Monday, October 7, 2013

IBM Medicare www.extendhealth.com/ibm IBM CHANGED THE RULES!!!! Part D insurance qualifies for HRA subsidy


THE PLAN PURCHASE REQUIREMENT HAS BEEN CHANGED. 
 IF YOU BUY A MEDICAL PLAN OR A PART D  DRUG PLAN YOU WILL BE ABLE TO ACCESS YOUR HRA SUBSIDY. 

I just got off the phone with an Extend Health agent.  I was asking questions (of course) and one was pertaining to changing a plan in the middle of the year (Medicare allows a one time change to a 5 star plan if you have one in your zip code) at which point he said  - oh, we just got an email this morning from IBM.  They changed the requirements for HRA subsidy access.  You can access your HRA as long as you have either a medical plan OR a drug plan that was purchased through Extend Health.
  
That will make life a little easier for some people.

Here are the questions I was asking:


1.       Can I submit bills to my HRA for reimbursement of medical procedures that are not covered by Medicare such as an annual physical by a doctor and associated blood tests (assuming I have money left to do so)?
    
Answer:  Yes, the IRS ruling for HRA accounts only require that it be a medically related procedure or drug cost.  Paying out reimbursement money from HRA accounts has nothing to do with Medicare.

   
2.       Can I submit bills to my HRA for reimbursement of doctor bills if the doctor does not accept Medicare insurance?
   
Answer: Yes – same rules apply as for answer #1.  HRA reimbursement has nothing to do with Medicare.
     
3.       Can I submit bills to my HRA for reimbursement of dental bills if I do not have dental insurance?
  
Answer: Yes – same rules as #1 - dental qualifies as a medically related procedure.

   
4.       Both my spouse and I retired from IBM.  Can we submit bills for reimbursement to each other’s HRA accounts if there is money left in one account and not the other?

Answer: Yes!!!!

  
5.       If my medigap plan is no longer offered by EH in 2015 do I have to switch to a new EH plan at the end of 2014 to keep my subsidy? 
    
Answer:  You have to have at least one plan purchased through EH.  You would have to then buy a part D plan through EH if you didn’t want to switch medigap plans.  (I did not like this answer because not all part D plans are offered by EH and your drugs might not be covered by plans they offer. My bet is you could lobby for an exception in that case)
    
6.       If I want to switch to a 5 star Medicare advantage or part D plan during 2014 – which Medicare allows – will I lost my subsidy if it is not a plan sold through EH?
     
Answer: You will not lose the subsidy for a part D switch if you still have an EH medigap plan.  You would lose the subsidy for a Medicare Advantage switch.  (Again, I do not like this answer and will bet you could lobby for an exception)

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