Important Notice from Virginia United Methodist Pensions Inc. About

Your Prescription Drug Coverage and Medicare

Please read this notice carefully and keep it where you can find it.  This notice has information about your current prescription drug coverage with Virginia United Methodist Pensions Inc. and about your options under Medicare’s prescription drug coverage.  This information can help you decide whether or not you want to join a Medicare drug plan.  If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area.  Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice. 

There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage:

1.     Medicare prescription drug coverage became available in 2006 to everyone with Medicare.  You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage.  All Medicare drug plans provide at least a standard level of coverage set by Medicare.  Some plans may also offer more coverage for a higher monthly premium.

2.     Virginia United Methodist Pensions Inc. has determined that the prescription drug coverage offered by the Virginia United Methodist Conference Health Plan is, on average for all plan participants, expected to pay out  as much as the standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage.  Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan.

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When Can You Join A Medicare Drug Plan?

You can join a Medicare drug plan when you first become eligible for Medicare and each year from November 15^th through December 31^st. 

However, if you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) for join a Medicare drug plan.

What Happens To Your Current Coverage If You Decide To Join A Medicare Drug Plan?

If you decide to join a Medicare drug plan, you current Virginia United Methodist Conference Health Plan prescription drug coverage will be affected.  Your current prescription drug benefit reimburses you 100% of the prescription cost after you pay the applicable plan copay.  The copays are or will be as of 1-1-2010, $12 for generic, $25 for brand name and $40 for non-preferred brand name.   In addition, your current Virginia United Methodist Pensions Inc. coverage pays for other health expenses, in addition to prescription drugs, and you may not be eligible to receive all of your current health and prescription drug benefits if you choose to enroll in a Medicare prescription drug plan.

If you do decide to enroll in a Medicare prescription drug plan and drop your Virginia United Methodist Conference Health Plan prescription drug coverage, be aware that you and your dependents may not be able to get this coverage back.

When Will You Pay A Higher Premium (Penalty) To Join A Medicare Drug Plan?

You should also know that if you drop or lose your current coverage with Virginia United Methodist Pensions Inc. and don’t join a Medicare drug plan within 63 continuous days after your current coverage ends, you may pay a higher premium (a penalty) to enroll in Medicare drug plan later.

If you go 63 continuous days or longer without creditable prescription drug coverage that’s at least as good as Medicare’s prescription drug coverage, your monthly premium will go up at least 1% of the Medicare base beneficiary premium per month for every month that you did not have that coverage. For example, if you go nineteen months without coverage, your premium will always be at least 19% higher than the Medicare base beneficiary premium. You’ll have to pay this higher premium (a penalty) as long as you have Medicare prescription drug coverage.  In addition, you may have to wait until the following November to join.

For More Information About This Notice Or Your Current Prescription Drug Coverage…

Contact the Virginia United Methodist Pension Inc. office for further information at (800) 768-6040 ext. 130.  NOTE:  You’ll get this notice each year.  You will also get it before the next period you can join a Medicare drug plan, and if this coverage through the Virginia United Methodist Pension Inc. Plan changes you may also request a copy of this notice at any time.

For More Information About Your Options Under Medicare Prescription Drug Coverage…

More detailed information about Medicare plans that offer prescription drug coverage is in the “Medicare & You” handbook. You’ll get a copy of the handbook in the mail every year from Medicare.  You may also be contacted directly by Medicare prescription drug plans. For more information about Medicare prescription drug plans:

·         Visit www.medicare.gov

·         Call your State Health Insurance Assistance Program (see your copy of the Medicare & You handbook for their telephone number) for personalized help,

·         Call 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048.

For people with limited income and resources, extra help paying for Medicare prescription drug coverage is available.  Information about this extra help is available from the Social Security Administration (SSA) online at www.socialsecurity.gov, or you call them at 1-800-772-1213 (TTY 1-800-325-0778).