Important Information from Temple University for Retirees Eligible for Prescription Drug Coverage and Medicare
Starting January 1, 2006, prescription drug coverage will be available to everyone with Medicare through Medicare prescription drug plans. All Medicare prescription drug plans will provide at least a standard level of coverage set by Medicare. Some plans might also offer more coverage for a higher monthly premium.
Because the University’s retiree prescription drug coverage is on average at least as good as standard Medicare prescription drug coverage, you can keep this coverage and not pay extra if you later decide to enroll in Medicare coverage.
People with Medicare can enroll in a Medicare prescription drug plan from November 15, 2005 through May 15, 2006. However, because you have existing prescription drug coverage that, on average, is as good as Medicare coverage, you can choose to join a Medicare prescription drug plan later. Each year after that, you will have the opportunity to enroll in a Medicare prescription drug plan between November 15th through December 31st.
If you do decide to enroll in a Medicare prescription drug plan and drop your Temple University prescription drug coverage, you can get this coverage back at a later date.
If you drop your coverage with Temple University and enroll in a Medicare prescription drug plan, you may re-enroll at a later date by providing written evidence of canceling your Medicare Part D plan. Your Temple prescription coverage will be effective on the first of the month following receipt of your written evidence.
You should compare your current coverage, including which drugs are covered, with the coverage and cost of the plans offering Medicare prescription drug coverage in your area.
Temple University’s prescription drug coverage:
Temple University retirees have comprehensive prescription coverage through Independence Blue Cross and CareMark. You pay no premium for the coverage, and there are no deductibles. Here’s how the prescription plan works:
Where purchased |
Plan pays |
You pay |
||
Brand name |
Generic |
Brand name |
Generic |
|
Participating retail pharmacy 30-day supply |
80% |
90% |
20% |
10% |
Mail order 90-day supply |
||||
In addition to prescription drugs, your current medical coverage pays for other health expenses, and you will still be eligible to receive all of you current health benefits if you choose to enroll in a Medicare prescription drug plan.
You should also know that if you drop your coverage with Temple University and don’t enroll in Medicare prescription drug coverage after your current coverage ends, you may pay more to enroll in Medicare prescription drug coverage later. If after May 15, 2006, you go 63 days or longer without prescription drug coverage that’s at least as good as Medicare’s prescription drug coverage; your monthly premium will go up at least 1% per month for every month after May 15, 2006 that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than what most other people pay. You’ll have to pay this higher premium as long as you have Medicare coverage. In addition, you may have to wait until next November to enroll.
For more information about your options under Medicare prescription drug coverage:
More detailed information about Medicare plans that offer prescription drug coverage will be available in the “Medicare & You 2006” handbook. You’ll get a copy of the handbook in the mail from Medicare. You may also be contacted directly by Medicare prescription drug plans. You can also get more information about Medicare prescription drug plans from these places:
- Visit www.medicare.gov for personalized help,Call your State Health Insurance Assistance Program (see your copy of the Medicare & You handbook for their telephone number)
- Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information about this extra help is available from the Social Security Administration (SSA). For more information about this extra help, visit SSA online at www.socialsecurity.gov, or call them at 1-800-772-1213 (TTY 1-800-325-0778).
“Creditable coverage”
Since Temple’s prescription coverage is at least as good as, and in many cases better than, the standard Medicare Part D plan, the government considers it to be “creditable coverage.” This is important because, if you decide to stay in the Temple plan now and change your mind in the future, you will not pay a penalty for late enrollment, as long as you join a plan within 63 days after canceling your Temple coverage. Eligible retirees should have received a “Notice of Creditable Coverage” in a separate mailing. Show that Notice to a Medicare Part D vendor to avoid late enrollment penalties.
Resources
You can obtain general information about Medicare Part D from these sources:
- Medicare
- On the internet at www.medicare.gov and
- By telephone at 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.
- Social Security Administration
- On the internet at www.socialsecurity.gov and
- By telephone at 800- 772-1213. TTY users should call 800-325-0778
- AARP
- On the internet at www.aarp.org/medicarerx and
- By telephone at 888-687-2277.
If you have any questions, please contact us by phone at 215-204-1321 or by email at benefits@temple.edu.