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SB 946 Prescription Drug Coverage for State Retirees Eligible for a Prescription Drug Benefit Plan Under Medicare – DBM Update


PLEASE NOTE THAT THE EARLIEST THESE NEW PROGRAMS COULD BE
IMPLEMENTED IS JANUARY 1, 2022. YOU WILL CONTINUE 
TO BE ABLE TO PARTICIPATE IN THE CURRENT PRESCRIPTION DRUG
 COVERAGE PLAN WHILE THE FITCH V. STATE OF MARYLAND
LAWSUIT IS BEING ADJUDICATED.​​​ 

The Maryland General Assembly passed Senate Bill 946 in the 2019 Session. This bill provides for the following new programs for State retirees eligible for a prescription drug benefit plan under Medicare in the event the outcome of Fitch v. State of Maryland is found in favor of the State. Plaintiffs in that case are asking the court to maintain the State’s current prescription drug benefits available to this group of retirees. 

The Department of Budget and Management is providing the following clarifications regarding eligibility requirements for the various prescription drug programs created by Senate Bill 946. Employees may continue to work through December 31, 2019, before retiring in order to be eligible for the Maryland State Retiree Prescription Drug Coverage Program.

Maryland State Retiree Prescription Drug Coverage Program

  • Ended State service on or before 12/31/19 and retired on or before 1/1/20
  • Must enroll in a prescription drug benefit plan under Medicare at the time of enrollment in the Maryland State Retiree Prescription Drug Coverage Program
  • Must qualify to enroll and participate in the health insurance benefit options established under the State Employee and Retiree Health and Welfare Benefits Program in accordance with §2-508 or §2-509 of the State Personnel and Pensions Article
  • Reimbursement for out of pocket expenses over $1,500 for retiree only/$2,000 for retiree and family

Maryland State Retiree Catastrophic Prescription Drug Assistance Plan

  • Hired on or before 6/30/11, ended State Service on or after 1/1/20, and retired after 1/1/20
  • Must enroll in a prescription drug benefit plan under Medicare at the time of enrollment in the Maryland State Retiree Catastrophic Prescription Drug Assistance Program
  • Must qualify to enroll and participate in the health insurance benefit options established under the State Employee and Retiree Health and Welfare Benefits Program in accordance with §2-508 or §2-509 of the State Personnel and Pensions Article
  • Reimbursement for out of pocket expenses once the individual reaches the catastrophic phase of a prescription drug benefit plan under Medicare

Maryland State Retiree Life-Sustaining Prescription Drug Assistance Program

  • Applies automatically when the retiree is enrolled in either of the plans above
  • Certain prescriptions covered by State's employee prescription drug plan and not covered by Medicare​​​​​​​​​​​

 

If you have retirement questions, you may make an appointment to see or talk to a specialist. Visit the Agency’s website at sra.maryland.gov, or call 410-625-5555 or 

1-800-492-5909 to speak to a representative or make an appointment.

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