On January 1, 1983, the City of Plano opted out of Social Security and implemented the Retirement Security Plan (RSP). As of that date, no premiums were made by employees or the City of Plano to Social Security and Medicare. A change to the law, which became effective April 1, 1986, mandated participation in Medicare for anyone hired after that date. Employees hired after April 1, 1986 began contributing to Medicare with the City also making their contribution.
Social Security eligibility requires forty (40) quarters (10 years) of participation and is comprised of three parts; the Social Security benefit itself and Medicare Part A & B. Medicare Part A primarily covers in-patient hospital type situations. Individuals eligible for Medicare Part A pay no monthly premium. Medicare Part B, which is voluntary and requires payment of a monthly premium, primarily covers physician services, diagnostic test, x-rays, and other services and supplies.
At the onset, the intent of RSP was not only to provide a retirement benefit but also Medicare Part A coverage for those whose eligibility was affected by opting out of Social Security in 1983. We determined that employees hired between January 1, 1973 (ten years prior to implementing RSP) and April 1, 1986 (mandatory Medicare contribution date) could be affected.
The City is aware that there may be a select few that will not qualify for Part A and is prepared to assist you in obtaining Medicare Part A coverage. We will make every effort to ensure your transition to Medicare will go as smoothly as possible. You may be able to qualify if you have your 40 quarters from previous employment or you have a spouse or ex-spouse that qualifies. If for some reason you cannot qualify, you may still apply and the City of Plano will reimburse your premium for Part A only.
Please contact Human Resources immediately if you are told you by Social Security that you do not qualify for Part A.
It is imperative that you enroll with Medicare at least three (3) months prior to attaining age 65. Contact our office once your Medicare enrollment is completed. Keep in mind that any enrollment delays would affect the coverage effective date and premium amount. At the time you contact us, we will provide you with the procedure to follow for payment of the Medicare Part A premiums.
It is important to know that if you are an active employee, you only need to apply for Medicare Part A. Once you retire you will need to apply for Part B.
Based on our information, you or your spouse/domestic partner will become Medicare eligible within the next three (3) months. You are Medicare eligible as of the 1st day of the month of your 65th. birthday (example: If your birthday is June 15th, you become Medicare eligible as of June 1st). If your birthday falls on the 1st day of the month, you become Medicare eligible the 1st day of the month prior to your birthday month.
Prior to your 65th birthday, if you are retired and on the City of Plano’s medical health plan through United Healthcare, you will need to contact Medicare/Social Security to enroll in both the Medicare Part “A” and Part “B” plans. You must apply with 90 days of becoming 65.
You pay a monthly premium for Part B coverage. $135.50
(If you qualify to receive social security benefits, the premium will be deducted from your monthly check)
- Part “A” (Hospital Insurance) covers most medically necessary hospital, skilled nursing facility, home health, and hospice care. It is free if you have worked and paid Social Security taxes for at least 40 calendar quarters (10 years); you will pay a monthly premium if you have worked and paid taxes for less time.
- Part “B” (Medical Insurance) covers most medically necessary doctors’ services, preventive care, durable medical equipment, hospital outpatient services, laboratory tests, x-rays, mental health care, and some home health and ambulance services.
Medicare Supplemental Plans
- Aetna Medicare Advantage Premium Plan (Part F & Part D) (monthly rate – $382.12)
- Aetna Medicare Advantage Standard Plan (Part K & Part D) (monthly rate – $215.79)
- Aetna Prescription Drug Plan (Part D) (monthly rate – $181.00)
- United Healthcare AARP Plan F (monthly premiums vary)
When you have made your decision and are ready to enroll in one of the Plans offered by the City of Plano, please contact Fannie Layer @ 972-941-5019
AARP Plan “F”
Plan “F” offered by the City of Plano is United Healthcare/AARP Medicare Supplemental plan. This plan has no deductible or co-pay and works as a secondary policy to Medicare. Plan “F” pays 20% of covered medical expenses approved by Medicare.
(through United Healthcare)
|• Rates vary due to age, service area and health|
|• Discount applied upon initial enrollment and reduces 3% annually|
|• Monthly rates currently range from $138 - $450 (inclusive of enrollment discount)|
|• Rates increase in July|
|• No out of pocket costs|
|If you have questions relating to AARP and wish to attain rate information, please call Customer Care at 1-800-545-1797.|
Aetna Medicare Rx (Part D)
The 2019 monthly premium for Aetna stand-alone Part “D” is $181.00
If you are eligible for Medicare Part “D” and decide to not be enrolled in any Medicare Part “D” prescription drug plan, you will have to pay a penalty should you decide to enroll in a plan at a later date. The penalty is added to the monthly premium.
There are many prescription drug plans available. You do not have to enroll in the plan offered by the City. You can view the various prescription plans available to determine the best option for you by going to the Medicare website, www.medicare.gov.
Key features of the Part “D” pharmacy plan offered through the City of Plano:
- No annual deductible.
- Predictable co-pays.
- No “donut hole” as there is with many Medicare Part D plans.
- The convenience of mail order service.
|4 Tier Plan||Retail cost-sharing|
Up to a 30-day supply
|Retail cost–sharing |
Up to a 90-day supply
|Preferred mail order cost-sharing up to a 90-day supply|
|Tier 1- Generic|
|Tier 2 - Preferred Brand|
Includes some high-cost generic and preferred brand drugs
|Tier 3 - Non Preferred Drug|
Includes some high-cost generic and non-preferred brand drugs
|Tier 4 – Specialty|
Includes high-cost/unique and brand drugs
|$50||Limited to one month supply||Limited to one month supply|
Aetna Medicare Advantage Plans
Service credits apply to the plans offered by the City as follows:
|Service Credit Chart|
|10 years = $110||17 years = $187||24 years = $264|
|11 years = $121||18 years = $198||25 years = $275|
|12 years = $132||19 years = $209||26 years = $286|
|13 years = $143||20 years = $220||27 years = $297|
|14 years = $154||21 years = $231||28 years = $308|
|15 years = $165||22 years = $242||29 years = $319|
|16 years = $176||23 years = $253||30 years = $330|
- If you choose to enroll in the United Healthcare AARP/ Plan F, your service credits will be applied with any balance owed then billed directly to you.
- If you choose to enroll in Aetna Medicare Rx and United Healthcare AARP/ Plan F, your service credits apply first to the Aetna Medicare Rx Part D prescription drug plan and any remaining service credits would then be applied to Plan F Supplemental Plan.
- If you choose Aetna Advantage Premium Plan or Standard Plan your service credits apply directly to the plan you select.
- File for Medicare Parts “A” and “B” 90 days prior to 65th birthday
(If you do not qualify for Medicare Part A, contact Human Resources immediately)
- Send copy of Medicare card to City of Plano
- Contact United Healthcare/AARP to enroll in Plan “F” 1-800-545-1797 (contact Fannie Layer after enrollment is complete)
Contact Fannie Layer in HR to enroll in Aetna Advantage Premium, Standard, or Aetna Medicare Rx.