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2017 EXPAT BENEFITS
GUIDE
16
The Health Insurance Portability and Accountability
Act of 1996 (HIPAA) restricts the pre-existing
condition limitations imposed by group health plans
(applicable, in general, for plan years beginning
after June 30, 1997). Under HIPAA, if you become
covered by another group health plan and that
plan contains a pre-existing condition limitation
that affects you, your COBRA coverage cannot
be terminated. At the same time, if the other plan’s
pre-existing condition rule does not apply to you
by reason of HIPAA’s restrictions on pre-existing
condition clauses, your employer or COBRA
Plan Administrator may terminate your COBRA
coverage.
While you do not have to show that you are
insurable to choose COBRA coverage, this
continuation coverage is provided subject to
your eligibility for coverage. Your COBRA Plan
Administrator reserves the right to terminate your
COBRA coverage retroactively if you are
determined to be ineligible.
Where to Obtain More Information
For more information about your rights and
obligations under the Plan and under federal law,
please review the Plan’s Summary Plan Description
or contact the Plan Administrator. If you have
questions about your rights under ERISA (including
COBRA, HIPAA, and other laws affecting group
health plans), contact the nearest Regional or
District Office of the U.S. Department of Labor’s
Employee Benefits Security Administration
(EBSA) in your area or visit the EBSA website
at www.dol.gov/ebsa (contact information for
Regional and District EBSA Offices is available
through the site).
NOTICE OF CREDITABLE COVERAGE
(for employees eligible for Medicare — over-age-65
employees and certain disabled employees)
Please read this notice carefully. It has information
about prescription drug coverage available under
Chevron Phillips Chemical’s medical plans and
prescription drug coverage available for people
with Medicare. It also tells you where to find more
information to help you make decisions about your
prescription drug coverage.
You may have heard about Medicare’s prescription
drug coverage (called Part D), and wondered how
it would affect you. Prescription drug coverage
is available to everyone with Medicare through
Medicare prescription drug plans. All Medicare
prescription drug plans provide at least a standard
level of coverage set by Medicare. Some plans
also offer more coverage for a higher monthly
premium.
Individuals can enroll in a Medicare prescription
drug plan when they first become eligible, and
each year from October 15 through December 7.
Individuals leaving employer/union coverage may
be eligible for a Medicare Special Enrollment
Period.
If you are covered by a Chevron Phillips
Chemical medical plan, you’ll be interested to
know that the prescription drug coverage under
our plans is, on average, at least as good as
standard Medicare prescription drug coverage
for 2017. This is called creditable coverage.
Coverage under these plans will help you avoid
a late Part D enrollment penalty if you are or
become eligible for Medicare and later decide
to enroll in a Medicare prescription drug plan.
If you decide to enroll in a Medicare prescription
drug plan and you are an active employee or
family member of an active employee, you may
also continue your employer coverage. In this
case, the Chevron Phillips Chemical medical plan