Frequently Asked Questions

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Frequently Asked Questions

General

What is the Patient Protection and Affordable Care Act?
The Patient Protection and Affordable Care Act (ACA) – more commonly known as health care reform – was signed into law March 23, 2010. According to the U.S. Department of Health and Human Services, the Affordable Care Act is working to make health care more affordable, accessible and of a higher quality for families, seniors, businesses and taxpayers alike.

How does the King v. Burwell United States Supreme Court ruling affect the healthcare coverage I receive through Lockheed Martin?
This ruling does not directly impact Lockheed Martin’s health plans, which remain compliant with health care reform laws. The Supreme Court’s ruling determined that subsidies can continue to be provided to eligible individuals who are enrolled in health coverage through the health insurance marketplaces that are operated by the federal government.

Individuals, including those with access to employer-provided health care plans like Lockheed Martin’s, can choose to purchase insurance through Health Insurance Marketplaces available in their area. However, if an employee chooses to purchase health insurance other than from Lockheed Martin, Lockheed Martin will not make any contribution to their premium or out-of-pocket costs.

The 2015 Tax Return Process and Form 1095-C

What is Employer Shared Responsibility?
Effective January 1, 2015, employers with 50 or more full-time employees – including Lockheed Martin – are subject to the ACA’s employer shared responsibility provisions. These provisions require Lockheed Martin and other large employers to offer affordable health coverage that provides a minimum level of coverage to their full time employees or be subject to a penalty. Lockheed Martin’s plans are compliant with health care reform laws and exceed the required minimum level of coverage.

Lockheed Martin and other large employers must also adhere to health insurance information reporting responsibilities, which may impact how you file your federal tax return.

Who is considered a full time employee?
Under the ACA, a full-time employee is an employee who works an average of 130 hours or more per month.

What does “affordable” and “minimum value” actually mean?
Under the ACA, a health plan is considered to be affordable if an employee’s contribution for self-only coverage does not exceed a pre-determined percentage of their household income. The IRS permits employers to use safe harbors to determine household income. For 2015, the safe harbor percentage was 9.5 percent. This percentage is subject to indexing on an annual basis.

Additionally, a health plan that meets the ACA’s minimum value requirements means that the plan covers 60 percent or more of total allowable costs in the form of deductibles, co-insurance and co-payments. This percentage is also subject to indexing.

How will the ACA impact my 2015 federal tax return process?
Lockheed Martin and all large employers must send health insurance information returns to covered individuals (e.g. employees, retirees, COBRA and surviving dependents) and to the Internal Revenue Service (IRS). The IRS has created new forms for this purpose.

Full-time employees and self-insured health plan participants will receive Form 1095-C Employer-Provided Health Insurance Offer and Coverage from Lockheed Martin. Insured health plan participants will receive Form 1095-B Health Coverage from their insurer.

For most taxpayers, these forms will be used for informational purposes only – they do not need to be attached to U.S. federal tax returns. For some taxpayers, these forms will be used to help individuals determine their eligibility for premium tax credits for health coverage purchased through the Health Insurance Marketplace.

For more information about the impact of the new forms to the 2015 federal tax return process, please visit the IRS’s Individuals and Families webpage.

What’s included on Form 1095-C?
Your Form 1095-C from Lockheed Martin includes information about health coverage that was offered to you, your spouse and/or your dependents. Specifically, the form includes information about your enrollment in coverage – and those who are covered under your health plan – and whether or not the coverage you were offered met the ACA’s affordability and minimum value requirements. The form has three main sections:

Part One- Employee and employer name and address

This section includes the employee’s address on file at the time of mailing and the address of Lockheed Martin

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Part Two- Employee Offer and Coverage

This section includes information about the months coverage was offered by Lockheed Martin, the months the employee participated in coverage and the employee’s share of the lowest cost plan available.

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Part Three- Covered Individuals

This section includes the names of individuals who were covered by a Lockheed Martin self-insured health plan, such as an employee and their covered dependents (e.g. spouse, same-sex domestic partner or children).

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Will my covered dependents also receive a Form 1095-C from Lockheed Martin?
In most cases, only the health plan subscriber will receive a Form 1095-C from Lockheed Martin. Covered dependents may need to refer to their health plan subscriber’s Form 1095-C when completing their federal tax returns.

I was an active employee in 2015 but I didn’t enroll in a Lockheed Martin medical plan. Why did I receive a Form 1095-C?
If you were a Lockheed Martin full time employee for one or more months in 2015, even if you did not enroll in a Lockheed Martin self-insured medical plan, you will receive a Form 1095-C.

I was not employed by Lockheed Martin at any time during the year in 2015. Why did I receive a Form 1095-C?
If you were enrolled in a self-insured Lockheed Martin health plan at any time in 2015, even if you were not an employee at any time during the year, you will receive a Form 1095-C.

Self-Insured Medical Plan

What is a self-insured medical plan?
A self-insured group medical plan is one in which the employer assumes the financial risk for providing health care benefits to its employees. In practical terms, self-insured employers pay for each out of pocket claim as they are incurred instead of paying a fixed premium to an insurance carrier, which is known as a fully-insured plan.

How do I know if my plan is a self-insured plan or a fully insured plan?
Please refer to the matrix of health plans
.

Impact on Medicare Coverage

I have Medicare and I’m not enrolled in a Lockheed Martin retiree medical plan. Why am I receiving a Form 1095-C?
If you were a Lockheed Martin full time employee for one or more months in 2015, even if you did not enroll in a Lockheed Martin self-insured medical plan, you will receive a Form 1095-C.

If you cover a dependent who is enrolled in a self-insured non-Medicare Lockheed Martin retiree medical plan at any point in 2015, you will receive a Form 1095-C.

If you or a dependent are enrolled in a Lockheed Martin Health Reimbursement Arrangement, offered through OneExchange, Lockheed Martin will send you a Form 1095-C.

What if I’m 65 or older but not eligible for Medicare?
You may be able to purchase insurance through the Health Insurance Marketplace and experience lower monthly premiums and out-of-pocket costs based on your household size and income.

COBRA

I declined my retiree medical options and enrolled in COBRA coverage, will I receive a Form 1095-C?

If you are enrolled in a self-insured Lockheed Martin medical plan through COBRA, Lockheed Martin will send you a Form 1095-C which will also include your covered dependents, if applicable.

My child aged out of Lockheed Martin health coverage and enrolled in COBRA, will I receive a Form 1095-C for my child?

If your child was enrolled in a COBRA self-insured Lockheed Martin medical plan, your child will be issued a Form 1095-C.

The Individual Mandate

What is the Individual Mandate?
This mandate went into effect January 1, 2014 and requires each American (with some exceptions) to have health insurance or pay a penalty.

If I’m covered by a Lockheed Martin health plan, does that take care of the individual mandate for me?
Yes. If you’re covered under a Lockheed Martin health plan, you’ll meet the requirements for the individual mandate.

Does my health coverage through the military satisfy the individual mandate requirement?
Yes, military benefits such as TRICARE satisfy the individual mandate requirement of the health care reform law.

Am I required to cover my spouse/same-sex domestic partner under the health care reform law?
No. You don’t have to provide health coverage for your spouse/same-sex domestic partner. If you choose not to, your spouse/same-sex domestic partner will still need his/her own coverage. It can come from his/her employer or from health coverage purchased in a Health Insurance Marketplace.

Eligibility for Lockheed Martin Health Plan Coverage

Is Lockheed Martin changing eligibility rules for health insurance?
With full marriage rights and protections available to all couples across the United States, Lockheed Martin will begin updating the benefits provided to employees and their families. Coverage for same-sex domestic partners who are currently recognized by Lockheed Martin’s health plans will continue through Dec. 31, 2016. Beginning Jan. 1, 2017, same-sex couples who are legally married may continue their coverage under Lockheed Martin insurance plans. Same-sex domestic partners will no longer be eligible for coverage effective Jan. 1, 2017.

Can I cover my children under my Lockheed Martin plan?
Yes, you can cover your children up to age 26.

Does health care reform mean I’ll need to give up my Lockheed Martin health insurance?
No. If you currently have coverage through a Lockheed Martin health plan, you can keep it as long as you maintain your eligibility.  

Eligibility for Coverage through Other Sources                                          

What is a “Health Insurance Marketplace”?
A Health Insurance Marketplace, previously referred to as an “Exchange,” is a place where people can go to buy individual health insurance policies when they don’t have or don’t want health coverage through their employer or from another source (like through a parent’s or a spouse’s/same-sex domestic partner’s health plan). Each state has its own Health Insurance Marketplace, either set up by the state itself, by the federal government, or by a partnership of both the state and federal government. The Health Insurance Marketplaces offer a menu of health plan options so that individuals and their families can choose the type of plan that works best for their health care needs and their budget.

I’m eligible for Lockheed Martin health plan coverage, but what if I’d rather join my spouse’s/same-sex domestic partner’s plan that he/she purchases through a Health Insurance Marketplace?
You don’t have to enroll in a Lockheed Martin health plan. If you’d rather be covered under your spouse’s/same-sex domestic partner’s plan (through his or her employer or under a plan purchased through a Health Insurance Marketplace), that’s okay. However, if you choose to purchase health insurance other than from Lockheed Martin, Lockheed Martin will not make any contribution to your premium or out-of-pocket costs. All health care costs will be your responsibility and you should consider all information available before making any decisions on coverage.

If I like a plan offered through a Health Insurance Marketplace better than what’s offered by Lockheed Martin, can I still choose coverage through a Health Insurance Marketplace?
Yes, you can choose health coverage through your state’s Health Insurance Marketplace instead of through Lockheed Martin. However, if you choose to purchase health insurance other than from Lockheed Martin, Lockheed Martin will not make any contribution to your premium or out-of-pocket costs. All health care costs will be your responsibility and you should consider all information available before making any decisions on coverage.

Can my spouse/same-sex domestic partner and I get our health coverage from different places — my coverage under a Lockheed Martin health plan and his/her coverage through a plan from a Health Insurance Marketplace?
Yes, you and your spouse/same-sex domestic partner can enroll in different health plans. The important thing to remember is that you both will need to have health coverage as required by the individual mandate, whether it comes from the same health plan or from two different plans.

What are my health coverage options for my spouse/same-sex domestic partner?
With full marriage rights and protections available to all couples across the United States, Lockheed Martin will begin updating the benefits provided to employees and their families. Coverage for same-sex domestic partners who are currently recognized by Lockheed Martin’s health plans will continue through Dec. 31, 2016. Beginning Jan. 1, 2017, same-sex couples who are legally married may continue their coverage under Lockheed Martin insurance plans. Same-sex domestic partners will no longer be eligible for coverage effective Jan. 1, 2017.

After this time, your spouse/same-sex domestic partner can get coverage through a Health Insurance Marketplace where he/she lives. He or she might have other options, too, like coverage through his/her employer or a parent’s health plan.

If I get my coverage through a Health Insurance Marketplace, will I be able to choose the doctors I want?
Many different plans are offered through the Health Insurance Marketplaces. Some offer more choice in providers than others. When you compare the plans that you can choose from, you’ll be able to see which ones let you choose any doctor, and which ones only offer benefits from doctors who are part of a network.

If I want to get my coverage through the Health Insurance Marketplace in the state where I live, what’s the process?

Visit healthcare.gov, the website sponsored by the Department of Health and Human Services, to get contact information for the public Health Insurance Marketplaces.

What if I don’t like the coverage I receive through the Health Insurance Marketplace, can I re-enroll in the Lockheed Martin plan?
An employee who enrolls in a medical plan through their Health Insurance Marketplace will not be able to re-enroll in a Lockheed Martin plan until the following Annual Enrollment or as the result of a Qualifying Life Event.

Special Enrollment Period

What if I had job-based health coverage but lost it when I retired? Do I qualify for a Special Enrollment Period?

Yes. Losing job-based health coverage qualifies you for a Health Insurance Marketplace Special Enrollment Period. This means you can enroll in a health plan outside of Open Enrollment. You can apply to the Health Insurance Marketplace for a Special Enrollment Period anytime from 60 days before and 60 days after your separation date.

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Help With Paying for Health Insurance Costs

Is it true that the government gives some people money to help pay for health insurance costs?
Yes. For certain low- and middle-income individuals who do not have access to affordable coverage at work, or who are not eligible for comprehensive, affordable health coverage from their spouse’s/same-sex domestic partner’s employer, the federal government may offer financial help for health insurance purchased through the Health Insurance Marketplace. This financial help is called a “subsidy.”

How much of a subsidy is the government providing?
The amount of the subsidy depends on each person’s household income. It’s important to know that, generally, if you are eligible for coverage through a Lockheed Martin health plan, you are not eligible for a subsidy. If you are not eligible for coverage through a Lockheed Martin health plan, you may be eligible for a subsidy depending on your household income. It’s not just your income that counts, but the combined income of everyone in your home. You can contact the public Health Insurance Marketplaces to see if you qualify for a subsidy. Check www.healthcare.gov, the website sponsored by the Department of Health and Human Services, to get contact information for the public Health Insurance Marketplaces.

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Health Care Costs

Will my health care costs continue to go up?
One of the goals of the health care reform law is to make health insurance affordable for all Americans. Lockheed Martin also wants to ensure that our health plans remain affordable for our employees. Health care costs continue to rise, and some of what’s causing prices to go up is not within our control. However, Lockheed Martin is working hard to control what we can, and we ask our employees to help too by understanding how to use their health plan benefits wisely. We’ll continue to provide you with the information you need to help keep your costs affordable.

Does the health care reform law help limit my out-of-pocket health care costs?
Yes. The health care reform law puts limits on what you have to pay out of your own pocket each year for essential health benefits. Whether you get your coverage through Lockheed Martin, through the Health Insurance Marketplace, or from somewhere else, these limits will be in place to help keep your costs down.

I’ve heard something about a “Cadillac tax” — what is that?
Starting in 2020, employers with health plan benefits that exceed a pre-defined dollar limit will be subject to pay an excise tax, which is sometimes referred to as the Cadillac tax. Lockheed Martin continues to monitor new developments related to this upcoming provision of the health care reform law.