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§36-12-4  Coverage of Non-Medicare-eligible retired employees. –


Published: 2015

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TITLE 36

Public Officers and Employees

CHAPTER 36-12

Insurance Benefits

SECTION 36-12-4



   § 36-12-4  Coverage of

Non-Medicare-eligible retired employees. –

(a) Non-Medicare-eligible retired employees who retired on or before

September 30, 2008. Any retired employee who retired on or before September

30, 2008 shall be entitled, until attaining Medicare eligibility, to be covered

under §§ 36-12-1 – 36-12-5 for himself and herself and, if he or

she so desires, his or her non-Medicare-eligible dependents, upon agreeing to

pay the total cost of his or her contract at the group rate for active state

employees. Payments of any non-Medicare-eligible retired employee for coverage

shall be deducted from his or her retirement allowance and remitted from time

to time in payment for such contract. In addition, any retired employee who

retired on or before September 30, 2008 shall be permitted to purchase coverage

for his or her non-Medicare-eligible dependents upon agreeing to pay the

additional cost of the contract at the group rate for active state employees.

Payment for coverage for these dependents shall be deducted from his or her

retirement allowances and remitted as required in payment for the contract.



   (b) Non-Medicare-eligible state retirees who retired

subsequent to July 1, 1989, and on or before September 30, 2008.

Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989,

and on or before September 30, 2008, from active service of the state, and who

were employees of the state as determined by the retirement board under §

36-8-1, shall be entitled to receive for himself or herself

non-Medicare-eligible a retiree health care insurance benefit as described in

§ 36-12-1 in accordance with the following formula:



   SEE THE BOOK FOR THE PROPER TABLE.



   If the retired employee is receiving a subsidy on September

30, 2008, the state will continue to pay the same subsidy share until the

retiree attains age sixty-five (65).



   Until December 31, 2013, when the state retiree reaches that

age which will qualify him or her for Medicare supplement, the formula shall be:



   SEE THE BOOK FOR THE PROPER TABLE.



   (c) Non-Medicare-eligible retired employees who retire on or

after October 1, 2008. Any retired employee who retires on or after October 1,

2008 shall be entitled, until attaining Medicare eligibility, to be covered

under §§ 36-12-1 – 36-12-5 for himself and herself and, if he or

she so desires, his or her non-Medicare-eligible dependents, upon agreeing to

pay the total cost of the contract in the plan in which he or she enrolls.

Payments of any non-Medicare-eligible retired employee for coverage shall be

deducted from his or her retirement allowance and remitted from time to time in

payment for such contract. Any retired employee who retires on or after October

1, 2008, shall be permitted to purchase coverage for his or her

non-Medicare-eligible dependents upon agreeing to pay the additional cost of

the contract at the group rate for the plan in which the dependent is enrolled.

Payment for coverage for dependents shall be deducted from the retired

employee's retirement allowances and remitted as required in payment for the

contract. The Director of Administration shall develop and present to the

chairpersons of the House Finance Committee and the Senate Finance Committee by

May 23, 2008 a retiree health plan option or options to be offered to retirees

eligible for state-sponsored medical coverage who are under age sixty-five (65)

or are not eligible for Medicare. This plan will have a reduced benefit level

and will have an actuarially based premium cost not greater than the premium

cost of the plan offered to the active state employee population. This new plan

option will be available to employees retiring after September 30, 2008, and

their dependents.



   (d) Non-Medicare-eligible state retirees who retire on or

after October 1, 2008. Non-Medicare-eligible state retirees who retire on

or after October 1, 2008 from active service of the state, and who were

employees of the state as determined by the retirement board under §

36-8-1, and who have a minimum of twenty (20) years of service, and who are a

minimum of fifty-nine (59) years of age, shall be entitled to receive for

himself or herself a non-Medicare-eligible retiree health care insurance

benefit as described in § 36-12-1. The state will subsidize 80% of the

cost of the health insurance plan for individual coverage in which the state

retiree is enrolled in. Payments for coverage shall be deducted from his or her

retirement allowance and remitted from time to time in payment for such

contract.



   (e) Medicare-eligible state retirees who retire on or

after October 1, 2008. Until December 31, 2013, the state shall subsidize

eighty percent (80%) of the cost of the Medicare-eligible health insurance plan

for individual coverage in which the state retiree is enrolled, provided the

employee retired on or after October 1, 2008; has a minimum of twenty (20)

years of service; and is a minimum of fifty-nine (59) years of age. Payments

for coverage shall be deducted from his or her retirement allowance and

remitted from time to time in payment for such health insurance plan.



   (f) Retired employees, including retired teachers, who are

non-Medicare-eligible and who reach the age of sixty-five (65) shall be allowed

to continue to purchase group health care insurance benefits in the same manner

as those provided to retired employees who have not reached the age of

sixty-five (65).



History of Section.

(P.L. 1960, ch. 136, § 4; P.L. 1989, ch. 227, § 2; P.L. 1998, ch.

259, § 1; P.L. 2008, ch. 9, art. 4, § 2; P.L. 2013, ch. 144, art. 2,

§ 1.)