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Retiree Health Care FAQs

The following reflect some of the more commonly asked questions regarding MSU Retiree Health Care Programs by category. We hope this quick reference is helpful. To get answers to other questions, please contact MSU Human Resources at (517) 353-4434, toll-free at (800) 353-4434 ext. 0 or via email at SolutionsCenter@hr.msu.edu.

Deductibles

  Retiree Contributions

Coverage Options

Access to MSU Health Plan Coverage for Spouse or Other Eligible Individual

CVS Caremark Prescription Drug Plan


 


Deductibles

What is a deductible?
A deductible is a set dollar amount that enrollees must pay out-of-pocket toward certain health care services before insurance starts to pay.

Which of the MSU health plans have deductible requirements and do those requirements vary by employee type?
Under the BCN plan all enrollees will have an in-network and out-of-network deductible for certain types of services. Under the Community Blue PPO, Pre-Medicare (under 65) executive staff, faculty and academic staff retirees have an in-network deductible and an out-of-network deductible, and support staff retirees only have an out-of-network deductible. There are deductibles for Master Medical on the BCBSM Traditional and Transitional plans.

What types of services are subject to deductible requirements and do co-pays count toward meeting deductibles?
Deductibles only apply to certain types of services and care in the MSU plans. For many types of care, no deductibles apply. Co-pays do not count toward meeting deductibles in most cases. For other types of services such as hospital care, diagnostic tests and x-rays, radiation therapy, hospice care, surgical services and other services, insurance begins paying only after deductibles for the year are met. 


Retiree Contributions

Will I have to contribute toward the cost of the health plan I choose?
MSU's contribution toward retiree health plan coverage will pay the full cost of the lowest cost health plan (and a prorated amount for those eligible for part-time contributions). The lowest cost health plan, depending on your eligibility, is either BCBS Traditional, BCBS Transition or BCN. If you are enrolled in Community Blue, the higher cost plan, you will contribute the premium cost difference between Community Blue and either BCBS Traditional, BCBS Transition or BCN.

I am a retiree, not yet eligible for Medicare, with a family member enrolled in Medicare. Will I need to contribute toward the cost of my health plan coverage?
Retirees with a family member enrolled in Medicare may choose between the Blue Cross Blue Shield Transition plan or BCN. The full university contribution toward retiree health plan coverage pays the full cost of the BCBS Transition coverage for eligible retirees, their spouses and their dependents (prorated for part-time). Retirees who select BCN must pay the premium difference between BCN and BCBS Transition plan (the lowest cost plan).  For more details please review the health plan contribution rates in the Retiree Open Enrollment Guide.

I am a retiree not enrolled in Medicare with no family member(s) enrolled in Medicare. Will I need to contribute toward the cost of my health plan coverage?
Retirees without any family member(s) enrolled in Medicare may choose between the Community Blue or BCN health plans. The current university contribution toward retiree health plan coverage pays the full cost of BCN (the lowest cost health plan). Retirees who select Community Blue must pay the premium difference between the cost of BCN and Community Blue. For more details please review the health plan contribution rates in the Retiree Open Enrollment Guide.

I am a retiree enrolled in Medicare and my spouse is also enrolled in Medicare. Will I need to contribute toward the cost of my health plan coverage?
Retirees with all family members enrolled in Medicare may choose between the Blue Cross Blue Shield Traditional or BCN health plans. The current university contribution toward retiree health plan coverage pays the full cost of BCBS Traditional coverage for retirees, their spouse and their dependents (prorated for part-time). Retirees who select BCN must pay the premium difference between BCN and BCBS Traditional plan.   For more details please review the health plan contribution rates in the Retiree Open Enrollment Guide.


Coverage Options

I am an MSU retiree with Medicare and all of my enrolled family members also have Medicare. What health coverage options can I choose from?
You have a choice between the Blue Cross Blue Shield Traditional Plan and BCN.

I am an MSU retiree and all members of my family (including me) are not enrolled in Medicare. What health coverage options can I choose from?
You have a choice between the BCBS Community Blue Plan and BCN for you and any family members you enroll.

I am an MSU retiree and the members of my family are a mix of Medicare and non-Medicare enrollees. What health coverage options can I choose from?
You have a choice between the BCBS Transition Plan and BCN.


Access to MSU Health Plan Coverage for Spouse or Other Eligible Individual

My spouse or Other Eligible Individual (OEI), who works for another employer or is retired, is eligible to purchase single health plan coverage for a premium contribution of $850 or less per year from that employer. What do I need to do?

  • Participate in the online Open Enrollment
  • Complete a Health Plan Affidavit
  • If the spouse/OEI is eligible to purchase single health plan coverage for $850 or less, the spouse/OEI MUST enroll in their employer’s health coverage.

My spouse or Other Eligible Individual, who works for another employer or is retired, is eligible to purchase single health plan coverage for a premium contribution of more than $850 per year from that employer. What do I need to do?

  • Participate in the online Open Enrollment
  • Complete a Health Plan Affidavit
  • If the cost for purchasing single health plan coverage to the spouse/OEI is more than $850, the spouse/OEI does NOT have to enroll in their employer’s health coverage.

My spouse or Other Eligible Individual does not have access to other health plan coverage. Do I still need to complete the Health Plan Affidavit for Spouse or Other Eligible Individual?
Yes, you still need to complete a Health Plan Affidavit.

My spouse or Other Eligible Individual currently works for another employer and is required to take that employer's health plan coverage. Is my spouse or Other Eligible Individual also required to cover our dependent children under his/her employer's health plan?
No, MSU does not require your dependent children to be covered under your spouse's or Other Eligible Individual's employer's health plan. However, you may wish to have them covered under the other employer's plan depending on your cost for this coverage and your health plan needs.

When does my spouse or Other Eligible Individual need to enroll in their employer's health plan?
No later than January 1 during the year of MSU's Open Enrollment.


CVS Caremark Prescription Drug Plan

Do I need to enroll in the CVS Caremark prescription drug plan if I change health plans?
No, if you are enrolled in any of the MSU health plans, you'll automatically be covered by the CVS Caremark prescription drug plan.

 

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