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Purchasing Group Retiree Trust


Guest sfjfl

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Guest sfjfl

Are Municipal Retiree Health Plans exempt from ERISA?

Are Municipal Retiree Health Plans exempt from MEWA Regulations/Statutes?

GASB43/45 is shifting retiree health insurance plans from a DB to a DC approach. A Purchasing Group is being established to offer Medicare eligible Retirees Health and prescription Drug coverage from several insured plans. The Purchasing Group would establish a trust. The Trust would enter into contracts with the insurers providing coverage. The Trust would contract a TPA, approved by each insurer, to provide Retiree billing and premium payments to insurance plans. The Purchasing group would use their collective member participation to establish the best premiums, net of commissions for the retirees

Many of the Municipal plans are offering the Medicare eligible Retiree the option to continue coverage on the group health insurance plan. The monthly premiums are paid by the Retiree. However, the monthly premium is the same as that of an active employee!! The Retirees are enrolled in Medicare Parts A & B. The Trust can provide this retiree population monthly premiums and very similiar health and prescription drug benefits, PPO or Indemnity Medicare Benefits, with savings of $75.00 to 150.00 a month. Of course if a retiree elects a Medicare Advantage plan or PFFS plan, the savings would be greater.

Would an Association plan acheive the same or better results? Any comments/uggestions would be apprectiated.

sfjfl@bellsouth.net

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