Important notice to health plan participant employees and/or dependents that are MEDICARE ELIGIBLE

November 11, 2005

Important notice to health plan participant employees and/or dependents that are MEDICARE ELIGIBLE

Dear Faculty and Staff:

Enclosed you will find a Creditable Coverage Notice.  The notice is being sent to all employees participating in the Loyola University Chicago’s group health plan.  If you are not MEDICARE ELIGIBLE, or do not have covered dependents that are MEDICARE ELIGIBLE, please disregard this notice.

As of January 1, 2006, Medicare is making a new prescription drug benefit available for purchase, called MEDICARE PART D.  You must be Medicare-eligible to purchase this benefit, and the enrollment period begins November 15, 2005.  The first available effective date for this coverage will be January 1, 2006.  This enrollment period will be open for 6 months.  If you do not enroll in Medicare Part D during this initial six month period, you may pay a significantly higher premium for this coverage.

If you or your Medicare-eligible dependent are enrolled in a group health plan that features prescription drug coverage that is “equal to, or better than” the Medicare Part D coverage, you DO NOT need to enroll in Medicare Part D during this initial enrollment period.  You will be allowed a “special” enrollment when your group coverage terminates, and you will not have to pay any financial penalty.  Please note that if you are participating in the group health plan, it does not mean that you cannot enroll in Medicare Part D.

It has been determined that your group health plan through Loyola University Chicago features coverage that is “equal to, or better than” Medicare Part D.  If your group health coverage through one of the Loyola University Chicago Medical Plans terminates at some time, you will need the enclosed “Notice of Creditable Coverage”.  Keep this notice, if you need to enroll in Medicare Part D when your group coverage terminates (after the initial six month enrollment period), this is proof that your Loyola University Chicago health plan was “equal to, or better than” Medicare Part D’s benefit, and allows you the special enrollment period with no financial penalty.

The Centers for Medicare and Medicaid Services (CMS) are sending all Medicare eligible individuals information in the mail about the availability of this new benefit.  You may also visit Medicare’s website at www.Medicare.gov, or call Medicare at 1-800-Medicare. 

Sincerely,

Carolyn M. Wright
Director of Benefits and Compensation