814.2 Early Retirement Medical Insurance and Medical Insurance Assistance

Created by: Dana Trebing on 03/01/2005
Category: 8 - Human Resources; 10 - Benefits/Services
 
Originator: Assistant Vice President for Human Resources
Current File: 814.2
Adoption Date: 08/21/2014
Reviewed for Currency: 08/21/2014
 
Replaces File: 814.2
Date of Origin: 11/01/2003
 
Classification: Faculty; Human Resources
 
In Archive? 0


814.2 Early Retirement Medical Insurance and Medical Insurance Assistance

 

A. Background

Furman University allows eligible early retirees without Medicare coverage to continue to participate in the group medical plan as long as they pay the full premium. The cost of medical premiums has increased significantly and often becomes a deterrent to employees’ decisions to retire prior to their being eligible for Medicare coverage.

 

B. Policy

Employees who meet the eligibility requirements for Early Retirement Medical Insurance (ERMI) but do not yet qualify for Medicare may continue to participate in the group medical plan as long as they pay the full premium (employee cost + employer cost). Any employee who is covered under Furman’s group medical plan at the time of his or her retirement and who meets the eligibility requirements described in Guideline C.1. is eligible for Early Retirement Medical Insurance Assistance (ERMIA) for a maximum of 24 months at the employee cost.

 

C. Guidelines

1. Eligibility requirements for ERMIA include the following:


a. The employee must be at least 55 years old.
b. The employee must have worked for at least ten years at Furman University immediately prior to the proposed retirement date.
c. The sum of the employee’s age and years of service must be equal to or greater than 75.


2. ERMIA participants may continue their medical insurance coverage at the same plan tier level (i.e., employee, employee-spouse, employee-child(ren) or employee-family) and at the employee cost for a maximum of 24 months or until the month the ERMIA participant becomes eligible to receive Medicare benefits. If a covered dependent becomes eligible to receive Medicare benefits and is thus dropped from ERMIA, the retired employee may continue to participate in the plan at an adjusted tier level. If a retiree becomes eligible to receive Medicare benefits and is thus dropped from ERMIA, the covered dependent may continue to participate in the plan at an adjusted tier level.


3. The retiree will receive an invoice from the office of Human Resources each quarter for the amount of the premium due and will be required to pay the full amount to Furman University to retain coverage.


4. ERMIA participants may continue their coverage under Furman’s group medical plan beyond the maximum ERMIA period (24 months) until they are eligible to receive Medicare benefits by paying the full premium (employee cost + employer cost).

 

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