Insurance Benefits in Retirement

Premium Rates

Since payroll deduction will no longer be possible after retirement, you will be responsible for paying your premiums directly to Inspira Financial, the university’s administrator for retiree insurance plans. If you are Medicare eligible, you will also be responsible for paying rates on Medicare Part B. Go to www.medicare.gov for an estimate of your cost.

Depending on your age, hire date, and retirement eligibility date, your premium rates cost will vary for your university medical, dental, vision, and life insurance. Review the rates sheets and subsidy information below.

Retiree Rates: View Retiree Rates Here

Medical Insurance

If you qualify for university retirement and have been enrolled in the university’s medical insurance for 5 years immediately prior to retirement, then you are eligible to participate in a group medical insurance plan as a retiree. You may continue to cover any eligible dependents you are covering at the time of your retirement at an additional cost. 

When you retire, your active employee medical insurance coverage will end, and you will receive a Certificate of Credible Coverage from the university's current insurance provider. Retain this certificate for your records. You will then be enrolled in OU's retiree medical insurance group plan, and new insurance cards will be mailed to your home.

Review this handout for a helpful overview of retiree medical insurance and Medicare:
OU Medical Insurance When You Reach Age 65 or Retire

Opting Out
If retirees have other medical insurance coverage through another employer or their spouse, they may consider a one-time opportunity to opt-out of OU retiree medical plan coverage and preserve future eligibility. To initiate the opt out action, complete the Retiree Medical Insurance Eligibility & Opt Out Form and return it to HR. Keep in mind that if you opt out, your covered dependents opt out as well.

Retirees who have opted out and wish to return to the OU medical insurance plan have 31 days from the loss of other creditable coverage to come back on the OU retiree health plan. To reinstate coverage, a retiree must show proof of continuous coverage to Inspira Financial or the current vendor for the 24 month period preceding their return to OU medical coverage. Contact Human Resources for more information.

Medicare

OU Medicare-eligible retirees will need to enroll in Medicare Part A and Part B. The United Healthcare© Group Medicare Advantage (PPO) is a Medicare Advantage plan that delivers all the benefits of Original Medicare (Parts A and B), includes prescription drug coverage (Part D) and offers additional benefits and features. It is not a supplement plan and does not pay secondary to Medicare. All claims are submitted directly to UnitedHealthcare for payment, not Medicare.

Senior Supplement Option:

Buy-up option plans are available for Medicare-eligible retirees. The university offers a senior supplement plan and a stand-alone Part D drug plan.

Review this handout for a helpful overview of retiree medical insurance and Medicare:
OU Medical Insurance When You Reach Age 65 or Retire

Enrollment:
When you’re first eligible for Medicare, you’ll need to sign up for Part A during a 7-month enrollment period that begins three months before the month you turn 65. The university requires you to begin enrollment in Medicare Part B three months prior to retiring to receive the maximum benefit offered through the university medical insurance plan. The effective date of your Medicare Part B should be the first day of the month after your active employment ends. Alert: Avoid delays and penalties by enrolling in Medicare Part A and Part B during the appropriate enrollment period. Contact the Medicare office for more information.

Pharmacy Benefit:
OU offers a Medicare Part D pharmacy benefit through a United Healthcare Rx plan. This is not a separate plan from the Medicare Advantage Plan, it is incorporated into the Medicare Advantage Plan. 

Cost:
The Part A and Part B programs are funded differently. Part A is paid by taxes, whereas Part B is funded partially by the federal government and partially by premiums that you will pay when you become eligible for those benefits. Contact the Medicare office about your monthly cost for Medicare Part B, which can vary depending on your income earnings.

Dental Insurance

If you qualify for university retirement and have been enrolled in the university’s dental insurance for 5 years immediately prior to retirement, then you are eligible to participate in a group dental plan for retirees.

You have the option to enroll in the Blue Cross Blue Shield BlueCare Dental Basic Plan or the BCBS BlueCare Dental Alternate Plan. You can add dependents to either plan at your cost. For exclusions and limitations, visit with an OU retirement specialist. 

Vision Insurance

OU employees who are currently enrolled in the university's vision insurance are able to continue their coverage in retirement. All OU retirees are able to enroll in the university's vision insurance with VSP during Benefits Open Enrollment. 

VSP offers standard and premium vision insurance plans. Both plans are paid solely by the retiree. 

Life Insurance

If you qualify for university retirement and are currently enrolled in the university’s life insurance plan, you may continue a portion of your university life insurance coverage in an individual policy. Please complete the retiree life insurance form (available from HR) within 30 days of your retirement if you intend to retain life insurance. You are responsible for paying the entire premium for your retiree life insurance. The amount of coverage will be determined by the amount of group life insurance coverage you have at the time of retirement. The guidelines are: 

• If you retire before age 62, the amount of insurance you had immediately before you retired will be reduced by 50% to a maximum coverage of $50,000 and a minimum coverage amount of $10,000. When you reach age 62, your coverage amount again will be reduced by another 50%.
• If you retire at age 62 or over, the amount of insurance you had immediately before you retired will be reduced to 25% to a maximum coverage amount of $25,000 and a minimum coverage of $5,000. 

To see if the amount of life insurance you carried as an active eligible employee can be converted to an individual permanent policy, please contact The Standard, the university’s life insurance vendor.

When you reach age 70, the university’s life insurance coverage will end; before your coverage expires, you may consider purchasing your own individual policy from a life insurance company.

Healthcare Flexible Spending Account (FSA)

If you are currently participating in the Healthcare Flexible Spending Account (FSA), you may use funds for expenses incurred up to the end of the month in which you retire. You have the option to extend this benefit for 18 months through the COBRA continuation plan. If you choose not to enroll in COBRA, you will forfeit any unused funds not spent by the end of the month in which you retire. Ask your retirement coordinator for details.

Changes to Your Insurance

After you retire, you are allowed to make certain changes to your medical, dental, and vision coverage during the annual benefits enrollment period each fall. Details will be mailed to your home address during the enrollment period, so make sure you always notify HR when you have a change in address.

Outside of the open enrollment period, you may make changes to your coverage only if a Qualifying Life Event such as marriage or the birth of a child has occurred. Contact Inspira Financial, the university’s administrator for retiree insurance plans, for questions about qualifying events at (800) 359-3921. 

Changes to Your Personal Information, Investments, or Beneficiaries

After you retire, you may need to update your address, investment options or beneficiary designations. Learn more about Changing Your Information in Retirement.