For Eligible

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For Eligible Kaiser Permanente Employees
Northwest Region November 2009
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Overview

• Effective January 1, 2010
• Health Reimbursement Account (HRA)
• Offered to eligible employees represented by
  Labor Management Partnership (LMP) Unions
• Tax-free reimbursement for
• out-of-pocket eligible medical, dental, and
  vision care expenses.
• HRA account funded with 80 of value of unused
  sick leave as of termination date
• An account will be opened automatically when
  eligible
• No action required
• Retiree medical eligibility, medical plan and
  benefit levels are not affected by the HRA

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Regions Affected

• Colorado
• Georgia
• Mid-Atlantic States
• Northern California
• Northwest
• Ohio
• Southern California

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Eligible Groups - Northwest

• International Longshore and Warehouse Union,
  Local 28, Security Officers
• United Food and Commercial Workers, Local 555,
  Non-Registered Drug
• United Food and Commercial Workers Union, Local
  555-Imaging Services
• Oregon Nurses Association
• Northwest Region, Service Employees International
  Union, Local 49
• The Guild for Professional Pharmacists

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Eligible Groups Northwest (Contd)

• Oregon Federation of Nurses and Health
  Professionals, Local 5017, Professional and Lab
  Professionals
• Oregon Federation of Nurses and Health
  Professionals, Local 5017, Registered Nurses
• Oregon Federation of Nurses and Health
  Professionals, Local 5017, Registered Dental
  Hygienists and Technical Employees

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What is the HRA?

• What is a Health Reimbursement Account?
• The HRA, also referred to as a Health
  Reimbursement Arrangement, allows retirees and
  their eligible dependents to pay for
  out-of-pocket qualified medical, dental, vision,
  and hearing care expenses, as well as premiums
  paid to a Kaiser Permanente medical plan, on a
  tax-free basis.

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Eligibility

• Eligibility requirements at termination of
  employment
• At least age 55
• 15 or more years of Service
• as defined under the KP-sponsored defined
  benefit
• plan, or the pension plan under the union
  trust, as applicable
• HRA eligibility is independent of retirement
  eligibility
• Age and years of Service requirement waived for
  Disability Retirement

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Eligibility (contd)

• Eligibility requirements at termination of
  employment (contd)
• eligible for KP medical coverage on last day of
  employment
• enrollment in plan not required
• must be in an employee group that participates in
  the HRA
• ACP may participate

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Eligible Dependents

• Legal spouse
• Unless divorced or legally separated
• Must be of the opposite sex to whom legally
  married under federal law
• Domestic partner
• If they qualify as a dependent on employees
  federal income taxes
• May not use HRA account to pay expenses for the
  child of domestic partner if domestic partner
  claims the child as a dependent on his or her tax
  return
• Your unmarried dependent children under age 25
• If divorced, children will be considered eligible
  under the plan if employee is responsible for
  childrens support and have custody of children
  for more than half of the calendar year, per the
  IRC

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Eligible Expenses

• IRS determines which expenses are eligible
  (qualified) for reimbursement
• May not also claim the expense through your
  health care plan, insurance program, or income
  taxes
• Consult a tax advisor for tax implications

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Eligible Expenses

• Acupuncture
• Chiropractic care
• Dental implants, supplies
• Dental insurance premiums and copayments
• Hearing exams and treatment
• Long-term care insurance premiums
• Sample list only, not a complete list

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Eligible Expenses (contd)

• Medical insurance premiums paid for a Kaiser
  Permanente medical plan only
• Medical copayments
• Medicare premiums
• Premiums paid under COBRA (medical, dental)
• Substance Abuse Treatment
• Vaccinations
• Wheelchair
• Unless you live in an area where KP medical
  is not offered

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Ineligible Expenses

• Baldness treatments or hair transplants
• Dancing lessons
• Exercise equipment
• Herbal and holistic drugs or remedies
• Special diet foods
• Swimming lessons
• Vacation expenses (even if recommended by a
  doctor)
• Sample list only not a complete list

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How the HRA is established

• On termination or retirement
• HRA-convertible sick leave hours converted at 80
  of value
• Kaiser Permanente deposits into HRA
• No employee contributions allowed
• 100 minimum required to establish account
• No cost for this new benefit
• Automatic participation, if eligible
• No opt-out option

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Enhanced Sick Leave Program

• Banked Sick Leave (BSL)
• Unused hours accrued in 2006 and thereafter
  converted at 80 of value
• Deposited into HRA
• No Credited Service for post-2005 BSL hours

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Extended Sick Leave (ESL)

• Extended Sick Leave (ESL)
• Effective first pay period of 2010, two ESL banks
• A current ESL bank
• A pre-2010 ESL bank
• ESL hours beginning first pay period 2010 go into
  current ESL bank
• Unused ESL hours last pay period 2009 used to
  establish pre-2010 ESL bank
• Accrued, unused ESL in current ESL account
  converted at 80 of value and deposited into HRA
• No Credited Service for unused post-2009 ESL hours

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When Your Account Opens

• Welcome Kit from the HRSC
• Notification of Enrollment Letter from Ceridian
• Kaiser Permanentes contribution to your HRA
• Quarterly Statements

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How to File for Reimbursement
Submitting claims is easy

• Submit claims through Ceridian
• Fax [phone]
• Mail
• Ceridian FSA Services
• P.O. Box 534200
• St. Petersburg, FL 33747-4200
• Reimbursement via check or direct deposit
• Check on the status of your claim or payment at
• www.ceridian-benefits.com

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Claims Guidelines

• Claims processed weekly
• No limit on number of claims
• No minimum/maximum dollar amount
• Submit claims within 60 days
• Unused funds carry over from year to year

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Account Closes

• HRA Account closes if
• Account balance is 0
• Account is abandoned
• Death, with no surviving eligible dependents
• Upon the death of surviving eligible dependents
• If during the termination or retirement process,
  you are deemed ineligible for the HRA

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Account Suspended

• Account suspended
• If you are rehired and return to work at Kaiser
  Permanente in any capacity
• Account Reactivated
• When you terminate again
• No minimum balance required

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Customer Service

• Ceridian Customer Service
• 1-866-370-2534
• or
• Online at www.ceridian-benefits.com
• Social Security number (with dashes)
• Initial password/PIN
• (last 4 numbers of your SSN reversed)

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Contact Information

• For HRA detailed questions, covered expenses and
  claims
• Ceridian
• Monday-Friday, 5 a.m.-5 p.m. Pacific Time
• 1-866-370-2534
• www.ceridian-benefits.com
• For HRA general questions
• My HR Web site
• http//insidekp.kp.org/myhr
• Human Resources Service Center (HRSC)
• 1-877-4KP-HRSC (1-877-457-4772)

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HRA Communications Timeline

• Late November 2009
• Customized communications sent to all impacted
  employees
• Cover letter from region
• Brochure containing
• Summary of Material Modification (SMM)
• Frequently Asked Questions (FAQ)
• Claims process
• January 1, 2010 - HRA becomes effective

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• Thank you!