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Chevron is making proactive changes to retiree health coverage that will allow us to manage health care costs, but also continue to provide access to affordable retiree health coverage. At a time when some organizations are eliminating retiree health plans, Chevron will currently continue to support retiree health coverage — we’re just changing how it’s provided. And for many eligible retirees, these changes will provide more flexibility and expanded choices in the health plans available to meet their individual needs and situations.

Why We’re Making Changes

It’s no secret that health care has changed a great deal over the years. Changes to Medicare and the enactment of Medicare’s Part D prescription drug coverage marked a major change to the health care options available to retirees that are eligible for Medicare. Today, Medicare-eligible retirees have many more health plan options at more competitive prices. These options simply were not available when company-sponsored retiree medical plans — like Chevron’s — were originally implemented.

In addition, the cost of health care has increased significantly, and it continues to increase. Everyone — from the health care industry to government and private companies alike — has been challenged to find a solution. For its part, Chevron has also grappled with these rising costs, for both employees and retirees. Health care costs are hard to manage; it’s difficult to know if next year the expenses will remain flat or if there will be a larger than expected increase. Over the years, we’ve had to steadily increase premiums and other out-of-pocket costs for our retirees. These increases aren’t a sustainable long-term solution for Chevron, and especially not for our retirees.

The changes we’re making take advantage of the affordable options, greater flexibility, and expanded choices now available in the health care market for retirees age 65 and over.

While these changes donít directly affect you today as an active employee, you do need to understand them and consider how they may affect your retirement planning.

Health care choices depend on age.

Today retiree health care choices depend primarily on eligibility for Medicare. Beginning in 2017, health care choices will depend on if you or your eligible dependents are under age 65 (pre-65) or are age 65 and over (post-65). The basic rules regarding points and years of service needed to be eligible to participate in retiree medical coverage aren’t changing at this time.

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Pre-65 Health Coverage

Pre-65 eligible retirees and/or their pre-65 eligible dependents will currently continue to be able to participate in generally the same group health choices offered to active Chevron employees, with only minor differences.

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Post-65 Health Coverage

Post-65 eligible retirees and/or their post-65 eligible dependents will only be able to enroll in individual medical, prescription drug, dental and vision coverage through a private health exchange managed by Towers Watson OneExchange. Effective December 31, 2016, Chevron will no longer offer the Chevron Medicare Plus Plan, Chevron Senior Care Plan, Chevron Medicare Standard Plan and Chevron Medicare Medical HMO Plans for post-65 participants.

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What about dependents?

The age of your eligible dependent will dictate if they will enroll in Chevron’s pre-65 group health plans or the post-65 OneExchange individual health options. So, if there are both post-65 and pre-65 eligible participants in your family, pre-65 participants will participate in Chevron group health coverage and post-65 participants will participate in individual health coverage through OneExchange. Important: You must be enrolled in health coverage offered to Chevron retirees in order to also enroll your eligible dependent.

Remember, while you’re an active employee, you’ll continue to be eligible to participate in the group health coverage options offered to active employees, regardless of your age. In addition, you can continue to enroll your eligible dependents under your active employee group health coverage, regardless of the age of your eligible dependent.

What is a private Medicare exchange?


A private Medicare exchange, like OneExchange — or an individual insurance market — enables you to shop for and enroll in individual Medicare plans. In fact, the individual insurance market offers more choice and flexibility to meet individual retiree’s needs and situations. Chevron simply cannot provide comparable choice and flexibility by continuing to sponsor our own group health plans for post-65 retirees.

Don’t confuse OneExchange private exchange with the public Health Insurance Marketplace developed in response to the Patient Protection and Affordable Care Act passed during President Obama’s administration. OneExchange is completely separate from public health exchanges and is only open to select participant groups, such as Chevron’s eligible retirees.

Enrollment Milestones

Beginning in 2017, all benefits-eligible retirees must enroll in Chevron retiree health coverage upon reaching certain milestones; you will not be able to enroll in health coverage during open enrollment or due to a qualifying life event (except as noted below). You must also enroll your eligible dependents at certain milestones. If you miss these select opportunities to enroll, you and your eligible dependents will not be permitted to return to Chevron retiree health coverage in the future, regardless of open enrollment periods or other qualifying life events. Review the enrollment milestones here.

Changes to how the company contribution is applied to retiree medical.

As you know, both you and Chevron share the monthly cost of retiree medical coverage, if you’re eligible. That philosophy isn’t changing at this time. Chevron will currently continue to maintain its contribution to retiree medical coverage. And the rules for determining eligibility for a company contribution will not change in 2017. However, the way the company contribution is applied to retiree medical coverage may change, depending on age. Here’s a basic overview of how it will work, but get the full details here.

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Pre-65 Health Contributions

For pre-65 eligible retirees and their pre-65 eligible dependents, the company contribution will continue to be automatically factored into your monthly premium for your Chevron group medical coverage.

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Post-65 Health Contributions

Post-65 eligible retirees and their post-65 eligible dependents will receive the monthly company contribution in an account, called a Health Reimbursement Arrangement, or HRA. Except for the company contribution for catastrophic prescription drug coverage, your company contribution amount will no longer be automatically applied to your monthly premiums. The HRA account can be used to help pay Medicare Part B premiums or the monthly premiums for any of the individual medical, prescription drug, vision or dental plans offered through OneExchange. The HRA allows more flexibility in how the company contribution is spent.


Please note: This page applies to U.S.-payroll employees. This page provides only certain highlights of benefits or program provisions. It is not intended to be a complete explanation. If there are any discrepancies between this communication and legal plan documents, the legal documents will prevail to the extent permitted by law. This is not a plan text or a summary plan description. There are no vested rights with respect to Chevron health care plans or any company contributions toward the cost of such health care plans. Rather, Chevron Corporation reserves all rights, for any reason and at any time, to amend, change or terminate these plans or to change or eliminate the company contribution toward the cost of such plans. Such amendments, changes, terminations or eliminations may be applicable without regard to whether someone previously terminated employment with Chevron or previously was subject to a grandfathering provision. Some benefit plans and policies described in this document may be subject to collective bargaining and, therefore, may not apply to union represented employees.

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