Retirees - Benefits Division

Retirees

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Retiree Benefits Page

You must complete and submit the Retiree Election Form within 60 days of the date your active service ends otherwise your State Plan coverage will remain terminated and will not be reinstated.

Retiree Benefits Enrollment

Complete the necessary forms (listed below) and return them within 60 days of the date your active service ends along with payment to the Health Care & Benefits Division (HCBD). Your Retiree coverage will begin retroactive to the day your active service coverage ended as soon as the required forms and payment are received.

  • Retiree Election Form (Required): Complete form by circling the coverage you wish to continue, the dependents you wish to cover, and your preferred method of payment. Return this form, and any of the following forms that pertain to you, within 60 days of the date your active service ends. The Retiree Election Form will be provided by HCBD.

  • BlueCross BlueShield of Montana Beneficiary Designation/Change Form (Optional): Non-Medicare eligible Retirees are required to continue the $14,000 Basic Life Insurance coverage until Medicare eligible. If you are not Medicare eligible, the Beneficiary Designation/Change Form allows you to update your beneficiaries. If you have more beneficiaries than the form allows, you may add more to the back of the form.

  • Electronic Benefits Payment Deduction Authorization Form (Optional) - Complete this form if you would like to have your monthly contributions withheld electronically from your checking or savings account (occurs on the 5th of every month), include a voided check with the completed form.

  • Montana Public Employees Retirement Administration (MPERA) Authorization for Deduction of Health Insurance Premiums (Optional): Complete this form if you would like to have your monthly contributions withheld electronically from your MPERA retirement benefit. This option may take up to 60 days to become effective.

If you do not complete and return the required forms and submit payment within 60 days of the date your active service ends, your State Plan coverage will be terminated and will not be able to be reinstated.

Grandfather Month

If you were hired prior to (and enrolled in benefits) and have had no break in coverage since August 1998, you are entitled to an additional month of state share contribution upon termination. If your monthly benefit deductions exceed the state share, HCBD will withhold this amount from your final check. If the total amount is less than state share, HCBD will withhold nothing. Contact HCBD to find out if you are eligible for the additional month of state share.

This additional month of coverage only extends to medical, dental, vision, and life insurance. Flexible spending accounts will end the last day of the month in which full or partial benefits contributions have been paid. Long-term disability ends the last day of the month in which full or partial premium is paid.

Payment Options

You will need to indicate your method of payment when you complete your enrollment. Once your enrollment is completed and payment is received, your retiree coverage will be re-instated retroactive to when your employee coverage ended.

  1. Prepayment from Your Final Pay Check: You may prepay benefit contributions from your final paycheck for any months remaining in the current Plan Year. This option is only available if your final paycheck has not yet been issued. To pre-pay, you must complete and return the Retiree Election Form and a Retiree Prepayment Option Form (available from your agency payroll) to your agency payroll before your final pay period ends.

  2. Electronic Deduction of Benefit Contributions from a Checking or Savings Account: Benefit contributions are deducted from your designated account on the 5th of each month. If the 5th falls on a Saturday, payment will be withheld on Friday the 4th. If the 5th falls on a Sunday, payment will be withheld on Monday the 6th. You must self-pay benefit contributions to HCBD for any months prior to the date electronic deductions begin.

  3. Automatic Deduction from MPERA Retirement Benefit: Contact HCBD to find out when your first payment can be deducted from your MPERA retirement benefit. You must self-pay benefit contributions to HCBD for any months prior to the date MPERA deductions begin. This option normally takes 60 days to start.

Montana Voluntary Employees’ Beneficiary Association (VEBA) Health Reimbursement Account (HRA)

If you will have a Montana VEBA HRA, you can select any of the payment options above. With Montana VEBA HRA, you will pay the State Plan for your benefits and Montana VEBA HRA will reimburse you.

Terminating Coverage

Retirees may terminate State Plan coverage at any time by submitting a written request or completing the Retiree Termination Form.

Benefits will be terminated the month following receipt of the written request. If you pay your benefit contributions through your State retirement check or from your checking account, HCBD may not be able to stop the next payment from being deducted. If this occurs, you will receive a refund for any contributions paid after coverage has been terminated.

If you choose not to enroll in the State of Montana Benefit Plan as a retiree, there are alternative coverages available. Many retirees have had State Plan coverage for years and aren't aware of other available options. A lot has changed in the health insurance market, including the cost, benefits, and availability of private and marketplace plans. Please take the time to educate yourself and find the best insurance option for you and your family.

If you elect to terminate State Plan coverage for any reason, you will not be eligible to return to the State Plan in the future. Once you terminate coverage, you are no longer eligible for the State Plan.

Not Yet Medicare Eligible but are Unable to Work?

Public Consulting Group can assist!

The State Plan has partnered with Public Consulting Group (PCG) to assist retirees with applying for Social Security Disability Insurance (SSDI) and early Medicare coverage. This service applies to State Plan members who are experiencing health conditions that would prevent them from working full-time. These services are paid for by the State, with no cost to you. PCG is a nationally recognized leader in Social Security disability advocacy and has been successful with helping plan members navigate through what can be a complex process.

If you, or your dependents, are interested in learning more about these services, PCG is ready to answer questions and provide you with assistance. Call (800) 805-8329 or email disability@pcgus.com.

Coverage Considerations

Premiums

Coverage sold through the Health Insurance Marketplace or Medicare Supplements may be less expensive than State Plan coverage.

Preexisting Conditions

Non-Medicare Eligible Retirees cannot be denied coverage or charged more for coverage because of preexisting conditions for plans on the Health Insurance Marketplace.

Providers

If you’re currently getting care or treatment for a condition, a change in your health insurance may affect your access to a particular health care provider. You should verify if your current health care providers will accept any new insurance coverage you consider.

Service Areas

Some plans do not have extensive out-of-state healthcare provider access. You should check out-of-state provider access if you travel for extended periods of time. If you move permanently to another area of the country, or out of the country, you will need to inform your insurer immediately and you may need to change your health plan or Medicare supplement coverage. Some health plans available in the Health Insurance Marketplace have narrower provider access, but those plans are often cheaper.

Drug Formularies

If you're currently taking medication, a change in your health insurance may affect the cost of your medication and your medication may not be covered by another insurance plan. Make sure you check if your current medications are listed in the drug formularies for other health insurance coverage.

Other Cost-Sharing

In addition to premiums or contributions for health insurance coverage, be sure to consider copays, deductibles, coinsurance, and other cost sharing amounts when comparing insurance options. Cost sharing can vary significantly among different plans, so you should shop carefully for a plan that fits your health and financial needs. For example, one option may have much lower monthly premiums, but much higher deductible, coinsurance and maximum out-of-pocket.

Out-of-Network

Healthcare services from out-of-network providers or facilities may have high cost-sharing. Be aware of how going out-of-network or using non-participating providers or facilities could affect you.

Non-Medicare eligible alternative coverage options

If you are not eligible for Medicare, you may be able to get coverage through the Health Insurance Marketplace that costs less than State Plan Retiree coverage.

Health Insurance Marketplace

The Marketplace offers “one-stop shopping” to find and compare most private health insurance options. You can access the Montana Marketplace at healthcare.gov. You might be eligible for a tax credit that lowers your monthly premiums and offers cost-sharing reductions. You can see what your premium, deductibles, and out-of-pocket costs will be before you make a decision to enroll. You can learn if you qualify for free or low-cost coverage from Medicaid.

Eligibility

Being offered State Plan Retiree coverage won’t limit your eligibility for coverage or for a possible tax credit through the Health Insurance Marketplace. However, you must un-enroll from the State Plan before you begin to receive premium tax credits. You should consult with an insurance professional about this process.

Contact an Expert for Free

Insurance professionals available to assist with alternative coverage options include:

  • Certified Insurance Agents or Certified Exchange Producers (CEPs) are registered Montana Insurance Agents who have taken special training to understand the Health Insurance Marketplace. CEPs are found throughout the state.
  • Certified Application Counselors (CACs) are health care provider staff who have been trained to help people understand, apply for, and enroll in insurance coverage through the Health Insurance Marketplace. You will find these individuals in hospitals and community health centers throughout the state.
  • Navigators are public advisors who help people compare the health insurance options on the Health Insurance Marketplace website. Navigators have taken Federal and State training and have been fingerprinted and undergone a Montana background check.

You should consult only with insurance professionals who are certified by the Montana Insurance Commissioner. For assistance finding an expert in your area, contact the Office of the Commissioner of Securities and Insurance at (800) 332-6148 or go to Montana Insurance Commissioner website.

Medicare Eligible Alternative Coverage Options

If you are eligible for Medicare, you do not qualify for a plan on the Health Insurance Marketplace, but you might want to consider Medicare Supplemental Insurance or Advantage Plans.

Montana State Health Insurance Assistance Program

The Montana State Health Insurance Assistance Program (SHIP) provides free health-benefits counseling and advocacy for Medicare beneficiaries and their families or caregivers. Its mission is to educate, advocate for, counsel and empower people to make informed benefit decisions. The Montana SHIP is an independent, objective, and confidential assistance program funded by The Administration on Community Living and is not affiliated with the insurance industry. It’s administered by the Montana Office on Aging. For more information, contact SHIP at (800) 551-3191 or visit the Montana State Health Insurance Assistance Program website.

Certified Insurance Agent

You may also consult with a Certified Insurance Agent who is trained in Medicare Supplement Insurance or Medicare Advantage Plans.