2010 Annual Enrollment Briefing NGHP - Benefits Online


2010 Annual Enrollment Briefing NGHP - Benefits Online

Annual Enrollment

2010 – 2011 Plan Year

Today’s Topics

Enrollment Dates

• Health Plan Changes

• Northrop Grumman Savings Plan


• Questions


Annual Enrollment Dates

You will enroll with your sector.

• Wave 1 - April 26 through May 7

– Information Systems

– Shipbuilding (Newport News)

– Corporate

– Technical Services

• Wave 2 – May 10 through May 21

– Aerospace Systems

– Electronic Systems

– Shipbuilding (Gulf Coast)


Health Plan Changes

Effective July 1, 2010

Northrop Grumman Health Plan Overview

Basic benefits

• Basic Life

• Basic Accidental Death

and Dismemberment


• Basic Long-Term

Disability (LTD)*

• Employee Assistance

Program (EAP)

Optional benefits

• Medical

• Dental

• Vision

• Optional LTD

• Optional life insurance

(employee, spouse,


• Optional AD&D insurance

(employee, family)

• Flexible Spending Accounts


• Group Legal

You must

enroll to

select these


* 100% paid by some business units


Anthem Blue Cross Premium PPO Option

• The Premium PPO option is being eliminated

• If you are currently enrolled in the Premium PPO

you will automatically be enrolled in the Preferred

PPO, unless you change to another medical plan

option during Annual Enrollment

• The Preferred PPO offers the same basic benefits

and covered services as the Premium PPO, but

with slightly higher copays, deductibles and out of

pocket maximums, but at a significantly lower cost

per paycheck.


Exclusive Provider Organization (EPO)


• All EPO options are being consolidated to a

single, new carrier: Anthem

– The Aetna, Health Net and UnitedHealthcare

EPOs and CIGNA EPP will be eliminated

• If you are currently enrolled in an EPO you will

automatically be enrolled in the new Anthem

EPO. unless you change to another medical

plan option

• Prescription drug coverage in the Anthem EPO

is provided by Express Scripts


Transitioning to the Anthem EPO

• Current mail order prescriptions with open

fills will automatically be transferred to

Express Scripts.

• You will need to obtain a new prescription

from your doctor if:

– your prescription is expired

– you do not have any refills on a current prescription

– the medication is a specialty medication (e.g. Avonex

for Multiple Sclerosis)

– the medication is a controlled substance or a

compound medication


Prescription Drug Programs for the

Anthem PPO and Anthem EPO

• Generics preferred:

– Your prescriptions automatically will be filled with a chemically

equivalent generic drug, if available and as appropriate.

– If you or your doctor requests a brand-name drug when a generic

equivalent is available, you will pay your copayment, plus the

difference in cost between the generic drug and the brand-name drug.

• Exclusive Home Delivery:

– If you take a maintenance prescription drug to treat an ongoing

medical condition, you must fill your prescription using the mail-order


• In order to allow for time to set up the mail-order service, new prescriptions

may initially be filled 2 times at a retail pharmacy.

– You will receive up to a three–month supply of your prescription drug,

typically for less than you would pay for the same amount of your drug

at a retail pharmacy, and your medication is delivered to you.

– Should not be used for short-term prescriptions such as antibiotics


Prescription Drug Programs for the

Anthem PPO and Anthem EPO (cont’d)

• Step Therapy:

– Designed to promote the use of lower-cost, and

equally effective, generic drugs before

participants “step up” to higher-cost brand

name drugs.

– Designed for people who take maintenance

prescription drugs on a regular basis to treat an

ongoing medical condition.

– Step Therapy will apply even if your doctor

writes “Dispense as Written” on your



Mental Health and Substance Abuse Benefits

Anthem EPO, Preferred PPO and CDHP Plan


• Now administered by Anthem

• In-network and out-of-network out-of-pocket maximums will

apply to medical and mental health and substance abuse benefits


• Medical deductibles will now apply to mental health and substance

abuse benefits, where applicable, in the PPO

• In the EPO and PPO, the office visit copay for mental health and

substance abuse treatment will be $20

• Prior inpatient and outpatient day/session plan year limits for

mental health and substance abuse benefits have been eliminated

• All medical inpatient admissions, including those for mental health

and substance abuse, will require precertification

– outpatient review requirements for certain mental health and

substance abuse benefits will apply


Optimum Choice HMO Option

• The Optimum Choice HMO option is being


• If you are currently enrolled in the Optimum

Choice HMO, you will automatically be enrolled in

the Preferred PPO, unless you change to another

medical plan option during Annual Enrollment

– Prescription drug coverage in the Preferred PPO is

provided by Express Scripts

– Current mail order prescriptions with open fills will

automatically be transferred to Express Scripts.


Flexible Spending Account (FSA) Options


Care FSA


– Allows you to set aside pre-tax

money to pay for eligible health care

expenses (e.g. deductibles,

copays, coinsurance, orthodontics

and some over-the-counter drugs)

– Elections are made on an annual basis

Maximum Annual




Day Care FSA

– You can set aside pre-tax dollars from

your paycheck to pay for eligible

dependent day care expenses

– Elections are made on an annual basis


*If you earn $105,000 or more, your annual contribution limit to the Dependent Care FSA is $2,500.

You must use all the dollars in your FSA accounts,

or lose them at the end of the grace period (incur expenses by September 15, 2011

and file them by December 31, 2011), so estimate your expenses carefully!


Health Care FSAs and Over-the-Counter

(OTC) Medications & Supplies in 2011

• Currently, Health Care FSAs reimburse participants for

covered OTC medications and supplies.

• The recently enacted health care reform law prohibits health

care flexible spending accounts from reimbursing for OTC drug

expenses for taxable years beginning after December 31,


• This likely means that the Northrop Grumman Health Care

Flexible Spending Account (FSA) will not be permitted to

reimburse for OTC drug expenses that you incur on or after

January 1, 2011, unless you have a prescription for the drug

or the drug is insulin.

• Once you make an election to fund a health care FSA it

cannot be changed after annual enrollment ends,

so you should plan accordingly.


Automatic FSA Claims Reimbursement

• Your carriers will submit claims on your behalf if you

contribute to the Health Care FSA and enroll in:

– Anthem PPO

– Anthem CDHP

– The new Anthem EPO

– Delta Dental PPO

• Automatic claims reimbursement (ACS) is no longer

available for the Vision Service Plan (VSP), Value

Options and the eliminated EPOs.

– Claims for services processed by these carriers after June

30, 2010 will need to be submitted manually to Benesyst.

• You are automatically enrolled in ACS and should call

the NGBC if you do not wish to participate in this



Pharmacy Benefits Card for Health Care FSA

• Current Health Care FSA participants can continue to

use their Pharmacy Benefits Card ; you will not receive

a new card

• Your card can be used for most retail and many mailorder

prescription and over-the-counter (OTC) drug


• Any eligible items or co-pays will be automatically

charged to your FSA account (as long as there is a

sufficient balance)

– Your card can be used for prescription and OTC purchases

incurred during the grace period and will be deducted from

your 2009 – 2010 benefit plan year account

• Visit www.benesyst.net for a list of participating



Group Legal

• The Group Legal Plan, currently with Legal Resources, is

transitioning to a new carrier: Hyatt Legal Plans.

• Hyatt Legal Plans, a MetLife ® company, offers increased

value and an expanded network of attorneys

• Two plan options

– Advantage : $13.75 per month

– Basic: $6.75 per month

• If you are currently enrolled in the Group Legal plan,

you will be automatically enrolled in the Group Legal

plan under Hyatt Legal unless you cancel your coverage

at Annual Enrollment

• Visit www.legalplans.com, click Thinking About

Enrolling”, for more information

– Password for the Basic Plan: 6210010

– Password for the Advantage Plan: 6220010


Basic and Optional Life Insurance –

Accelerated Death Benefit Option

• Your coverage includes a special feature that

helps with financial difficulties associated with

terminal illness

• If you or your spouse is expected to live for

six months or less you may now receive 80%

of the total insurance amount (basic and

optional life combined), up to $500,000

• Ordinarily this benefit would be paid only upon



Optional Employee Life Insurance

• The maximum amount you can

purchase has increased from $1 million

to $1.25 million

• If you were capped at $1 million your

coverage will automatically be increased

to the new maximum based on your

salary and elected option


Beneficiary Designations

Annual Enrollment is an excellent time to review

your beneficiary designations

• Electing a beneficiary is easy and important

– You can review and update your beneficiary

designations on My Benefits Access available through

Benefits OnLine

– You must provide your beneficiary’s social security


– If you do not have online access, you can designate

your beneficiary by calling the NGBC


Northrop Grumman Savings Plan

Northrop Grumman Savings Plan

• Savings Plan enrollment will be included with the Annual

Enrollment process this year.

• You can begin contributing or change your current


• If you enroll in the Savings Plan at Annual Enrollment and

are a first time participant, your contributions will begin as

soon as administratively possible after making your


• If you are a current participant in the Savings Plan (or

were previously a participant), any changes you make to

your contributions as part of Annual Enrollment will begin

after July 1, 2010.

• If you are satisfied with your current Savings Plan

contributions, you do not need to take any action.


Northrop Grumman Savings Plan (cont’d)

Employee Contributions

Investment options

• You may contribute between 1%

and 75% of eligible compensation

in 1% increments

• Tax-deferred , Roth 401(k) and/or

after-tax contributions

• Age 50 catch-up contributions

• If you are considered a highly

compensated employee, your

contributions may be limited

• Retirement Path Portfolios

• Core investment funds

• Schwab Personal Choice

Retirement Account®


Enrolling in Your Benefits

What to Do at Annual Enrollment

• Go to Benefits OnLine at http://benefits.northropgrumman.com

and click on “Annual Enrollment

• Review highlights of the Northrop Grumman Benefits Program

• Log in to My Benefits Access

• Review your dependent information, plan options and costs

• Print a confirmation statement once enrollment has been completed

and saved

No Web Access

• Call the Northrop Grumman Benefits Center (NGBC) at

1-800-894-4194 Monday through Friday, 9:00 a.m. to 6:00 p.m.

Eastern time

• Outside the United States call 718-354-1338

• Hearing impaired participants will need to use a relay service through

service provider.


Benefits OnLine



My Benefits Access Log On


My Benefits Access – Welcome Screen


My Benefits Access – Annual Enrollment


Final Reminders

• Enroll in, or make changes to, your optional

Health Plan benefits if you want coverage for the

coming benefit plan year

– Enroll with your sector

– Be sure to review your plan options and costs

• Enroll in the Savings Plan

– If already enrolled, review your contribution

percentage and investments and make changes

as you deem appropriate

• Review or elect your beneficiaries for basic and

optional life and AD&D insurance, and for the

Savings Plan




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