment For more information on the Retiree Health Plan through Medica please contact: Der Vang Account Manager 952-992-8558 Stacy Alness Account Manager 952-992-3825