Retiree engagement

Making UMP Classic Medicare more affordable

PEBB retirees have expressed the importance of preserving UMP Classic Medicare as a plan option for PEBB Medicare retirees. They also shared concerns that the premium is becoming too expensive. In response, HCA is exploring ways to make the plan more affordable.

In February 2024, HCA hosted five town hall meetings to hear from members about their thoughts on transitioning UMP Classic Medicare's current prescription drug coverage to a Medicare Part D plan as described in the video presentation.

Option approved by PEB Board

The PEB Board met on April 11 to discuss and vote on the UMP Classic Medicare Part D resolution, effective January 1, 2025. The PEB Board approved to change UMP Classic Medicare's prescription drug benefit from creditable drug coverage to Medicare Part D drug coverage. 

This resolution will make the plan more affordable and was made possible through the hard work of staff who researched plan options, gathered member feedback, and presented them to the PEB Board. By having Part D prescription drug coverage, the plan will be eligible for additional federal subsidies and will benefit from the upcoming Medicare drug negotiations, both of which will help lower plan premiums.

Timeline

• April to November: HCA prepares for implementation.
• Open enrollment, fall 2024: Members are able to change to the UMP Classic Medicare Part D plan option. More information will be available before open enrollment.
• January 1, 2025: UMP Classic Medicare Part D plan goes live.

How feedback will be used

We will use feedback we receive to:

• Report to the PEB Board to help guide future benefit designs and proposals.
• Inform HCA and the plans on how we can better serve our members.

Actions HCA has taken

• PEBB Retiree Medicare Benefits - Report to the Legislature provides an overview of the PEBB Program Medicare retiree benefits, a summary of the 2023 listening sessions, a comparison of state-sponsored health benefits for public sector Medicare retirees, and options and considerations to reduce UMP Classic Medicare premiums.
• Letter to Washington State Congressional Delegation members was sent by HCA Director Sue Birch on June 15, 2023. This letter alerted our Congressional Delegation of the issue with Uniform Medical Plan Classic Medicare not being eligible for federal subsidies and asks them for help.
• PEB Board meeting presentations. Throughout the 2023 and 2024 PEB Board seasons, there were Medicare Update presentations. See the presentations and listen to the meeting audio.

FAQs

Have a question not listed below? Email UMP Questions.

Is UMP Classic Medicare closing?

No, this plan is not closing. There was discussion of closing the plan at a PEB Board meeting during the summer of 2022, but the proposal was not supported by the Board. 

Will UMP Classic Medicare be available with either the current prescription drug coverage or with the Medicare Part D option?

No, the Part D option would replace current prescription drug coverage and it would be embedded in UMP Classic Medicare.

Is the UMP Classic Medicare Part D option very different from the current prescription drug coverage?

No. The changes would be very minimal and mostly positive – that is, reduced costs, more coverage, and fewer requirements.

• There would be a change to preferred insulin, from Basaglar to Lantus. Lantus uses the same drug, dosage, and delivery system, so the impact on members should be minimal.
• The pharmacy network for the Part D option would also be very similar to the current pharmacy network for UMP Classic Medicare, including Costco and Postal Prescription Services (PPS) for mail order.

I currently pay an Income Related Monthly Adjustment Amount (IRMAA) directly to CMS for my Medicare Part B premium. Will I have IRMAA on the Part D option?

Yes. Although you won't be paying your Part D premium separately, The Centers for Medicare and Medicaid (CMS) will assess an IRMAA on the amount of your UMP Classic Medicare premium that is attributable to the Part D coverage.

You will receive a separate bill for the IRMAA, if applicable, with information on how to pay.

I'm a Medicare retiree. Where can I find a comparison of PEBB plans available to me?

View the PEBB Medicare Benefits Comparison and Dental Benefits Comparison to compare coverage by plans side-by-side.

You can find the monthly premiums in the Retiree monthly premiums.

Medicare myths

Myth: If I sign up for a Medicare Advantage plan through the PEBB Program and I want to go back to pick a different plan, I will be subject to pre-existing conditions or underwriting limits.

Fact: If you are enrolled in the PEBB Program, you can switch from any Medicare plan (Original Medicare, Medicare Advantage Prescription Drug, or Medicare Supplement) to any other PEBB Medicare plan for which you are eligible.

Myth: I don't have to pay attention each year. I've already made an election.

Fact: Every year, the PEBB Program works with the carriers to update plan benefits and premiums. It's a good idea to check and see if there are any changes. In fact, there may be new plan offerings since you first enrolled that you may not be aware of.

Myth: My brother has a Medicare Advantage plan with a $0 premium. That's a much better deal than anything I could get through the PEBB Program.

Fact: While there may be plans on the commercial market that have a $0 premium, those plans come with limitations and designs that are less desirable than the PEBB plans.

For example, the commercial plan might be with a limited network (known as an HMO) that prevents you from seeing doctors outside the network. The maximum limit on what you might have to spend out-of-pocket might be very high with a commercial plan.

When comparing plans, it is important to consider costs such as copays and deductibles in addition to the premium. Compare PEBB Medicare plans and view retiree monthly premiums.

Myth: All Medicare Advantage plans are the same.

Fact: Medicare Advantage plans offered by PEBB are Employer Group Medicare Advantage plans. These are different from commercial (individual) plans.

PEBB plans can offer lower premiums and better benefits, troubleshooting through the PEBB Program, and expanded prescription drug coverage.