Health Reimbursement Arrangement
What happens to my HSA if I am no longer an eligible individual? For example, if I change coverage from the CDHP to the LD, EPO or HMO, or if I enroll in Medicare?
The Medicare Exchange HRA is a pass-through account for Medicare retirees enrolled in a medical plan through the Medicare Exchange. Contributions to the Medicare Exchange are determined by the years of service and date of retirement of eligible retirees. HRA funds may be used to reimburse retirees for qualified medical expenses, health plan premiums, and Medicare Part B premiums.
I am enrolled in the Medicare Exchange with an HRA. How long do I have to request reimbursement from the date-of-service?
I will not qualify for premium-free Medicare Part A. May I maintain my PEBP CDHP, LD, EPO or HMO coverage?
Yes. If you do not qualify for premium-free Medicare Part A you will be able to maintain your PEBP CDHP, LD, EPO or HMO plan. You will need to submit verification from the Social Security Administration that you’re ineligible for premium-free Part A. You will also be required to purchase Part B Medicare at age 65 if you are retired. You do not need to purchase Part B if you are an active employee who is age 65 and you can wait until 60-90 days before retirement to enroll in Medicare. Once PEBP has all of your required supporting documentation you will receive a Part B credit of $135.50/month to help offset the cost of your premium. Medicare will be your primary insurance, and your PEBP plan will be secondary.
I am retired with Medicare and will be transitioning to the Medicare Exchange. May I keep the PEBP dental plan?
I am retired and have TRICARE for Life. Am I required to enroll in a medical plan through the Medicare Exchange to receive a Years of Service HRA contribution?
An otherwise eligible retiree who has TRICARE for Life and Medicare Parts A and B will not be required to enroll in a medical plan through the Medicare Exchange. However, before PEBP will authorize the Years of Service HRA funding, PEBP will require a copy of the retiree’s military ID card (front and back) and Medicare Parts A and B card.
How do I notify Medicare that I have current group drug coverage through my employer since I am 65 but an active employee?
PEBP will send out a Credible Coverage notice each August. Keep this Creditable Coverage notice. If you decide to join one of the Medicare drug plans, you may be required to provide a copy of this notice when you join to show whether or not you have maintained creditable coverage and, therefore, whether or not you are required to pay a higher premium (a penalty).
Yes, PEBP requires all retirees who are eligible for premium-free Medicare Part A to enroll in Part A coverage. PEBP also requires retirees to purchase Medicare Part B coverage at age 65 (or under age 65 if Medicare eligible due to a disability), regardless of whether a retiree qualifies for free Part A.
Active employees turning 65 and continuing employment are not required to enroll in Medicare until 60-90 days prior to retirement.