RHA Design Features and Employer Options

RHA has been designed to offer employers the flexibility they need to integrate RHA into their overall retiree benefits strategy. It offers employers an array of options to tailor RHA to meet their needs.

Funding and Enrollment
Employers have the option to offer RHA on a subsidized or unsubsidized basis with guaranteed access to comprehensive coverage for all eligible retirees regardless of individual health status or employer subsidy level. Employers have full discretion on how they want to fund RHA premiums for their retirees. RHA has no minimum enrollment requirements.

Alternative Adoption Strategies
Employers have the option to offer RHA on the following basis:

• As a total replacement to existing retiree coverage options;
• On a side-by-side basis with current retiree coverage options; or
• To future retirees only.

Many large employers have very diverse lines of business with an array of retiree benefit needs. RHA has been designed to allow employers to choose which of these three options are most appropriate for each line of business that they elect to offer RHA to.

Benefit Coverage Options
Employers may choose from an array of standard RHA benefit design options, including:

• Five standard pre-65 benefit plans, including two HSA compliant, high deductible designs;
• Several Medicare Advantage Private-Fee-for-Service plan designs;
• Medicare Advantage HMOs;
• Three PDP drug coverage options; and
• Medicare Integration plans that operate like Medicare Supplement plans.

In addition, in certain circumstances employers have the option to offer customized post-65 design options.

Eligibility
RHA has certain minimum eligibility standards. It can be offered to any retiree and dependent as long as the employee has attained age 55 and 5 years of service at retirement. Retirees have 90 days to enroll upon retirement. RHA allows retirees to waive coverage and enroll in another group insurance plan at retirement. Retirees that waive coverage can subsequently enroll in RHA at a later date as long as they show proof of continuous coverage in another group insurance options.

Employers have flexibility to establish eligibility rules within these guidelines, including:

• Deciding which retiree populations they want to offer RHA to; and
• What the employer specific age and service requirements are to qualify for RHA.

Retirees can enroll all eligible dependents at the time of retirement, but may not add dependents after retirement.

Administration
RHA has also been designed to give employers flexibility related to administration of the benefit. Employers have two options. They can take advantage of turnkey administrative services available through Accenture, which has been retained to serve as the RHA administrator for employers that elect to choose that option or use an alternative administrative administrator of the employer’s choice. Employers that elect to use Accenture as their RHA administrator receive comprehensive administrative services, including:

• Enrollment materials;
• Call center support;
• Online and telephonic enrollment functions;
• Confirmation statements;
• Ongoing eligibility files to RHA carriers;
• Billing (employer and retiree); and
• Reconciliation.

If Accenture is used, then administrative costs may be included in RHA premiums. Accenture costs are automatically included in RHA premiums unless the employer prefers a different arrangement. Employers using an alternative administrator may include those costs in their premiums up to a specified per member per month maximum.