Creating Your Path— Focusing on Your Future Retiree Health Care

1. Creating Your Path—Focusing on Your Future Retiree Health Care BB&T | August 2014

2. Content • New Delivery Model for Medicare-Eligible Retirees

3. Overview of Retiree Benefit • For all BB&T retirees and spouses of retirees 65 or older: • If you are over age 65 and your spouse is under age 65, you may elect to cover your spouse through the BB&T Retiree medical coverage (Select or Consumer options ) through BCBS NC. BB&T will draft your account for the pre-65 coverage • If you elect the BB&T Retiree Life Insurance, BB&T will draft your account for the premium • You may have 2 different enrollment periods: • BB&T open enrollment for pre-65 Health care and for Life Insurance in November • If you and your spouse are both 65 or older, you will each make an election with Aon Retiree Health Exchange for your Medicare Supplement coverage and will be billed separately for coverage

4. Support for Medicare-Eligible Retirees

5. Introducing Aon Retiree Health Exchange • An independent insurance exchange • Offers Medicare insurance plans from quality carriers • Financially stable • “Staying power” in the marketplace • Name brands such as AARP, Blue Cross and Blue Shield, Humana, and United Healthcare • Broad range of products to meet individual needs • Employs licensed and certified benefit advisors • Are salaried; no incentive to steer individuals to specific carriers and/or plans for you! • Benefit advisors are licensed, certified, and experienced in Medicare related insurance. • Will assist you through the entire process and will remain your advisor ongoing

6. Why Aon Retiree Health Exchange? • Aon Retiree Health Exchange is one of the nation’s most trusted advisors in navigating Medicare—it’s advice you can count on • We have a reputation for providing expert, independent assistance to Medicare recipients who expect and deserve high-quality health insurance at an affordable price • Aon Retiree Health Exchange presents complex health insurance information in an objective manner via its Internet site and trained and licensed insurance professionals • The Benefit Advisors are located in Lincolnshire, Illinois, Charlotte, North Carolina, Orlando, Florida, The Woodlands, Texas and Winston-Salem, North Carolina

7. Medicare-Eligible Retirees

8. Enrollment Process for Medicare-Eligible Retirees • Getting Started • Confirm your appointment • Read materials in the education kit or online • Collect the following: • Medicare card • List of doctors • List of medications • Learn/Compare/Enroll • Talk with your benefit advisor • Complete necessary paperwork • Enroll over the phone

9. 2014 Medicare Part A (Inpatient Hospital Care) What Is Covered What You Pay Enrollment in Medicare: Part A is automatic for most people who have worked 40 quarters in their lifetime Deductible: $1,216 per benefit period A benefit period starts the day you leave the hospital and lasts 60 days • Part A covers part of the following services: • Inpatient hospital care • Inpatient care in a skilled nursing facility (not custodial or long-term care) • Hospice care services • Home health care services • Nursing home care

10. 2014 Medicare Part B (Outpatient Hospital and Doctor Care) What Is Covered What You Pay Premium: $104.90 Social Security determines the premium amount based on the last 2 years of taxable income Deductible: $147 Coinsurance: Medicare pays 80% Participant pays 20% • Outpatient care • Doctors’ visits • Outpatient hospital • Lab services • Preventive care • Emergency room visits • Mental health • Ambulance • Lab tests

11. Current Plan Original Medicare Part B (covers doctors and outpatient visits) Part A (covers hospital stays) Government-Funded Medicare Supplement Plan + Rx Drug Coverage (Optional)

12. Medicare Insurance Plan Options MEDIGAP Original Medicare Part B (covers doctors and outpatient visits) Part A (covers hospital stays) Government-Funded OR Replace Original Medicare with Medicare Advantage Keep original Medicare and add: Medicare Supplement Insurance Medigap (covers some or all of the costs not covered by Part A or B) Part C (combines Part A and B and may include prescription drugs) Offered by Private Companies And/Or If Part C of your plan does not include prescriptions, consider adding Part D. + Medicare Part D Part D (covers prescriptions) Offered by Private Companies Offered by Private Companies

13. Medicare Supplement (Medigap) plans In the open market, there are options known as Medicare Supplements. • Medicare Supplements supplement the Medicare coverage you already have • Medicare remains your primary; your Supplement is your secondary • With Medicare Supplement plans, you can go to any doctor, any medical facility in the country as long as the doctor/medical facility accepts Medicare and the service is Medicare approved (similar to what you currently have) • Plans are all federally regulated • Plans come with a range of coverage—Plans A through N • Plan F has highest level of coverage • Covers your deductibles and out-of-pocket expenses left over by Medicare • Plans from company to company are the same—only difference is price • Prices vary by company, age, and service area • Current group supplement is similar to Medigap Plan F—except for Part B deductible

14. Medicare Supplement Chart For illustrative purposes only.

15. Guaranteed Issue of Coverage for Medicare Supplement (Medigap) • “Guaranteed issue” means that during this special election enrollment period for retirees, you’re automatically accepted by the insurance plan without having to answer medical questions • You have guaranteed acceptance into any Medicare Supplement Plan, regardless of any pre­-existing health conditions • Enrolling in a Medicare Supplement Plan after this period, in most states, requires approval from the insurance company • This is a one-time chance for those age 65 and older • For those turning age 65 in the future, you have the same opportunity during your initial enrollment

16. 2014 Medicare Part D Plans (Prescription Drug Coverage) Deductible $310 100% Paid by Participant 25% Paid by Participant 75% Paid by Plan Initial Coverage Level $2,850 Limit 2.5% Paid by Plan BRANDS: (50% Discount) 47.5% Paid by Participant The Donut Hole Exit at $4,550 GENERICS: 72% Paid by Participant 28% Paid by Plan 15% Paid by Plan 80% by Medicare 5% Catastrophic Coverage

17. Medicare Advantage Plans (Part C) • Obtain Medicare Parts A/B coverage through the Medicare Advantage Plan, not Original Medicare • Must pay: • Part B premium • Medicare Advantage Plan premium (if any) • Copays/coinsurance and deductibles, as applicable • Network-based: • PPO, HMO, HMO-POS, PFFS • Medicare Advantage Plans may offer extra coverage: • Vision, hearing, dental, health/wellness programs • Most plans include prescription drug coverage (Part D)

18. Choosing a Medical Plan Comparison Supplement Plan (Medigap) Medicare Advantage (Part C) Low to no monthly premium/Pay as you go Network based plans/HMOs, PPOs Typically includes prescription drugs copays, coinsurance, and deductibles No medical underwriting • Can be higher premium/low to no cost on the back end • Can go to any doctor or medical facility in the country that accepts Medicare • Does not include prescription drugs • Most plans include foreign travel emergency coverage • Guaranteed issue under certain circumstances

19. Choosing a Medical Plan • Even if you and your spouse are both Medicare-eligible, your health needs may differ—each eligible person can choose a medical or prescription drug plan • You may change your Medicare Advantage and Part D plans every year during the Annual Enrollment Period (AEP) October 15–December 7 • You may change your Medigapplan at any time during the year. However – you may be subject to underwriting • Initial Enrollment Period (IEP) – Newly Eligible • Tricare and VA coverage

20. Choices to Meet Retirees’ Needs Telephonic Enrollment • Highly trained benefit advisor guides retirees through process • Retirees work with same benefit advisor throughout process (if desired) • Enrollments can be completed over the phone with telephonic signature • Preferred method—98% Prefilled Paper • Many retirees prefer to review printed materials before making decision • Paper applications accepted via prepaid envelopes or fax Online • Detailed summary of benefits information • Comparison of current plan and alternate plans • Online plan application collection up to signature requirements • www.retiree.aon.com/bbt

21. Conveniently Paying for Your Coverage • Two options: • Pay your health insurance premium by check each billing period or • Have your premium automatically withdrawn from a checking or savings account • Most insurance providers allow automatic withdrawal as a convenient alternative to paper checks

22. Retiree Health Reimbursement Account (HRA) Highlights • Retiree HRA can only be used for reimbursement of eligible premiums for Medicare Supplement, Medicare Advantage, and/or Medicare Prescription Drug Plan, Medicare Part B and D coverage (including Part D penalties paid or surcharges) • Any additional premium expenses for the year would be paid by you

23. Premium Billing and HRA Reimbursement Carrier Retiree Pays insurance premiums directly to carrier Reports premium payments to Aon Retiree Health Exchange Aon Retiree Health Exchange Reimburses retirees for premiums

24. Premium Billing and Manual Claim HRA Reimbursement Retiree Pays insurance premiums directly to carrier and completes manual claim form each month for eligible expense and submits to Aon Retiree Health Exchange/Your Spending Account™ Aon Retiree Health Exchange Retiree Retiree receives premium increase from carrier and fills out a manual claim form for premium increase and submits to Aon Retiree Health Exchange/Your Spending Account Reimburses retirees for premiums

25. Advocacy—The Solution Retirees Need Assistance Advocacy Services Pioneered service in 1999 200 clients 3.6 million participants Advocates average 18 years of industry experience • Access to care and prescription drugs • Claim denials and incorrect payments • Billing disputes • Authorization and referrals • Medicare coordination

26. Medicare Advocacy Examples ROOT CAUSE SOLUTIONS PROBLEM Receiving unexpected bills from rheumatologist • Provider miscoded diagnosis and CPT code; as a result, charges were not eligible for Medicare reimbursement • Advocate worked with provider to correct and refile bill with Medicare • After bill was reprocessed, advocate communicated accurate liability to retiree Erroneous CPT code Incorrect Medicare claim denial Medicare denied a claim, indicating Medicare was not the primary payer • Retiree did have additional coverage; however, Medicare was primary • Advocate facilitated refiling claim with Medicare, then forwarded EOBs to health plan for secondary payment Access to wheelchair Medicare denied a retiree’s request for a wheelchair • Medicare denied claim as not medically necessary • Advocate collected medical records and forwarded them to Medicare • Once approved, advocate made arrangements for home delivery of wheelchair

27. Website • Visit retiree.aon.com/bbt • On the website, you can: • Confirm your appointment • Change you appointment • Add your prescriptions • Compare plans • Create a unique user ID

28. Proprietary & Confidential Website retiree.aon.com/bbt

29. Educational and Informative Content

30. Quick and Easy Plan Entry

31. Guided Tools, Including Personalized Rx Calculations

32. Simplified Browsing Experience

33. Side-by-Side Comparison Shopping—Comparing Apples-to-Apples

34. Prescription Profiler

35. Questions? If you have questions: Call Aon Retiree Health Exchange at +1.888.628.2393