Phil,

I'd appreciate some clarification on Prescription Drug Coverage.  I believe that if a retiree cancels United Healthcare that they are still eligible to participate in the drug plan.

Is there a monthly cost associated with this option? How much?  

Are there differences whether you are an occupational or management retiree?  What are they? 

Thanks, 

Ken

Ken,

My response includes some interpretation of your question, i.e.United Healthcare = Medicare eligible, so let me know if I missed anything.

The Rx only plan is offered to Post 3/1/90 Medicare eligible retirees and their dependents on the management retiree plan.  The Rx only plan is not available to Formerly Represented Retirees who participate in the medical plan for Formerly Represented Occupational Retirees.

A retiree can cancel their coverage, but cannot re-enroll in different coverage until the next open enrollment period.  The exception is if there was a qualified status change, e.g. marriage, divorce or legal separation; birth or adoption of a child, change in spouses employment status that results in loss of coverage.

The cost of the Rx coverage will vary depending on what % of cap category the retiree is eligible for as well as the individual / family coverage category.  For 2006, a post 3/1/90 Medicare eligible retiree with 100% of the cap and individual coverage does not have a contribution. The same retiree with family coverage consisting of 2 Medicare eligible, e.g.  retiree and spouse, will have a monthly contribution of $4.00.  With 90% of the cap, the monthly contributions are $7.00 individual and $36.29 family.

Phil