Important AlaskaCare Benefit Program Notices

Updated October, 2017

This newsletter contains important AlaskaCare benefit program notices of interest to you and your family. Please share this information with your family members. Some of the notices in this newsletter are required by law and other notices contain helpful information. These notices are updated from time to time and some of the federal notices are updated each year. Be sure you are reviewing the most updated version of these important notices.

Important Notice from AlaskaCare About your Prescription Drug Coverage and Medicare

If you and/or your family members are not now eligible for Medicare and will not be eligible for Medicare during the next 12 months, you may disregard this notice. If, however, you and/or your family members are now eligible for Medicare or may become eligible for Medicare in the next 12 months, please read this notice very carefully and keep it where you can find it. This notice has information about your AlaskaCare prescription drug coverage 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 AlaskaCare 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. The State of Alaska has determined that the prescription drug coverage offered by the AlaskaCare Defined Benefit Retiree Health Plans and AlaskaCare Retiree Benefit Plan for DCR Plan Retirees is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is 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.

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 October 15 to December 7. 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) to 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, your AlaskaCare coverage will be affected as follows. If you are a participant in the defined benefit retiree health plan or the retiree benefit plan for DCR plan retirees and purchase Medicare prescription drug coverage, your AlaskaCare plan will become supplemental to Medicare’s drug plan. Conversely, if you are a participant in the employee health plan and purchase Medicare prescription drug coverage, Medicare will become the secondary prescription drug plan.

If you are a participant in the defined benefit retiree health plan or the retiree benefit plan for DCR plan retirees and decide to join a Medicare drug plan and drop your current AlaskaCare coverage, be aware that you and your dependents will not be able to get this coverage back.

Benefits Provided by Your AlaskaCare Prescription Drug Plan (Defined Benefit Retiree Plan)

		Up to 90-Day or 100-Unity Supply
Brand-name		$8
Generic		$4
Brand-name mail order		$0
Generic mail order		$0