Advisor   Medical Plan Comparison

The Advisor is offered as general guide and coverage assessment tool designed to assist active non-union Dresser, Inc. employees in evaluating different medical plan options for calendar year 2011.  The Advisor does not apply to participants covered by other medical programs, such as union or retiree programs, and should not be used as a guide to enroll in such programs.  Certain assumptions must be made to present participant contribution cost information.  The assumptions and estimated costs used in the calculations are identified below.  As stated above, this is a general guide, and your actual cost and claims experience may be very different.  The Advisor’s models do not factor in the federal income tax impact under the different scenarios.  If you do not understand these materials, please call the Benefits Administration Group prior to completing your enrollment package for 2011.  The actual benefits provided, as costs associated therewith, are governed by the Dresser, Inc. Welfare Benefits Plan and the applicable Summary Plan Description.

 

Step #1 - Questions:

Q1.  Do you, as an individual, consider yourself a low, medium or high utilizer of medical and RX prescription coverage?        
Q2.  If you have a spouse, do you consider your spouse a low, medium or high utilizer of medical and RX prescription coverage?        
Q3.  How many children do you have covered for medical?        
Q4.  If you have children, do you consider them low, medium or high utilizers of medical and RX prescription coverage?        
Q5.  What is your current base salary in whole dollars?        

An answer of Low for utilization assumes that you will annually have one wellness exam doctor visit with lab work, no doctor visits for illness or injury, no surgery or hospital stays, one generic and one formulary prescription.  Each child’s annual cost is calculated as 50% of an adult.

An answer of Medium for utilization assumes that you will annually have one wellness exam doctor visit with lab work, one doctor visit for illness or injury with lab work, no surgery or hospital stays, and one generic, one formulary and one non-formulary prescription.  Each child’s annual cost is calculated as 50% of an adult.

An answer of High for utilization assumes that you will annually have one wellness exam doctor visit, three doctor visits for illness or injury with lab work, one surgery or hospital stay, one generic, one formulary and one non-formulary retail prescription and one annual generic, one annual formulary and one annual non-formulary mail order prescription.  Each child’s annual cost is calculated as 50% of an adult.

 Procedure  Assumed Costs 
 Wellness Doctor Visit  $480.00 
 Doctor Visit for Illness or Injury  $140.00 
 Lab Work for Doctor Visits  $340.00 
 Surgery or Hospital stay  $9,500.00 
 Generic Drug  $39.00 
 Formulary Drug  $180.00 
 Non-formulary Drug  $195.00 

These costs can vary widely depending on the actual diagnosis and treatment undertaken, as well as where you access care.  All calculations assume that you are using the PPO network.  Actual claims will be paid according to the specific terms of the plan.


Step #2 - Personal Assumptions:

Please review the assumed costs for medical and RX prescriptions and modify the amounts below to reflect your projected experience.  By changing the numbers, you can review the affect on your annual costs in each plan.

Based on your answers for yourself, we have assumed an annual gross medical cost of: *        
and an annual gross RX prescription cost of : **        
For a total of:        
                       
Based on your answers for your spouse we have assumed an annual gross medical cost of: *        
and an annual gross RX prescription cost of : **        
For a total of:        
                       
Based on your answers for your children we have assumed an annual gross medical cost of: *        
and an annual gross RX prescription cost of : **        
For a total of:        
                       
For a combined total of:        
       

* Gross medical cost is defined to be the total cost of medical charges before any deductibles or co-insurance have been paid by the participant

** Gross RX prescription cost is defined to be the total cost of RX prescriptions before any co-insurances have been paid by the participant


Step #3 - Medical Care and RX Prescription Plan Comparisons:

                $300 PPO         $1000 PPO         $2000 PPO
Total Annual Costs                        
Annual Company Costs                        
Your Annual Costs for deductibles, co-insurance, and RX Prescription co-insurance ***                        
Your Annual Costs for payroll contributions                        
Your Annual Costs                        

*** If you anticipate expenses or you want to elect a high deductible plan and want to pay for your costs for services with pre-tax dollars, you can take advantage of the Health Care Spending Account.  You can sign up to have from $120 to $4,000 withheld from your pre-tax pay over the course of the calendar year.  You can then reimburse yourself for your actual deductible, co-insurance, RX prescription co-insurance or other eligible expenses you incur during the year.  You can even claim the full annualized amount before it’s all been deducted from your paycheck.  Dental, vision, and other out-of-pocket health care expenses can be included as well.  You will need to plan carefully, however, as you will forfeit any amounts that you have not incurred and claimed for the year.  Please refer to the Health Care Spending Account Worksheet included in your packet.