2013 CIGNA MEDICARE RX (PDP) A MEDICARE PRESCRIPTION DRUG PLAN

(1)

2013 CIGNA MEDICARE RX

®

_(PDP)

A MEDICARE

PRESCRIPTION

DRUG PLAN

(2)

• Medicare overview

3

• Medicare Part D

5

• Cigna Medicare Rx (PDP) plans

12

• Additional information

25

2

(3)

(4)

MEDICARE OVERVIEW

4 The A, B, C and D’s of Medicare

(5)

MEDICARE OVERVIEW

5

• Insurance that helps with drug costs

• Implemented January 1, 2006

• Potential penalties for those who don’t enroll

during initial enrollment period (1% per month

penalty), with some exceptions

• Voluntary program you must enroll to participate

Medicare Part D

(6)

MEDICARE PART D

• You are eligible to join a prescription drug plan if you:

–

Are entitled to Medicare Part A and/or

–

Are enrolled in Medicare Part B and

–

Reside in the plan’s service area

Did you know?

• You can only be enrolled in one Part D plan at a time

• You may enroll in the plan only during specific times a year (in most instances)

6 Cigna Medicare Rx (PDP)

is available in all 50

states and the District

of Columbia

(7)

2013 MEDICARE PART D STANDARD BENEFIT

• If you are entitled to Medicare Part A and/or enrolled in Part B, and reside in the

plan’s service area, you can enroll in a Part D plan

• The standard Medicare Part D program works like this:

–

Individual pays a monthly premium

–

You pay 100% of your prescription costs until you meet your annual deductible (if

applicable)

–

After the deductible is met, you have initial coverage (the amount you pay is based

on your plan) up to a predetermined limit based on what you (or others on your

behalf) pay and what your Part D plan pays (i.e., total drug costs)

–

After total drug costs reach this initial limit, there is a coverage gap

–

In the coverage gap, you will receive a discount of approximately 50% for brand-

name drugs* and pay no more than 79% of generic drug costs (if you receive Extra

Help, these discounts are not applicable)

–

You will remain in the coverage gap until your total out-of-pocket costs reach

another predetermined limit, at which time you hit the catastrophic level

How it works

*Dispensing fees and vaccine administration fees are not eligible for the brand manufacturer discount

(8)

Standard Medicare Part D plans consist of four stages:

• Deductible

• Initial coverage

• Coverage gap

• Catastrophic coverage

THE FOUR STAGES OF STANDARD MEDICARE PART D

2013 minimum plan requirements

5% 95%

Beginning of year

End of year

Catastrophic

coverage

Generic drugs

Brand drugs

Coverage gap

standard discount

Initial coverage

up to limit

$4,750 in total

out-of-pocket costs

$2,970 in total

drug costs

$325 deductible

25% 75%

Customer pays

Part D (Medicare and/or Plan) pays

Manufacturer discount

8 79% 21%

Our focus here will be

on Medicare Part D’s

coverage gap stage.

(9)

UNDERSTANDING THE COVERAGE GAP

1 Post-health care reform timeline highlights

• A 50% manufacturer discount on

the contracted price (excluding

any applicable dispensing fees or

vaccine administration fees)

became available for brand-

name drugs.

1

• Individuals paid no more than

86% of generic drug costs.

2013

2020

• Individuals will continue to

receive a 50% manufacturer

discount on the contracted

price

2

_{for brand-name drugs}

and will be responsible for

47.5% of the remaining 50%

and 47.5% of the dispensing

and vaccine administration

fees.

• Individuals will pay no more

than 79% of generic drug

costs.

• By 2020, individuals with

standard Part D gap

coverage will ultimately

be responsible for only

25% of the contracted

cost of their brand-name

and generic drugs.

Plan Two provides full coverage

through the coverage gap:

$0 for all Tier 1 drugs!

1. This program is not available if you receive Extra Help from the government since you already have

coverage through the coverage gap.

2. Dispensing fees and vaccine administration fees are not eligible for the brand manufacturer discount.

2012

(10)

2013 MEDICARE PART D

• If you are experiencing financial difficulty you may be able to get Extra Help (also

called low-income subsidy (LIS)) to pay for your Part D prescription expenses

• If you have limited income and assets, you may be eligible for Extra Help through

the Social Security Administration (the amount of Extra Help you receive is based

on your income and resources)

• The government provides Extra Help paying Medicare Part D prescription drug

plan costs (e.g., monthly premiums, annual deductibles, copays and coinsurance)

Did you know?

• There are four levels of LIS: 1, 2, 3 and 4

–

Within each of the four levels, a qualifying customer will be assigned a percentage

premium subsidy coverage: 25%, 50%, 75% or 100%

–

Cost share for each subsidy level is defined by Centers for Medicare and Medicare

Services (CMS)

Extra Help/low-income subsidy

(11)

2013 MEDICARE PART D

• Initial enrollment period (IEP):

If you’re just turning 65, you can enroll in

a Part D plan during the month of your 65

th

birthday, as well as three months before

and after.

• Annual election period (AEP):

2013 AEP occurs from October 15 through

December 7, 2012. You can make as many changes as desired during the

AEP, but the last election made during the AEP is the one that becomes effective

on January 1, 2013.

• Special election periods (SEP):

SEP exists for those to make changes to their

current Medicare benefit plan outside of the normal enrollment periods. SEPs are only

allowed under certain circumstances (e.g., moving into a new service area, losing

employer group coverage or a benefit plan termination by CMS). SEPs exist year

round for dual-eligible and LIS individuals or Chronic Care Special Needs Plans.

When to enroll

(12)

2013 Cigna

Medicare Rx (PDP)

A plan to save you money

on your prescriptions

(13)

PLAN FEATURES

• Moderate premium plan with a $0 copay for some

drugs, including a $0 copay through the coverage

gap.

- No deductible

- $0 copay for all Tier 1 drugs

including high

blood pressure, diabetes, high cholesterol,

glaucoma and thyroid therapy medications

- Standard gap coverage

2 _plus

_{$0 copay for all}

Tier 1 drugs in the coverage gap

- Low copays for other generics and preferred

brand drugs

- Expanded drug coverage

1. Plan Two is available in AL, AR, AZ, CT, FL, IA, IL, IN, KY, MA, MI, MN, MO, MT, NC, ND, NE, OH, PA, RI,

SC, SD, TN, TX, VA, VT, WV, WY.

2. The Health Care Reform mandated gap coverage provides you with a discount of approximately 50% on

brand-name drugs and you pay 79% of generic drug costs (does not apply if you are receiving Extra Help).

13

plan one

coverage in all states

plan two

expanded coverage in some states

1

• Lower premium pharmacy plan with a $0

copay for some drugs and very low copays

for most other drugs.

- $0 copay for all Tier 1 drugs

including

high cholesterol, hypertension and

diabetes medications

- Very low copays for most other drugs

- Broad drug coverage

- Standard gap coverage

2 $0 deductible generics

For those living in DE, DC, GA, ID, MD, ME,

MS, NH, SC, UT, WI:

$0 deductible for Tiers 1-2 drugs

(14)

PLAN AVAILABLITY

14

• Plan One

– coverage available in all

50 States and the District of Columbia

• Plan Two

– expanded coverage available in

28 States shown in dark blue



Plan One only

(15)

AT A GLANCE

₁₅

* Plan Two is available in AL, AR, AZ, CT, FL, IA, IL, IN, KY, MA, MI, MN, MO, MT, NC, ND, NE, OH, PA, RI, SC, SD, TN, TX,

VA, VT, WV, WY.

1. Copays are for a 30-day supply at an in-network retail pharmacy. For a 90-day supply at retail, the copay is 3 times the above

levels. For a 90-day supply at our preferred mail-service pharmacy, the copay is 2.5 times the 30-day levels.

2. Ranges are state variations.

3. The Health Care Reform mandated gap coverage provides you with a discount of approximately 50% on brand-name drugs

and you pay 79% of generic drug costs (does not apply if you are receiving Extra Help).

4. Higher of 5% coinsurance or $2.65 (generic or brands treated as generic) and $6.60 (for all other drugs).

5. Benefits, formulary pharmacy network, premium and/or co-payments/co-insurance may change on January 1

of each year. The benefit information provided is a brief summary, not a complete description of benefits.

For more information, contact the plan. Limitations, copayments and restrictions may apply.

2013 Cigna Medicare Part D plans

Plan One

Plan Two*

Annual deductible

$0/$325 for residents of DE, DC, GA, ID,

MD, ME, MS, NH, SC, UT, WI

$325 for all other states

$0

Initial coverage:

Tier 1

Tier 2

Tier 3

Tier 4

Tier 5

Copay

1

$0

$8

$22-$37

$52-$91

2

25%

Copay

1

$0

$10

$45

$90

33%

Standard coverage gap

3

(health care reform)

After your yearly drug costs reach $2,970,

you receive a discount on brand-name

drugs and pay 79% of generic drug costs.

After your yearly drug costs reach $2,970,

you receive a discount on brand-name drugs

and pay 79% of generic drug costs and…

Additional coverage gap

(Plan Two only)

$0 copay coverage on all Tier 1 drugs.

Catastrophic coverage:

After out-of-pocket drug

costs reach $4,750

You pay 5% of covered drug costs.

4

_{You pay 5% of covered drug costs.}

4

(16)

STATE-BY-STATE PREMIUMS AND DEDUCTIBLES

₁₆

Plan One

Plan Two

1

State

Monthly

premium

2

Annual

deductible

Monthly

premium

2

Annual

deductible

AK

$43.20

$325

N/A

AL

$33.50

$325

$74.00

$0

AR

$33.50

$325

$70.30

$0

AZ

$42.90

$325

$81.10

$0

CA

$55.80

$325

N/A

CO

$51.00

$325

N/A

CT

$34.00

$325

$76.50

$0

DE

$35.40

$0/$325*

N/A

DC

$35.40

$0/$325*

N/A

FL

$45.80

$325

$78.70

$0

GA

$33.50

$0/$325*

N/A

HI

$33.50

$325

N/A

IA

$35.40

$325

$80.60

$0

ID

$44.80

$0/$325*

N/A

IL

$31.30

$325

$79.20

$0

IN

$36.30

$325

$76.90

$0

KS

$37.60

$325

N/A

KY

$36.30

$325

$76.90

$0

LA

$37.50

$325

N/A

MA

$34.00

$325

$76.50

$0

MD

$35.40

$0/$325*

N/A

ME

$32.80

$0/$325*

N/A

MI

$35.20

$325

$66.30

$0

MN

$35.40

$325

$80.60

$0

MO

$34.50

$325

$75.90

$0

*

$0 deductible generics

for:

DE, DC, GA, ID, MD, ME, MS,

NH, SC, UT, WI:

$0 deductible for Tiers 1-2 drugs

$325 deductible for Tiers 3-5 drugs

1. Plan Two is available in AL, AR, AZ, CT, FL, IA, IL, IN, KY, MA, MI, MN, MO, MT, NC, ND, NE,

OH, PA, RI, SC, SD, TN, TX, VA, VT, WV, WY.

(17)

STATE-BY-STATE PREMIUMS AND DEDUCTIBLES

₁₇

Plan One

Plan Two

1

State

Monthly

premium

2

Annual

deductible

Monthly

premium

2

Annual

deductible

MS

$34.30

$325

n/a

N/A

MT

$35.40

$325

$80.60

$0

NC

$33.10

$325

$72.10

$0

ND

$35.40

$325

$80.60

$0

NE

$35.40

$325

$80.60

$0

NH

$32.80

$0/$325*

N/A

NJ

$47.00

$325

N/A

NM

$25.50

$325

N/A

NV

$46.70

$325

N/A

NY

$42.30

$325

N/A

OH

$38.30

$325

$72.20

$0

OK

$34.00

$325

N/A

OR

$49.00

$325

N/A

PA

$36.10

$325

$76.00

$0

RI

$34.00

$325

$76.50

$0

SC

$37.10

$0/$325*

$71.70

$0

SD

$35.40

$325

$80.60

$0

TN

$33.50

$325

$74.00

$0

TX

$31.80

$325

$79.10

$0

UT

$44.80

$0/$325*

N/A

VA

$31.40

$325

$71.40

$0

VT

$34.00

$325

$76.50

$0

WA

$49.00

$325

N/A

WI

$38.00

$0/$325*

N/A

WV

$36.10

$325

$76.00

$0

WY

$35.40

$325

$80.60

$0

1. Plan Two is available in AL, AR, AZ, CT, FL, IA, IL, IN, KY, MA, MI, MN, MO, MT, NC, ND, NE,

OH, PA, RI, SC, SD, TN, TX, VA, VT, WV, WY.

2. You must continue to pay your Medicare Part B premium.

*

$0 deductible generics

for:

DE, DC, GA, ID, MD, ME, MS,

NH, SC, UT, WI:

$0 deductible for Tiers 1-2 drugs

(18)

STATE-BY-STATE MONTHLY LIS PREMIUMS

₁₈

Plan One

Plan Two

1

Subsidized Part D low-income premium

(by % covered) – customer pays:

Subsidized Part D low-income premium

(by % covered) – customer pays:

State

100%

75%

50%

25%

100%

75%

50%

25%

AK

$8.50

$17.20

$25.80

$34.50

N/A

AL

$0.00

$8.40

$16.70

$25.10

$40.30

$48.70

$57.20

$65.60

AR

$0.00

$8.40

$16.70

$25.10

$36.10

$44.70

$53.20

$61.80

AZ

$13.50

$20.80

$28.20

$35.50

$51.70

$59.00

$66.40

$73.70

CA

$25.90

$33.40

$40.90

$48.30

N/A

CO

$19.10

$27.10

$35.00

$43.00

N/A

CT

$2.60

$10.50

$18.30

$26.20

$45.10

$53.00

$60.80

$68.70

DE

$0.00

$9.20

$17.90

$26.70

N/A

DC

$0.00

$9.20

$17.90

$26.70

N/A

FL

$21.00

$27.20

$33.40

$39.60

$53.90

$60.10

$66.30

$72.50

GA

$0.00

$8.40

$16.70

$25.10

N/A

HI

$0.20

$8.50

$16.80

$25.20

N/A

IA

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

ID

$2.60

$13.20

$23.70

$34.30

N/A

IL

$0.00

$8.10

$15.80

$23.60

$48.30

$56.00

$63.70

$71.50

IN

$0.00

$9.10

$18.10

$27.20

$39.70

$49.00

$58.30

$67.60

KS

$0.00

$10.60

$19.60

$28.60

N/A

KY

$0.00

$9.10

$18.10

$27.20

$39.70

$49.00

$58.30

$67.60

LA

$0.00

$9.50

$18.80

$28.20

N/A

MA

$2.60

$10.50

$18.30

$26.20

$45.10

$53.00

$60.80

$68.70

MD

$0.00

$9.20

$17.90

$26.70

N/A

ME

$0.00

$8.20

$16.40

$24.60

N/A

MI

$0.00

$9.60

$18.10

$26.70

$32.10

$40.70

$49.20

$57.80

MN

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

MO

$0.00

$8.60

$17.20

$25.90

$41.30

$50.00

$58.60

$67.30

This chart does not include any Medicare Part B premium you may have to pay.

(19)

STATE-BY-STATE MONTHLY LIS PREMIUMS

₁₉

Plan One

Plan Two

1

Subsidized Part D low-income premium

(by % covered) – customer pays:

Subsidized Part D low-income premium

(by % covered) – customer pays:

State

100%

75%

50%

25%

100%

75%

50%

25%

MS

$0.00

$8.60

$17.10

$25.70

N/A

MT

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

NC

$0.00

$9.10

$17.10

$25.10

$40.10

$48.10

$56.10

$64.10

ND

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

NE

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

NH

$0.00

$8.20

$16.40

$24.60

N/A

NJ

$10.00

$19.20

$28.50

$37.70

N/A

NM

$3.00

$8.60

$14.20

$19.90

N/A

NV

$26.30

$31.40

$36.50

$41.60

N/A

NY

$0.00

$10.60

$21.10

$31.70

N/A

OH

$8.40

$15.90

$23.40

$30.80

$42.30

$49.80

$57.30

$64.70

OK

$0.00

$9.40

$17.60

$25.80

N/A

OR

$11.50

$20.90

$30.30

$39.60

N/A

PA

$0.00

$9.00

$18.00

$27.10

$39.40

$48.60

$57.70

$66.90

RI

$2.60

$10.50

$18.30

$26.20

$45.10

$53.00

$60.80

$68.70

SC

$0.00

$9.30

$18.50

$27.80

$32.90

$42.60

$52.30

$62.00

SD

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

TN

$0.00

$8.40

$16.70

$25.10

$40.30

$48.70

$57.20

$65.60

TX

$0.00

$7.90

$15.90

$23.80

$47.30

$55.20

$63.20

$71.10

UT

$2.60

$13.20

$23.70

$34.30

N/A

VA

$0.00

$8.90

$16.40

$23.90

$41.30

$48.90

$56.40

$63.90

VT

$2.60

$10.50

$18.30

$26.20

$45.10

$53.00

$60.80

$68.70

WA

$11.50

$20.90

$30.30

$39.60

N/A

WI

$0.00

$9.50

$19.00

$28.50

N/A

WV

$0.00

$9.00

$18.00

$27.10

$39.40

$48.60

$57.70

$66.90

WY

$0.00

$9.40

$18.10

$26.70

$46.00

$54.60

$63.30

$71.90

This chart does not include any Medicare Part B premium you may have to pay.

(20)

DRUG OVERVIEW

• Our Part D plan covers over 6,000 medications and Plan Two covers 96%

of the most commonly used drugs by Medicare individuals

1

• We provide a separate drug list/formulary for Plan One and for Plan Two

• Formulary Tier descriptions for both plans are as follows:

–

Tier 1: Preferred generic drugs

Includes preferred generic drugs and may include preferred brand-name drugs.

This grouping of prescription drugs represents the lowest cost-sharing.

–

Tier 2: Non-preferred generic drugs

Includes non-preferred generic drugs and may include preferred brand-name drugs.

–

Tier 3: Preferred brand drugs

Includes preferred brand drugs and may include non-preferred generic drugs.

–

Tier 4: Non-preferred brand drugs

Includes non-preferred brand drugs and may

include non-preferred generic drugs.

–

Tier 5: Specialty tier

Includes generic and brand-name drugs that

meet certain criteria defined by Medicare.

This grouping of prescription drugs represents

the highest cost-sharing.

Search our full drug list on

cignamedicarerx.com

20

(21)

Through Healthy Rewards

®

_{,* customers get access to a range of health}

and wellness programs and services, including:

CIGNA HEALTHY REWARDS

21 Vision exams and eyewear

Discounts for routine vision services, exams and eyeglasses

Hearing aids and exams

Deeply discounted pricing on hearing aids plus free batteries for 2 years

Discounts on products and programs

* The products and services described for Healthy Rewards are neither offered nor guaranteed under our contract

with the Medicare program. In addition, they are not subject to the Medicare appeals process. Any disputes

regarding these products and services may be subject to the Cigna Medicare Rx grievance process. Some

Healthy Rewards programs are not available in all states. If their Cigna plan includes coverage for any of these

services, this program is in addition to, not instead of, your plan benefits. A discount program is NOT insurance

and you must pay the entire discounted charge.

Chiropractic/acupuncture/massage therapy

Save up to 25% off usual and customary fees for services

Weight and nutrition

Save up to 25% off weight and nutrition programs

Fitness clubs

(22)

• Cigna Home Delivery Pharmacy has a

dedicated phone number for you to call

24 hours a day/seven days a week:

1-877-252-6907

(TTY/TDD users can call: 1-605-373-4859)

• You could pay less with Cigna Home Delivery

Pharmacy, for example:

–

If a customer pays $30 copay today for a monthly

prescription with Cigna Home Delivery Pharmacy,

they could pay only $75 for a 90-day supply – possible savings of 17%

3 CIGNA HOME DELIVERY PHARMACY

• Cigna Home Delivery Pharmacy delivers prescription drugs right to your mailbox, often

at lower prices than your pharmacy

1 and provides:

–

Free and quick delivery of all your prescriptions

2 –

Refill reminders to help ensure you don’t miss a dose

–

FDA-approved medications

–

Confidential, tamper-resistant packaging

–

Pharmacists available day or night to answer your questions and put you at ease

22 We make it easy

1. Results may vary based on where you are in the Medicare Part D Coverage phases.

2. Free standard shipping – extra costs apply for rush delivery.

(23)

• Medicare Rx Plans:

–

Can save you money on hearing and vision programs; including hearing aids and

eyeglasses

–

Have a broad, national network of over 64,000 pharmacies, including our convenient

Cigna Home Delivery Pharmacy where you can get your drugs delivered right to your door

–

Cover over 6,000 medications and Plan Two even covers 96% of the most commonly

used drugs

1

• Plan One

–

$0 deductible generics if you reside in DC, DE, GA, ID, MD, ME, MS, NH, SC. UT, WI:

you’ll pay no deductible for Tiers 1-2 drugs and the standard $325 deductible applies for

Tiers 3-5 drugs

–

$0 copay for all Tier 1 drugs (including high cholesterol, hypertension and diabetes

medications) and only $8 for all Tier 2 drugs

• Plan Two

–

No deductible

–

$0 copay for all Tier 1 drugs & $0 copay for Tier 1 drugs all the way through the

coverage gap (including high blood pressure, diabetes, high cholesterol, glaucoma and

thyroid therapy medications)

A plan to save you money

23

1. Based on the top 100 Part D prescription drugs used by Medicare-eligible customers. The four percent

of drugs not covered are brand-name drugs with a covered generic equivalent available.

(24)

Enroll Today!

1. Call your broker or Cigna Medicare Rx at 1-800-735-1459

2. Online through your broker’s website or by visiting the Cigna Medicare Rx

website at

www.cignamedicarerx.com

3. Mail your enrollment form to:

Cigna Medicare Rx (PDP)

P.O. Box 269005

Weston, FL 33326-9927

4. Fax your completed form to: 1-800-735-1469

Four simple ways to enroll:

24

(25)

Additional

information

(26)

ADDITIONAL INFORMATION

• Most individuals will pay the standard monthly Part D premium; however, some

have to pay an extra amount because of their annual income

• For singles or married individuals filing separately with income above $85,000

and married couples with income above $170,000, an extra Part D premium

will be charged

• If you need to pay more, the Social Security Administration will send you a letter

with instructions on how to pay the extra amount

• The extra amount must be paid separately and cannot be paid with your monthly

plan premium to their Part D plan

Income related Medicare adjustment amount

(27)

ADDITIONAL INFORMATION

If you filed an individual

tax return and your

income in 2012 was:

If you were married but

filed a separate tax return

and your income in

2012 was:

If you filed a joint tax

return and your

income in 2012 was:

This is the monthly cost of

your extra Part D amount

(to be paid in addition to your

plan premium):

Equal to or less than

$85,000

Equal to or less than

$85,000

Equal to or less than

$170,000

$0

Greater than $85,000 and

less than or equal to

$107,000

Greater than $170,000

and less than or equal to

$214,000

$11.60

Greater than $107,000 and

less than or equal to

$160,000

Greater than $214,000

and less than or equal to

$320,000

$29.90

Greater than $160,000 and

less than or equal to

$214,000

Greater than $85,000 and

less than or equal to

$129,000

Greater than $320,000

and less than or equal to

$428,000

$48.30

Greater than $214,000

Greater than $129,000

Greater than $428,000

$66.60

Income related Medicare adjustment amounts

(28)

ADDITIONAL INFORMATION

• An amount (late enrollment penalty (LEP)) added to your monthly premium if you do

not enroll in a Medicare Part D plan when you first become eligible: if you go without

creditable coverage (i.e., coverage at least as good as Medicare’s) for a continuous

period of 63 days or more

• LEP is added to your monthly premium (considered part of your premium); if you

do not pay your LEP, you could be disenrolled for failure to pay premium

• If you are under 65 and are currently receiving Medicare benefits, the LEP will reset

when you turn 65; after age 65, your LEP will be based only on the months you

don’t have coverage after your initial enrollment period for aging into Medicare

• To calculate your LEP:

–

Count the number of full months you delayed enrolling in a Medicare drug plan

(after you were eligible to enroll) or count the number of full months you did not have

creditable prescription drug coverage (if the break in overage was 63 days or more)

–

The penalty is 1% for every month you did not have creditable coverage

(e.g., if they go 14 months without coverage, the penalty will be 14%)

Late enrollment penalty

1

1. If you are eligible for LIS and receive Extra Help from the government, you are not

subject to late enrollment penalties.

(29)

MEDICARE RESOURCES

• Cigna Medicare Rx (PDP) Information

1-800-735-1459 (TTY/TTD users call 1-800-322-1451)

- 8am-8pm local time, 7 days a week

- www.cignamedicarerx.com

• Medicare

1-800-MEDICARE (TTY/TDD users call 1-877-486-2048)

- 24 hours a day, 7 days a week

- www.medicare.gov

• Social Security Administration

1-800-772-1213 for Extra Help (TTY/TDD users call 1-800-325-0778)

- 7am-7pm, Monday-Friday

- www.ssa.gov

(30)

“Cigna,” "Cigna Medicare Services" and "Cigna Medicare Rx" (PDP) are registered service marks, and the "Tree of Life" logo, “GO YOU”,

Healthy Rewards and Cigna Home Delivery Pharmacy are service marks, of Cigna Intellectual Property, Inc., licensed for use by Cigna

Corporation and its operating subsidiaries. All products and services are provided by or through such operating subsidiaries, including

Connecticut General Life Insurance Company (CGLIC), and not by Cigna Corporation. CGLIC is a Medicare approved Part D sponsor. All

models are used for illustrative purposes only.

2013 CIGNA MEDICARE RX (PDP) A MEDICARE PRESCRIPTION DRUG PLAN

2013 CIGNA MEDICARE RX

®

(PDP)

A MEDICARE

PRESCRIPTION

DRUG PLAN

•

Medicare overview

3

•

Medicare Part D

5

•

Cigna Medicare Rx (PDP) plans

12

•

Additional information

25

TABLE OF CONTENTS

2

MEDICARE OVERVIEW

4

The A, B, C and D’s of Medicare

MEDICARE OVERVIEW

5

•

Insurance that helps with drug costs

•

Implemented January 1, 2006

•

Potential penalties for those who don’t enroll

during initial enrollment period (1% per month

penalty), with some exceptions

•

Voluntary program you must enroll to participate

Medicare Part D

MEDICARE PART D

•

You are eligible to join a prescription drug plan if you:

–

Are entitled to Medicare Part A and/or

–

Are enrolled in Medicare Part B and

–

Reside in the plan’s service area

Did you know?

•

You can only be enrolled in one Part D plan at a time

•

You may enroll in the plan only during specific times a year (in most instances)

6

Cigna Medicare Rx (PDP)

is available in all 50

states and the District

of Columbia

2013 MEDICARE PART D STANDARD BENEFIT

•

If you are entitled to Medicare Part A and/or enrolled in Part B, and reside in the

plan’s service area, you can enroll in a Part D plan

•

The standard Medicare Part D program works like this:

–

Individual pays a monthly premium

–

You pay 100% of your prescription costs until you meet your annual deductible (if

applicable)

–

After the deductible is met, you have initial coverage (the amount you pay is based

on your plan) up to a predetermined limit based on what you (or others on your

behalf) pay and what your Part D plan pays (i.e., total drug costs)

–

After total drug costs reach this initial limit, there is a coverage gap

–

In the coverage gap, you will receive a discount of approximately 50% for brand-

name drugs* and pay no more than 79% of generic drug costs (if you receive Extra

Help, these discounts are not applicable)

–

You will remain in the coverage gap until your total out-of-pocket costs reach

another predetermined limit, at which time you hit the catastrophic level

_(PDP)

_{for brand-name drugs}