2027 Blue Cross and Blue Shield Service Benefit Plan
FEP Blue Standard and FEP Blue Basic
Inside cover
Important Notice for Medicare-eligible Active Employees from the Blue Cross and Blue Shield Service Benefit Plan About Our Prescription Drug Coverage and Medicare

The Office of Personnel Management (OPM) has determined that the Blue Cross and Blue Shield Service Benefit Plan’s prescription drug coverage for active employees meets the Centers for Medicare & Medicaid Services (CMS) requirements to be considered Creditable Coverage. This means active employees and their covered family members do not need to enroll in an open market Medicare Part D Plan and pay extra for prescription drug coverage. If you decide to enroll in Medicare Part D later, you will not have to pay a penalty for late enrollment as long as you keep your PSHB coverage as an active employee.

However, if you (as an active employee and your covered Medicare Part D-eligible family members) choose to enroll in an open market Medicare Part D Plan, you can keep your PSHB coverage and your PSHB Plan will coordinate benefits with Medicare.
Please be advised
If you lose or drop your PSHB coverage and go 63 days or longer without prescription drug coverage that is at least as good as Medicare’s prescription drug coverage, your monthly Medicare Part D premium will go up at least 1 percent per month for every month that you did not have that coverage. For example, if you go 19 months without Medicare Part D prescription drug coverage, your premium will always be at least 19% higher than what many other people pay. You will have to pay this higher premium as long as you have Medicare prescription drug coverage. In addition, you may have to wait until the next Annual Coordinated Election Period (October 15 through December 7) to enroll in Medicare Part D.
Medicare’s Low Income Benefits
For people with limited income and resources, extra help paying for a Medicare prescription drug plan is available. Information regarding this program is available through the Social Security Administration (SSA) online at www.socialsecurity.gov, or call the SSA at 800-772-1213, TTY: 711.

You can get more information about open market Medicare prescription drug plans and the coverage offered in your area from these places:
 
  • Visit www.medicare.gov for personalized help.
     
  • Call 800-MEDICARE 800-633-4227, TTY 711.
Additional Premium for Medicare's High Income Members Income-Related Monthly Adjustment Amount (IRMAA)

The Medicare Income-Related Monthly Adjustment Amount (IRMAA) is an amount you may pay in addition to your PSHB premium to enroll in and maintain Medicare prescription drug coverage. This additional premium is assessed only to those with higher incomes and is adjusted based on the income reported on your IRS tax return. You do not make any IRMAA payment to your PSHB Plan. Refer to the Part D-IRMAA section of the Medicare website https://www.medicare.gov/drug-coverage-part-d/cost-for-medicare-drug-coverage/monthly-premium-for-drug-plans to see if you would be subject to this additional premium.
 
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