Healthcare Options after Retirement

April 12, 2012

A Road Ahead Information Session

The University of Arizona Division of Human Resources

Presented by the JP Griffin Group

Introduction & Welcome

• JP Griffin Group – Jeff Griffin and Kerrin Matousek

• The HR Benefits Team• The Road Ahead Project• About Today’s Presentation

State of Arizona Health Insurance Plans

Optional Retirement Plan participants and Arizona State Retirement System members are eligible for retiree health insurance with:

•Arizona Department of Administration (ADOA)– Most of your current plans are available to

you as a retiree•Arizona State Retirement System (ASRS)

ADOA Health Insurance - Resources

• Preparing For University Retirement - Presented by UA Human Resourceshttp://www.hr.arizona.edu/transitioning_to_a_successful_retirement

• ADOA website (includes Retiree Benefits Guide)http://benefitoptions.az.gov/

• ADOA Benefit Services Division(602) 542-5008, (800) 304-3687, benefitsissues@azdoa.gov

ASRS Health Insurance - Resources

• Know Your Insurance - Presented by ASRSFor dates and locations, visit: https://www.azasrs.gov/web/MemberEducation.do

• ASRS website (includes Retiree Group Insurance Enrollment Guide) https://www.azasrs.gov/web/HealthInsurance.do

• ASRS Member Services (520)239-3100, (602)240-2000, (800)621-3778askmac@azasrs.gov

Other Coverage Options in Retirement

• Spouse/partner’s group health plan• Retiree coverage from prior

employer• Individual Plan• Medicare

Individual Plans

• Multiple carrier options and prices• Benefit levels vary• Underwriting considerations• Consider deductibles, pre-existing

conditions, provider networks, your health and prescriptions

• What happens when I become Medicare- eligible?

Individual Plan Resources

• Contact insurance companies directly

• Online searches• Contact an insurance broker

Medicare Options

• Part A - Hospital Insurance• Part B - Medical Insurance• Part C - Medicare Advantage Plans• Part D - Prescription Drug Coverage• MediGap - Medicare Supplement

Insurance

Medicare Components

Medicare Part A – Hospitalization

Helps cover inpatient care in hospitals, skilled nursing facilities, hospice and home health care.

Medicare Part B – Medical

• Helps cover doctors’ and other health care providers’ services, outpatient care, durable medical equipment, and home health care

• Helps cover some preventive services to maintain your health

• If Medicare-eligible, you will need to enroll in Part B (Medical) if you elect the State of

Arizona’s retiree plans

Medicare Part C – Medicare Advantage Plans

A health plan option run by Medicare-approved private insurance companies.

Medicare Part C – Medicare Advantage Plans

• In addition to the Part B (Medical) premium, a monthly premium is usually charged for the Medical Advantage Plan services

• Each Part C Medicare Advantage Plan may charge different out-of-pocket costs

• Part C Medicare Advantage Plans are not the same as supplemental coverage

Medicare Part D – Prescription Drug Coverage

Helps cover the cost of prescription drugs.

Medigap – Medicare Supplemental Insurance

• Sold by private insurance companies • Works only with Original Medicare• Covers Part A (Hospital) and Part B

(Medical) cost sharing (coinsurance, copayments or deductibles)

Medicare Enrollment

Part A (Hospital) and Part B (Medical): Enrollment

with Social Security

If you receive Social Security retirement benefits, you automatically receive Part A and Part B starting the first day of the month you turn age 65.

Part A (Hospital) and Part B (Medical): Enrollment

without Social Security

• If you’re 65 or older and not receiving Social Security Benefits you will not automatically receive Part A and Part B

• You may sign up:– 3 months before you turn 65– The month you turn 65 --- or ----– The 3 months after you turn 65

Part A (Hospital) and Part B (Medical): When Does My

Coverage Start?

Coverage date depends on your birthday and date of enrollment.

What Happens If I Do Not Sign Up for Part A (Hospital)

and/or Part B (Medical)?

• You can sign up between January 1st – March 31st each year• Your coverage will begin on July 1st

Initial Enrollment Periods for Part C (Medicare Advantage) and

Part D (Prescription Drug)If this describes you… You can…

You’re newly eligible for Medicare because you turn 65

Sign up for a Part C (Medicare Advantage) and/or Part D (Prescription Drug) Plan

You DON’T HAVE Medicare Part A (Hospital) coverage, and you enroll in Medicare Part B (Medical) during General Enrollment Period (Jan 1 – Mar 31)

You can sign up for a Part D (Medicare Prescription Drug) Plan

You HAVE Medicare Part A (Hospital) coverage, and you enroll in Medicare Part B (Medical) during the General Enrollment Period (Jan 1 – Mar 31)

You can sign up for a Part C (Medicare Advantage) Plan (with or without prescription drug coverage)

How Do I Enroll in a Medicare Part D (Prescription Drug) Plan?

• Join a Part D (Prescription Drug) plan that adds drug coverage to Original Medicare

• Join a Part C (Medicare Advantage) plan or other Medicare health plan that includes prescription drug coverage

When Can I Sign Up?Part C (Medicare Advantage Plan)

Part D (Prescription Drug Plan)

• Initial Enrollment Period• Open Enrollment Periods• Special Enrollment Period (SEP)

Special Medicare Enrollment Period

You qualify for a Special Enrollment Period if you were covered under an employer group health plan.

Medicare, Group Health and Group Retirement Plans: Who Pays First?

If you Situation Pays First Pays Second

Are 65 or older and covered by a group health plan because you or your spouse is still working

Entitled to Medicare

Employer has more than 20 employees

Group Health Plan

Group Health Plan

Medicare

Medicare

Have an employer group health plan after you retire and are 65 or older

Entitled to Medicare Medicare Retiree Coverage

Your Medicare Coverage Choices

• Original Medicare– Part A (Hospital), Part B (Medical)

and Part D (Prescription Drug)– Medigap (Medicare Supplement

Insurance)• Medicare Advantage Plan– Part D (Prescription Drug)

Medicare Resources

• SHIP – State Health Insurance Assistance Program– www.azdes.gov/daas/ship

– 1-800-432-4040• Medicare

– Medicare.gov– 1-800-MEDICARE (1-800-633-4227)– Medicare Coordinator of Benefits

Contractor • 1-800-999-1118

Contact Information

Human Resources – Benefits520-621-3662, option 3

benefits@email.arizona.eduwww.hr.arizona.edu/benefits

JP Griffin Group480-257-1500

inquiries@griffinbenefits.comwww.griffinbenefits.com