Human Resources

Retiree medical

Description

This plan is designed to help Reed retirees pay for the cost of private health insurance to supplement Medicare coverage in retirement. Medicare will be your primary insurance and you will choose plan sponsored Kaiser or Aetna Medicare plans or a plan of your choosing.

If you are an early retiree, you may use this plan to pay for your primary insurance before you become eligible for Medicare. 

Eligibility

Employees of the college who meet all of the following:

  • age 55 or older
  • were regular employees of the college on September 1, 2001 and have been eligible for the college’s health insurance benefits for 10 or more consecutive years; OR began their regular employment with the college on or after September 2, 2001 and have been eligible for the college’s health insurance benefits for 20 or more consecutive years
  • terminate employment or remain employed by Reed College but no longer meet the eligibility requirements for health insurance for active employees; and
  • have been enrolled in the college’s health insurance prior to retirement.

Spouse/domestic partner and dependent children eligibility:

  • A spouse to whom the employee is legally married at the time of retirement.
  • A domestic partner whose partnership is in effect at the time of retirement.
  • Dependent children of the eligible employee are allowed to enroll in the health insurance plan at the time of retirement.

Duration of eligibility:  

  • Retirees will be eligible for their lifetime.
  • Spouses will be eligible so long as they remain married to the retiree.
  • Domestic partners will be eligible so long as they remain in partnership with the retiree.
  • Dependent children will remain eligible up to age 26 generally, but longer under certain conditions.
  • Spouses and domestic partners of deceased retirees remain eligible, as do children up to age 26.

Early Retirement (age 55-64)

Employees who retire from Reed and are at least 55 years of age but less than 65 years of age are considered to be early retirees. Early retirees remain on the same medical insurance plans and share the same costs for medical premiums as active employees. Upon reaching age 65 and Medicare eligibility, early retirees become regular retirees.

Regular Retirement (age 65+) for those hired prior to July 1, 2006

Regular retirees participate in the Emeriti retiree medical benefit program.  Each month Reed contributes to the retiree's TIAA retirement healthcare account beginning the first month of retirement. Retirees eligible for Medicare are required to have Medicare parts A and B in order to qualify for retiree health insurance benefits.

Medical Insurance Options

Reed offers several Aetna medical and prescription drug plans to supplement Medicare. These are offered through Emeriti, a consortium of higher education institutions who pool their retirement medical insurance plans. Retirees enrolled in Aetna plans through Emeriti have monthly premiums deducted directly from their TIAA-CREF retirement healthcare account. Emeriti bills the retiree each month for any differences owed.

Reed also offers a Kaiser Medicare Advantage health plan, Kaiser Senior Advantage. Those enrolled in this plan receive monthly bills from the college for the full cost of coverage. Retirees pay Reed directly and are reimbursed for all or part of the costs (depending on the plan) from their TIAA-CREF retirement healthcare account.

Retirees may choose to opt out of both the Emeriti and Kaiser plans and still access funds in their TIAA-CREF healthcare accounts to pay premiums individual insurance plans of their choosing. Those who opt out at the time of retirement will not be able to enroll in a medical insurance plan offered by Reed in the future. In opting out of Reed supplemental medical insurance,  a retiree's TIAA-CREF medical account becomes a healthcare reimbursement account for IRS-qualified medical expenses.

Cost

For an individual, the college's contribution to medical insurance is equal to the cost of single-party coverage of the core benefit. For two-party or family coverage, the college's contribution is equal to the cost of single-party coverage plus 50% of the cost of dependent coverage of the core benefit.  The core benefit is the least expensive of the Aetna or Kaiser Medicare supplemental plans offered by the college.

Retirees may choose more expensive coverage but must pay the difference in cost. The college reserves the right to change the amount of its contribution each year; this is evaluated during the college's annual budgeting process.

Discontinuance of coverage for non-payment

A retiree who fails to make a premium payment for more than 60 days will be removed from coverage and will not be reinstated.

Regular retirement (age 65+) for those hired on or after July 1, 2006

Employees hired after July 1, 2006 and work at least .5 FTE in a benefits-eligible position participate in a different retiree medical plan. Once an eligible employee reaches age 40, the college will make a monthly contribution to a TIAA  retirement healthcare account, and this contribution will continue for up to 25 years, so long as the employee remains in a benefits-eligible position. After they meet the eligibility requirements listed above, employees may utilize this account for purchasing their own private health insurance and/or other IRS-qualified medical expenses.

For fiscal year 2016-17, the college will contribute $200.69 per month to eligible employees' TIAA retirement healthcare account.

Eligible employees may also elect to contribute their own after-tax dollars to the account.  For more information, see the flyer below.

Documents and additional information

Emeriti website
Emeriti plan overview flyer
Emeriti claim reimbursement form
2016-2017 cost share for retirees
2016-2017 cost share for early retirees
Kaiser Senior Advantage summary of benefits as of April 1, 2016
Kaiser Senior Advantage summary of benefits as of April 1, 2017
EMERITI medical and Rx plan comparisons
EMERITI Aetna plan options cost sheet
Make voluntary contributions into your EMERITI plan
EMERITI Summary Plan Description