Retiree Medical Benefits - M&P
M&P Retiree Health Insurance
M&P who retire may be eligible to receive a subsidy for part of their health insurance.
Retirement for this purpose is ending active service under the following conditions:
- Age 55 or greater, and
- 5 or more years of service, and
- one of the following:
- age 65 or
- the sum of age and service greater than or equal to 75, e.g., age 55 and 20 years of service, or age 60 and 15 years of service.
- age 65 or
Retirees and their spouses under age 65 at the time of retirement can continue to participate in the same medical plans as an active employee.
Retirees and their spouses over the age of 65 at the time of retirement must enroll in Medicare Part A and B. The University provides a subsidy toward a Medicare Supplement (currently with the Hartford Life Insurance Co.) and a Major Medical Plan (administered by the Yale Health Plan). This plan pays the Medicare deductibles and co-pays and allows unlimited choice of providers. Retirees over age 65 who have been members of the Yale Health Plan are able to continue to use most of the services provided at YHP. Claims for services received at YHP will be submitted to Medicare and the Supplemental Insurance.
The maximum subsidy for retirees and their spouses is attained with completion of 30 years of service. All subsidies are pro-rated for years of service less than 30.
M&P retirees over 65 are also offered one or more Medicare Risk HMOs. A Medicare Risk HMO is a managed care plan with a network of physicians and hospitals from which the participant must choose.
The maximum subsidy for M&P who retire after July 1, 1995 will be the lesser of:
- an amount equivalent to a single membership in the Yale Health Plan or
- full cost of Medicare Part B, the Medicare Supplement and the Major Medical Plan.
The maximum subsidy for spouses of employees will be the lesser of:
- an amount equivalent to the full cost of a single membership in the Yale Health Plan or
- the full cost of the Medicare Supplement and the Major Medical Plan.
Note: The growth rate of the maximum subsidy for retirees and spouses of retirees will be no greater than the percentage increase in the Consumer Price Index for the previous year.
As is the case for retirees themselves, subsidies for spouses are pro-rated if the employee retires before completing 30 years of service.
In addition, if the employee's full-time equivalent salary at the time of retirement was at a level that required the employee to make a percentage contribution (10-40%) toward dependent coverage, the spouse's subsidy will be adjusted by that same percentage.
Subsidies for retirees and spouses under age 65 will be calculated using the same formula as active employees, pro-rated for service less than 30 years and adjusted for salary level at the time of retirement.