Retirement

Employees planning to retire should view the Ready to Retire document for important information about retirement.

Employees may participate in an MCHCP plan at retirement if eligible to receive a monthly retirement benefit from either the Missouri State Employees' Retirement System (MOSERS) or another retirement system whose members are grandfathered for coverage under the plan by law. MCHCP members who are employees of a state-sponsored college or university covered under the Plan should check with their employer to see if MCHCP retiree coverage is included as a benefit to employees. Submit the online "Retirement" eForm (or a completed Retiree Enrollment Form) and a copy of Medicare card (if eligible) within 31 days of the retirement date. If you or your covered dependent is Medicare-eligible, it is important for you to review the Medicare information as it may affect your enrollment. When Medicare-eligible, it's best to submit the retiree enrollment form at least 60 days prior to the retirement date.

Retirees and their dependents may continue their existing MCHCP coverage or may elect coverage by providing:

• Proof of other coverage for six months immediately prior to retirement; and
• Proof of eligibility for dependents

If the retiree or dependent is Medicare-eligible, they will be automatically enrolled in the UnitedHealthcare (UHC) Group Medicare Advantage Plan for medical coverage and Express Scripts Medicare Prescription Drug Plan (PDP) for prescription drug coverage. Members without Medicare will remain in the non-Medicare HSA or PPO plans.

Retirees whose spouse is an active state employee or a retiree with MCHCP coverage may transfer to spouse's coverage by spouse submitting the online "Add coverage due to loss of employer-sponsored or MCHCP group coverage" eForm (or a completed Enroll/Change/Cancel Form) to MCHCP. They may transfer back to their own coverage at a later date as long as coverage is continuous.

Dependents may be enrolled in subscriber’s current plans at a later date within 31 days of a life event (Marriage, Birth or Adoption [or placement of adopted child]) or 60 days of Loss of employer-sponsored group coverage with proof of 12 months of coverage immediately prior to the loss.

Premiums
The retiree premium is based on years of service with the state at retirement. The state contribution is calculated by using the number of full years of service as reported by MOSERS or another retirement system multiplied by 2.5 percent. The contribution for non-Medicare retirees is based on the PPO 1250 Plan premium with the tobacco-free incentive and wellness premium. The contribution for Medicare retirees is based on the Medicare Advantage Plan total premium. The maximum state contribution cannot exceed 65 percent.

Employees whose premiums are collected pre-tax through the cafeteria plan have the opportunity to pre-pay premiums pre-tax as a retiree. Prepaid premiums may only be paid within the same calendar year*. To prepay, retirees must submit their enrollment request at least 31 days prior to their retirement date. The first month’s premium for retiree coverage will be divided between the last two active paychecks. Additional prepaid premiums may be collected from the retiree’s last two active paychecks and/or lump sum vacation/compensatory time payroll. Verify this payroll amount with the HR/Payroll personnel to determine how many months of retiree premiums can be prepaid.

If a retiring employee transfers coverage under a retired spouse, the prepaid premium will include the premium for both the retiree and spouse. MCHCP suspends deductions from the spouse’s retirement benefit during the prepaid months.

Retirees who cancel or fail to elect coverage may not enroll at a later date. Retirees who return to state employment and become eligible for benefits through MCHCP will be treated as a new employee.

* Employees with a retirement date of Dec. 1 cannot prepay premiums, since future premiums would be for a different plan year. Employees with a retirement date of Jan. 1 can only prepay premiums using funds from their final active payroll (usually Jan. 15) and/or their vacation and compensatory time payroll.