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STATE HEALTH BENEFITS PROGRAM and
SCHOOL EMPLOYEES' HEALTH BENEFITS PROGRAM


EXPRESS SCRIPTS MEDICARE PRESCRIPTION DRUG PLAN
SHBP/SEHBP RETIREE PRESCRIPTION DRUG COVERAGE
Effective January 1, 2014

Retirees and/or covered spouses/partners who are eligible for Medicare will be enrolled through Express Scripts in Medicare Part D prescription drug coverage.  Express Scripts will remain the prescription drug plan administrator for these retirees and coverage in the Express Scripts Medicare Prescription Drug Plan will be similar to the current Express Scripts plan — i.e. members pay the appropriate copayment for either a retail or mail order prescription drug order.

Covered children who are eligible for Medicare, who will remain covered under the current Express Scripts plan.

QUESTIONS AND ANSWERS

1. Q. Do I need to do anything?

A. No. The SHBP/SEHBP and Express Scripts will automatically enroll eligible retirees into Medicare Part D and the new Express Scripts Medicare Prescription Drug Plan. Retirees should not actively enroll separately into Medicare Part D or into a privately offered Medicare Part D plan.

As with all SHBP/SEHBP coverage, retirees who are eligible for Medicare must enroll in and maintain both Medicare Part A (Hospital) and Part B (Medical) coverage.

Note: Retirees should carefully review plan options if comparing Medicare D plans.  Retired members, and/or dependents, who enroll in privately offered Medicare Part D plans will lose their SHBP or SEHBP prescription drug coverage. In addition, the SHBP and SEHBP will not cover the costs of any drugs that are not covered by the Medicare Part D plan.

2. Q. Will I have to pay more for my medications because of the Medicare Part D “donut hole”?

A. No. The Express Scripts Medicare Prescription Drug Plan provides “wrap-around” coverage that eliminates the “donut hole” (the “donut hole” is a part of some Medicare Part D plans where members pay the full cost of prescription drug orders). Because of the “wrap-around” coverage, SHBP/SEHBP members only pay the appropriate copayment for prescription drug orders, up to any annual maximum out-of-pocket amounts.

3. Q. Are there any other costs associated with this coverage?

A. Because you are being enrolled into Medicare Part D, some members will have the monthly premium for Part D coverage deducted from their Social Security benefit. Members who earn more than $85,000 per year ($170,000 if married and filing jointly) will have a deduction as follows:

YOU PAY IN 2014 IF YOUR YEARLY INCOME ON
YOUR 2012 TAX RETURN IS
Part D Filed Individual Return Filed
Joint return
Your Plan Premium* $85,000 or less $170,000 or Less
$12.10 + Your Plan Premium $85,001 - $107,000 $170,001 - $214,000
$31.10 + Your Plan Premium $107,001 - $160,000 $214,001 – $320,000
$50.20 + Your Plan Premium $160,001 – $214,000 $320,001 - $428,000
$69.30 + Your Plan Premium Above $214,000 Above $428,000

*If you do not currently pay a premium for you SHBP/SEHBP coverage, you will continue to not pay a premium under this plan.

State or Local Education retirees who qualify for reimbursement of their Medicare Part B premiums will also be eligible for reimbursement by the State for Part D premiums. The Part D reimbursements will be paid in the same manner as the income-related Medicare B premiums: once a year, upon receipt of proof of the premiums paid.

Local Government retirees may qualify for reimbursement of Medicare Part D premiums if the employer participates in the SHBP and provides reimbursement under the provisions of Chapter 88, P.L. 1974 or Chapter 48, P.L. 1999.  Reimbursement of Local Government retirees is coordinated and paid through the former employer.

4. Q. Can I continue to use my current pharmacy?

A. You will have access to over 63,000 network pharmacies nationally, including mail-order services through the Express Scripts Pharmacy.  If your pharmacy currently accepts your commercial Express Scripts plan from the SHBP/SEHBP, you will be able to continue using that pharmacy with the Express Scripts Medicare Prescription Drug Plan. However, if your pharmacy is one of the few that do not accept Medicare Part D plans, you will be required to use a participating pharmacy in order to use the SHBP/SEHBP prescription drug benefits through the Express Scripts Medicare Prescription Drug Plan. Veteran Administration pharmacies do not participate in this plan.

5. Q. Where can I get more information?

A. Specific questions can be directed to the Express Scripts Medicare Prescription Plan — 24 hours a day, 7 days a week — at
1-866-544-9703.
  TTY/TDD users can call 1-800-716-3231.

 
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