Chevron Healthcare

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Eligibility for the Chevron Healthcare Plan

If you are an eligible retiree, are under age 65, are not eligible for federal Medicare, and live in a location where the plan is available, you can participate in:

  • The Medical PPO Plan – A preferred provider organization (PPO) plan that offers network and out-of-network benefits, and includes coverage under the Prescription Drug Program and the Vision Program.  
  • The Dental PPO Plan – A preferred provider organization (PPO) plan that offers network and out-of-network benefits. 
  • The Medical and Dental health maintenance organization (HMO and DHMO) Plans – These are exclusively network benefit plans and are only available in certain ZIP Codes.  

If you are an eligible retiree, are age 65 or older, and are eligible for federal Medicare, (or if you’re under 65 but are eligible for federal Medicare because of a disability) you can join the Chevron Medicare Plus Plan, the Chevron Medicare Standard Plan, or the Chevron Senior Care Plan.  

You are automatically covered under the Mental Health and Substance Abuse Plan if you are enrolled in the Medical PPO plan, if you’re an eligible retiree or dependent, and Medicare is not the primary payer of your medical benefits.  

To become an eligible retiree, you must be age 50 or older with 10 or more years of health and welfare eligibility service when you retire.  When you become an eligible retiree, your dependents become eligible for retiree coverage as well. These rules apply to former Chevron and Texaco employees who retired on or after July 1, 2002 as well as Unocal employees who retired on or after July 6, 2006.

Becoming Eligible for Medicare

If you or a covered dependent becomes eligible for Medicare at Age 65, you must select a Chevron plan that coordinates with Medicare. You will need to contact the HR Service Center to select a plan and provide your Medicare claim number. 

If you or a covered dependent becomes eligible for Medicare before age 65 due to disability, you need to notify the HR Service Center and send a copy of that person’s Medicare card within 31 days of becoming eligible for Medicare. If your current plan does not have a Medicare option, you will be able to select a new plan that offers Medicare coverage. 

There are a few additional considerations for when you or a dependent become eligible for Medicare.  

  • If your spouse has medical coverage through another employer, you should check to see how that medical coverage is affected upon becoming eligible for Medicare.  
  • If you’re Medicare-eligible, enrolling in a non-Chevron medical plan could cause you to lose your Chevon coverage.  If you enroll in a non-Chevron sponsored health plan that offers Medicare prescription drug coverage, your Chevron medical and prescription drug coverage will be cancelled because Medicare will not allow you to be covered under more than one plan. 
  • You must enroll in Medicare Part A (Hospital Insurance) and Part B (Medical Insurance) or else your Chevron medical benefits will be significantly reduced.

The Medical PPO Plan  

The Medical PPO plan includes three main components: 

  • Medical coverage, administered by UnitedHealthcare 
  • Prescription drug coverage, administered by Express Scripts
  • Basic vision coverage insured by VSP (Vision Service Plan)

Medical Coverage

You can choose between using network providers and out-of-network providers, but your out-of-pocket costs will be higher with out-of-network providers than they would be with network providers.  There are also MultiPlan providers, who are out-of-network, but you will only have to pay “mid-level” out-of-pocket costs since they are associated with MultiPlan. 

Within the Medical Coverage part of the plan, you have 3 coverage options, which have the same kind of health care, but differ in their deductibles, out-of-pocket maximums, and monthly premiums. 

  • Option 1 – Lowest deductibles, lowest out-of-pocket maximums, highest monthly premiums 
  • Option 2 – Medium deductibles, medium out-of-pocket maximums, medium monthly premiums
  • Option 3 – Highest deductibles, highest out-of-pocket maximums, lowest monthly premiums
    • Unlike Options 1 and 2, there are no copayments for Option 3. Instead of copayments, you share costs with the plan through coinsurance. 

Prescription Drug Coverage

Under the Prescription Drug Coverage plan, there is a uniform deductible and out-of-pocket maximum, which only fluctuate based on if the coverage is for just one person or for a whole family.  

The plan encourages generic drug use to keep costs down.  It does this by charging a $5 generic copayment plus the difference between the cost of the brand-name drug and the generic drug if you choose a brand-name drug when a generic one was available.  Exceptions for this can be made if your doctor specifies that the generic drug will not work.  The plan also features a list of preferred brand-name drugs that participants can use to avoid the surcharge.    

Basic Vision Coverage

The plan will cover 100% of comprehensive eye exam fees per year if they are from a network provider.  For out-of-network providers, you can receive up to $45 per year for a comprehensive eye exam.  

You are eligible for discounts on eyeglasses, contact lenses, and accessories from network providers.  

The Dental PPO Plan

The Dental PPO Plan is designed to help pay for dental care.  The claims administrator for the plan is United Concordia Companies, Inc. (UCCI)

Every year, you and each enrolled family member can qualify for up to $2,000 in network coverage benefits or up to $1,500 in out-of-network coverage benefits.  In addition, for orthodontic care, the plan can pay a lifetime maximum of $1,500 in network benefits and $1,000 in out-of-network benefits, with no deductible requirement.  Similarly, if you require TMJ care, the plan can pay a lifetime maximum of $750 for network and out-of-network benefits. 

For network providers, the deductible is 0.  For out-of-network providers, there is a deductible that fluctuates based on the number of dependents.  

Medical and Dental Health Maintenance Organization (HMO)

The medical and dental health maintenance organization (HMO and DHMO) plans are only available in some areas. Typically, after paying a copayment, most HMO and DHMO services are 100% covered. 

If you choose an HMO or DHMO, you are generally only able to receive benefits from network providers.  If your provider leaves the network during the year, you are not eligible to change plans and must select another participating provider. 

If you choose a medical HMO, you are not eligible for medical, vision, prescription drug or mental health and substance abuse plan benefits from any of the other Chevron plans. If you choose a dental HMO, you are not eligible for dental coverage from another Chevron dental plan. 

Medical HMO

Typically, HMOs are more cost-effective than preferred provider organization (PPO) plans. Under an HMO, once you pay a copayment, most covered services are covered at 100 percent. One of the biggest trade-offs for this type of coverage is less flexibility when selecting a provider; HMOs require that you use a provider within the HMO’s network. Generally, you will not receive a benefit if you obtain services outside the HMO network, unless you need emergency care, as defined by the HMO. Most HMOs require you to select a primary

care physician (PCP) who oversees your care and reviews your need to see a specialist. In order to keep costs lower, many HMOs have more stringent restrictions related to their prescription drug benefits.

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Medicare Supplement HMO

These plans are offered primarily in areas where no Medicare Advantage HMOs are available. Medicare is your primary medical coverage, so when you use providers under these plans, they will coordinate benefits with Medicare. To receive the greatest benefit, you should receive all your care, including prescription drugs, through the HMO’s providers. However, if your Medicare supplement plan allows you to use a provider outside the HMO network, you still can file a claim with Medicare. Some Medicare supplement HMOs also are Medicare Part D prescription drug plans.

Dental HMO

Dental HMOs (DHMOs) generally cover preventive and diagnostic services, basic and major services, and some orthodontia. They often use a copayment arrangement. As with medical HMOs, you must use a provider within the DHMO network.

HMOs vary in costs and covered services, review yours carefully before choosing a plan.  

Chevron Medicare Plus Plan

The Chevron Medicare Plus Plan pays a portion of covered charges in excess of amounts Medicare pays for certain services. Therefore, if you or your covered dependents are eligible for Medicare, you should enroll in both Part A and Part B, because benefits under the Chevron Medicare Plus Plan will be calculated as though you are covered under Medicare Part A and Part B.  In addition, the plan covers a few services that are not covered by federal Medicare. 

Basic Vision Coverage

Refer to the “Basic Vision Coverage” section above for Vision Benefits  

Prescription Drug Coverage

Refer to the “Prescription Drug Coverage” section above for Drug Coverage

Chevron Medicare Standard Plan

The Chevron Medicare Standard Plan coordinates payment with Medicare. When combined with Medicare’s payment, this plan will pay up to 80 percent of covered charges for most services. The benefit amount paid is determined by calculating the amount the Chevron Medicare Standard Plan would pay (generally 80 percent of covered charges after the deductible) and subtracting the amount payable by Medicare. The difference, if any, is the amount payable under the Chevron Medicare Standard Plan.

If you or your covered dependents are eligible for Medicare, you should enroll in both Part A and Part B, because benefits under the Chevron Medicare Standard Plan will be calculated as though you are covered under Medicare Part A and Part B. In addition, the plan covers a few services that are not covered by federal Medicare.

Basic Vision Coverage

Refer to the “Basic Vision Coverage” section above for Vision Benefits  

Prescription Drug Coverage

Refer to the “Prescription Drug Coverage” section above for Drug Coverage

Chevron Senior Care Plan

For certain services, the Chevron Senior Care Plan pays a portion of covered charges in excess of amounts Medicare pays. If you or your covered dependents are eligible for Medicare, you should enroll in both Part A and Part B since benefits under the Chevron Senior Care Plan will be calculated as though you are covered under Medicare Part A and Part B. In addition, the plan covers a few services that are not covered by federal Medicare.

The Chevron Senior Care Plan does not pay for most medical expenses until the $2,500 per person annual deductible/out-of-pocket maximum is reached. For some types of expenses, you don’t have to reach the deductible/out-of-pocket maximum before the plan pays benefits. If you haven’t met the $2,500 deductible/out-of-pocket maximum, the plan (together with any Medicare payments) pays 80 percent of your Medicare Part A deductible, as well as 80 percent of covered charges for certain private-duty nursing and skilled nursing facility care expenses. Once you reach the $2,500 deductible/out-of-pocket maximum, the plan pays 100 percent of these expenses up to any specific benefit limits.

Basic Vision Coverage

Refer to the “Basic Vision Coverage” section above for Vision Benefits  

Prescription Drug Coverage

Refer to the “Prescription Drug Coverage” section above for Drug Coverage

Basic Life Insurance Plan for Former Chevron Employees

You are eligible for coverage under the Basic Life Insurance Plan if you meet all of the following requirements:

  • On June 30, 2002, you had at least 20 years of continuous service or at least 65 points (age + years of continuous service)
  • You retire before July 1, 2007, with at least 25 years of health and welfare eligibility service or at least 75 points (age + years of health and welfare eligibility service)
  • You have not been rehired since July 1, 2002

If you retired on or after July 1, 2002, but don’t meet the qualifications above, you are not eligible for retiree life insurance under the Basic Life Insurance Plan.

You aren’t eligible for retiree life insurance benefits if your employment with Chevron was terminated for misconduct, such as fraud, dishonesty or deliberate disregard of Chevron rules.

Your Life Insurance Coverage is calculated by: 

Your annualized regular pay at retirement divided by 24

times

Your years of health and welfare eligibility service (up to 24 years)

minus

15 percent per year for five years after you retire.

Your coverage is also reduced by 15 percent for each full year (up to five years) that you worked beyond your normal retirement date. However, your coverage will never drop below three months’ pay.

Payment of Benefits:

Benefits are payable following your death.  Your beneficiary must file a claim for benefits.  

If you are covered under the Basic Life Insurance Plan for retirees and you are terminally ill, you can request accelerated payment of plan benefits if both of the following are true:

  • Your doctor determines that you’re terminally ill and expects you’ll die within 12 months or in accordance with applicable state law requirements
  • Your plan coverage equals $20,000 or more

If your request is approved, you receive a lump-sum benefit equal to 80 percent of your coverage amount (up to a maximum benefit of $500,000). Your beneficiary will receive the remaining amount of your coverage when you die.

The accelerated benefit option isn’t available if you’ve assigned your coverage to another person or to an organization, if you’re in the process of getting a divorce, or if you’ve already received an accelerated benefit option from this plan.

Term Life Insurance Plan for Texaco, Inc.

If you are a grandfathered former Texaco employee, you’re eligible for coverage under the Former Texaco Term Life Insurance Plan if you meet all of the following requirements:

  • You were an active Texaco employee age 45 or older on October 1, 1999, and elected to keep coverage under the former Term Life Insurance Plan of Texaco Inc.
  • You retire under the Retirement Plan at or after age 50 with at least 10 years of health and welfare eligibility service and you have not been rehired since July 1, 2002 OR you qualify for benefits under the Texaco Separation Pay Plan.

If you elected to keep coverage under the Term Life Insurance Plan of Texaco, Inc. you remain eligible for reduced life insurance benefits under the plan upon your retirement. The amount of your retiree life insurance coverage depends on several factors, including your pay in effect on August 1, 2000, your age at retirement, and your status as a contributory member in the plan.

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To qualify for contributory coverage at retirement, you must have been a contributory member for:

  • Five years immediately preceding your retirement; or
  • From the date you became eligible for the plan until your retirement date, if that period of time is less than five years.

You qualify for noncontributory coverage if you always were a noncontributory member of the plan or were not a contributory member for the qualifying period before your retirement.

After the initial reduction in your coverage at retirement, the amount of your life insurance coverage decreases each year beginning at age 66 and continues to decrease until you reach age 70. From age 70 on, the amount of your life insurance coverage remains unchanged.

The following chart shows the amount of “normal” retiree life insurance provided by the plan.

If you retire between ages 50 and 55 with at least 10 years of service, the amount of your retiree life insurance is based on your base pay in effect on August 1, 2000, and your age at retirement. The amount of your normal retiree life insurance shown in the chart above will be reduced by 5 percent for each year you are under age 55, as shown in the chart below.

Payment of Benefits:

Benefits are payable following your death.  Your beneficiary must file a claim for benefits.  

If you are covered under the Basic Life Insurance Plan for retirees and you are terminally ill, you can request accelerated payment of plan benefits if both of the following are true:

  • Your doctor determines that you’re terminally ill and expects you’ll die within 12 months or in accordance with applicable state law requirements
  • Your plan coverage equals $20,000 or more

If your request is approved, you receive a lump-sum benefit equal to 80 percent of your coverage amount (up to a maximum benefit of $500,000). Your beneficiary will receive the remaining amount of your coverage when you die.

The accelerated benefit option isn’t available if you’ve assigned your coverage to another person or to an organization, if you’re in the process of getting a divorce, or if you’ve already received an accelerated benefit option from this plan.

Unocal Life Insurance Plan

If you are a former Unocal employee who retires after July 1, 2006, and before December 31, 2007, you are eligible for the Grandfathered Unocal Basic Life Insurance benefit if you meet both of the following requirements:

  • You must be age 55 or older with 10 or more years of health and welfare eligibility service when you retire
  • You must retire after July 1, 2006, and before December 31, 2007 

Payment of Benefits

If you are eligible for the Unocal Life Insurance Plan, your basic life insurance coverage equals $5,000. This coverage continues at no cost to you. Life insurance benefits are payable following your death. Your beneficiary must file a claim for benefits.

If you’re covered under the Unocal Life Insurance Plan, and your benefit amount is at least $10,000 and you’re terminally ill, you can request accelerated payment of plan benefits if your doctor determines that you’re terminally ill and expects you’ll die within 12 months or in accordance with applicable state law requirements.

If your request is approved, you receive a lump-sum benefit equal to 80 percent of your coverage amount. Your beneficiary will receive the remaining amount of your coverage when you die.

The accelerated benefit option isn’t available if you’ve assigned your coverage to another person or to an organization, if you’re in the process of getting a divorce, or if you’ve already received an accelerated benefit option from this plan.

Company Contributions to Retiree Medical Coverage

If you’re an eligible retiree, the company currently continues to share the cost of your medical coverage. In general, to be eligible for retiree medical coverage, you must meet both of the following requirements:

  • You are at least age 50 with 10 years or more of health and welfare eligibility service.
  • At least five years of your total health and welfare eligibility service occurred since your last rehire date.

If you are a retiree not eligible for Medicare, your starting company contribution to retiree medical coverage will be based on the maximum active employee company contribution amount in the calendar year you retire. This amount will be determined based on the applicable percentage corresponding to your points, as described below. Please note that the cost of retiree medical coverage is greater than the maximum company contribution, so even if you have enough points to receive 100 percent of the company contribution, you will still have to pay for coverage.

The company contribution amount toward retiree medical coverage is different if you are Medicare-eligible when you retire or if you become Medicare-eligible as a retiree. All Medicare-eligible retirees receive the same company contribution amount, regardless of year of retirement.

The base company contribution is determined by the calendar year you separate from the company. If you are subsequently rehired, the company contribution determination will continue to be based on your first separation date. Chevron limits future increases to the applicable company contribution to no more than 4 percent each year, applied to the starting or existing company contribution amount.

As indicated above, your applicable starting company contribution amount may be prorated based upon your “points” at retirement. Points represent the sum of your age plus years of health and welfare eligibility service when you leave the company. Each point level corresponds to a percentage, which represents the percentage of the company contribution for which you are eligible. In general, the longer you work, the more points you can accumulate, resulting in a higher percentage and therefore a higher company contribution amount toward retiree medical coverage.

In general, if you retired on or after July 1, 2002, one of the following point scales is used to determine the amount of company contribution you receive:

  • The 90-point scale applies to retirees eligible for retiree medical who terminate or retire on or after January 1, 2005, unless a grandfather rule applies to you.
  • The 80-point scale applies to retirees eligible for retiree medical who retired between July 1, 2002, and December 31, 2004, and to employees who were age 50 or over with at least 10 years of service on December 31, 2004 (as determined under the applicable rules in effect on December 31, 2004), and who retire after that date, unless a grandfather rule applies to you.

The following chart indicates the company contribution under the 80-point scale and the 90-point scale:

Grandfather Rules

There are some exceptions to the company contribution amount you may receive. Some retirees are eligible for retiree health care coverage at 100 percent of the maximum company contribution under the rules of former Chevron, former Texaco or former Unocal plans. In these cases, retirees have been protected, or grandfathered, under old or alternate rules. These grandfather rules are described below:

  • A former Chevron employee is a person who otherwise qualifies as an eligible employee and who was employed by Chevron immediately prior to its merger with Texaco Inc. and who has not been terminated and rehired by Chevron since the merger with Texaco Inc.
  • A former Texaco employee is a person who otherwise qualifies as an eligible employee and who was employed by Texaco Inc. immediately prior to its merger with Chevron Corporation and who has not been terminated and rehired by Chevron since the merger with Texaco Inc.
  • A former Unocal employee is a person who otherwise qualifies as an eligible employee, who was employed by Unocal immediately prior to its merger with Chevron Corporation, and who has not been terminated and rehired by Chevron since the merger with Unocal.
  • Whether an employee meets the conditions to have a grandfather rule (including the 80-point scale) apply is determined under the rules in place as of the time the grandfather rule became effective. For example, a change to the health and welfare eligibility service, effective January 1, 2012, does not affect the amount of service the employee had on December 31, 2004 for purposes of whether the 80-point scale applies. (However, if the 80-point scale applies to an employee without regard to the additional service, the additional service would count toward the employee’s points on the 80-point scale).

If you’re a former Chevron, former Caltex, or former Texaco employee and meet one of the

following grandfathering requirements, you receive 100 percent of the company’s contribution toward your medical coverage when you retire, subject to the 4 percent limit on future increases to the company contribution:

  • You’re a former Chevron or former Caltex employee employed by the company on June 30, 2002, and you meet all of the following criteria:
    • You must have had at least 20 years of continuous service or 65 points (age plus years of continuous service) on June 30, 2002, (as determined under the applicable rules in effect on June 30, 2002).
    • You have at least 25 years of health and welfare eligibility service or at least 75 points (age plus years of health and welfare eligibility service) when you retire.
    • You have not been rehired since July 1, 2002.
  • You’re a former Texaco employee employed by the company on June 30, 2002, and on October 1, 1999, you were a Texaco employee who was age 45 or older and you retire at age 55 or older with at least 10 years of health and welfare eligibility service.

If you’re a former Unocal employee employed by the company on June 30, 2006, you may be eligible for a company contribution percentage based on the grandfathered Unocal transition scale. If you retire on or after July 1, 2006, at age 55 or older with 10 or more years of health and welfare eligibility service, and you meet the age and service requirements by December 31, 2007, (as determined under the applicable rules in effect on December 31, 2007), you will be eligible for the greater (that is, the greater company contribution percentage) of the Chevron 90-point scale or the grandfathered Unocal transition scale shown below:

Rehired Retirees Who Retire a Second Time

If you retire from Chevron having met eligibility requirements for retiree medical coverage under any applicable eligibility rule at the time you retire, and you subsequently are rehired and then retire again, you are eligible for the better of the corresponding company contribution to retiree medical coverage based on the date you first retired (as in effect at the time of your second retirement) and any subsequent eligibility for retiree medical for which you qualify, taking into account your second period of employment.

If you would like more information on your Chevron Health Benefits, you can reach out to TechStaffer for more details.