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Hercules Incorporated
Hercules Plaza
1313 N. Market Street
Wilmington, Delaware 19894-0001
(302) 594-5000
http://www.herc.com

Important Notice From Hercules Incorporated About
Your Prescription Drug Coverage and Medicare

Please read this notice carefully, and keep it where you can find it. This notice has information about your current prescription drug coverage with Hercules Incorporated and new prescription drug coverage available soon for people with Medicare. It also tells you where to find more information to help you make decisions about your prescription drug coverage.

  1. Starting January 1, 2006, new Medicare prescription drug coverage will be available to everyone with Medicare.

  2. Hercules Incorporated has determined that the prescription drug coverage offered in the Hercules Group Health Program To Supplement Medicare (HGHPSM) is, on average for all plan participants, NOT expected to pay out as much as the standard Medicare prescription drug coverage will pay. This is important, because for most people, enrolling in Medicare prescription drug coverage before May 15, 2006 means you will get more assistance with drug costs.

  3. Since the HGHPSM provides lower average benefits than Medicare Part D, Hercules will eliminate its prescription drug coverage portion of the HGHPSM effective January 1, 2006. Retiree contributions will be adjusted downward to reflect this reduction in benefits.

  4. You have decisions to make about Medicare prescription drug coverage that may affect how much you pay for that coverage, depending on if and when you enroll. Read this notice carefully - it explains your options.


You may have heard about Medicare’s new prescription drug coverage, and wondered how it would affect you. Starting January 1, 2006, prescription drug coverage will be available to everyone with Medicare through Medicare prescription drug plans. All Medicare prescription drug coverage will provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium.

You will want to consider enrolling in Medicare prescription drug coverage.

Because the coverage you have with HGHPSM is on average for all plan participants, NOT expected to pay out as much as the standard Medicare prescription drug coverage will pay and will therefore be eliminated, you will want to consider enrolling in a Medicare prescription drug plan. You can first join between November 15, 2005 and May 15, 2006. This is important, because if you do not get Medicare prescription drug coverage (or equivalent coverage) before May 15, 2006, you may have to pay a higher premium if you join later. You will pay that higher premium as long as you have Medicare prescription drug coverage.

If you don’t enroll in Medicare prescription drug coverage by May 15, 2006
and change your mind later, you may pay more.

If you wait until after May 15, 2006, to enroll, your monthly premium for a Medicare prescription drug plan could be much higher than it would have been if you had enrolled by May 15. If, after May 15, 2006, you go 63 days or longer without prescription drug coverage that is at least as good as Medicare’s prescription drug coverage, your premium will go up at least 1% per month for every month after May 15, 2006 that you did not have that coverage. You will have to pay this higher premium as long as you have Medicare prescription drug coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what most other people pay.

If you don’t enroll in a Medicare prescription drug plan by
May 15, 2006, you may also have to wait to enroll.

Generally, after May 15, 2006, you can only join a Medicare prescription drug plan between November 15 and December 31 of any year. This may mean the number of months you have to wait for coverage will be longer, which could make your premium higher.

You will receive much information from Medicare and private insurers about prescription coverage options. Hercules anticipates our current pharmacy benefit manager, MEDCO, may be offering you at least one coverage option.

Your current coverage pays for other health expenses, in addition to prescription drugs. You will still be eligible to receive all of your other health benefits, whether or not you choose to enroll in a Medicare prescription drug plan.

You need to make a decision. For more information about this notice or
your current prescription drug coverage…

When you make your decision, you should also compare your current coverage, including which drugs are covered, with the coverage and cost of the plans offering Medicare prescription drug coverage in your area.

Contact our office for further information by calling 1-877-HERCBEN (1-877-437-2236), or by e-mailing BenefitsHotline@herc.com. NOTE: You may receive this notice at other times in the future such as before the next period you can enroll in Hercules Medicare Supplemental medical coverage. You also may request a copy of this notice.

For more information about your options under
Medicare prescription drug coverage…

More detailed information about Medicare plans that offer prescription drug coverage will be available in October 2005 through the “Medicare & You 2006” handbook from Medicare. You may also be contacted directly by Medicare-approved prescription drug plans (“PDP”). You’ll get a copy of the handbook in the mail. You can also get more information about Medicare prescription drug plans from these places:

  • Visit www.medicare.gov for personalized help

  • Call your State Health Insurance Assistance Program (see your copy of the Medicare & You handbook for their telephone number)

  • Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information about this extra help is available from the Social Security Administration (SSA). For more information about this extra help, visit SSA online at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).

*****

Date: August 26, 2005
Name of Entity/Sender: Hercules Incorporated
Contact--Position/Office: Shared Services
Address: 1313 N. Market Street, Wilmington, DE 19894
Phone Number: 1-877-HERCBEN (1-877-437-2236)

Medicare and Hercules Medical Coverage

 
 

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