FAQs - Retiree Health Plan

What You Need to Know: 

Find answers to commonly asked questions about Retiree HealthCare Coverage provided by the University of Kentucky.

What is the Medicare Carveout Classic plan? 

The UK Medicare Carveout Classic plan is a health plan combined with Medicare parts A and B.  The member pays a copayment for services and presents only their UK Medicare Carveout Classic ID card to their provider.  Participants may use providers who accept Medicare and Humana's terms and conditions.

Will I receive a health and prescription ID card each year? 

UK-HMO members will receive a new ID card. UK-PPO, UK-PPO High, UK-EPO, and UK Medicare Carveout Classic members will NOT receive a new ID card unless you are enrolling in one of these plans from a different plan.  Prescription plan cards will not be issued new each year unless you are new to the Medicare eligible prescription plan.  Members will use the same ID card year to year.

 

Can a retiree defer their coverage?

As a retiree of the University, you may choose a one-time deferral either at the time of your retirement or anytime thereafter.  You may then elect to re-enroll in a UK health plan at any time in the future but must have maintained medical coverage during the deferral period (at least 12 months) and may not have more than a 63-day break in coverage from the time the other plan ends and the University coverage begins.  Once you have elected to re-enroll in a UK health plan, your enrollment must remain continuous and you will not be permitted to make another deferral. 

Upon re-enrollment in the health plan, you will be permitted to cover any existing dependents (spouse, children) whether they were previously covered by your plan or not.  You may not add new dependents at a later date once you have re-enrolled, unless they are newly acquired through marriage, birth, or adoption or in the case where a spouse was working and had health coverage through his or her employer for 12 months immediately before being covered on the University’s health plan and not more than a 63-day break in coverage. 

Can I add my spouse to my health plan after retirement?

Retirees may add a spouse after retirement, provided the spouse had creditable health insurance coverage for 12 months immediately before being covered on the University’s plan and there has not been a break in coverage of more than 63 days preceding coverage by the University’s plan. 

Is the University cutting the retiree health benefit?

No, the coverage levels of the health benefit are not decreasing; only the employer funding to the retiree benefit is changing.  Retirees under age 65 (EARLY retirees) will pay a slightly higher premium for health plan coverages, but significantly more for dependent coverage.  Premiums for early retirees will decrease significantly upon their reaching Medicare eligibility (typically age 65).  All Medicare-eligible retirees hired prior to January 1, 2006 will pay the same amount for the short run ($25 per month) and 10% of the total premium in the long run.  Post-65 retirees (Medicare eligible) will see an enhanced medical benefit: the $500 annual deductible has been eliminated for Medicare-eligible retiree health plan (previously know as the Medicare Advantage plan).

When can I change the elections I make now?

Because the University of Kentucky deducts premiums for health, dental, and vision insurance as well as flexible spending benefit plans on a pre-tax basis, the benefit choices you make now may not be changed unless you have a qualifying event, as defined by Internal Revenue Code, Section 125. The choices you make during Open Enrollment will be in effect for the coming fiscal year, which runs from July 1 of one year to June 30 of the next year.

What is a qualifying event? 

A qualifying events defined as: marriage, divorce, birth or adoption of a child, death or a spouse or child, dependent child reaching the age limit or getting married, change in employment status of you or your spouse from full-time to part-time and vice versa, termination of employment by you or your spouse, and open enrollment of a spouse.