When an employee retires, he/she is entitled to keep the present health care, dental, and vision coverage under COBRA (Consolidated Omnibus Budget Resolution Act) for 18 months. This act allows the retiree and spouse, if necessary, to pay the State’s active group rate, plus a 2% administration fee, in order to maintain continuance of coverage.
Retiree Health Coverage**
Pre-65 retiree health insurance benefits have been eliminated as of July 1, 2008. However, retirees are entitled to purchase health insurance coverage at the actual retiree premium rate for themselves and their spouses.
Post-65 retiree Medicare supplemental health plans are listed below:
- Medicare Advantage HMO – This plan offers medical, dental, vision and prescription drug coverage. It is a Rhode Island-based HMO. A primary care physician (PCP) is required. This plan is not available to those retirees who live outside of Rhode Island.
- United Plan 65 – This plan offers medical coverage only. No dental, vision or prescription drug coverage is included in this plan.
Post-65 Cost Sharing
Years of Service Employer’s Share Employee’s Share
10-15 50% 50%
16-19 70% 30%
20-27 90% 10%
28+ 100% 0%
Medicare Part ‘D’ became available on January 1, 2006. Information is available at www.medicare.gov.
**AAUP members are not eligible for any portion of retiree medical paid by the Board of Governors.
The value of life insurance is based upon the value at age 65. This is called the Frozen Valuation. If an employee retires before age 65, the current salary (rounded up to the next $1,000.00) is the Frozen Valuation.
At retirement, the employee is eligible to keep up with the premiums on Basic coverage only, billed on an annual basis.
- The value at age 65 will drop to 76% of the Frozen Valuation
- age 66, value drops to 52%
- age 67, value drops to 28%
- age 68, value drops to 25% and will never get any lower
Have questions? Call Pat Victoria at 874-2921.