health insurance applying to retire class review...note: 65th birthday is 9/9/2026 so reduction to...

Office of Human Resources, Montgomery County GovernmentUpdated 4/1/2020

Health InsuranceApplying To Retire Class Review

Office of Human Resources, Montgomery County Government

During the Presentation• Feel free to ask general (not personal) questions during the presentation• Please refrain from asking questions that pertain to your “personal” health

during the presentation. • You may email questions that you were not able to ask during the presentation

to: [email protected].

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Health Insurance Applying to Retire

mailto:[email protected]


What Is In Your Health Insurance Packet?Your packet is divided into Right and Left Sides. Left Side of Packet • Cover Letter• Employee Summary of Benefits Form• Premium Cost Share Form(s)• 2020 Health and Life Insurance Retiree Election Form• Cost Sharing Arrangement Form• Application for Retiree Health Insurance Benefits

For Members of the RSP, GRIP, or MD State Retirement Plans


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What Is In Your Health Insurance Packet? (cont.)Your packet is divided into Right and Left Sides. Left Side of Packet • Medicare Enrollment Information Letter - Only if Medicare Eligible• Medicare “Request for Employment Information” Form – Only if Medicare Eligible• MD State Summary of Benefits Form – Only if MD State Retirement

MD State 2020 Retiree Election FormMD State Rate SheetMD State Beneficiary Forms

• Kaiser Medicare Plus Enrollment Form – Only if Age 65• 2020 Retirement Calendar• Beneficiary Forms


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Office of Human Resources, Montgomery County GovernmentHealth Insurance Applying to Retire

What Is In Your Health Insurance Packet? (cont.)Your packet is divided into Right and Left Sides. Right Side of Packet • Return Envelope• Retiree Monthly Rate Sheet• Vision Options for Employees at Retirement• Caremark High Option vs Standard Option Prescription Benefit Plan• BCBS High Option vs Standard Option POS Benefit plan

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What Is In Your Health Insurance Packet? (cont.)Your packet is divided into Right and Left Sides. Right Side of Packet • EyeMed Insight Discount Vision ID Card • EyeMed Insight Discount Vision Provider Network • Important Benefits Contact Information• Retiree Change of Address or Name Form• MCREA Membership Letter and Application Form

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Cover LetterPlease read your cover letter carefully and pay close attention to the following:

• Deadline that your completed forms must be returned to OHR,• Billing for Health and Life Insurance Premiums,• Medicare Eligibility, • Legal Documents that must be returned with your completed forms, and• Contact Information for the OHR Health Insurance Specialist

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Employee Summary of Benefits FormThis form is an overview of your demographics, current health and life insurance benefit elections, and a list of dependents that you currently cover on your health insurance plans.

• On the bottom left side of this form is a list of “Documents Needed for Retirement”• On the bottom right side of this form is the Health Insurance Eligibility Calculation”

used to determine the percentage of the insurance premium that you will pay.

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Documents Needed to Prove EligibilityPlease Provide 1 Copy of the required documents listed below even if previously provided:

• Retiree: State certified birth certificate, or U.S. Passport, or DD-214 (military discharge form) for identification purposes.

If Electing Group Insurance Coverage for a Dependent: • Spouse: Official State Marriage Certificate (must be signed by the appropriate State or County official, such

as the Clerk of the Court).• Domestic Partner: The Domestic Partner Affidavit Form submitted to OHR prior to 2016.• Child to age 26: Proof of child’s age (official State birth certificate).

• IMPORTANT NOTE: Marriage certificates signed by the officiant that performed the ceremony (e.g. minister/clergy) will not be accepted. A Driver’s License or Social Security card will not be accepted.

Go to: www.vitalchek.com to order the required documents that you are unable to locate.


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http://www.vitalchek.com/


Proof of Eligibility (cont.) Official State Marriage Certificate (certified by appropriate State or County Official)

Health Insurance: Your Options When You RetireNot Acceptable Acceptable

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Insurance Eligibility Calculation The amount of the insurance premium that you will pay

If your most recent hire date was before January 1, 1987, you have a choice of premium cost shares:

A) Elect the 80/20 cost share – 80% of your premium is paid by the County and 20% by you for the length of time you were eligible for health insurance. You or a surviving family member will be responsible for 100% of the premium at the end of that time period.

Example: if you were eligible for health insurance for 20 years and 6 months and were retiring on 7/1/2020:7/1/2020 + 20 and 6 = January 1, 2041 @ 100% OR

B) Elect the lifetime cost share – 70%* paid by the County and 30%* paid by you. The County will always contribute 70% toward your health insurance coverage. (*The percentage will depend upon your actual length of County service as described in the next slide.)

The premium cost share election is a one-time irrevocable choice.


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Insurance Eligibility Calculation (cont.)The amount of the insurance premium that you will pay

If your most recent hire date was on or after January 1, 1987 but before July 1, 2011, then the cost share arrangement at right applies to you.

Note: “Years” refers to years of eligibility under the health insurance plan; it does not include any transferred or purchased service, or any sick leave converted to credited service for ERS purposes.


Years of Service Employee Share5 50%6 48%7 46%8 44%9 42%10 40%11 38%12 36%13 34%14 32%

15+ 30%

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Premium Cost Share FormBasic Life InsuranceAs an active full-time employee, the face value of your Basic Life Insurance policy is one times your annual salary. The face value at retirement is calculated:

Active life insurance amount multiplied by years of service* (up to 20 years) multiplied by 5% (20 x 5% = 100% of active life amount)

Example: $70,000 x 20 x 5% = $70,000

*Years of service is the number of years and months that you were eligible for health insurance coverage; not credited service used for your retirement calculation.


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Premium Cost Share Form (cont.)Basic Life Insurance• This amount remains the value of your policy for the first 5 years after you retire or at age

65, whichever is earlier.• Beginning on your 5th retirement anniversary, the value of your policy will reduce by 10%

of the initial value; continuing to reduce each year afterwards.• The face value will never go lower than 25% of the original value.

– Example: $70,000 x 25% = $17,500• Your policy will reduce automatically to the minimum value on your 65th birthday, and then

the County pays the full premium of your life insurance.


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Premium Cost Share Form (cont.)Basic Life InsuranceHere is an example of a basic life insurance reduction schedule:

7/1/2020 = $70,0007/1/2025 = $63,0007/1/2026 = $56,7009/9/2026 = $17,500 At age 65

Note: 65th birthday is 9/9/2026 so reduction to 25% would occur on 65th birthday. Basic amount will never go lower than 25% of full value.


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Imputed Income For Basic Life Insurance Above $50,000

• Imputed income affects the amount of Basic Life Insurance above $50,000.• If you receive County-provided Basic life insurance with a value equal to or greater than

$50,000 in any given year, the value of the coverage is considered imputed income and is taxable income,

• The County will send you a form W-2c every year that your Basic Life insurance value is above $50,000

• For more information, visit: http://www.montgomerycountymd.gov/HR/Resources/Files/Benefits/Imputed_Income_Retiree_BasicLife.pdf


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http://www.montgomerycountymd.gov/HR/Resources/Files/Benefits/Imputed_Income_Retiree_BasicLife.pdf


Premium Cost Share Form (cont.)Optional Life Insurance

• You may continue Optional Life insurance into retirement provided your coverage was in effect at the time of retirement.

• The coverage remains the amount in effect at the time of retirement. • The cost is 100% retiree paid.• Coverage reduces to 50% at age 70, then to 25% at age 75. • The face value will never go lower than 25% of the original value.• This policy may be cancelled at any time.


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Premium Cost Share Form (cont.)Optional Life Insurance

Here is an example of an Optional Life insurance reduction schedule:$210,000 = 7/1/2020$105,000 = 9/9/2031 At age 70$52,500 = 9/9/2036 At age 75

Note: Optional Life value is 3x’s salary at retirement ($70,000 x 3 = $210,000). Coverage reduces to 50% at age 70, then to 25% at age 75. Optional amount will never go lower than 25% of full value.


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Premium Cost Share Form (cont.)Dependent Life Insurance• You may continue Dependent Life insurance into retirement provided your

coverage was in effect at the time of retirement.• The coverage remains the amount in effect at the time of retirement. • Option 1 is 75% retiree paid; Options 2 and 3 are 100% retiree paid.

Option 1: $2,000 eligible spouse/$1,000 unmarried children under age 26Option 2: $4,000 eligible spouse/$2,000 unmarried children under age 26 Option 3: $10,000 eligible spouse/$5,000 unmarried children under age 26


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Premium Cost Share Form (cont.)Group InsuranceYou may take your health and life insurance plans with you into retirement. It is the same coverage that is offered to active employees. However, the County does not offer the following plans to retirees:• EyeMed Vision Plan

• EyeMed Discount Vision Plan Offered• EyeMed Vision Plan offered for 18 months through COBRA• To elect COBRA Vision: Check “No Vision Coverage” box, then write the word COBRA next to it

• Cigna DHMO• Not offered to retirees• Cigna PPO plan offered to retirees

• Flexible Spending Accounts (FSAs)• Ends at retirement• Reimbursement for services incurred prior to retirement date


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How Do I Pay My Monthly Insurance Premiums?Members of the Employees’ Retirement System (ERS): Your health insurance premiums are deducted directly from your monthly pension paychecks. If there are not enough funds to cover the health insurance premiums, the member is direct billed as described below.

Members of the Retirement Savings Plan (RSP), Guaranteed Retirement Income Plan (GRIP), or MD State: You are billed directly for your health insurance through the County’s third-party administrator, Benefit Strategies. For more information, contact them at 1-888‐401‐3539 or http://premiumbilling.benstrat.com/.


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http://premiumbilling.benstrat.com/participans.php


Can my spouse keep my insurance in the event of my death?Yes, as a retiree, your spouse will be offered the option to remain on the County’s health insurance plans for the rest of his or her life.

The cost share percentage that you choose when you retire remains the same for your surviving spouse.


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2020 Health and Life Insurance Retiree – Election FormPlease complete your Retiree Election Form thoroughly to ensure accurate processing. • The insurance plans that you are currently enrolled in are highlighted on the form.• If changing a plan, check the box next to the plan name.• If waiving a plan, check the “No” box for that plan.• You may only decrease the value of your Optional Life policy prior to submitting retirement forms.• If you are not currently enrolled in Optional Life or Dependent Life plans, you are not eligible for either as a

retiree.**Add All Eligible Dependents** • If you plan to continue coverage for an eligible dependent, each dependent must be added to the “Dependent

Coverage” section on the back of the form, even if the dependent is currently covered.• If the “Dependent Coverage” section is left blank, then none of your dependents will be covered. • Sign and Date the form.


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Cost Sharing Arrangement FormPlease initial and check the box for the cost sharing arrangement that you agree to have with the County for your lifetime. Please sign and date that you have read and understood the information provided to you in this document.


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Application for Retiree Health Insurance Benefits FormThis form confirms your request to separate from the County and to continue the health and life insurance benefits offered to members of the RSP, GRIP, and MD State retirement plans. Please complete the highlighted areas of the form, then sign and date to confirm that your retirement date is the effective date listed on the form.


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Medicare Cover LetterOnly in your packet if you or a covered dependent is Medicare eligible.Please follow the instructions that are outlined in your “cover letter” to enroll either you or your covered dependent in Medicare, effective on the date of your retirement.


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Request for Employment Information FormOnly in your packet if you or a covered dependent is Medicare eligible.

Please follow the instructions that are outlined in your letter to enroll either you or your covered dependent in Medicare, effective on the date of your retirement.

Please give this form(s) to the Social Security Administration to enroll in Medicare Part A and/or Part B effective on the date of your retirement.


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What is Medicare?• Part A (Hospital Insurance) covers most medically necessary hospital, skilled nursing facility, home health and hospice care. It

is free if you have worked and paid Social Security taxes for at least 40 calendar quarters (10 years); you will pay a monthly premium if you have worked and paid taxes for less time. Part A is effective the month in which you turn 65.

• Part B (Medical Insurance) covers 80% of most medically necessary doctors’ services, preventive care, durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental health care, and some home health and ambulance services. You pay a monthly premium for this coverage and it is required if you want to receive benefits from your County medical plan.

• CareFirst BCBS and United Healthcare will process your claims as if you had elected Part B, whether you elect Part B or not. This means significantly lower benefits (or no benefits) if you do not elect Part B.

• You cannot continue in the Kaiser plan unless you elect Part B and enroll in the Kaiser Medicare Plus Plan.• Medicare Part D (Prescription Drug Insurance) The County’s prescription plan works together with Medicare Part D to

maintain your current coverage level; this process is administered through SilverScript.• You should not elect a separate Medicare Part D plan if you want the County’s plan through SilverScript; enrollment via

SilverScript is automatic.• SilverScript does not apply to Kaiser participants.


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Medicare Parts A and B:Part B Premiums Are Based on Income

Individual Tax Return Joint Tax Return

Married and Separate Tax

Return

You Payeach month

(2020)

$87,000 or less $174,000 or less $87,000 or less $144.60

above $87,000 up to $109,000

above $174,000 up to $218,000 Not applicable $202.40

above $109,000 up to $136,000


above $136,000 up to $163,000


above $163,000 andless than $500,000


above $87,000 and less than $413,000 $462.70

$500,000 orabove

$750,000 andabove

$413,000 andabove $491.60

If your filing status and yearly income in 2018 was…


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Medicare Part D:SilverScript and IRMAA

Individual Tax Return Joint Tax Return

Married and Separate Tax

Return

You Payeach month

(2020)

$87,000 or less $174,000 or less $87,000 or less Your plan premium

above $87,000 up to $109,000

above $174,000 up to $218,000 Not applicable $12.20 + Your plan

premiumabove $109,000 up to $136,000


premium

above $136,000 up to $163,000


premium

above $163,000 and less than $500,000



$70.00 + Your plan premium

$500,000 orabove

$750,000 and above

$413,000 andabove

$76.40 + Your plan premium

Medicare charges high income retirees the Income Related Monthly Adjustment Amount (IRMAA) because the SilverScript Plan is a Part D plan. If your filing status and yearly income in 2018 was…


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Maryland Department of Budget & ManagementOnly in your packet if you will receive a MD State pension.Please complete and return to OHR the following MD State forms in your packet:

• MD State 2020 Retiree Election Form• MD State Beneficiary Forms

Your MD State benefit election premiums will be deducted from your State monthly pension payment. You will continue to participate in the State’s Open Enrollment period each year.


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Kaiser Medicare Plus Enrollment FormOnly in your packet if Kaiser is your medical plan and you or a covered dependent is either age 65 or Medicare Eligible.Please complete and return this form directly to Kaiser in the envelope provided, once you and/or your covered dependent is enrolled in Medicare Parts A and B.You cannot continue in the Kaiser plan unless you elect Medicare Part B and enroll in the Kaiser Medicare Plus plan.Feel free to contact Kaiser should you have questions about how the Kaiser Medicare Plus plan works at 301-468-6000 or 1-800-777-7902.


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2020 Retirement CalendarPlease review the 2020 Retirement Calendar and pay close attention to the “Packet Due!” date. This is date that your completed packet must be returned to OHR.

Health and Life insurance deductions will be deducted from your “Full” and “Partial” pays.


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Beneficiary FormsPlease complete the applicable Beneficiary forms, and return the white copy to OHR:

• Life Insurance Beneficiary Form – All employees• Retirement Beneficiary Form – ERS, RSP, and GRIP members only• Deferred Compensation Beneficiary Form – Fidelity 457 members only

These forms may be returned after the “Packet Due” deadline.

Mass Mutual Participants must contact Mass Mutual for a beneficiary form.


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Moving Out of State?Kaiser is not available nationwide, so participants must elect either United Healthcare or one of the CareFirst BCBS POS Plans (High or Standard Option). Also, because Kaiser includes prescription drug coverage, Kaiser participants must elect one of the separate Caremark Prescription Plans (High or Standard Option).

The CareFirst BlueCross BlueShield (BCBS) Point‐of‐Service (POS) plan offers a nationwide network called the “BlueChoice Advantage POS Network.” It provides in and out‐of‐network benefits if you reside inside or outside the POS network service area. Participants use a national “BlueCard EPO/PPO Network” provider for services considered outside the POS network service area.

United Healthcare is available nationwide, so participants do not need to do anything to continue the same coverage.

IMPORTANT: Any changes to your health insurance must be made within 60 days of your move by completing a Retiree Health Insurance Election Form, available online at

www.montgomerycountymd.gov/hr.


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http://www.montgomerycountymd.gov/hr


Returning Your Completed FormsThe following forms must be completed and return to OHR by the deadline:

1. 2020 Health and Life Insurance Retiree Election Form2. Cost Sharing Arrangement Form3. Application for Retiree Health Insurance Benefits – RSP, GRIP, or MD State 4. Beneficiary Forms 5. MD State 2020 Retiree Election Form - MD State Retirees Only6. MD State Beneficiary Forms – MD State Retirees Only

You may fax, or email the forms to OHR by the deadline, AND use the self addressed envelope provided to mail the originals to OHR.


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Returning Your Completed Forms (cont.)Return the following form(s) to Kaiser once enrolled in Medicare Part B. Use the Kaiser envelope provided:

1. Kaiser Medicare Plus Enrollment Form – Only if Age 65 or Medicare Eligible

Return the following form(s) to The Social Security Administration to enroll in Medicare Part B.

1. Request for Employment Information Form – Only if age 65 or Medicare EligibleMedicare Part B must be effective on the 1st day of your Retirement.


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Insurance Benefits Reminders• You are responsible for your benefits.• Read the materials provided in your retirement packet.• Read the materials mailed to your home and let us know if you move by

completing a Retiree Personal Data Form, available online through the Retirement section of the OHR website.

• Keep copies of all paperwork for your own records.• Review insurance deductions on your monthly pension check.• Review insurance deductions billed monthly by Benefit Strategies, LLC.


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How to Contact UsIf you have questions that cannot be answered by browsing our website or calling a plan provider on the “Important Benefits Contact Information” list, please contact the OHR Health Insurance Team through MC311.

Monday to Friday, 8 a.m. to 5 p.m.240-773-03111-877-613-5212TTY: 711


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Legal InformationThe County expects to continue its health insurance plans, but it is the County’s position that there is no implied contract between employees and the County to do so, and the County reserves the right at any time and for any reason to amend the terms of the plans or terminate the plans, subject to the County’s collective bargaining agreements. The County may also amend the plans at any time, either prospectively or retroactively, as required by federal law.


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Thank You

We hope you have enjoyed learning about your retiree health insurance package. Thank you for allowing us to serve your health insurance needs.

~Your OHR Health Insurance Team


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