Ready, Set, Retire
Continuing Benefits at Retirement
Human Resources Enterprise
Department of Administrative Services
stateretirees@iowa.gov
PLANNING FOR RETIREMENT
2
Health care is one of the largest costs in retirement
Planning for these expenses is a critical part of any
retirement strategy
OVERVIEW
3
This presentation highlights the features of continuing
State of Iowa benefits at retirement
Health insurance
Dental insurance
Life insurance
Benefit information is current but subject to change
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Overview of Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
4
ELIGIBILITY FOR RETIREE COVERAGE
Age 55+ by your retirement date
Receive an IPERS monthly benefit
Enrolled in health and dental coverage at the time
of retirement
5
STARTING RETIREE BENEFITS PROCESS
First stop
Your agency’s Human Resource Associate (HRA)
Complete forms and applications
Begin the process 6 to 8 weeks before retirement
6
NO BREAK IN COVERAGE
Active coverage
ends last day of
the month of
employment
7
Retiree coverage
begins first of
the month
following your
retirement date
CHANGING HEALTH INSURANCE
At the time you retire
As the result of a qualified life event
During the annual enrollment and change period
8
IMPORTANT INFORMATION
Drop the State of Iowa health or dental
NO provision for rejoining the group
9
REMOVE OR ADD FAMILY MEMBER
Remove a Spouse or Dependent
Anytime – do not need a life event
Remove and later re-enroll a family member
Qualified life event
Annual enrollment and change
10
SURVIVING SPOUSE
If your spouse is covered under your State of Iowa
health and dental plans at the time of your death
Your spouse can continue coverage
11
ANNUAL ENROLLMENT & CHANGE PERIOD
Begins in October – December 7
Elect a new health insurance plan
Change coverage level for health and dental
Add/remove dependents for health and dental
12
HEALTH INSURANCE OPTIONS
What health option will meet my needs at retirement?
Iowa Choice: HMO - State-wide network of providers
National Choice: PPO - Nation-wide coverage
Coverage when traveling
Coverage in case you relocate
13
PERMANENT RELOCATION
Enrolled in Iowa Choice and Permanently Relocate
Relocation is a life event for Iowa Choice
At the time of relocation, you can elect National Choice
14
GUEST MEMBERSHIP
Enrolled in Iowa Choice
and
Going to be out of Iowa at least 90+ consecutive days
15
Guest Membership allows you to access covered services at Blue
Cross and Blue Shield health care providers throughout the U.S.
GUEST MEMBERSHIP
Only available in the U.S.
Benefits only for the state where you have signed up
Premiums remain the same
Cost sharing remains the same
16
Contact Wellmark customer service 800-622-0043
Before you leave
Change of addresses
Return to Iowa
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Overview of Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
17
RETIREE HEALTH INSURANCE
18
Retiree health premium = total insurance premium
Premiums change each calendar year
Premiums changes are passed along to retirees
Between 2018 – 2021
Health insurance increased 9.1%
Dental insurance increased 4.7%
RETIREE HEALTH INSURANCE
19
2022 Total
Monthly Premiums Single Family
Iowa Choice
$769.00 $1,804.00
National Choice
$845.00 $1,966.00
SICK LEAVE INSURANCE PLAN (SLIP)
20
Your sick leave balance at retirement is converted
into a SLIP account
SLIP account pays the State’s share of the total health
insurance premium
You pay the employee share for health insurance
Only for health insurance – NOT dental insurance
Use SLIP until you become Medicare-eligible (age 65)
SICK LEAVE PAYOUT
21
On the last pay warrant
Time worked during the last pay period.
Accrued but unused vacation hours
Up to $2,000 from the retiree’s sick leave balance
$2,000 Sick Leave Payout
Mandatory
Taxed based on the W-4 on file
SICK LEAVE PAYOUT
22
An Option for the Payout
Direct all/some of the payout to go to your RIC deferred
compensation account
SLIP CONVERSION SCHEDULE
23
SLIP benefit is based on sick leave balance at
retirement
Sick leave hours are converted into dollars
Hours of sick leave at retirement Conversion rate
Up to 750 60%
Over 750 to 1,500 80%
Over 1,500 100%
SLIP CALCULATION – EXAMPLE 1
24
Sick leave balance 1,250 hours
Regular rate of pay at retirement $40.00/hour
Multiply sick leave hours by regular rate of pay
$50,000
Subtract the $2,000 sick leave payout
-$2,000
Eligible balance for SLIP
$48,000
Conversion rate
80%
Multiply eligible balance by the conversion rate
$38,400
SLIP account is $38,400
SLIP CALCULATION – EXAMPLE 2
25
Sick leave balance 760 hours
Regular rate of pay at retirement $32.00/hour
Multiply sick leave hours by regular rate of pay
$24,320
Subtract the $2,000 sick leave payout
-$2,000
Eligible balance for SLIP
$22,320
Conversion rate
80%
Multiply eligible balance by the conversion rate
$17,856
SLIP account is $17,856
SICK LEAVE INSURANCE PLAN (SLIP)
27
①
2022
Total
Premium
SLIP Pays
State Share Retiree Pays
Iowa Choice
Single $769.00 $715.00 $54.00
Family $1,804.00 $1,624.00 $180.00
National Choice
Single $845.00 $715.00 $130.00
Family $1,966.00 $1,624.00 $342.00
ADDITIONAL INFORMATION
28
SLIP NOT subject to federal, state, or FICA taxes
State share paid by the State from your SLIP account
You pay the employee share directly to Wellmark
USING SLIP
29
Assumptions
SLIP account is $38,400
State employee retires at age 62
36 months until eligible for Medicare
No increase in health insurance premiums
USING SLIP EXAMPLE 1
30
Iowa Choice
Total SLIP
Pays
Retiree
Pays
Family $1,804.00 $1,624.00 $180.00
Months SLIP Pays Retiree Pays
1 – 23 SLIP pays state portion of Iowa Choice,
family
$37,352.00 $4,140.00
24 SLIP pays a portion of the premium
Retiree pays remaining state’s portion
$1,048.00
$756.00
The SLIP account is now exhausted
25 – 36 Retiree pays total premium until eligible
for Medicare (12 months @ $1,804.00)
$21,648.00
1-36 Total amount of premiums paid $38,400.00 $26,544.00
1-36 Percent of premium paid 59% 41%
USING SLIP
31
Assumptions
SLIP account is $17,856
State employee retires at age 63
24 months until eligible for Medicare
No increase in health insurance premiums
USING SLIP EXAMPLE 2
32
Iowa Choice
Total SLIP
Pays
Retiree
Pays
Single $769.00 $715.00 $54.00
Months SLIP
Pays
Retiree
Pays
1 – 24 SLIP pays State portion
Retiree pays employee portion
$17,160.00
$1,296.00
The retiree is now eligible for Medicare and no longer eligible for the SLIP
SLIP account balance of $696.00 is forfeited!
SLIP & REEMPLOYMENT WITH THE STATE
33
Returning to permanent State employment
Waive all SLIP benefits
Return to State employment once SLIP benefits have ceased
May be hired in a temporary position
Approval from the DAS
Fixed and short term only
May perform services if the SLIP retiree
Independent contractor
Employed by an entity that contracts with the State
Employed by a temporary placement agency
SLIP BENEFIT ENDS
34
SLIP account is depleted
Become eligible for Medicare
Return to State of Iowa permanent employment
Drop State’s health plans
Fail to pay retiree share of the premium
Die before Medicare-eligibility (spouse can continue
coverage but can’t use remaining SLIP dollars)
Any remaining SLIP dollars are forfeited
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Overview of Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
35
MEDICARE ELIGIBILITY
36
Age 65 and older
Under age 65 and who has been on Social Security disability
for 24 months (Waiting period waive if diagnosed with ALS)
End-Stage Renal Disease
OVERVIEW OF MEDICARE
37
Part A — (Hospital Insurance) Helps cover:
Inpatient care in hospitals
Skilled nursing facility care
Hospice care
Home health care
Part B — (Medical Insurance) Helps cover:
Services from doctors and other health care providers
Outpatient care
Home health care
Durable medical equipment
Preventive care
Part D — (Prescription drug coverage) Helps cover:
Cost of prescription drugs
OVERVIEW OF MEDICARE
38
Medicare Part A
You do not pay a Part A premium if you have at least 40
quarters of Medicare-covered employment
Medicare Part B
New Medicare beneficiaries pay $170.10 per month
Since 2007, beneficiaries with higher incomes have paid higher Part B
monthly premiums
These income-related monthly adjustment amount affect fewer than
5% of people with Medicare
OVERVIEW OF MEDICARE
39
Medicare Parts A and B doesn’t pay all of your
health care costs
Costs that you must pay - coinsurance, copayments,
and deductibles
These costs are sometimes called “gaps” in
Medicare coverage
2022 PART A & PART B
40
Services Benefit Medicare Pays You Pay
Part A Hospital Insurance
Hospitalization First 60 days 100% after deductible $1,556
61
st
to 90
th
day 100% after copay $389 per day
91
st
to 150
th
day 100% after copay $778 per day
Beyond 159 days 0% 100%
Skilled Nursing
Facility
First 20 days 100% of approved amounts $0 if approved
21st to 100
th
day All but a daily copay $194.50 per day
Beyond 100 days 0% 100%
Part B Medical Insurance
Deductible $0 $233
Remainder Medicare-approved
amounts
80% after deductible 20%
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Overview of Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
41
MEDICARE-ELIGIBLE RETIREE
42
Medicare is your primary coverage
Need to enroll in Medicare Part A and Part B
Retirement health coverage from the State will pay
after Medicare
HEALTH OPTIONS
43
Options Plans
1 Iowa Choice
2 National Choice
3 Group Program F
4 Group Program N
Medicare Part D Option
Iowa Group MedicareBlue Rx
IOWA CHOICE AND NATIONAL CHOICE
44
Iowa Choice or National Choice
Same State benefits
Pays secondary to Medicare
Iowa Choice or National Choice are not technically
considered supplement plans, but they do
function like supplement plans
IOWA CHOICE AND NATIONAL CHOICE
45
2022 Total
Monthly Premiums
Single Family
Iowa Choice $851.00 $1,814.00
National Choice $938.00 $1,996.00
To lower your Wellmark Premium
You have the option of enrolling in the State’s
Iowa Group MedicareBlue Rx, a Medicare Part D plan
IOWA GROUP MEDICAREBLUE RX
46
2022 Monthly Premium
$107.10 per Medicare-eligible person
How does Group MedicareBlue Rx save you money?
Wellmark and MedicareBlue Rx Iowa coordinates prescription
drug coverage
Save a substantial amount in the Wellmark monthly premium
PREMIUM SAVINGS
47
2022 Iowa Choice National Choice
Single
Without Iowa MedicareBlue Rx $851.00 $938.00
With Iowa MedicareBlue Rx $409.00 $450.00
Premium Savings $442.00 $488.00
Iowa MedicareBlue Rx Premium <$107.10> <$107.10>
Net Savings $334.90 $380.90
Family
Without Iowa MedicareBlue Rx $1,814.00 $1,996.00
With Iowa MedicareBlue Rx $1,046.00 $1,148.00
Premium Savings $768.00 $848.00
Iowa MedicareBlue Rx Premium* <$214.20> <$214.20>
Net Savings $553.80 $633.80
* Both the State retiree and spouse are Medicare-eligible and enrolled in MedicareBlue Rx
SLIP WITH A MEDICARE-ELIGIBLE SPOUSE
48
Family Coverage
Total
Premium
SLIP
Contribution
Retiree SLIP
Contribution
MedicareBlue
Rx Premium
Total Retiree
Cost
IOWA CHOICE
Spouse enrolled in
MedicareBlue Rx
$1,046.00 $1,046.00 $0.00 $107.10 $107.10
Spouse NOT enrolled in
MedicareBlue Rx
$1,814.00 $1,624.00 $190.00 -- $190.00
NATIONAL CHOICE
Spouse enrolled in
MedicareBlue Rx
$1,148.00 $1,148.00 $0.00 $107.10 $107.10
Spouse NOT enrolled in
MedicareBlue Rx
$1,996.00 $1,624.00 $372.00 -- $372.00
HEALTH OPTIONS
49
Options Plans
1 Iowa Choice
2 National Choice
3 Group Program F
4 Group Program N
MEDICARE SUPPLEMENT PLANS
50
Medicare Supplement plans help
pay for some of the gaps that
Medicare doesn’t cover
Coinsurance
Medicare Parts A & B
Deductible
Copays
GROUP PROGRAMS F AND N
51
Group Program F and Group Program N
Benefit design same Medicare Supplement F and N
Group Program F and N – Nationwide Coverage
See any provider who accepts Medicare
Only covers Medicare-eligible expenses not paid by
Medicare
Medicare covers the service - covered by Group
Program F or Group Program N
GROUP PROGRAMS F AND N
52
Is the Plan F still available?
Effective January 1, 2020, a Medicare Supplement
Plan F can NOT be sold or issued to a newly eligible
Medicare beneficiary.
Since the State’s Program F is a group plan
Availability of the Medicare Supplement Plan F
does not apply to the State’s Group Program F
PROGRAM F AND N ELIGIBILITY
53
Eligibility for Group Program F and N Plans
State of Iowa Medicare-eligible retiree
Medicare-eligible spouse or domestic partner
Eligible for Medicare but Spouse Not Eligible for
Medicare
Spouse cannot have Iowa Choice or National Choice
single coverage
MEDICARE-ELIGIBLE RETIREE
54
One spouse – Medicare-eligible
Other spouse – Not Medicare-eligible
Coverage: Iowa Choice family or National Choice family
GROUP PROGRAM F
55
Services Benefit
Medicare
Pays
Group Program
F Pays You Pay
Part A Hospital Insurance
Hospitalization First 60 days 100% after deductible $1,556 $0
61
st
to 90
th
day 100% after copay $389 per day $0
91
st
to 150
th
day 100% after copay $778 per day $0
Beyond 159 days 0% 100% $0
Skilled Nursing
Facility Care
First 20 days of approved amounts $0 $0
21st to 100
th
day All but a daily copay $194.50 per day $0
Beyond 100 days 0% $0 All costs
Part B Medical Insurance
Deductible $0 $233 $0
Remainder of Medicare-approved
amounts
80% after deductible 20% $0
Part B Excess $0 100% $0
GROUP PROGRAM N
56
Services Benefit
Medicare
Pays
Group Program
N Pays You Pay
Part A Hospital Insurance
Hospitalization First 60 days 100% after deductible $1,556 $0
61
st
to 90
th
day 100% after copay $389 per day $0
91
st
to 150
th
day 100% after copay $778 per day $0
Beyond 159 days 0% 100% $0
Skilled Nursing
Facility Care
First 20 days of approved amounts $0 $0
21st to 100
th
day All but a daily copay $194.50 per day $0
Beyond 100 days 0% $0 All costs
Part B Medical Insurance
Deductible $0 $0 $233
Remainder of Medicare-approved
amounts
80% after deductible Balance $20-office visit
$50-ER
Part B Excess $0 $0 100%
FOREIGN TRAVEL BENEFIT
57
Services Benefit
Medicare
Pays
Group Programs
F and N Pays You Pay
Foreign Travel Emergency Care
Medically necessary
emergency care
services beginning
during the first 60
days of each trip
outside the USA.
First $250
each calendar
year
$0 $0 $250
Remainder of
Charges
$0 80% to a lifetime
maximum
benefit of
$50,000
20% and amounts
over the $50,000
lifetime maximum
PREMIUMS
58
Group
Program F
Group
Program N
2022 Monthly Premiums
(single contracts)
$271.50 $178.90
You and your spouse/domestic partner can:
Both enroll in Group Program F, or
Both enroll in Group Program N, or
One enroll in Group Program F and the other enroll in Program N
IOWA GROUP MEDICAREBLUE RX
59
Enrolled in Group Program F or Group Program N
Elect Iowa Group MedicareBlue Rx plan
or
Elect an individual Prescription Drug Program from an
insurance company offering a Medicare Part D program
in the State where you live
EXAMPLE 1
60
Coverage Spouse 1 Spouse 2
Primary Medicare Iowa Choice or
National Choice
Secondary Iowa Choice or
National Choice
Spouse 1 age 65
Spouse 2 age 62
To cover the couple
Elect either Iowa Choice or National Choice, family coverage
Spouse 1 enrolls in Iowa Group MedicareBlue Rx
Spouse 2 - Iowa Choice or National Choice is primary
EXAMPLE 1
61
When spouse turns age 65 – both State Retiree and Spouse can
Continue with Iowa Choice (family)
Elect National Choice (family)
Elect Group Program F or Group Program N (single)
State
Retiree &
Spouse
Option 1
Iowa Choice
Option 2
National Choice
Option 3
Group
Program F
Option 4
Group
Program N
Primary Medicare Medicare Medicare Medicare
Secondary Iowa Choice National Choice Group Program F Group Program N
Rx Primary Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Rx Secondary Iowa Choice National Choice -- --
EXAMPLE 2
62
Coverage State Retiree Spouse
Primary Medicare Cannot be covered
Secondary Group Program F
Rx Primary Iowa Group
MedicareBlue Rx
State retiree age 65
Spouse age 64
State Retire elects Group Program F and enrolls in Iowa Group
MedicareBlue Rx
EXAMPLE 2
63
State
Retiree &
Spouse
Option 1
Iowa Choice
Option 2
National Choice
Option 3
Group
Program F
Option 4
Group
Program N
Primary Medicare Medicare Medicare Medicare
Secondary Iowa Choice National Choice Group Program F Group Program N
Rx Primary Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Iowa Group
MedicareBlue Rx
Rx Secondary Iowa Choice National Choice -- --
When spouse turns age 65 – both State Retiree and Spouse can
Continue with Iowa Choice (family)
Elect National Choice (family)
Elect Group Program F or Group Program N (single)
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
64
PUTTING THE PREMIUMS TOGETHER
65
Single Coverage
Medicare
Part A
Medicare
Part B
IA Group
MedicareBlue
Rx (Part D)
State
Program
Total
Premium
National Choice w/o Iowa MedicareBlue Rx $0.00 $170.10 $938.00 $1108.10
National Choice w/ Iowa MedicareBlue Rx $0.00 $170.10 $107.10 $450.00 $727.20
Iowa Choice w/o Iowa MedicareBlue Rx $0.00 $170.10 $851.00 $1021.10
Iowa Choice w/ Iowa MedicareBlue Rx $0.00 $170.10 $107.10 $409.00 $686.20
Group F w/ Iowa MedicareBlue Rx* $0.00 $170.10 $107.10 $271.50 $548.70
Group N w/ Iowa MedicareBlue Rx* $0.00 $170.10 $107.10 $178.90 $456.10
*Optional – the retiree could elect an individual Medicare Part D plan
PUTTING THE PREMIUMS TOGETHER
66
Family Coverage
1 Member Medicare-eligible
Medicare
Part A
Medicare Part
B
IA Group
MedicareBl
ue Rx (Part
D)
State
Program
Total
Premium
National Choice w/o Iowa MedicareBlue Rx $0.00 $170.10 $1,996.00 $2166.10
National Choice w/ Iowa MedicareBlue Rx $0.00 $170.10 $107.10 $1,148.00 $1425.20
Iowa Choice w/ Iowa MedicareBlue Rx $0.00 $170.10 $1,814.00 $1984.10
Iowa Choice w/ Iowa MedicareBlue Rx $0.00 $170.10 $107.10 $1,046.00 $1323.20
One family member cannot enroll in Group Program F or Group Program N and
another family member enroll in single coverage in Iowa Choice or National Choice
PUTTING THE PREMIUMS TOGETHER
67
Family Coverage
2 Members Medicare-eligible
Medicare
Part A
Medicare
Part B
IA Gr
Medicare
Blue Rx
(Part D)
State
Premium
Total
Premium
National Choice w/o Iowa MedicareBlue Rx $0.00 $340.20 $1,996.00 $2336.20
National Choice w/ Iowa MedicareBlue Rx $0.00 $340.20 $214.20 $1,148.00 $1702.40
Iowa Choice w/o Iowa MedicareBlue Rx $0.00 $340.20 $1,814.00 $2154.20
Iowa Choice w/ Iowa MedicareBlue Rx $0.00 $340.20 $214.20 $1,046 .00 $1600.40
Group F w/ Iowa MedicareBlue Rx* $0.00 $340.20 $214.20 $543.00 $1097.40
Group N w/ Iowa MedicareBlue Rx* $0.00 $340.20 $214.20 $357.80 $912.20
Assumption: Both retiree and spouse are Medicare-eligible
1. Medicare Part B premium is $170.10*2.
2. Iowa Group MedicareBlue Rx is $107.10*2.
3. Group F and N are only available as single contracts
*Optional – the retiree could elect an individual Medicare Part D plan
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
68
RETIREE DENTAL PREMIUMS
Must be enrolled in dental at the time of retirement
Must be enrolled in dental at the time of retirement
Health and dental insurance
69
2022 Monthly Dental Premiums
Single $34.00
Family $88.00
Spouse can continue coverage if covered at the time of the
retiree’s death
Medicare is a health insurance not dental insurance
LIFE INSURANCE
Life Insurance in force when you retiree
70
Life Insurance
Basic Life Insurance Coverage
All employees (except SPOC-covered employees) $20,000
SPOC-covered employees $50,000
Supplemental Life Insurance (in force at retirement) Maximum Amount
All employees (except SPOC-covered employees) $100,000
SPOC-covered employees $1,000,000
CONTINUATION OF LIFE INSURANCE
71
Active life
insurance
coverage ends
last day of the
month of
employment
LIFE INSURANCE
Evidence of insurability is NOT required
Two life insurance options:
Portability
Conversion
72
PORTABILITY OPTION
73
You can port:
Basic life insurance
Supplemental life insurance
Accidental death & dismemberment (AD&D)
Eligible:
Leave state employment prior to the age of 80
Not Eligible:
Under the age of 60 and are applying for long term disability
benefits
PORTABILITY OPTION
74
Your insurance will port to a Group Term Life Policy
Rates are based on age, and increase in 5 year
increments
The minimum amount to port is $10,000
The maximum is the amount of coverage (basic +
supplemental) you had at the time of retirement
CONVERSION OPTION
75
Convert your basic and supplemental life insurance
Rates are based on age at the time of conversion and
do not increase
Convert to whole life policy – Potential to build cash
value
LIFE INSURANCE APPLICATIONS
76
Must be requested from The Standard by phone or
email
Phone: 844.450.5547
Email: cbt@standard.com
WHAT WE WILL DISCUSS TODAY
General Information
Health Insurance BEFORE Medicare
Health Insurance AFTER Medicare
Putting the Premiums Together
Dental Insurance
Life Insurance
Resources
Questions and Answers
77
RESOURCES
80
Senior Health Insurance Information Program (SHIIP)
The Iowa Insurance Division’s Senior Health Insurance
Information Program (SHIIP) offers
Free
Unbiased resources
Help Iowans make informed decisions on their Medicare and
other health insurance coverage.
RETIREE HEALTH AND DENTAL QUESTIONS
82
83
Thank You
