Medicare

You’re considered a Medicare retiree if all of the following apply to you:

• Enrolled in PEBB retiree insurance coverage
• Age 65 or older (or younger and eligible for Medicare due to a medical disability)
• Enrolled in both Medicare Part A (hospital) and Part B (medical)

As a retiree, when you or your covered dependent turns 65 you and/or your covered dependent will be required to enroll in Medicare in order to enroll or maintain enrollment in a PEBB retiree health plan (which includes the UMP Classic Medicare plan).

As you approach age 65, the PEBB program will send you a letter explaining what you need to do to keep PEBB retiree health plan coverage and apply for Medicare Part A and Part B. For questions about Medicare eligibility, enrollment, and premiums, call PEBB Customer Service at 1-800-200-1004 (TRS: 711).

UMP Classic and Medicare are two separate types of health coverage that work together to pay for covered services and supplies. Your monthly premiums may be lower because Medicare pays part of your medical costs. How they work together to pay your claims depends on whether you’re retired.

If you are not retired, but are a Medicare-eligible PEBB employee and a plan subscriber, you may choose to enroll in Medicare Part A, or Medicare Part A and Part B. You are not required to enroll in Medicare Part A or Part B when you are working. If an employee or their dependent chooses to enroll in Medicare Part A or Part B, Medicare regulations and guidelines will determine whether Medicare is the primary payer. This also applies to dependents enrolled in UMP Classic under an employee’s account. To ensure your claims get paid correctly when UMP Classic pays first, be sure:

• To tell Medicare about your UMP Classic coverage.
• That your provider agrees to bill Medicare as secondary.

UMP Classic does not bill or coordinate benefits with Medicare when Medicare is the secondary payer. Your provider will need to bill Medicare after UMP Classic has processed the claim.

If you are a Medicare retiree, Medicare pays first and UMP Classic pays second. Be sure to tell Medicare you are enrolled in UMP Classic so they send UMP your claims after Medicare processes them. Because Medicare pays first, a few rules are different for Medicare retirees. These rules are explained in full in the Medicare section of the UMP Classic 2024 Certificate of Coverage, including:

• How UMP Classic and Medicare work together
• What UMP Classic covers that Medicare does not cover
• Your choices for providers
• How billing works
• How your prescription drug coverage works
• Where to go for more information

If you are retired but you or an eligible dependent are not yet eligible to enroll in Medicare Part A and Part B, the Medicare section in your certificate of coverage does not apply to you.

You may not enroll in both UMP Classic and a Medicare Part D prescription drug plan. Because UMP Classic includes prescription drug coverage that is creditable to Medicare Part D prescription drug coverage, you cannot also be enrolled in a Medicare Part D drug plan. Medicare will notify the PEBB Program if you enroll in a Medicare Part D prescription drug plan while enrolled in UMP Classic. You may lose your eligibility for PEBB retiree health plan coverage if you do this.

If you want a Medicare Part D prescription drug plan, you must change your medical plan from UMP Classic to either:

• Premera Blue Cross Medicare Supplement Plan G and buy an individual Part D plan
• One of PEBB's United Health Care Medicare Advantage plans, which includes Medicare Part D coverage and medical benefits.

Medicare Part B pays for some prescription drugs and supplies under the medical benefit, and they are subject to the Medicare medical deductible.

Medicare Part B also covers some prescription drugs and supplies available at network pharmacies. Be sure to choose a network pharmacy that can bill Medicare Part B directly to avoid paying more.

Medicare accepts claims only from pharmacies, not from individuals. If Medicare Part B covers a drug or supply and the pharmacy doesn't send the claim to Medicare first for payment, UMP Classic will reject the claim. Be sure to confirm that the network pharmacy can bill Medicare Part B directly.

UMP Classic pays the standard rate for some provider-administered drugs (administered by a health care provider in a physician's office or other clinical setting) and related supplies under the medical benefit. Covered provider-administered drugs and related supplies are subject to the UMP Classic medical deductible.

Some diabetes care supplies are covered under the durable medical equipment benefit, and the UMP Classic medical deductible applies. See the Diabetes care supplies section in your certificate of coverage for more about this benefit.

UMP's network mail-order pharmacies, Costco Mail Order Pharmacy and Postal Prescription Services, cannot bill Medicare for diabetes care supplies when Medicare is your primary coverage. To find a Medicare-approved mail-order pharmacy for diabetes care supplies, call Medicare.

Find out more about Vision Service Plan (VSP) coverage and costs, including access to VSP Choice network providers.

You’ll pay less when you see a preferred provider for services that UMP Classic covers, but preferred providers do not always accept Medicare, so be sure to ask.

When Medicare covers a service, you must see a provider who accepts Medicare for the service to be covered by both Medicare and UMP Classic. If your provider is not contracted with Medicare or has opted out of participating, UMP Classic will not cover services by that provider, even if they are in the UMP Classic network.

Providers that opt out of Medicare are supposed to have you sign a private contract before providing services, but you are responsible for all costs even if you did not sign a contract.

If you have questions about Medicare coverage or providers, call UMP Customer Service or Medicare. If you have questions about your UMP prescription drug coverage, call Washington State Rx Services.