The Medicare Exchange HRA is a pass-through account for eligible Medicare retirees enrolled in a supplemental medical plan through the Medicare Exchange. Contributions to the Medicare Exchange HRA are determined by three criteria: the date of hire, the date of retirement, and the qualifying years of service (5-20 years). HRA funds may be used to reimburse retirees for qualified medical expenses, health plan premiums, and Medicare Part B premiums.
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 up to $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 was initially hired on or after January 1, 2012. Will I be eligible for the retiree health insurance premium subsidy at retirement?
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.
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.