Information about State Retiree Prescription Drug Coverage 2024-2-22

I have received many inquiries about this state retiree prescription drug coverage. Here is what I gathered on the situation.

• State retiree prescription drug benefits remain unchanged throughout 2024.

• On January 1, 2025, Medicare eligible state retirees will be required to enroll in a Medicare Part D prescription drug plan due to legislation passed in 2011. The State Department of Budget and Management will contact retirees in the fall of this year to walk them though their options.

• Due to subsequent actions taken by the General Assembly and the federal government, most retirees should experience little, if any, change in their out-of-pocket prescription drug costs. Many could even experience lower costs.

• Effective January 1, 2025, the federal Inflation Reduction Act caps out-of-pocket costs for all Medicare Part D prescription drug plans at $2,000. Currently for State Plans, those limits are $1,500 for an individual and $2,000 for a family.

• Individuals who retired before January 1, 2020 will also receive funds from the State each year for both themselves and their spouses to assist with the gap between Medicare Part D’s $2,000 cap and the State’s $1,500 cap.

• These funds will be provided through debit cards that can be used to help pay any out-of-pocket expenses each year starting January 1, 2025.

• New Medicare Part D Plans will be available in September 2024. At that time, one-on-one counseling will be available for each retiree to walk them through best available plans, options, and formularies based on their specific medications and situations.