LCRA Open Enrollment for 2015 Frequently Asked Questions: Medicare and Retiree Reimbursement Accounts (RRAs)

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1 LCRA Open Enrollment for 2015 Frequently Asked Questions: Medicare and Retiree Reimbursement Accounts (RRAs) Medicare Supplement Insurance Plan and Medicare Prescription Drug Plan 1. Do I have to enroll in Medicare Part A and Part B? Yes, retirees and spouses who are eligible for Medicare must enroll in Medicare Part A and Part B. Beginning July 1, UnitedHealthcare (UHC) will process claims for participants not enrolled in Medicare Part A and Part B and will only consider for payment the amount Medicare does not pay. UHC will pay about 20 percent of each claim for these participants, assuming Medicare would have paid about 80 percent of the cost of the claim. 2. What are the components of the Medicare supplement plans? The plan includes enrollment in an AARP Medicare Supplement Insurance Plan insured by UHC, an AARP Medicare Prescription Drug Plan through UHC, and a Retiree Reimbursement Account (RRA) funded by LCRA and administered by OptumHealth/UHC. 3. Am I eligible to participate? Retirees and spouses who are 65 years of age and older and eligible for Medicare may participate in the Medicare supplement plans. You must be enrolled in Medicare Parts A and B. 4. How am I notified about this option when I turn 65? Two to three months prior to your 65th birthday, and/or during LCRA s annual Open Enrollment, you will receive enrollment kits directly from UHC. 5. Do I have to sign up for the Medicare supplement plans? At this time, LCRA is not requiring eligible participants to enroll in the Medicare plans. However, beginning Jan. 1, 2016, retirees and spouses who are eligible for Medicare will no longer be eligible for the LCRA group plan. 6. What benefits do the plans offer me? Medicare supplement plans provide similar coverage to the LCRA group plans and may help you save money, depending on individual circumstances. The Medicare Supplement option has no network restrictions. These plans offer access to your choice of doctors and specialists, as long as they accept Medicare. 7. I m eligible for Medicare, but my spouse is not. Can I enroll in the supplement plan? Page 1 of 6

2 Yes. In this scenario, you would enroll in the supplement plan as an individual participant and your spouse would remain on an LCRA group plan as an individual participant. Also, a spouse who meets the eligibility requirements for the Medicare supplement plans first can enroll, even if you are not yet eligible. 8. When can I enroll in the supplement plans? Eligible retirees and spouses can enroll during LCRA s annual open enrollment period, now through Nov. 14. Coverage under the new plan begins Jan. 1, In addition, retirees may sign up for the Medicare supplement plan when they turn 65 and enroll in Medicare Part A and Part B. 9. How do I enroll in the Medicare Supplement Insurance Plan and Medicare Prescription Drug Plan? You will receive at your home mailing address two separate enrollment kits from UnitedHealthcare one for the AARP Medicare Supplement Insurance Plan and one for the AARP Medicare Prescription Drug Plan. Look for LCRA retirees in the address window. Please review the information carefully. To enroll, complete the forms included in your enrollment kits and return both enrollment forms to LCRA at this address: LCRA Attention: Benefits P O Box 220 Austin, TX Who do I call if I have questions about the Medicare Supplement Insurance Plan and Medicare Prescription Drug Plan enrollment forms? For assistance on enrolling in the Medicare Supplement Insurance and Medicare Prescription Drug plans, call UnitedHealthcare at Office hours are Monday through Friday, 6 a.m. to 10 p.m., and Saturday, 8 a.m. to 4 p.m., Central Standard Time. Note: Call this number for enrollment questions only. See Questions 40 and 41 for information on who to call with questions once you are enrolled. 11. Can I keep my prescription coverage through Caremark and enroll in the Medicare Supplement Insurance Plan only? No. The Caremark prescription drug plan is only available through the LCRA group plans, UnitedHealthcare Choice and UnitedHealthcare Choice Plus. 12. How does LCRA know when I enroll in the Medicare Supplement Insurance and Medicare Prescription Drug plans with UnitedHealthcare? UnitedHealthcare reports new participants to LCRA weekly. Once LCRA is notified that you have successfully enrolled in a Medicare Supplement Insurance Plan and a Medicare Prescription Drug Plan, LCRA will update your enrollment elections, adjust the amount of your monthly medical premiums, and notify UnitedHealthcare that you Page 2 of 6

3 are eligible for a Retiree Reimbursement Account. UnitedHealthcare will send you a notice of termination about ending your participation in an LCRA group plan. This notice does not affect your new enrollment in the Medicare plans. 13. Can I go to any doctor? Yes, as long as they accept Medicare. The Medicare Supplement Insurance Plan has no network restrictions and offers access to your choice of doctors and specialists. 14. Can I go to any pharmacy? Yes. Any pharmacy that accepts Medicare will accept the Medicare Prescription Drug Plan. However, you may pay less if you go to a preferred pharmacy or use the mail order for your prescriptions. 15. What if I receive a service that is not covered by Medicare? A service that is not covered by Medicare is considered an out-of-pocket medical expense, and will not be reimbursed through your Retiree Reimbursement Account. The Medicare Supplement Insurance plans are a supplement to Medicare, which means only services that are eligible under Medicare are covered. 16. Which Medicare Supplement Insurance Plan offers coverage most similar LCRA s group plans? LCRA recommends Medicare Supplement Plan F. This plan is most similar to the UnitedHealthcare Choice and Choice Plus plans. 17. How is it possible to save money on the Medicare plan when my premiums are more than I was paying on the LCRA group plan? Under the Medicare plan, you pay for your premiums up front and UnitedHealthcare reimburses you through a Retiree Reimbursement Account funded by LCRA. Most retirees who have enrolled in the new Medicare option are being reimbursed for almost 100 percent of their monthly premiums and out-of-pocket expenses. Beginning January 2015, LCRA will reimburse retirees and individual participants $335 per month and spouses $279 per month, which is less than LCRA s current contribution to its retiree group plans. For additional information, see the enclosed document Steps to Compare Costs. Retiree Reimbursement Accounts 18. What is a Retiree Reimbursement Account? A Retiree Reimbursement Account (RRA) is a type of health reimbursement account offered by LCRA to help you pay for eligible health care expenses. The RRA is administered by OptumHealth Financial Services, a division of UnitedHealthcare. Page 3 of 6

4 19. How does an RRA work? Once you are enrolled in an AARP Medicare Supplement Insurance Plan and an AARP Medicare Part D Prescription Plan through UHC, LCRA will notify UHC of your eligibility for the RRA. Your premium reimbursements will begin automatically, usually within a month. You will also receive an RRA packet in the mail from UHC that includes a direct deposit form and a general claim form to submit out of pocket prescription expenses for reimbursement. 20. How much does LCRA contribute monthly to my RRA? Beginning January 2015, LCRA will contribute $335 monthly for each retiree (or individual participant) and $279 monthly for each spouse. 21. What is eligible for reimbursement? Medicare Supplement Insurance Plan premiums (AARP UnitedHealthcare) Medicare Prescription Drug Plan premiums (AARP UnitedHealthcare) Eligible out-of-pocket prescription expenses 22. Are Medicare Part B premiums eligible for reimbursement under this program? No. Medicare Part B premiums are not eligible for reimbursement under the RRA program. 23. How do I get reimbursed for my eligible premiums each month? Reimbursements for monthly eligible premiums will occur automatically after you are enrolled. On a monthly basis, LCRA submits newly eligible participant information to UHC to setup an RRA and begin reimbursements of monthly premium expenses. 24. Do I have to submit documentation or a form to request premium reimbursements? No. Monthly premium reimbursements will be processed automatically and documentation will be obtained directly from UHC. 25. Will my reimbursement be sent to me as a paper check or will it be deposited directly into my bank account? You may choose to have your reimbursement paid by check or deposited directly into your bank account. To request direct deposit payment, complete the Direct Deposit Authorization form and submit it and a voided check with your reimbursement request. If you do not submit the Direct Deposit Authorization form, you will receive a paper check by mail 26. My spouse and I are both enrolled in an RRA. Will we receive our reimbursements from one account or individual reimbursement accounts? The RRAs are individual accounts. You and your spouse will receive reimbursements separately. Page 4 of 6

5 27. I ve already sent a voided check for my premiums to be deducted from my bank account. Do I have to send in another check for direct deposit? Yes. Your reimbursements are processed separately from your premium payments. If you want your reimbursements to be deposited directly into your bank account, you must submit the Direct Deposit Authorization form and another voided check along with your reimbursement request. 28. How do I get reimbursed for my out-of-pocket prescription costs? Complete the Retiree Plan Claim for Reimbursement form included in your RRA packet that you will receive at your home address. Mail or fax the completed form, along with documentation (itemized receipts or invoices) for the prescription out-ofpocket expenses to UnitedHealthcare: Fax to UnitedHealthcare at or Mail to the following address: UnitedHealthcare P.O. Box Salt Lake City, UT You may request reimbursement for eligible prescriptions at your convenience. Remember, you must submit all reimbursement requests for expenses incurred during a calendar year by the end of the following February. For example, you must submit reimbursement requests along with documentation for all eligible expenses for 2014 by Feb. 28, What type of documentation is needed for prescription reimbursements? Supporting documentation must clearly identify the following information: Name of pharmacy Type of expense (example: prescription) Date expense was incurred Total amount of expense Name of person who incurred the expense 30. How do I obtain additional forms? Download additional forms from the UnitedHealthcare RRA website at You also can call RRA Customer Care at , Monday through Friday between 7 a.m. and 7 p.m., Central Standard Time. 31. How long do I have to submit reimbursement requests? You must submit all reimbursement requests for expenses incurred during a calendar year by the end of the following February. For example, you must submit reimbursement requests along with documentation for all eligible expenses for 2014 by Feb. 28, Do I pay taxes on reimbursements from my RRA? Page 5 of 6

6 No. An RRA is tax-advantaged, meaning you do not pay federal income tax on it. Keep in mind, this also means that you are not able to claim any eligible reimbursed expenses when filing your taxes. 33. Does my RRA balance carry over from month to month? Yes. If you have a balance at the end of the month, it will be added to the next month s accrual through the end of the calendar year. 34. Does my RRA balance carry over from year to year if I don t use it all? No. Unused balances do not carry over from year to year. You must submit reimbursement requests along with documentation for all out-of-pocket prescription expenses for 2014 by Feb. 28, Where do I go for help if I have questions about my RRA? UnitedHealthcare RRA Customer Care phone lines are open Monday through Friday between 7 a.m. and 7 p.m., Central Standard Time. Call Visit the UnitedHealthcare RRA website at After I am enrolled, who do I call if I have questions about my UHC Medicare Supplement Insurance Plan? UHC Medicare Supplement Insurance Plan Customer Care lines are open Monday through Friday between 8 a.m. and 8 p.m. Central Standard Time. Call After I am enrolled, who do I call if I have questions about my UHC Medicare Prescription Drug Plan? UnitedHealthcare Medicare Prescription Drug Plan Customer Care lines are open Monday through Friday between 8 a.m. and 8 p.m. Central Standard Time. Call Who do I call if I have questions about benefits I receive through LCRA? Contact Human Resources at Ext. 4004, option 3 or by at lcrabenefits@lcra.org. Page 6 of 6