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Retirement Information

Medicare, Social Security, and UI Health Insurance

This page gives an overview of Medicare and Social Security as they apply to Employees of The University of Iowa.  It also explains how UI Health Insurance interacts with Medicare.


Medicare

Medicare Parts A and B

Medicare A: This is hospital insurance that helps pay for inpatient care in a hospital or skilled nursing facility following a hospital stay, some home health care, and hospice care.  There is no cost for Medicare Part A as long as you are eligible for the Social Security benefit.

Medicare B: This helps cover medically-necessary services like doctors’ services, outpatient care, and other medical services that Part A does not cover.  Part B also covers some preventive services.  Most people will pay the standard monthly premium for Medicare Part B.

Medicare Parts C and D

You will not need Medicare Parts C and D if you continue on a UI health plan.

Medicare C: These are Medicare Advantage plans that are health plan options approved by Medicare and run by private companies.

Medicare D:  This provides prescription drug coverage.  University health plans include prescription drug coverage that is as good or better coverage than the standard Medicare prescription coverage.  This means that this coverage is considered “creditable coverage” and that you will not have to pay a penalty if you later decide to enroll in Medicare Part D.  Letters of Creditable Coverage for Medicare D are mailed each November to active employees and spouses and retirees and spouses over age 65.

If you decide to enroll in a Medicare Part D prescription drug plan, be aware that this action will result in permanent loss of The University of Iowa health insurance

Please refer to
www.medicare.gov or www.socialsecurity.gov for detailed information.

Social Security

Active employees may begin to collect Social Security benefits while still working.  If younger than full Social Security retirement age, there is a limit to the amount the employee can earn and still receive full benefits.  When the active employee reaches full Social Security retirement age, Social Security benefits would not be limited based on their earnings. When active employees delay receiving Social Security benefits beyond full retirement age, the benefits would be increased by a certain percentage.

Social Security benefits are increased by a certain percentage (depending on date of birth) if you delay your retirement beyond full Social Security retirement age. The benefit increase no longer applies when you reach age 70, even if you continue to delay taking benefits.

 

UI Health Insurance and Medicare

Active employee

If you or your spouse/domestic partner is an active employee and enrolled in a UI health plan, the UI health plan will continue to be your primary insurance.   You should enroll in Medicare Part A effective on the first of the month in which you turn age 65.  However, if your 65th birthday falls on the first day of the month, then Medicare A should be effective on the first day of the preceding month.

Medicare A will have no cost to you and may supplement your UI health plan if you were hospitalized.  You may delay enrolling in Medicare Part B until you retire from the University.  There is a monthly premium for Medicare B and you should not need this coverage until you retire.

In order to avoid penalties, we suggest you contact the Medicare office to inform them that you have primary coverage through your employer and do not need Medicare Part B.

Active employee age 65 or older preparing to retire

UI retiree turning age 65

If you are retired and enrolled in a UI health plan, Medicare Parts A and B will become primary insurance for you and/or your spouse/domestic partner on the first of the month when you turn age 65. However, if your 65th birthday falls on the first day of the month, then Medicare Parts A and B should be effective on the first day of the preceding month.  If you continue on a UI health plan, it will be a supplement to Medicare and it will include prescription coverage.

Medicare eligible due to disability

If you become eligible for Medicare, due to disability while receiving Long Term Disability benefits and enrolled in a UI health plan, Medicare A and B will be your primary insurance.  You should enroll in Medicare as soon as you become eligible because they offer limited enrollment periods.  Not enrolling as soon as you are eligible can result in your being responsible for claims that should be paid by that program, along with increased premiums for late enrollment.  You should not enroll in Medicare part D.  You may continue the UI health plan as a supplement to Medicare A and B.    Contact the Benefits Office as soon as you become eligible for Medicare for coordination of benefits.

Disabled Dependent  If your dependent or spouse/domestic partner becomes eligible for Medicare due to a disability, and is enrolled under your active employee UI health plan, your UI health plan will continue to be their primary insurance.  Your dependent or spouse/domestic partner should enroll in Medicare Part A.  This will have no cost to you and would supplement your UI health plan if the disabled person were hospitalized.  The disabled person may delay enrolling in Medicare Part B until they are no longer on an employer health plan.  There is a monthly premium for Medicare B and they should not need this coverage if they are covered on a health plan due to your employment.

 

Resources:

University of Iowa Benefits Office                                                                                                                          

E-Mail:  benefits@uiowa.edu

Campus Address: 120-40 USB

U.S. Mailing Address:
University Benefits Office
The University of Iowa
120 University Services Bldg., Ste. 40
Iowa City, Iowa 52242-1911

Phone: 
Local   (319) 335 - 2676  
Toll-Free  (877) 830 - 4001
FAX  (319) 335 - 2776                                                                                         

Social Security Administration (Iowa City office) 866 -964- 2039 www.socialsecurity.gov                                                                                                               

www.medicare.gov