By PETER HUSSMANN
Maytag retirees are being notified that Whirlpool plans to make several changes to their health insurance coverage beginning in 2011.
In a letter to retirees, Whirlpool states that non Medicare individuals will transition out of the Basic, 70/30 and 80/20 retiree plans into two new programs it calls its Rewards and Savings plans by next year.
"Whirlpool has made innovative changes to the design of our health care plans that promote a culture of health and wellness," a letter signed by David A. Binkley, senior vice president, global human resources, states. "Effective Jan. 1, 2011, we will be offering these new health care plans to our pre-Medicare retirees."
The four-page letter goes on to outline the provisions included in each of the two plans.
The new Rewards Plan is a preferred-provider network plan that offers two levels of benefits. Under Level 1, retirees would have a $1,500 per person deductible with an out-of-pocket limit of $,500 per person. Retirees would be responsible for 40 percent coinsurance for office visits and 40 percent coinsurance for specialist/inpatient visits.
Level 2 of the Rewards Plan offers lower deductibles ($500 per person), lower coinsurance ($15 copay for office visits and 20 percent coinsurance for specialist/inpatient visits) and lower out-of-pocket limits ($2,000).
However, in order to qualify for Level 2 benefits, retirees will be required to complete "qualifying wellness activities."
"When you complete various wellness activities, including the completion of an annual Health Assessment, you qualify yourself for the following quarter," the letter to Maytag retirees states. "You must complete at least one activity per quarter in order to stay in Level 2, for a total of four activities for the year (which must include the Health Assessment)."
Examples listed in the letter of eligible activities include biometric screening, wellness exams, dental cleaning and routine vision exams.
The Savings Plan is a high deductible medical plan with a Health Savings Account. Contributions to the accounts are tax free with limits this year of up to $3,050 per employee or $6,150 per family. Those 55 and older may contribute an additional $1,000. Withdrawals from the account are tax-exempt when used to pay for medical expenses.
For in-network procedures, the deductible under the program is $2,000 per person with an out-of-pocket limit of $2,000. Coinsurance is 15 percent, after the deductible, for office visits and specialist/inpatient services.
For out-of-network procedures under the plan, per person deductibles are $4,000 with an out-of-pocket limit of $8,500. Coinsurance is 50 percent for both office visits and specialist/inpatient services.
Whirlpool officials said Maytag retirees will receive additional information on the medical plans over the course of the coming year.
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