Retiree Insurance

Retiree Medical Plan for Medicare Eligible Retirees – Effective January 1, 2012

Introduction and Background

The cost of health care continues to climb. Since 2006, the Notre Dame retirees have experienced a 44% increase in Anthem Blue Cross Blue Shield supplemental medical plan premiums while the University share of the cost has increased 61%. This rate is not sustainable for the retirees or Notre Dame. In addition, the number of retirees enrolling or staying enrolled into the Anthem plan is trending downward, indicating the needs of the retirees are not being met by this plan.

The Change

To improve service and cost, we will be changing how retirees and dependents who are eligible for Medicare will receive supplemental health care coverage effective January 1, 2012. Instead of offering supplemental coverage through the University of Notre Dame’s group insurance plan with Anthem Blue Cross Blue Shield, the University will contribute to a personal Health Reimbursement Account (HRA) for each retiree and their eligible spouse. Retirees will use this account to be reimbursed for the cost of supplemental coverage they purchase in the market. Retirees will be provided the service of an external benefit advisor, Aon Hewitt, to learn about and enroll in the available programs in the local market. These advisors are trained, licensed and certified consultants who will help retirees make decisions about the appropriate plan for them.

Retiree and Employee Notification

The retirees currently in the Anthem Blue Cross Blue Shield plan will be notified by letter within the next week. The letter will include details about the change. Current full time faculty and staff will also be informed of the change within the next week.

Information Sessions for Current Retirees

There will be several information sessions for current retirees during August. The retiree will receive an individualized packet mailed to their homes in September, complete with enrollment and contact information. They will also have the opportunity for one-on-one meetings during October.

Aon Hewitt

To assist the retiree through this transition, the University is providing the service of Aon Hewitt. A benefit advisor from Aon Hewitt will be available to talk with retirees personally and recommend coverage. Each of their advisors are trained, licensed and certified to help retirees with Medicare supplemental insurance. A benefit advisor can help answer questions, help choose the right coverage and enroll retirees in their coverage. In addition, Aon Hewitt offers ongoing advocacy service which is designed to help retirees in the future should they have difficulties using the individual health insurance.

Pre-Medicare Retirees

Any retiree or spouse of a retiree who is not yet eligible for Medicare will continue to have the opportunity to participate in one of the University’s medical plans as they currently do.

FAQ’s

Why is the University making this change?

The cost of the over age 65 medical program has increased significantly for the retiree and the university over the past few years. Since 2006, retiree premiums have increased about 44% and the university cost has increased by 61%. These increases are not sustainable by either the retiree or the university. In addition, the changes in the plans resulting from healthcare reform will likely make the individual market plans better than group plans.

Who was involved in this making this decision?

University leadership.

What is an HRA? How does it work?

An HRA is a Health Reimbursement Account. The university will allocate $750 for an individual and $1500 for an individual and spouse annually to use as reimbursement for the cost toward their Medicare Supplement premiums.

What type of expenses can the HRA be used for?

The HRA may be used for reimbursement for the cost toward their Medicare Supplement, dental or vision premium. Medicare B premiums are not reimbursable.

Are spouses eligible?

Spouses over the age of 65 are eligible.

Will this impact a spouse’s Meritain insurance if he/she is not yet 65?

If a spouse is not yet 65, he/she will be eligible to remain on the Meritain under 65 plan until the age of 65 is attained.

Who is this benefiting from this change?

This plan is benefiting both the retiree and the University. The cost of the medical retiree plan has increased 44% for the retiree and 61% for the University and this plan will be a reduction in cost. In addition, the retiree will be able to enroll in a plan that better fits his or her needs.

How much is the reimbursement? Does the retiree always get the full amount?

The reimbursement is up to $750 for an individual and up to $1500 for an individual and spouse annually. These amounts will be prorated based on time of enrollment during the year.

Does the retiree have an option of staying with Anthem?

The Anthem plan will terminate on December 31, 2011 and the retiree will not have the option of remaining on that plan; however, Anthem may be an option for the retiree to purchase as a supplement on an individual basis.

What happens to run out Anthem claims?

Anthem will continue to pay all claims incurred prior to January 1, 2012.

Does the retiree need to notify their health care provider?

The retiree should present their new insurance card to their health care providers.

What if I have questions for Anthem after January 1, 2012?

Retirees may call the Anthem customer service line and they will continue to answer any questions for claims incurred prior to January 1, 2012.

Are retirees required to work with AON Hewitt?

Retirees are not required to work with AON Hewitt.

If a retiree works with another agent or family member to set up their Medicare Supplement plans, what then? How do they get reimbursed? What proof is needed?

Retirees will still be eligible for the amount allocated in their HRA. The retiree will need to submit proof of purchase of a Medicare Supplement plan to AON Hewitt. If the retiree works with someone other than Aon Hewitt, they will not have the advocacy service offered through Aon Hewitt.

Will AON Hewitt be contacting retirees? Mailing a packet to their home? Will retirees be instructed to reach out to them directly?

Aon Hewitt will be contacting retirees prior to their eligibility date and will be mailing packets to their home and asking the retiree to contact them directly. During this transition, AON Hewitt will be mailing the packets in September and the retiree may contact them for a phone appointment.

What if the retirees are having claim issues, do they work with Medicare or AON Hewitt?

If the retiree has enrolled in a program through AON Hewitt, retirees may contact the advocacy service provided through AON Hewitt.

Will our retirees work with the same representative all of the time?

For the initial implementation process and the assistance with purchasing the initial plan, the retiree will work with the same representative. Throughout the year, the retiree will contact the advocacy line to speak to a representative.

How often will retirees be reimbursed? What documentation is needed for them to be reimbursed?

If the retiree is working through the advocacy program through AON Hewitt, he/she can be set up with the assistance of AON Hewitt for automatic debit from his/her bank account for payment of the Medicare Supplement plan. AON Hewitt will automatically deposit the allocated HRA money monthly into the retiree’s account.

Do the retirees have an option of direct deposit or an actual check?

Yes. The retiree will be billed directly by the insurance company and can be set up for either direct debit to pay the premium or pay by check. The retiree may also be set up for direct deposit of the HRA amount.

What is the process at turning age 65 for retiree’s/spouses who are on the Meritain under 65 plan? (Current birthday letter) Are all communications handled through/by AON Hewitt?

The University will be sending files to AON Hewitt and they will be notified months in advance of a retiree turning 65. They will then send information to the retiree.

How do we handle spouses of deceased employees who meet the eligibility requirements?

The spouses will be eligible for this plan if over the age of 65. If under 65, the spouses will be eligible for the pre-65 plan. A spouse will be eligible for $750 annually for reimbursement for the cost of premiums. Upon the death of a retiree, any unused HRA balance will be transferred to the surviving spouse.

Will there be a ND/AON Hewitt website page? Will it be hosted by ND or AON Hewitt?

Yes. It will be hosted by AON Hewitt. There will be a link from the University website to theirs.

Will other types of insurance plans be reimbursable? Dental? Vision?

Medical, dental and vision premiums will all be reimbursable.

6-23-2011

The University offers eligible faculty, administrators, and staff the opportunity to participate in the Retiree Medical Insurance Program upon retirement. To be eligible you must retire directly from active employment at age 55 or older with at least 15 years of service or at age 62 or older with at least 10 years of service, and have medical coverage at the time of retirement under a University medical insurance plan. In addition, at least 10 such years of service must be attained after age 45 in order to be eligible. Spouses of eligible retirees are eligible for medical coverage only if they were covered by a University medical insurance plan at the time of retirement. Depending on your age at retirement, under age 65 or 65 and over, you will be provided with the details about the medical insurance plan(s) available.

In circumstances where the retiree and his or her spouse are eligible for different medical programs based on age, they will be covered under different medical plans. For instance, if you are under age 65, you will be covered by an early retiree plan; if you are age 65 or over and eligible for Medicare, you will be covered under the Medicare Supplemental Plan.

After receiving coverage, if you decide to end your retiree medical insurance benefits with the University, you will not be eligible to re-enroll in the future.

If you are under the age of 65 and are disabled (and enrolled in Medicare Parts A and B) you must enroll within 30 days of becoming eligible for Medicare Part A and Part B.

Insurance Plans

Medical

Early Retirees (under age 65) Pre-Medicare

Medicare (age 65 and older) Program

Anthem Blue Cross/Blue Shield

Dental

Retiree Life Insurance

The University offers eligible faculty and staff the opportunity to purchase a Group Term Life Insurance policy through Minnesota Life Insurance Company. To be eligible for life insurance, employees must have five (5) or more years of service with the University.
The coverage amount is $5,000. The retiree may not elect coverage at a later date if coverage is declined at the time of retirement. After receiving coverage, if the retiree decides to end his/her retiree life insurance benefit with the University, the retiree will not be eligible to re-enroll in the future. Retirees receiving pension payments from the Notre Dame Pension plan will have premiums deducted from their monthly pension. All other retirees will receive an annual premium statement and request for payment. Retired employees designate a beneficiary when coverage is elected.
The University expects to continue these plans, but since future conditions affecting the University cannot be anticipated or foreseen, the University must necessarily and does hereby reserve the right to amend, modify, or terminate these plans at any time.

Additional Information

Forms

Policies

Long-Term Care Insurance

Other Retiree Benefits

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