Medical Plans Comparison

Medical Plans ComparisonHighlights : 

Medical Plans ComparisonHighlights Mary Lou Savage AFA Senior Benefits Attorney October 14 and 15, 2008 mlsavage@afanet.org 800-424-2401 X171

Types of Plans : 

Types of Plans DAL changed plans for 2008 Two new types: Health Reimbursement Account and Health Savings Account DAL plans can be changed at any time No FA input for plan or any other employee benefit NWA Plan is set out in your contract Traditional Indemnity Plan - PPO NWA Plan can’t be changed during the term of the contract Plan terms are negotiated and locked in

Delta’s New Medical Plans : 

Delta’s New Medical Plans Two types: Health Reimbursement Account (HRA) and Health Savings Account (HSA) Part of the “Ownership Society” High deductible plans Participants will make more prudent health care choices because more first dollars are paid by the participant Preventive care covered 100%

HRAs : 

HRAs Fictional account to track health costs DAL credits dollars to your account as you incur medical expenses Unused credits can rollover to the next plan year HRA dollars: EE only - $500 EE and Spouse - $1,000 EE and Child(ren) - $1,000 Family - $1,500

HRA First Dollar Costs : 

HRA First Dollar Costs Annual Total Gold Plan Deductible EE only - $1,000 EE and Sp - $2,000 EE and Child(ren) “ “ Family - $3,000 Silver Plan range from $2,000 to $6,000 Individual Deductible No one person can satisfy the total annual deductible Gold Plan – each covered person must expend $1,000 Silver Plan – each covered person must expend $2,000

Coinsurance Maximums – Amount FA Pays Before Plan Pays 100% : 

Coinsurance Maximums – Amount FA Pays Before Plan Pays 100% Gold Plan – EE pays $2,500 EE and Sp pays $3,750 EE and Ch pays $3,750 Family pays $5,000 Each covered person must pay $2,500 Silver Plan ranges from $6,500 to $13,000 and each covered person must pay $6,500

Health Savings Account (HSA) : 

Health Savings Account (HSA) FA contributes to an account Not part of the Medical Plan – separate account used to pay “eligible” expenses Can be pre-tax if use DAL program Can open own account with post tax dollars and claim a deduction later Maximum contributions for 2008: Individual - $2,900 Family - $5,800 Catch up contribution of $900 if over age 55

HSA Deductibles and Maximums : 

HSA Deductibles and Maximums EE only - $2,300 EE & Sp - $3,500 EE & Ch - $3,500 Family - $4,500 No individual deductibles as in the HRA Out of network ranges from $4,500 to $9,000 Coinsurance maximum reached when deductible is met in network Non-network amounts range from $9,200 to $18,000

NWA Medical Plan : 

NWA Medical Plan Plan is set out in the CBA – no changes with out AFA consent Individual deductible is $350 Three or more family members satisfy the deductible with $700 Coinsurance maximum is $2,000 per individual and $4,000 for family Preventive care covered 90%

Retiree Medical : 

Retiree Medical Delta Retiree Rates (monthly) Retiree Spouse Child Medical Options Gold HRA $582.10 $582.10 $205.00 Silver HRA $507.90 $507.90 $205.00 HSA (HDH Plan) $584.85 $584.85 $495.00 Dental Options Preventive $11.76 $11.76 $22.08 Comprehensive $39.80 $39.80 $50.44 CIGNA Dental Care $16.69 $16.69 $27.33 Vision Option Davis Vision $ 6.44 $6.44 $5.80 NWA Retiree Medical is in the CBA Eligibility: FAs age 55 or > with 10 years of service, or any age and at least 210 years of service and on LTD, and enrolled in the Medical Plan are eligible Premiums: 55 with 23 years for service pay 50% of premium – currently single $181.32/month; EE & spouse $391.42; EE & children $309.46; Family $590.07 On LTD with 10 years of service pay 50% of premium; and 55 with 10 years of service pay 100% of premium. Blended Rate: Premium rates for medical, dental, and RX plans are based on a cost pool of actives, pre-65 retirees, and COBRA recipients. Premium Cap: Medical plan premium has a 7% per year cap.

Drug Program : 

Drug Program DAL Four tiers Tier 1 - $10 Tier 2 – 25% of cost ($30 min/$75 max) Tier 3 – 25% of cost ($50 min/$125 max) Tier 4 – 25% of cost ($100 min/$200max) NWA – in CBA Generic - $15 Preferred Brand - $30 Non-Pref Brand - $45 Mail order – 90 days supply for the cost of 75 days, i.e., 2.5X monthly co-pay versus 3X