University of Kentucky Retiree Health Benefits Update: What I Need to Know as an Under Age 65 Retiree Not Yet Eligible for Medicare
Your medical plan coverage has not changed, though the monthly premium costs will adjust annually based on a new formula beginning in July 2007, resulting in higher costs (see below). You will continue to participate in UK-HMO, UK PPO, UK Indemnity and other available plans. Your prescription coverage through Express Scripts has not changed. Your benefit is the same benefit that is provided to active employees.
The Retiree Health Benefits Committee recommended that changes be made to “early retirement benefits” (under age 65, not eligible for Medicare) because of the cost associated with providing this coverage. Effective July, 1, 2007, your share of the monthly premium will increase from $25 per month to approximately $60 per month for “early retiree single coverage” under UK-HMO. If you are enrolled in one of the Humana plans, your cost will be higher.
The cost of dependent coverage will increase significantly (possibly 40-50% more). More information will be sent to you in the spring during Benefits open enrollment.
Deferral Option - Many pre-65 retirees have options for health insurance coverage through another employer or through a spouse’s employer plan. If this is your situation, you can “defer” your UK benefit by contacting the UK Employee Benefits Office and completing a deferral form. Once your health plan coverage has been deferred, it can be reactivated ONLY ONE TIME. This means additional deferrals are not possible. The deferral option was created several years ago to accommodate retirees under age 65 who work for, and receive health coverage from, other employers after their UK retirement.
What do I Need to Do Now as an Under Age 65 Retiree Not Yet Eligible for Medicare?
Wait for open enrollment in April 2007. If you have dependent coverage, you will need to prepare to pay approximately 40-50% more for this coverage beginning July 1, 2007. More information will be available in the spring during Benefits open enrollment. Your cost should decrease for your spouse when he or she becomes eligible for Medicare. The UK Medicare plan premium is expected to be approximately $145 per month beginning January 1, 2007.
Participate in the UK Healthtrac Rewards Program. You and your spouse (if covered on your UK health plan) can each earn up to $15 per month for participating in the program. For information call (859) 257-9355.
Contact the UK pharmacist for Copay Counseling Service at (859) 323-1493 if you take prescription drugs and are looking for ways to lower your cost or have any other drug questions.
