Transitioning to the Retiree Health Plan

The information below applies if you have chosen to enroll in the University of Idaho retiree health plan.

The transition from the active employee medical plan to the retiree health plan can take up to four weeks after your last pay date as an active employee. It may seem as if you don’t have coverage during this period, but please be assured that you do have coverage under the retiree health plan during this time. There will be no break in your coverage and you are covered if a medical emergency does occur.

Please review the tips below for a smooth transition from active to retiree health coverage.

Use your dental and vision benefits BEFORE you retire

The retiree health plan does not include dental, routine vision exam or glasses/contact lens benefits, so make use of these benefits under your active employee plan before you retire.

Note that medical-based vision exams and cataracts are covered under the retiree health plan.

You may elect COBRA dental and vision coverage for yourself and your covered dependents for a maximum of 18 months (see below).

Wait a month for routine medical appointments and prescription refills

Please do not schedule any routine medical appointments or procedures during the transition period (the first 2-4 weeks after you retire).

If possible, refill any prescriptions before you retire. If you are unable to do so, you may need to pay out of pocket and submit a claim to the prescription drug plan administrator after the transition period is complete.

Claim FSA funds within 90 days

If you have a Health Care Flexible Spending Account (FSA) as an active employee, you will have 90 days after your last day of work to submit claims incurred during active employment. The maximum claim reimbursement is your FSA election amount for the year you retire. Expenses incurred after you retire are not eligible for reimbursement. Any funds in your account not spent as an active employee are forfeited.

Understand HSA fees

Once you enroll in Medicare, you are no longer eligible to contribute to a Health Savings Account (HSA). The money you have accrued in your HSA is yours.

After your retirement, the university no longer pays the administrative fees associated with the HSA account. If your balance is below $2,500, you may be charged a monthly administrative fee. If you have questions, call HealthEquity at 1-866-346-5800 or visit their online Help Center.

Understand whether your deductible carries forward

The active employee health plans and the retiree health plans run on a calendar year basis, January through December. If you retire mid-year, in some cases your active health plan deductible will carry forward to the retiree health plan.

Your subscriber ID number will remain the same when you transition from the active employee health plan to your retiree health plan.

• If you are on the Standard PPO plan as an active employee and you selected Retiree PPO Plan, your medical deductible will carry forward. You may have a new prescription drug deductible to meet under the retiree health plan. You will receive new Blue Cross of Idaho membership cards within a month. Your retirement tier and health plan choice will determine if new prescription drug cards will be issued. Consult Benefit Services with questions.
• If you are on the Standard PPO plan as an active employee and you selected Retiree HDHP, your deductible does NOT carry forward. You will receive new Blue Cross of Idaho membership cards within a month.
• If you are on the High Deductible Health Plan (HDHP) as an active employee and you selected Retiree PPO Plan, your deductible does NOT carry forward. You will receive new Blue Cross of Idaho membership cards within a month.
• If you are on the High Deductible Health Plan (HDHP) as an active employee and you selected Retiree HDHP, your medical deductible will carry forward. New membership cards will not be issued mid-year.

COBRA coverage

Information about COBRA will be mailed to your home address. This is a legal notice required by law. Disregard the COBRA notification for YOUR retiree health plan coverage if you are transitioning to a University of Idaho retiree health plan. Some retirees select short-term COBRA coverage for a spouse or dependent, as the cost of coverage is less than the cost under the U of I retiree health plan. You may also elect COBRA dental and vision coverage for yourself and your covered dependents for a maximum of 18 months.

Medicare coverage

If you and/or your spouse are eligible for Medicare upon your retirement, Benefit Services will provide you with a certificate of creditable coverage for Medicare Part D and with a notice (CMS-L56E) confirming continuous coverage required for Medicare Parts A and B. You will provide these documents to Medicare when you enroll. They confirm that you have had health insurance coverage through the University of Idaho between the date you became eligible for Medicare and the date you retired/enrolled in Medicare, so you will avoid a penalty for late enrollment.

Once enrolled in Medicare Parts A and B, provide a copy of your Medicare ID Number to Benefit Services and Blue Cross of Idaho as proof of enrollment. Medicare is now your primary insurance.