Retiree Health Insurance
WVU Retirees are eligible to continue their PEIA health insurance coverage in retirement. Your PEIA health insurance premiums in retirement will depend on several factors, including:
- Years of Service
- Medicare eligibility
- Tobacco status
- Dependents on your coverage
The rates are included in the PEIA Shoppers Guide each year and just like active employee rates are subject to change upon approval of the PEIA Finance Board and West Virginia Retiree Health Benefits Trust. The least expensive rates are for those retirees and their covered dependents who are eligible for Medicare and have at least 25 years of service with PEIA. Conversely, the most expensive are for those retirees with the fewest years of service and the employees and their dependents that are not eligible for Medicare.
Employees hired and continually covered by PEIA prior to July 1, 1988 can use accrued sick leave at the point in which they transition from active employment to retirement to pay 100% of the PEIA medical premiums. Employees hired on or after July 1, 1988 but before July 1, 2001 are eligible to use sick leave to pay for 50% of the PEIA retiree medical premium.
- 2 days of sick leave = 1 month individual coverage
- 3 days of sick leave = 1 month of family coverage
Employees hired on or after July 1, 2001 are not eligible to use sick leave to pay PEIA retiree medical premiums.
Sick leave conversion only pays for PEIA/Humana benefits. It does not pay the cost for Medicare Part B benefits.
Using Faculty Service Credit to Pay Retiree Health Insurance Premiums
Less-than-12-month faculty years of service for employees hired prior to July 1, 2009 may use faculty service credit at the point in which they transition from active employment to retirement to pay 100% of the PEIA medical premiums.
- 3.33 years of service = 1 year in dividual coverage
- 5.00 years of service = 1 year family coverage
Medicare Part A and PEIA
Medicare Part A is an free entitlement available to most people at the attainment of age 65 or earlier for disability and some specific medical conditions. If you are not receiving Social Security benefits when you turn 65 you will need to sign up for Medicare Part A if you would like to have Medicare coverage. Bear in mind, if you are an actively working employee of WVU and have PEIA coverage due to your active employment, PEIA will remain your primary coverage for yourself and any dependents you have covered by PEIA. If you are already beyond age 65 and not signed up for Medicare just contact the Social Security Administration to enroll. For more information contact the Social Security Administration at 1.800.772.1213 or online at www.ssa.gov or www.medicare.gov.
Medicare Part B and PEIA
PEIA will be the primary insurer for PEIA PPB Plan active employees or dependents of active employees who are 65 or older and eligible for Medicare, except in a few rare cases. As long as you are an active employee, neither you nor your Medicare-eligible dependent need to sign up for Medicare Part B and pay the premium.
When you prepare to retire, you and your Medicare-eligible dependent must enroll for Medicare Part B. If you do not enroll in Medicare Parts A & B, you will not be eligible for PEIA’s Medicare Advantage plan, and your PEIA coverage may be terminated. For PEIA PPB Plan active employees who are also eligible for Medicare, and Medicare is the primary payor, PEIA will use the traditional method of coordinating benefits. If you become eligible for Medicare prior to age 65, you must send a copy of your Medicare card, or other evidence to support Medicare coverage, to PEIA. This notification will make the claims payment process go much more smoothly. Refer to the PEIA Summary Plan Description for additional information regarding Medicare and PEIA.
Retiree Life Insurances
WVU retirees may also continue basic and optional life insurances in retirement. Visit the PEIA Shoppers Guide for up-to-date premiums for retiree basic and optional life insurances. Basic life insurance premiums can be included in both sick leave conversion and faculty service credit (see above), but optional life insurance premiums are the retiree's responsibility.