FAQ Regarding Retiree Carve-Out of Health of Insurance

1. Upon retirement from the City will I be required to sign a disclaimer stating that it is required that I take any insurance offered by any company I begin to work for and will that insurance be primary coverage?

Yes - The disclaimer will look like this…

I fully understand if I go to work for a new employer who offers health insurance that this insurance will become my primary insurance. I also understand that it is my responsibility to report this to the City Risk Management Office. If it comes to the attention of the City that I have failed to do this, all claims filed with the City as primary will revert to secondary and I could be held liable for any funds disbursed under false pretenses. Also, I could have my healthcare coverage with the City of Montgomery dropped permanently under these circumstances

2. What action will be taken should I refuse to sign such a disclaimer?

Nothing – You can refuse to sign the disclaimer. It will be noted that you refused to sign. This does not relieve you of any responsibility for reporting changes in insurance coverage. If it is ever determined that you carried the City of Montgomery insurance as primary in lieu of you new employer’s health insurance the claims will be reverted to secondary and you can be permanently dropped from our insurance.

3. Even though my City insurance becomes secondary coverage, Will I still be required to the pay the same premium as if it were primary insurance?

Yes, premium rates are not based on whether the coverage is primary or secondary. You always have the option of dropping the City coverage.

4. Can I opt to discontinue the City coverage and see an increase in retirement due to insurance premiums not being deducted for the retirement?

Yes, you can drop family coverage and see an increase in you retirement pay as aresult of not paying premiums for City insurance.

5. If I have Family Coverage upon retirement, may I take Individual Coverage from another employer and use the “City Family Coverage” as primary for my family?

No, you cannot mix and match coverage. If you have insurance offered with your new employer you must use that for primary coverage.

6. Can I change my level of coverage (Individual versus Family) after I retire from the City?

After you retire from the City of Montgomery you can always decrease your level of coverage but cannot increase it. If you retire with Family Coverage you can decrease it to Individual Coverage at a later date. If you retire with Individual Coverage you cannot increase it to Family Coverage after you retire.

7. Can I drop City Coverage and then at later date return to City Coverage at the same rate as when I retired?

The only time you can come back to our coverage is if you do not reach retirement with your other employer or if they do not offer insurance to their retirees. You may not come back at the same rate. If the City insurance rate increases you will be required to pay the new rate.

8. If I elect to drop City Insurance and then lose my coverage with my new employer can I return to my City coverage and will the City pay any claims filed under the old coverage?

Yes, you can return to City Coverage but all claims filed under you old plan are the responsibility of that plan not the City of Montgomery.

9. Will there be any preexisting injury clauses if I come back to the City’s Insurance?

Title One of the Health Insurance Portability and Accountability Act (HIPAA) still applies.