11 CTPF 2027 MEDICARE HEALTH INSURANCE HANDBOOK Health Insurance Premium CTPF retirees whose final teaching service was with the Chicago Public, Charter, or Contract Schools may qualify for a partial subsidy of their insurance premiums. A member receiving a survivor's pension may also qualify for a subsidy. The amount CTPF can spend on annuitant health insurance is limited by state law. Each year, the CTPF Board of Trustees sets a premium subsidy amount. The subsidy for plan year 2027 is 55% of the total premium cost (certain limitations may apply). The subsidy is subject to change at the discretion of the Board. Premium cost for dependent coverage is not eligible for the subsidy. Subsidy for Medicare CTPF provides a premium subsidy for Medicare Part B and Part D coverage. Members with a pension Benefit Effective Date prior to July 1, 2016, also receive a subsidy for Medicare Part A (for members who must pay a premium). Costs Not Subsidized CTPF does not subsidize Medicare penalties or adjustments. If you are disenrolled from Medicare for any reason, CTPF may recoup any overpaid premium subsidy from your pension check. Paying for Medicare Part A Annuitants enrolled in a CTPF Medicare health insurance plan who must also pay a premium for Medicare Part A must enroll in CTPF’s MedPay Program if their pension Benefit Effective Date is prior to July 1, 2016. Under this program, CTPF makes Medicare Part A, Part B, and Income-Related Monthly Adjustment Amount (IRMAA) Part B premium payments on your behalf, and deducts your share (after the applicable premium subsidy) from your pension benefit. See Medicare Premium Payment section for more information. Paying for Medicare Part B Medicare will bill you for your Part B Premium unless you receive a Social Security benefit or qualify for and enroll in CTPF’s MedPay program. If you make Part B payments directly to Medicare, CTPF provides a subsidy by adding 55% of the premium cost to your pension benefit. Example: If your Medicare Part B Premium cost (after deducting non-reimbursable fees) is $100 and the approved subsidy percentage is 55%, CTPF adds $55 to your pension benefit. You must make your Part B payment directly to Medicare. Subsidy for CTPF Medicare Plans If you are enrolled in a CTPF Medicare health insurance plan, your share of the monthly plan cost is deducted from your pension benefit. Example: If your monthly premium is $300, and the approved subsidy percentage is 55%, CTPF deducts $135 from your monthly pension for the premium cost, and pays the remaining $165 on your behalf. Outside Rebate Subsidy for Non- CTPF Health Insurance Plans Members enrolled in non-CTPF health insurance plans and/or Medicare may be eligible for a subsidy, subject to maximum reimbursement amounts published annually. The maximum reimbursement amount will be based on CTPF’s least expensive Medicare health insurance (medical and prescription coverage) plan option. An application will be mailed early next year to eligible members who are not enrolled in a CTPF health insurance plan. The subsidy is paid out retroactively for the year prior in an annual payment. Premium payment documentation is required and is explained on the application. If all supporting documentation is received and the member is entitled to a payout, the applications are processed approximately 90 days after receipt. Payouts are performed at the end of each month. Be sure to look for the webinar notifications to assist in completing the necessary application and supporting documentation. New this year: The application and supporting documentation are due by June 30th each year. Subsidy Program
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