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Retiree Medical Benefits

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					     ERSRI
Retiree Medical
    Benefits
Introduction

 Life Insurance
 Health Insurance
           Life Insurance
Basic Insurance only
Premiums deducted on a monthly basis
Frozen Valuation = salary at retirement age
Value reduction depending upon age:
   Age 65 = 76% of Frozen Valuation
   Age 66 = 52% of Frozen Valuation
   Age 67 = 28% of Frozen Valuation
   Age 68 = 25% of Frozen Valuation
                Remains at 25%
               Age 60 - 64
Creditable Service   Age   Employer-Paid   Retiree-Paid

   10-15 years       60        50%            50%

   16-22 years       60        70%            30%

   23-27 years       60        80%            20%

    28 years         <60       90%            10%

    28 years         60       100%             0%

   35+ years         Any      100%             0%
                     Age
             Age 65
Creditable    Age   Employer-   Retiree-
 Service              Paid       Paid
10-15 years   65      50%        50%


16-19 years   65      70%        30%


20-27 years   65      90%        10%


28+ years     65     100%         0%
         Retiree Health Plans
                    Summary
COBRA (Extension of Active Benefits)
   Medical (including same prescription plan),
   Dental & Vision
   Coverage for 18 months
EARLY RETIREE Plan
   Medical (including 20% prescription co-pay)
   No Dental or Vision coverage
   Coverage to Age 65
MEDICARE Supplemental Plan
  United Plan 65
  Secure Horizons Medicare Complete (United)
 Individual vs. Family Plan
If employee has family plan, only
employee and spouse, two individual
plans are less expensive.

If employee needs family plan, spouse
and dependents, employee will receive
monetary credit for an individual plan
and pay the difference in cost.
            COBRA
Same medical, dental, and vision
benefits as if you were an active
employee
Same Co-Pays for Prescriptions
Spouse/partner is eligible for same
benefits but at 100% of State rate
2% Administration Fee added to both
employee and spouse’s plans
        COBRA Payments
COBRA is purchased through the State
 Benefits Office. You will receive a
 coupon booklet and send your monthly
 payment directly to Providence. This
 practice eliminates any delay in medical
 coverage immediately after retirement.
          Total Plan Costs
           Under Age 65
COBRA (Monthly Rates)
 Medical    $452.28     (eff. 7/1/07)

 Dental         27.28   (eff. 1/1/08)

 Vision          6.35   (eff. 7/1/06)


 Admin Fee       2%
 TOTAL       $495.62
 COBRA - Age 65 and Over
Retiree is eligible for state-paid portion of medical
  insurance at Plan 65 rate ($179.77/mo).
Ex: Active Medical rate = $452.28/month
            Plan 65 rate = $179.77/month
   Retiree with 100% Med = $272.51/month
                     Den = $ 27.28/month
                     Vis = $ 6.35/month
           2% Admin Fee = $ 6.12/month

              TOTAL COST = $ 312.26/month
COBRA & MEDICARE Part “B”
If employee is 65+ and COBRA is chosen
  upon retirement, Part “B” of Medicare is
  not necessary right away. You can sign
  up for Part “B” during the Special
  Enrollment Period, which is during the 8
  months following the month that the
  employer group plan coverage ends, or
  when the employment ends (whichever is
  first). Month of retirement is 1st month.
       Early Retiree Plan
Health coverage for time period between end
of COBRA and MEDICARE eligibility

Same medical coverage, but no dental or
vision coverage

Prescriptions are covered at a 20% co-pay

Spouse Rate = $452.28/month
    MEDICARE Supplemental Plans
               (Individual Plans Only)
  United Plan 65              Medicare Complete
                                       ($107.00/month)
     ($179.77/month)
Portable                   RI Based HMO
Choice of Physicians       Primary Care Physician
No Referrals Needed        No Referrals Needed
No Dental Care             Semi-Annual Dental Care
No Vision Care             Annual Vision Care
No Prescriptions           Prescriptions (includes
                            Medicare Part “D” ($3, $28, $58, 25%)
                              No Deductible
   MEDICARE (continued)
Both Part “A” and Part “B” are necessary if a
Supplemental Plan is chosen.
In 2008, Part “B” will cost most people
$96.40/month, which is deducted from Social
Security check before it is sent to recipient.
From 2007 – 2011, premiums will be “income
related” with an $82,000 threshold for 2008.
Spouse is eligible for supplemental plan but
at 100% of the State rate.
           Medicare Part B
Starting January 1, 2007, your Part B premium will be
based on your income. If your income is above $82,000
(single) or $164,000 (married couple), Social Security
will use the income reported 2 years ago on your IRS
income tax return to determine your premium. (If
unavailable, SSA will use data from 3 years ago). For
example, the income reported on your 2005 tax return
will be used to determine your monthly Part B premium
in 2007. If your income has decreased since 2005, you
can ask that the income from a more recent tax year be
used to determine your premium. At the end of each
year, SSA will send you a letter if your Part B premium
will increase based on the level of your income and tell
you what you can do if you disagree.
 Part B Monthly Premium-2008
You Pay         Single           Married Couple
 $ 96.40     Under $82,000         Under $164,000

 $122.20   $82,001 - $102,000    $164,001 - $204,000

 $160.90   $102,001 - $153,000   $204,001 - $306,000

 $199.70   $153,001 - $205,000   $306,001 - $410,000

 $238.40     Above $205,000        Above $410,000
  Standard Part D Coverage
    www.medicare.gov/mpdpf
For people with incomes above $15,315
Generally less than $30.00/mo premium
$265 deductible
Coinsurance of 25% of drug costs from $265
to $2,400 (Medicare pays 75%)
You pay 100% drug costs from $2,400 to
$5,451.25
After $3,850 in out-of-pocket costs, Medicare
pays approximately 95%
          Pension Deduction
        for Medical Insurance
Medical insurance after COBRA is deducted
 from pension check for retiree. If there is a
 sufficient amount of money remaining, health
 insurance is also deducted for spouse or
 partner. If not, spouse or partner will be
 billed directly by the health carrier, either
 monthly or quarterly.
            CONTACTS
ERSRI – Employee Retirement System
         of Rhode Island
         222-2203 www.ersri.org

URI Benefits Office – Patricia Victoria
         874-2921 patv@uri.edu

				
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