New Retiree Plans Announced
We have heard from many of you that the cost of benefits for retirees is an on-going problem. Therefore, we have responded by creating a new option for post-age 65 retirees. This plan option will be available for use on January 1, 2010. |
Post-Age 65 Retiree Plan
Existing Plan Description
The current Medicare supplement plan for post-age 65 retirees generally pays 100% of the Medicare eligible charges not covered by Medicare, except for co-payments under the Caremark prescription benefit. After analyzing this plan, we found that a majority of the total plan expenditures were for prescription drugs. Because this plan does not capture the subsidies available under Medicare Part D, the premium has remained higher than for other plans found in the marketplace.
By taking advantage of the Medicare Part D subsidy and by modifying the prescription benefit, the new plan will lower the premium by more than 50%.
Under this new plan, the Medicare supplement that covers medical expenses will remain generally unchanged and continue to pay 100% of Medicare eligible charges not covered by Medicare. Prescriptions drugs will be covered by Silverscript, a subsidiary of Caremark that specializes in Medicare Part D coverage.
Use the Quick Links on the right to see a description of the Silverscript plan and a comparison of the old and new retiree plan.
Employers Must Choose Which Retiree Plan to Offer
If you will offer retiree coverage in 2010, you must decide which plan you will offer. You have the choice of keeping your current plan at the new rates effective 1/1/2010, or switching to the new plan.
You cannot offer both plan options to your retirees
The plan choice must be made at the employer level and all retirees will be enrolled in the plan selected. |
Pre-Age 65 Retiree Plans
Existing Plan Description
Currently, the Trust allows pre-age 65 retirees to enroll in the plan they were in at the time of their retirement. This can be expensive for retirees, especially for those that pay 100% of the premium.
New Plan Options
The Trust will give your retirees more plan options to help reduce costs. Beginning January 1, 2010, early retirees may choose the plan they are enrolled in at retirement, or they may choose from two new additional plan options. We hope that by offering early retirees multiple plan options, we can better serve the variety of needs presented by this group of participants.
The two new additional plans were designed specifically for pre-age 65 retirees. They provide essential medical and prescription drug coverage at a more affordable price.
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Post-Age 65 Enrollment
If you are interested in the new retiree plans, please contact Carol Jobe to learn more. She can be reached at:
800-331-3287
ext. 43812
All enrollments will be done on a group basis. Additional information, including Silverscript enrollment forms, will be sent to you on or before November 15th, the first day of the Medicare Part D open enrollment period.
If your company does not select the new plan and remains in the current medicare supplement plan, your retirees will not be enrolled in the Silverscript plan.
Retiree Billing
Principal will continue to coordinate the billing and eligibility process as they have in the past. Retirees under the new plan will appear on your monthly group billing statement. |
CALCULATE Rx OUT-OF-POCKET EXPENSES
Retirees can use this tool to estimate out-of-pocket expenses under the Silverscript plan. This LINK will take you to the Silverscript web page. Once there, click on the "Budget & Plan Pricing Calculator" under Quick Links on the left side of the page and follow the directions. Be prepared to enter information about your prescription drug usage. Please Note
If you help your retirees use this calculator, they must first complete a Privacy release form, which you should keep on file. Click here to view and print this form. |
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