Retiree Benefits

2024 Retiree State Plan Coverage Options

The following chart gives you an outline of your State Plan coverage options in retirement.

	Non-Medicare Eligible	Medicare Eligible	Dependent(s)
Medical	Required	Required	Optional*
Prescription	Required	Required	Optional*
Dental	Optional	Optional	Optional (If Primary Member Elects Dental)
Basic Life Insurance	Required (Terms When Medicare Eligible)	May Port/Convert	May Port/Convert
Optional Life Insurance Plans	May Port/Convert	May Port/Convert	May Port/Convert
Accidental Death & Dismemberment	Not Eligible	Not Eligible	Not Eligible
Vision Hardware	Optional	Optional	Optional (If Primary Member Elects Vision Hardware)
Flexible Spending Accounts	Option to Prepay for Rest of the Plan Year in Which You Retire	Option to Prepay for Rest of the Plan Year in Which You Retire	Not Eligible
Long Term Disability Insurance	Not Eligible	Not Eligible	Not Eligible

*If you currently have dependents who are covered under your Dental Plan, but not your Medical Plan, you can only add them to your Medical Plan if you qualify for a Special Enrollment Period or during the annual Open Enrollment Period.

Retiree Eligibility

To continue your State Plan coverage when you retire, you must be eligible to receive retirement benefits under the applicable provisions of your retirement system when you leave active State employment. You must notify the State Plan of your decision to elect retiree benefits by submitting the Retiree Election Form within sixty (60) days of the end of your State of Montana service.

Judge Eligibility

A member of the judges’ retirement system who leaves judicial office but continues to be an inactive vested member of the judges’ retirement system may continue coverage under the State Plan if the judge notifies the State Plan by completing and submitting the Retiree Election Form within ninety (90) days of the end of the judge’s judicial service.

Survivor Benefits

Surviving spouses/domestic partners and dependent child(ren) of retirees that pass away may remain covered by the State Plan. Contact HCBD for more information.

transferring State Plan Coverage to Spouse/Domestic Partner

A Retiree may choose to become a dependent of an employed or retired spouse/domestic partner on the State Plan while still keeping their right to return to State Plan coverage under their own name at a later date.
A Retiree who transfers to another State Plan member’s coverage does not have to begin a new deductible for the remainder of the Plan Year.
If you transfer to your spouse/domestic partner’s State Plan coverage, and your spouse/domestic partner is an active employee, you may be able to transfer some or all of your Supplemental Life Insurance.
If you transfer to your retired spouse/domestic partner’s State Plan coverage, you lose all life insurance coverage.
If your Retiree coverage is reinstated due loss of eligibility for other State Plan coverage (ie. your spouse/domestic partner’s termination of employment, death, or divorce) and you are not Medicare eligible, Basic Life coverage is reinstated.

Contact the HCBD if any of the above scenarios apply to you.

Medicare Eligibility and Enrollment

It is important Retirees and their spouse/domestic partner and/or dependents covered by the State Plan enroll in Medicare Parts A and B when they become eligible. When you become eligible for Medicare Parts A and B, the State Plan will coordinate your State Plan benefits with the benefits you are eligible for with Medicare. If you do not enroll in Medicare Parts A and B, the State Plan will pay claims as if you were enrolled, which will result in larger out-of-pocket costs for you.

Medicare Retiree Rate

Your monthly premium contribution amount will automatically be reduced to the Medicare Retiree Rate the first of the month following the date you or your spouse/domestic partner become Medicare eligible.

Medicare Part A and B Enrollment Upon Retirement

If you or your spouse/domestic partner are a) over age 65, b) waived Medicare Parts A and/or B at the time you turned 65 because you were an active employee, and c) plan to elect Medicare Parts A and B now due to retirement, you must act promptly to avoid penalties by Medicare for late enrollment. Contact HCBD for a letter verifying your State Plan coverage for Medicare purposes.

Medicare Part D Coverage

If you enroll as a State Plan Retiree, you and your spouse/domestic partner and/or dependent’s Medicare Part D prescription drug coverage will be provided by the State Plan. If you are enrolled on State Plan coverage, you may NOT purchase Medicare Part D coverage with any other provider. If you enroll in other Medicare Part D coverage, all of your State Plan coverage (medical, prescription, vision, dental, and life insurance) will be terminated. Contact Navitus Medicare Rx for more information at (866) 270-3877 or medicarerx.navitus.com.

Life Insurance Options

Non-Medicare Retirees
Basic Life Insurance is required if you stay on the State Plan. However, you are no longer eligible for supplemental life insurance benefits. Coverage for Basic Life Insurance terminates when you become Medicare eligible.

Medicare Eligible Retirees
If you are Medicare eligible when you retire or become Medicare eligible after retirement, you are no longer eligible for any group life insurance.

Portability and Conversion Information
As you plan for retirement, we strongly recommend you contact BlueCross BlueShield of Montana (BCBSMT) to discuss the portability and conversion options available to you for your current life insurance coverage. When you lose eligibility for group life insurance coverage you are eligible to port or convert your life insurance coverage to an individual policy with BCBSMT by making application to BCBSMT. The deadline to apply and pay premium for portability is 31 days after employment terminates. For conversion, the deadline to apply and pay premium is 31 days after coverage was reduced or ended. Please note the termination date for employment may differ from the termination date for coverage.

Portability: Allows you to “port” (or buy) Group Life Insurance coverage when you lose coverage because your employment is being voluntarily or involuntarily terminated.
Conversion: Allows you to convert some or all of your group life insurance coverage to an individual whole life insurance policy when your coverage is reduced or terminated for any reason other than non-payment of premiums.

To port or convert your life insurance coverage, contact BlueCross BlueShield of Montana at (866) 739-4090 or ancillaryquestionsMT@bcbsmt.com.

Note: Portability and conversion is not available for Accidental Death and Dismemberment (AD&D) coverage.

Disability Waiver of Life Insurance Payments
If you are retiring prior to age 60 and are permanently and totally disabled, you may qualify for waiver of life insurance premiums through BCBSMT. Contact BCBSMT at (866) 739-4090 or ancillaryquestionsMT@bcbsmt.com for more information.

Long-Term Disability Insurance
If enrolled in long term disability insurance, your coverage ends the date you retire.

FLEXIBLE SPENDING ACCOUNTS (FSA)

Dependent Care Flexible Spending Account (FSA)
Your account terminates at the end of the month in which you retire and is not eligible to be pre-paid. You have 120-days from the end of the Plan Year to submit receipts for eligible expenses incurred during the Plan Year.

Medical Flexible Spending Account (FSA)
Your account terminates the end of the month in which contributions have been collected. You have 120-days after the date your account terminates to submit receipts for eligible expenses incurred during the time your account was active.

To continue accessing your Medical FSA funds for date of service after your retirement, you may:

Pre-pay the remainder of your annual FSA election with your final paycheck on a pre-tax basis. Your FSA funds will continue to be available until the end of the Plan Year in which you retire. (Discuss this option with your agency payroll prior to receiving your final paycheck.)

If you do not pay the remainder of your annual FSA election from your final paycheck you may be eligible to elect COBRA Continuation Coverage due to the termination of employment.