National Health Care Reform (Agenda Item 3)

1. National Health Care Reform(Agenda Item 3) • Assessment in progress • Employee Communication • Identified Issues • Elimination of pre-existing condition exclusion • Prohibit lifetime limits • Prohibit restricted annual limits for “essential coverage” • Dependent coverage to age 26 • Requirement to cover certain preventive services without charge • Over the counter drug coverage under flexible spending accounts requires prescription 3

2. National Health Care Reform (cont) • Bar rescissions of health insurance coverage • No waiting periods in excess of 90 days • Excise tax on high cost plans • Phase out Medicare Part D coverage gap 3 a

3. UM Employee Benefits Communication Document Potential Impact of National Health Care Reform on UM Medical Benefits Plan We recognize that UM faculty, staff, and retirees have many questions regarding the impact of the legislation. We, like you, have more questions than answers at this point in time. Because of the size and complexity of the bill, it will take the University some time to determine exactly what it means for all of us. Please understand that health care reform will not change the University’s commitment to providing a meaningful and competitive health care benefits program and to being an employer of choice. UM Faculty and Staff Benefits will be working with UM’s General Counsel’s office, as well as external consulting resources, to interpret the bill and apply it to the University. In addition, we will be working with the UM Retirement and Staff Benefits Committee to formulate actions that the University needs to initiate to respond to the bill. Needless to say, careful thought and planning will need to occur to protect the interests of the University, faculty, staff, and retirees. One of our primary objectives is to keep you informed of all issues at the earliest possible dates. As more information becomes available and we are able to effectively interpret its impact on the UM Medical Benefits Plan we will update the information below. Thank you for your cooperation and patience as we develop our response to this unprecedented, landmark legislation. Should you have specific questions, please feel free to forward those to us at benefits@umsystem.edu. While we may not be able to respond to each question individually, we will use your inquiries as a basis for providing information through the Faculty and Staff Benefits website. The effective dates of changes will vary and will likely be staged through 2017 as required by law. Our current assessment is that no changes will occur prior to January 2011. OPEN - C&HR - INFO 3 b

4. OPEN - C&HR - INFO 3 c