IU Retiree Status & Benefits

IU Retiree Status& BenefitsKaren HillRetiree Benefits SpecialistIU Human ResourcesSeptember 30, 2022

Housekeeping Session will not be recorded; however, a PDF of the slides is available on the Road toRetirement website at hr.iu.edu/benefits/road-to-retire.html. All attendees have been placed on mute. If you have technical issues, please messagean IUHR representative in the chat for assistance. Watch the chat for helpful links to additional information. Please put all questions in the Q&A box. Do not put any questions related to apersonal situation in the Q&A. At the end of today’s session, you will be asked to complete a brief survey.2

SECTION 1What is IU Retiree Status?3

IU Retiree StatusBased on AGE and YEARS OF IU SERVICEAge at TerminationMinimum Years of ActiveFull-time IU ServiceAge at TerminationMinimum Years of ActiveFull-time IU 0*20* Employees covered by the PERF retirement plan: Retiree status is reached with at least 15 years of IUservice for employees separating at ages 60, 61, or 62.4

What counts towards “Years of IU Service”Years of IU Service Full-time appointed service(some periods of leave without pay may not be counted) Contact AskHR to inquire about your “Years ofService” calculation for Retiree Status Sabbatical leaves and leaves for research arecounted Years of IU service pro-rated for ages that fallbetween the ages listed in the chart5

Key Retiree BenefitsMedical (includes vision)Life Insurance - 6,000IU Tuition BenefitOther perks/privileges:– Retain IU email address– Other campus-specific services:‒ Parking discounts‒ Library, research access‒ Cultural and sporting events‒ IU Retiree Association membership (Retired Faculty and Staff)‒ Emeriti House (Retired Faculty and Librarians)‒ IUPUI Senior Academy membership (IUPUI Faculty and Staff)6

SECTION 2Retiree Medical Plan Options7

Eligibility for IU Retiree Medical CoverageInitial eligibility requires that you:1. Have IU Retiree Status; and2. Are covered by an IU-sponsored medical plan as an employee or spouse of an IUemployee at the time of separation.‒ Eligible spouses and children (through age 25) are those covered on an IU medical planat the time of separation.3. Enroll in COBRA or retiree coverage within 60 days of your retirement dateContinued eligibility requires that you remain continuously covered on an IUsponsored plan.8

IU Medical Plan OptionsUnder Age 65:– IU coverage through IU spouse– COBRA (continue current IU plan)– Anthem Under 65 PPO HDHPAge 65 & Up (Medicare eligible):– IU coverage through IU spouse– IU Blue Retiree Plan9

SECTION 3Retiree Medical Plan OptionsUnder Age 6510

Advantages of IU Coverage Premiums not based on age/tobacco use Not based on where you live Not an HMO or limited network Enhanced prescription drug coverage Meets continuous enrollment criteria tobridge to IU Blue Retiree plan For most, similar/lower premiums andhigher benefits than ACA Marketplace plans11

Monthly Medical Premiums (2022)Under Age 65COBRA Medical(18 Months)Anthem U65PPO HDHP(until age 65)COBRA Rates (see hr.iu.edu/benefits/cobra.html)Anthem PPO 500Anthem PPO HDHPIU Health HDHP 975 - 2,925 407 - 1,229 346 - 1,045Anthem U65 PPO HDHP RatesOne ParticipantParticipant & Child(ren)Retiree & SpouseRetiree & Family 407.37 779.40 1,084.99 1,228.5312

Monthly Dental Premiums (2022)Under Age 65COBRA RatesCOBRA Dental(18 Months)One ParticipantParticipant & Child(ren)Retiree & SpouseRetiree & Family 41.06 73.94 96.45 140.6713

SECTION 4Retiree Medical Plan OptionsAge 65 & Up14

Medicare Website – Medicare.gov15

Medicare BasicsThe ABC’s & D’s“Original” MedicarePART APART BPART CPART DHOSPITALOUTPATIENTMEDICAREADVANTAGEPRESCRIPTIONNo premiumProfessional andoutpatient servicesPrivate plans approved byMedicare(doctor visits, therapy, homehealthcare, etc.)(includes Parts A, B, & often D)16

Medicare Basics Initial Enrollment Period 7-month period around your 65th birthday If you begin receiving Social Security retirement income (e.g., age 62 or after):‒ You’ll automatically be enrolled in Medicare Part A‒ Whether actively employed or already retired‒ When you or your spouse use your Social Security Income benefits Special Enrollment Period 8-month period after employee coverage ends (NOspecial enrollment after COBRA) Penalties apply for enrolling outside enrollment periods17

Medicare BasicsOptions for Comprehensive CoverageOPTION 1:OPTION 2:ORIGINAL MEDIAREPart A (Hospital)Part B (Outpatient)You can add:You can also add:PART DMEDICARE SUPPLEMENT(Prescription Drugs)(covers some/all costs notcovered by Original Medicare)MEDICARE ADVANTAGE (PART C) PLANPart A (Hospital)Part B (Outpatient)Plans often include:Some plans include:Part D(Prescription Drugs)Additional Benefits(dental, vision, hearing, etc.)Part D18

SECTION 5Retiree Medical Plan OptionsAge 65 & Up – Original Medicare Supplement Plan19

IU Blue Retiree PlanRetirees & Spouses Aged 65 & UpORIGINAL MEDICAREPart A (Hospital) Coordinates with “Original Medicare”like a Medicare Medigap/Supplementplan Pays Medicare deductibles andcopays/coinsurance Covers medical expenses globally withno dollar maximums Does not include prescription coverage(you must also elect a Part D plan tohave prescription coverage)Part B (Outpatient)You can add:You can also add:PART DIU BLUE RETIREE PLAN(Prescription Drugs)(covers Medicare deductiblesand copays/coinsurance)20

IU Blue Retiree PlanMedicare Complement BenefitsServiceMedicare PaysBlue Retiree PaysMember PaysFirst 60 daysPays all but deductibleThe deductible 0Days 61 – 90Pays all but coinsuranceThe daily coinsurance 0100% 0 0Pays all but coinsuranceThe daily coinsurance 0Plan pays after deductibleThe deductible 0Doctors care including office visits or while inpatient80%20% 0Outpatient services (surgeries, diagnostic services,physical therapy, x-rays)80%20% 0Medicare Part AInpatient Hospital FacilitySkilled Nursing FacilityFirst 20 daysDays 21 to 100Medicare Part BPart B deductible21

IU Blue Retiree PlanMajor Medical BenefitsServiceMedicare PaysBlue Retiree PaysMember PaysContinuous inpatient days beyond an additional 365 080%20%Skilled nursing facility after the 100th day 080%20%Services outside the U.S. 080%20%Excess charges for providers that don’t accept Medicareassignment 0Up to the limiting charge*of 115% of the Medicareallowable Amount 0 for services witha limiting charge*Morbid obesity 080%20%Accidental Dental 080%20%*There is a limiting charge on what non-participating providers can bill Medicare enrollees—15 percent over what Medicare pays the non-participating provider. The limiting charge does notapply to all Medicare-covered services, like some durable medical equipment.22

IU Blue Retiree PlanWellness BenefitsServiceMedicare PaysBlue Retiree PaysMember PaysDental Services 0 125Amounts above 125Annual physical exam 0 150Amounts above 150Routine hearing exam 0 50Amounts above 50Vision BenefitsServiceIn-Network Provider—Member PaysOut-of-Network Provider—Member PaysAnnual comprehensive eye exam andrefraction 125Amounts above 125Eyeglass frames (Once every 24 months) 130 allowance, then 20% offany remaining balanceCosts above a 45 allowance 20 copayCosts above 40– 80 allowanceStandard eyeglass lenses (Once every 12 months)Contact lenses (Once every 24 months)Specific allowances and discounts for elective and non-elective contact lenses. Highest levelof benefit in-network. Some enhancements are not covered out-of-network.23

IU BlueRetiree PlanSilver Sneakers No-cost fitness benefit Access to 15,000 fitness locationsnationwide Virtual on-demand classesavailable 24/7 Also includes guidance from fitnessstaff, signature classes, socialconnections, and more Visit silversneakers.com/starthereto get started24

IU Blue Retiree PlanCost of Coverage Retiree pays full cost of premiumCoverage Level20222023 Premiums change annually (up ordown), but not based on ageOne Participant 195.67 201.39Retiree and Spouse 390.06 401.49Calculate Total Monthly Cost of CoveragePart A (No cost)Part B ( 170 for most)MedicareSupplement Plan(IU Blue Retiree)Part D( 7– 92, avg. 32)Your TotalCost25

Commercial Medigap Policy PremiumsOther Commercial Supplement Plans Pricing of plans:‒ Issue-age-rated (premium based on age at time of enrollment)‒ Attained-age-rated (premium increases with age each year)‒ Community rated (premium not based on age) “Introductory” discount premium After your Special Enrollment Period, you can be denied coverage, havecoverage delayed, or have the premium based on health factors.26

SECTION 6Retiree Medical Plan OptionsAge 65 & Up – Medicare Advantage (Part C) Plans27

Medicare Advantage (Part C) PlansNon-IU OptionMEDIARE ADVANTAGE (PART C) PLANPart A (Hospital)Plans often include:Part DPart D(Prescription Drugs)Part B (Outpatient) Medicare Part C alternative toOriginal Medicare (A & B) Lower premiums Higher out-of-pocket costs for services(copays for office visits, each day in thehospital, prescriptions, etc.) IU does not sponsor a MedicareAdvantage plan, but Anthem and IUHealth Plans doSome plans include:Additional Benefits(dental, vision, hearing, etc.)28

SECTION 7Election/Premium Examples29

Scenario #1Jenny & DanJenny – Age 65(IU Retiree)While Jenny’s Employed at IU: Covers herself and spouse Dan on employeemedical plan. Dan, age 63, is a retired principal.After Jenny’s Retirement: When Jenny turns 65, she retires with IU RetireeStatus. Both elect IU Retiree coverage:Dan – Age 63(Spouse)‒ Jenny—IU Anthem Blue Retiree Plan (for 65 )‒ Dan—IU Anthem U65 PPO HDHP (for under 65) When Dan turns 65, he can switch to the IU BlueRetiree plan—the same plan as Jenny.30

Scenario #1 – Jenny and Dan’s Monthly PremiumsPlanJenny’s PremiumDan’s PremiumMedicare A––Medicare B 170.00–Medicare D (Rx)* 25.00–Blue Retiree 201.00–– 407.00 396.00 407.00U65 Anthem HDHP*Medicare D plans vary in coverageand premiums ( 7 to 89)Total 803/month31

Scenario #2Paul & MimiPaul – Age 66(IU Retiree)Mimi – Age 62(IU Employee)While Both Employed at IU: Each covers self on employee medical plan.After Paul’s Retirement: When Paul turns 66, he retires with IU RetireeStatus. Mimi continues working and enrolls Paul on heremployee plan as a dependent (he delaysMedicare). When Mimi retires from IU at age 65, she andPaul each enroll in Medicare A, B, & D and the IUBlue Retiree plan. (Paul has IU Retiree Status andhas been continuously covered by an IU plan.)32

Scenario #2 – Paul and Mimi’s Monthly PremiumsPlanPaul’s PremiumMimi’s PremiumMedicare A––Medicare B 170.00 170.00Medicare D (Rx)* 40.00 7.00Blue Retiree 201.00 201.00–– 411.00 378.00U65 Anthem HDHP*Medicare D plans vary in coverageand premiums ( 7 to 89)Total 789/month33

Scenario #3Dave & WesDave – Age 66While Both Employed at IU: Each covers self on employee medical plan.After Dave’s Retirement: When Dave turns 66, he retires with IU Retiree Status. Wes continues working and enrolls Dave on hisemployee plan as a dependent (he delays Medicare). Wes later takes a job with Lilly.(IU Retiree)‒Wes – Age 60(IU Employee) Both could enroll in IU retiree coverage at that time,(since Dave maintained continuous IU coverage), butinstead they enroll with Wes’ new employer.When Wes leaves Lilly at age 65, neither he nor Daveare eligible for IU-sponsored retiree coverage (Davehas IU Retiree Status but was not continuously coveredthrough IU).34

SECTION 8Tools and Resources35

Retirement ChecklistStart at the main Benefitsnavigation athr.iu.edu/benefits1Select Retirees2Select Preparing to Retire36

Retirement Resources & ToolsStart at the main Benefitsnavigation athr.iu.edu/benefits1Select Retirees2Select Resources & ToolsRetirement Ready Fact Sheets37

Retirement Resources & ToolsStart at the main Benefitsnavigation athr.iu.edu/benefits1Select Retirees2Select Resources & ToolsChecklist for Online Medicare,Retirement, & Spouses Applications38