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Medicare - Plan Year 2017

​Medicare Secondary Payer (MSP) Act 

NOTICE: Medicare Eligible Retirees currently working for an employer that provides health insurance. The Franklin Circuit Court recently denied a request to enjoin (prevent) Kentucky Retirement Systems from administering the Medicare Secondary Payer (MSP) Act. If you are Medicare eligible and currently working for an employer who offers health insurance, Kentucky Retirement Systems is PROHIBITED from providing coverage under the Humana Medicare Advantage Plan. Please refer to the "Group Medicare PPO 2018 Enrollment Guide" booklet page one for more information, which can also be located at: http://apps.humana.com/marketing/documents.asp?file=3236207.

You may also contact Kentucky Retirement Systems directly at (502) 696-8800 or toll free (800) 928-4646.

Learn more about Silver Sneakers 

Silver Sneakers can help you get fit the way you want by providing you access to fitness locations nationwide. Only retirees enrolled in the Medicare Advantage Essential or Premium plans may take advantage of the Silver Sneakers benefit.

Humana Guidance Center in Louisville

Guidance Centers are retail “store fronts” that provide the community access to wellness resources.  There is an on-site customer service representative that can answer customer service questions, as well as social and wellness programs such as exercise bingo, Zumba, iPad classes, healthy cooking demonstrations and many more activities throughout the month.  

At the September 15, 2016 KRS Board of Directors meeting, the KRS Board of Directors approved the contribution plan and the contribution rates for the Medicare KRS retiree health plans.  The board chose the KRS Premium plan as the contribution plan with a maximum contribution rate of $252.51 for those retirees with 240 or more months of service (Note-Premium calculation for percentage contribution is based on service credit for Hazardous Duty or Non-Hazardous Duty retirees or beneficiaries who began participation prior to 7/1/2003) .  

The information on this page will help guide you in making a sound decision on what your insurance premium will cost you in 2017.  The amounts that KRS pays are based on retirees who participated prior to July 1, 2003.  If you began participating employment on or after July 1, 2003, you should see the information below to determine how much will be paid toward your insurance premiums by KRS. 

Hazardous Duty Retiree: Yearly Requirement

Hazardous duty retirees MUST submit a Form 6256  - Designation of Spouse and/or Dependent Child for Health Insurance Contribution. See FAQ's.  If you fail to submit the form by 12/31/2016 YOU WILL NOT RECEIVE PREMIUM CONTRIBUTIONS for your legal spouse or eligible dependents If you submit the form after Jan 1, you will only receive reimbursement of premiums for the 90 days prior to the receipt of the Form 6256  in Plan Year 2017. 

Example: If you submit the form June 3, 2017, you will receive reimbursement for March - May 2017.


Note: The Humana Medicare Employer PPO plans (Essential, Premium) are Medicare Advantage plans.  You must have Medicare Parts A and B.  If you do not have Part B, your premium amount may be higher.  Please contact KRS if you have ​questions about this.  For example if you have 240 months (100%) of Service Credit-Contribution, elect the KRS Premium Plan, and do not have Medicare Part B, you would still have an additional premium payment of $67.09.​​​

2017 Medicare Plan Premiums/Percentage Contribution
Available PlansMonthly Premium
Medical Only$162.47
KRS Essential$77.76
KRS Premium$252.51


2017 What KRS Pays Towards Your Premiums/Percentage Contribution
Service Credit% of Contributions Rate Paid by KRSAmount Paid by KRS
240 months or more100%$252.51
180-239 months75%$189.38
120-179 months50%$126.26
48-119 months25%$63.13
0-47 months0%$0


​

Dollar Contribution Rates Plan Year 2017

Is your Participation Date After July 1, 2003? 

See the Dollar Contribution Rates Below. 

If you began participating on or after July 1, 2003, please read the information below. If you have additional questions call KRS at 1-800-928-4646(Toll Free) or 502-696-8800(Frankfort). 


Use this guide if you are receiving benefits, were Hired July 1, 2003 or later, and began Participating with KRS between August 1, 2004 and August 31, 2008.* Or began Participating with KRS on or after September 1, 2008.**

*In order to be eligible for health insurance benefits, you must have 120 months of service upon retirement.

**In order to be eligible for health insurance benefits, you must have 180 months of service upon retirement.

For service in a non-hazardous position, you will receive a monthly dollar contribution of $13.18 for each year of service per month. The Dollar Contribution will increase by 1.5% on July 1st.

i.e. if you began participating September 1, 2003 in a nonhazardous position, and retired effective October 1, 2013, you would receive $131.80 per month towards health insurance premiums.

For service in a hazardous position, you will receive a monthly contribution of $19.77 for each year of service per month. The Dollar Contribution will increase by 1.5% on July 1st.

i.e. if you began participating September 1, 2003 in a hazardous position, and retired effective October 1, 2013 you would receive $197.70 per month towards health insurance premiums. 

If you have hazardous and non-hazardous service, you will receive contribution based on the amount of full years of service for each.

i.e. if you began participating September 1, 2003 in a non-hazardous position until September 30, 2008 (5 years x $13.18= $65.90), and then began participating October 1, 2008 in a hazardous position, and retired effective November 1, 2013 (5 years x $19.77= $98.85), you will receive $164.75 per month towards health insurance premiums ($65.90+$98.85= $164.75).

If you have a partial year of hazardous service and a partial year of non-hazardous service, they can be combined to equal a full year, you will receive 1 year of non-hazardous service.

i.e. if you have 9 years and 6 months of non-hazardous service and 6 months of hazardous service, your insurance contribution will be based on 10 years of non-hazardous service. You will receive $131.80 per month towards health insurance premiums.

If you are receiving a monthly retirement benefit, that qualifies you to receive a Health Insurance Percentage contribution and also receiving a monthly retirement benefit that qualifies you to receive a Health Insurance Dollar contribution, please contact the Retirement office for help calculating your cost.

How to Calculate your insurance cost if your participation date is after 7/1/2003

Hazardous Formula:

Service Credit-Dollar Contribution Level Amount ($19.77*) X Years of Service = Amount KRS Pays

Hazardous Example:

$19.77* X 10 (let's say you have 10 years of service for this example) = $197.70

Non-Hazardous Formula:

Service Credit-Dollar Contribution Level Amount ($13.18**) X Years of Service = Amount KRS Pays

Non-Hazardous Example:

$13.18** X 10 (let's say you have 10 years of service for this example) = $131.80​

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