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Office of Administration Announces Plan to Preserve Health Care Benefits for Current, Future Retired Commonwealth Employees
Date:9/28/2007

measures available, subject to the commonwealth's reservation of rights to make further changes in the future. The commonwealth will continue to offer high quality benefits that include medical and prescription coverage for retirees and their qualifying dependents for the life of the retiree. Against this background, the commonwealth is announcing the following changes to the REHP, which will be effective February 1, 2008.

1. Prescription Benefits: The program will make two changes for anyone retiring prior to July 1, 2004, which will conform the retiree plan to that offered to active commonwealth employees and annuitants who retired on or after July 1, 2004. The first is the adoption of utilization controls, such as step therapy, quantity limits and mail order day supply requirements. The second is an increase in the retail copayments for prescription to a three- tier formulary: $10 for generic drugs, $18 for preferred brand-name drugs, and $36 for non-preferred brand-name drugs. Mail order copayments, which allow a retiree to purchase three times the amount of the drug, will be only two times the retail copayment.

2. Medical Benefits. For anyone retiring prior to July 1, 2004, the REHP copayment for specialist visits will increase from $15 to $25, which matches the specialist copayment for active commonwealth employees and annuitants who retired on or after July 1, 2004. Also, regardless of retirement date, the Medicare supplemental coverage will be replaced by a Medicare Private Fee-For- Service (MPFFS) program. The MPFFS program will provide Medicare Parts A and B coverage, as well as the indemnity coverage currently provided by the REHP Medicare supplemental program. The MPFFS program will be similar to the REHP's current indemnity coverage in that there will continue to be no network, precertification or preauthorization requirements. It is anticipated that, on average, retiree out-of-pocket costs will not increase as a result of the MPFFS. Retire
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SOURCE Pennsylvania Office of Administration
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