TRICARE Supplement Program Overview & Best Practices

The Exclusive Provider of the Corporate TRICARE Supplement

TRICARE Supplement Program Overview & Best Practices

Selman and Company is the only provider of the corporate TRICARE Supplement

Plan, offering a step-by-step seamless implementation and ongoing support of the

day-to-day management.

All information in this proposal is confidential and proprietary to Selman & Company.

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TRICARE Supplement Overview & Best Practices

Table of Contents Introduction ................................................................................................... Implementation Case Study ...........................................................................Page 4 Sample Client Cost Analysis ...........................................................................Page 5 Implementation Best Practices ......................................................................Page 7 Sample Documents .......................................................................................Page 9

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INTRODUCTION

The Plan Administrator The TRICARE Supplement Plan is administered by Selman & Company. Selman & Company’s staff of 130+ provides a wide variety of organizations, including many state and municipal governments, with administrative services related to life & health insurance and similar products from our offices in Cleveland & Washington, DC. For over 36 years, Selman has efficiently and consistently delivered extraordinary service as the finest provider of insurance administrative services for insurance companies, financial institutions, employers and groups of people that share a bond of common affinity. As your partner, Selman & Company would strive to consistently provide insurance programs and administrative services distinguished by organizational integrity while remaining flexible, responsive and economical. Selman & Company is among the largest privately held firms in the nation with focus on the markets in which it serves. Our core capabilities include:

• Account Management • Claims

• Administrative Services • Compliance

• Customer Contact • Marketing

Our Philosophy Selman’s philosophy enables us to customize programs and solutions that meet each client’s needs. A dedicated account manager oversees all aspects of your program – supported by a team of project managers, functional experts and client service personnel who ensure success in meeting your goals.

The Plan Underwriter

The plan underwriter for the TRICARE Supplement Plan is Transamerica Premier Life Insurance Company, Cedar Rapids, IA, and Transamerica Life Insurance Company, Harrison, NY, (NY residents only), Transamerica companies. Transamerica Corporation has been in business for over 100 years. Transamerica is one of the world’s leading life insurance and pension organizations and a provider of investment products with business in over 20 markets in the Americas, Europe and Asia.

The Plan Sponsor Government Employees Association (GEA) is the Plan sponsor of the TRICARE Supplement. GEA is a

non-profit, tax-exempt organization; incorporated in 1965 in Washington, D.C. GEA was established

to provide active and retired federal, state and local government employees (including members of

the military and National Guard services) with a network of resources.

According to federal legislation, the corporate TRICARE Supplement Plan must be sponsored by an

association for which membership dues are collected. The membership dues of $1.50 are included in

the monthly premium rates.

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Client Experiences

Southwest Airlines

Dallas, Texas

Southwest Airlines implemented the TRICARE Supplement Plan effective January 1, 2015.

Southwest conducted an internal employee survey, which helped to identify the number of

TRICARE-eligible employees within the company.

Furthermore, the Account Management team worked with HR to develop a partner microsite to

align with Southwest’s internal brand standards. The microsite served as the primary form of

communication about the supplement and served as the only means to enroll in the plan.

Calibre Systems

Alexandria, Virginia

Calibre Systems implemented the TRICARE Supplement Plan effective January 1, 2015. As part of

their implementation process, Selman participated in the company’s annual benefits meeting at

their Alexandria, VA location. During the meeting the HR staff visited with each vendor booth to

take a photographs of each vendor to include in internal emails sent throughout the day to staff

encouraging their participation at the fair and the opportunity to meet with the vendors one-on-

one to get their questions answered.

Additionally, Calibre held a webinar for their other company locations outside of the Virginia

area.

The Boeing Company Chicago, Illinois

The Boeing Company implemented the TRICARE Supplement Plan to their active employee

population effective January 1, 2015. With multiple locations throughout the United States,

Boeing provided an opportunity for Selman to target their ex-military employees by

participating in a live webinar for their Veteran Employee Special Interest Group. The webinar

included a presentation with a Q&A session following.

The Account Management team also worked with the HR team at Boeing to provide resources

and support for the TRICARE Supplement Training for Boeing’s HR call center.

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IMPLEMETATION CASE STUDY

State of South Carolina

Columbia, South Carolina

Selman & Company has worked with the states of South Carolina, North Carolina, Georgia,

Virginia and Missouri to implement the Corporate TRICARE Supplement since 2010. The State of

South Carolina’s Public Employees Benefit Administration (PEBA) worked directly with Selman &

Company and therefore has been particularly successful with offering the plan. In an effort to

introduce and bring awareness about the plan offering, PEBA included the TRICARE Supplement

Plan in their PEBA Direct Newsletter five (5) months prior to the start date of the plan. This

communication was focused on educating the employees by providing information on open

enrollment, eligibility, benefits, premium and plan administrator. PEBA’s Benefits Specialists

also participated in a presentation that was focused on educating and providing them with

information to help them in assisting their existing and new employees with their benefits.

Selman & Company (ASI) worked closely with PEBA on their ongoing communication for their

benefits guide booklet. The benefits guide included comprehensive information on their

benefits, including the supplement plan, which was beneficial to the employees.

The State of South Carolina implemented the TRICARE Supplement Plan effective January 1,

2014. Today, PEBA has over 400 state employees enrolled in the TRICARE Supplement Plan

with an estimated annual savings to the state of more than $2.6 million.

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Sample Savings Analysis:

Due the public nature of data on state benefit plans, the examples below provide a strong example of the savings achievable to any employer who offers the Corporate TRICARE Supplement. With their retired status, those veterans are eligible to use TRICARE as their primary health insurance and purchase a TRICARE Supplement to cover many of the cost shares left to the beneficiary by TRICARE.

Projected Savings to the State

In the following chart, please find a listing of the monthly estimated savings that could be realized by an employer and eligible employees when utilizing the TRICARE Supplement. Comparisons are drawn between an active state benefit plan and the premiums associated with the Corporate TRICARE Supplement. The figures in the columns entitled “Cost of State Plan” and “State Savings” are taken directly from the Plan Year 2015 Premium Rates chart listed on the state’s website. As the TRICARE Supplement provides benefits to those that utilize it regardless of plan type, the benefit is most widely used in combination with TRICARE Standard/Extra, the point of service/preferred provider version of the entitlement. Therefore, the strongest statement of savings is compared against the state plan.

• State saves $845.54/ employee + spouse and employees saves $188

• State saves $743.80/ employee + children and employee saves $ 87

• State save $1,051.68/employee +family and employee saves $354

State Benefit Option Cost of State Plan TRICARE Supplement Plan Rates

State Monthly Savings

Employee Monthly Savings

You Only $537.66 You & Spouse $1,153.42 You & Children $949.94 You and Family $1,565.70

$60.50 $119.50 $119.50 $160.50

$537.66 $845.54 $743.80 $1,051.68

$0 $188.38 $86.64 $353.53

* In this example, the state used was providing coverage without charging premium to an individual enrollee. As this likely varies in the private employer market, any difference in the premium charged for the primary health care and the TRICARE Supplement would represent a savings to both the employer and employee.

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IMPLEMENTATION BEST PRACTICES Partnering Directly with Selman & Company to Support Eligible Employees

The most successful cases, particularly with states and large private employers, are ones where

the employer and Selman partner in an active and direct effort to support those involved in

implementation and the employees that may benefit from the TRICARE Supplement. In addition

to communication, Selman & Company understands that ease of implementation;

administration and customer service are paramount.

Regular communication between Employer and Selman & Co.

Introducing a new benefit to employees can be challenging for the implementation teams of

employers who are often charged with much more than the implementation of new benefits.

Selman & Company will develop a detailed implementation schedule and assign an experienced

manager to help guide new employers through the process.

Communication of TRICARE Supplement Availability

Case studies from other states, including South Carolina, North Carolina and Missouri have

shown that prominent placement of information about TRICARE Supplement benefit in

mainstream employee benefit communication materials (benefit guides, bulletins, websites,

etc.), as well as easy access to benefit enrollment, lays the foundation for strong results.

Identify TRICARE Supplement eligible employees Identifying TRICARE eligible employees is critical to a successful implementation. Often, retired military are confused about whether or not they qualify for the coverage. We have developed a TRICARE Eligibility Questionnaire and a document, “How to Identify TRICARE Eligible Employees”, to assist HR reps and employees determine whether or not they are eligible.

Host Webinars for HR Representatives and Employees

Education is a key component during the implementation of the TRICARE Supplement Plan. One

of the most efficient and effective ways to educate HR reps and employees is with a TRICARE

Supplement webinar. Our Account Management team would work directly with Employer to

customize the webinar for each specific audience. Webinars average approximately 30-45

minutes in duration including a live Q&A session. In addition, we can also provide a pre-

recorded webinar to be used at an employee meeting or posted to an employee website.

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Employee Communications

We offer a variety of marketing communications pieces range from email marketing and print.

Additionally, we also provide content for benefits guides, employee websites, etc.

Customized Partner Microsite

We offer a customized partner microsite to compliment your existing communications

materials. The partner microsite is built, hosted and managed by Selman and Company.

Open Enrollment & Benefits Fairs

Upon mutual agreement between the employer and Selman and Company, we will provide

knowledgeable personnel to participate in scheduled open enrollment meetings, benefits fairs,

or health fairs at various locations.

Argument for the Benefit of Supplement to Veterans Upon separation from the military, the mass of benefits presented to veterans can be overwhelming. While on active duty, a soldier is provided with all they need to effectively perform their duties, including healthcare for themselves and their family. The military health system, TRICARE, is the Department of Defense’s worldwide health care program used by more than 9.5 million beneficiaries (soldiers and their dependents). The Department of Defense (DoD) defines a retired member of the military as one who has dedicated 20 or more years of active service to the military. Those retired veterans and their dependents are eligible to maintain access to the benefits of TRICARE that they have grown accustomed to. While the benefits remain strong and less expensive to the veteran than an equivalent plan available to a civilian, those veterans are responsible for any applicable cost shares including enrollment fees, deductibles and copayments. These cost shares may total up to $3,000 per year. According to testimony provided by Jack Leinweber, Air Force (Ret.) before the House Pensions and Senate State Affairs Committees, TRICARE is a reliable program that provides affordable access to excellent healthcare for our active duty and retired military. However, even the DoD is not immune to the rising costs of healthcare. In 2015, the DoD increased the co-pays for prescription medicines. While increases are a regular occurrence in civilian plans, the additional financial exposure can be challenging for many veterans that spent twenty years or more paying very little for healthcare. Purchasing a supplement to TRICARE to help offset most of the cost shares left by TRICARE makes sense for nearly anyone who is eligible. Offering this supplement to eligible veterans through a payroll deducted plan offered by the state can be beneficial to those veterans. Those veterans who elect to use TRICARE as their primary health plan may remain with the doctors they have come to trust or seek out new ones. By utilizing a supplement made available to them by their employer, they can take comfort that most of the financial exposure left by TRICARE is covered.

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APPENDIX

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Sample HR Webinar

Associations Affinity Groups Banks Credit Unions Employers Insurance Companies

Sample Partner Microsite

What is TRICARE Supplement?

TRICARE Supplement wraps around TRICARE

• Must have TRICARE (Standard/Extra or Prime) to have the

supplement plan

• It can replace the employer sponsored health plan

• Covers costs TRICARE leaves behind

• TRICARE Supplement covers the same

benefits as TRICARE

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Plan Features

• Supplements all three TRICARE options (Standard, Extra, and Prime)

• No pre-existing condition limitation clause

• Guaranteed Issued

• Enables greater access to civilian providers worldwide

• Covers the TRICARE deductible, cost shares/copayments and applicable excess charges

• Continuation of coverage, if employment ends for any reason

HR and employee webinars provide a great platform to educate HR reps and employees about

the TRICARE Supplement Plan. Our Account Management team works directly with

employers to customize the webinar and coordinate and facilitate the webinars.

TRICARE Supplement Eligibility

Retired Uniform Service members who are eligible for TRICARE

and are not eligible for Medicare, including:

• Spouses, surviving spouses and dependents of mili tary retirees

• Gray area retired reservist under the age of 60 and enrolled in

TRICARE Retired Reserves

• TRICARE-eligible employees age 65 or older (must not be eligible

for Medicare)

• TRICARE-eligible members age 65 or older who reside overseas

(must be enrolled in Medicare)

• Qualified National Guard and Reserve members (TRS)

Enrollment Process

Effective Dates

• Enroll during open enrollment

• For new hires effective date will always be the 1st of the month following

date of hire

Enrollments

• HIPPA 834 file (preferred)

• Hardcopy enrollment forms

• Other formats (fixed, xls)

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The partner microsite offers another communication tool on the TRICARE Supplement Plan. The site is customized and has online enrollment capabilities.

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SAMPLE HR Document – How to Identify TRICARE-eligible Employees

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TRICARE Supplement Eligibility Questionnaire

TRICARE Supplement Program Overview & Best Practices

Documents

Transcript of TRICARE Supplement Program Overview & Best Practices