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Retiree Prescription Plan Changes

The State of Maryland Retiree Drug Plan is ending December 31, 2018 for Medicare Eligible Retirees/Dependents

The State of Maryland’s Department of Budget & Management (DBM) announced a change to retiree prescription drug coverage effective January 1, 2019.   This message applies to Medicare eligible retirees and their medicare eligible dependents.   This does not impact active employees.

Effective January 1, 2019, State Medicare-eligible retirees will no longer receive prescription drug coverage under the State health plan, and will need to enroll in a Medicare Part D for prescription drug by then to ensure there is no gap in coverage.  Retirees’ dependents who have not yet reached Medicare eligibility will see no change; they will continue to be eligible for both prescription drug and health benefits until they reach Medicare eligibility. Active State employees who are Medicare-eligible, but are still working, will likewise see no change in prescription drug and health benefits.” 

Below are links with more information and resources regarding the initial announcement.  The Department of Budget & Management has been communicating directly with all current retirees and will be posting additional information to their site when it becomes available. 

On July 13, 2018 Governor Larry Hogan announced additional assistance

Key Information

  • The retiree and dependents (if medicare eligible) must chose and enroll in a Medicare Part D program to begin on 1/1/2019
  • The State of Maryland Drug program will end for Medicare eligible retirees and their Medicare eligible dependents on December 31, 2018
  • Medicare eligible Retirees/dependents must enroll through Medicare between October 15th – December 7th for a January 1, 2019 effective date
  • The current drug plan through the State of Maryland is “Creditable Coverage” according to Medicare and is ending 12/31/2018
  • The Retiree/dependent will pay for Medicare Part D on their own
  • Premiums and Costs can be found on the Medicare Part D Website
  • Medicare eligible Retirees/dependents are encouraged to use the Medicare Plan Finder to assist with finding a Medicare Part D Plan (please be prepared to have list of the prescriptions you and/or dependents currently take)
  • Some Retirees may income qualify for “Extra Help” through Medicare to reduce drug costs
  • Gov. Hogan announced on 7/13/18 a one-year transition plan to reimburse all out-of-pocket pharmaceutical expenses for impacted retirees in excess of $1,500.

Resources for Retirees