IU Retiree Status Benefit INDIANA UNIVERSITY

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1 IU Human Resources IU Retiree Status Benefit INDIANA UNIVERSITY

2 IU Retiree Status What is It?

3 IU Retiree Status Based on Age and Years of Service Age at Termination Minimum Years of Active Full-time IU Service Age at Termination Minimum Years of Active Full-time IU Service * * * 20 * Employees covered by the PERF retirement plan: Retiree status is reached with at least 15 years of IU service for employees separating at ages 60, 61, or 62.

4 What Counts Toward Years of Service 1. Years of IU service = full-time, appointed service excluding periods of leave without pay. 2. Sabbatical leaves and leaves for research of distinction are counted. 3. Years of IU service are pro-rated for ages that fall between the ages listed in the chart.

5 Key IU Retiree Benefits 1. Medical Plans (includes vision) 2. Life Insurance - $6, IU Tuition Benefit 4. Other courtesies Retain IU Address Other Campus-specific complementary services Parking discounts Library, research access Cultural and Sports events

6 IU Retiree Status Medical Plan Options

7 IU Retiree Medical Plan - Eligibility 1. Earned IU Retiree Status by the time you leave IU 2. Still covered on an IU medical plan as an employee or spouse of an IU employee at the time active IU employee coverage ends. 3. Then remain continuously covered in an IU-sponsored plan 4. Spouses and children (through age 25) covered on an IU medical plan

8 Medical Plan Options (as of January 2018) 1. Under age 65: IU coverage through an IU spouse COBRA (continue current IU medical plan) IU Retiree Anthem PPO HDHP 2. Age 65+ (i.e., Medicare eligible) Medical Plans IU coverage through an IU spouse IU Blue Retiree Plan

9 IU Retiree Status Under Age 65 Options

10 Medical Premiums Retire (Under Age 65) COBRA (18 Months) Anthem PPO $500 Anthem PPO HDHP IU Health HDHP COBRA Plan Rates: hr.iu.edu/benefits/cobra.html Under Age 65 Anthem PPO HDHP 2018 Rates One Participant $ Participant & Child(ren) $ Retiree & Spouse $ Retiree & Family $

11 What is the Advantage of IU-sponsored PPO Coverage? 1. The premium is not based on age or tobacco use. 2. Not based on where you live 3. Not an HMO or limited network 4. Excellent prescription benefit 5. Meets the continuous enrollment criteria to bridge to IU Anthem Blue Retiree supplement plan 6. For most retirees similar or lower premium and higher benefits than the ACA Marketplace

12 Dental Premiums Retire (Any Age) COBRA (18 Months) 2018 Rates One Participant $ Participant & Child(ren) $ Retiree & Spouse $ Retiree & Family $ COBRA Plan Rates: hr.iu.edu/benefits/cobra.html

13 IU Retiree Status Age 65+ Options

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15 Medicare Basics 1. Original Medicare Part A Hospital insurance (no premium) Part B Professional/outpatient insurance (doctors, physical therapy, home health, etc.) 2. Medicare Advantage alternative to Original Medicare Part C Private plans approved by Medicare;; typically covers medical and prescription 3. Part D Prescription Coverage

16 Medicare Basics 1. Initial Enrollment period 7 month period around your 65th birthday 2. If you begin receiving Social Security retirement income (e.g., age 62 or after) Whether employed or already retired When you or your spouse use your SSI benefits You ll automatically be enrolled in Medicare Part A 3. Special Enrollment Period 8 month period after employee coverage ends. (No special enrollment when on COBRA) 4. Late penalties apply for enrolling outside enrollment periods

17 IU Retiree Status Age 65+ Options Original Medicare + Supplement Plans

18 Age 65+ IU-sponsored Option: Anthem Blue Retiree Plan Retire (Age 65+) Original Medicare Part A, B, & D + Supplement Plan 1. Coordinates with Original Medicare (Parts A and B) like a Medicare Medigap/Supplement plan. 2. Pays Medicare deductibles and co-pays/co-insurance. 3. Covers medical expenses out of the country with no dollar maximums. 4. Does not include prescription coverage (you must also elect a Medicare Part D plan to have prescription coverage)

19 What Does Blue Retiree Coverage Cost? Retire (Age 65+) Original Medicare Part A, B, & D + Supplement Plan 1. The Retiree pays the full cost of the premium. 2. Premiums change annually (increase or decrease), but not based on age One Participant $ $ Retiree and Spouse $ $ Note: to obtain the total cost, you must add: Medicare B (about $134;; for most incomes) and Medicare D prescription plan ($17 to $157, avg $30).

20 Premiums Other Commercial Supplement Plans 1. Based on age ratings: Issue-age-rated (age only counts when you enroll) Attained-age-rated (age counts each year) Community rated (age not considered) 2. Introductory discount premium 3. After your Special Enrollment Period, you can be denied coverage;; have coverage delayed;; or have the premium based on health factors.

21 IU Retiree Status Age 65+ Non-IU Options Medicare Advantage Plans

22 Medicare Advantage Retire (Age 65+) Medicare Advantage Plans, Part C Medicare Part C = alternative to Original Medicare (A & B) Lower premiums Higher out-of-pocket costs i.e. when you receive services (co-pays for office visits, each day in the hospital, prescriptions, etc.) IU doesn t sponsor a Medicare Advantage plan, but IU Health sells this type of plan.

23 IU Health Medicare Advantage Plan (Not a sponsored Indiana University Plan) 1. You pay Medicare Part B premium plus one HMO premium which can include both medical and Rx 2. Uses an IU Health HMO network exclusively 3. Premiums vary based on level of benefits: $0, $46, $78 4. Plans have fixed-dollar copays on most services, e.g., $225 per day in the hospital (up to $1,960) $5 primary care visit $40 specialist visit iuhealth.org/medicare

24 IU Retiree Status Medical Election / Premium Examples Anthem Blue Retiree Plan

25 Scenario #1 1. Kate, age 65, is an IU employee when she leaves IU with IU Retiree Status. 2. Her spouse, Mike, is a retired high school teacher age 63 and is on Kate s IU employee medical and dental plans. 3. Kate and Mike both elect IU Retiree coverage. Kate enrolls in the 65+ IU Blue Retiree plan Mike enrolls in the Under 65 Anthem HDHP plan 4. When Mike turns 65, he switches to the 65+ IU Blue Retiree plan the same plan as Kate

26 Kate and Mike s Monthly Premiums (2017) Plan Kate s Premium Mike s Premium Medicare A $0.00 $0.00 Medicare B* $ $0.00 Medicare D (Rx)** $30.00 $0.00 Blue Retiree $ $0.00 PPO HDHP $0.00 $ Total $ $ Total: $679/month *Medicare B rates for 2018 **Medicare D plans vary in coverage and premium: $15 to $152

27 Scenario #2 1. Paul and Jane both work at IU, each with IU coverage. 2. Paul is age 66 when he leaves IU with Retiree Status. 3. Jane, age 62, will continue working until age 65;; no IU Retiree Status 4. Jane puts Paul on her IU plan when he retirees (he delays Medicare). 5. When Jane leaves IU at age 65, she and Paul each enroll in Medicare A, B, and D and the IU Blue Retiree plan. (Paul has IU Retiree Status and he s been continuously covered by an IU plan.)

28 Jane and Paul s Monthly Premiums (2017) Plan Jane s Premium Paul s Premium Medicare A $0.00 $0.00 Medicare B* $ $ Medicare D (Rx)** $30.00 $30.00 Blue Retiree $ $ Total $ $ Total: $698/month * Medicare B rates for 2018 **Medicare D plans vary in coverage and premium: $15 to $152

29 Scenario #3 1. Dave, age 66, terms from IU with IU Retiree Status. 2. His spouse, Wes, also works at IU. Wes puts Dave on his IU plan when Dave retires 3. Wes later takes a job with Lilly. He and Dave could enroll in IU retiree coverage at that time, (since Dave maintained Continuous IU Coverage), but instead they enroll with Wes new employer. 4. When Wes leaves Lilly at age 65, neither he nor Dave are eligible for IU-sponsored retiree coverage. Dave has IU Retiree Status, but was not continuously covered through IU.

30 Questions

31 IU Human Resources The IU Human Resources Customer Care Team is here to assist you in all matters related to your employment at Indiana University. Starting from when you begin your career, continuing through your service, and providing a seamless transition as you complete your employment journey we are here for you. TEL: FAX: askhr@iu.edu