UMP Classic Medicare Part D option

About the option

View the UMP Classic Medicare Part D option details in the video presentation.

Retirees expressed the importance of keeping UMP Classic Medicare as a plan option and concerns that the premium is becoming too costly. In response HCA explored ways to make the plan more affordable while maintaining high-quality benefits and coverage.

The transition to a Medicare Part D prescription drug plan was an option that could be implemented quickly with the largest potential reduction in premiums. The Part D list of covered drugs (formulary) is also very similar to UMP Classic Medicare’s Preferred Drug List.

Option approved by PEB Board

The PEB Board met on April 11 to discuss and vote on the UMP Classic Medicare Part D resolution, effective January 1, 2025. The PEB Board approved to change UMP Classic Medicare's prescription drug benefit from creditable coverage to Medicare Part D drug coverage.

This resolution will make the plan more affordable and was made possible through the hard work of staff who researched plan options, gathered member feedback, and presented them to the PEB Board. By having Part D prescription drug coverage, the plan will be eligible for additional federal subsidies and will benefit from the upcoming Medicare drug negotiations, both of which will help reduce plan premiums.

Timeline

• April to November: HCA will prepare for implementation.
• Open enrollment, fall 2024: Members are able to change to the plan. More information including premiums and how to change plans will be available before open enrollment.
• January 1, 2025: UMP Classic Medicare Part D plan goes live.

FAQs

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Will UMP Classic Medicare be available with either the current prescription drug coverage or with the Medicare Part D option?

No, the Part D option would replace the current prescription drug coverage and it would be embedded in UMP Classic Medicare.

Is the UMP Classic Medicare Part D option very different from the current prescription drug coverage?

No, the changes would be very minimal and mostly positive – that is, reduced costs, more coverage, and fewer requirements.

• There would be a change to preferred insulin, from Basaglar to Lantus. Lantus uses the same drug, dosage, and type of delivery system, so the impact on members should be minimal.
• The pharmacy network for the Part D option would also be very similar to the current pharmacy network for UMP Classic Medicare, including Costco and Postal Prescription Services (PPS) for mail order.

I currently pay an Income Related Monthly Adjustment Amount (IRMAA) directly to CMS for my Medicare Part B premium. Will I have an IRMAA on the Part D option?

Yes. Although you won’t be paying your Part D premium separately, The Centers for Medicare and Medicaid Services (CMS) will assess an IRMAA on the amount of your UMP Classic Medicare premium that is attributable to the Part D coverage.

You will receive a separate bill for the IRMAA, if applicable, with information on how to pay.