Are You Considering Retirement? If So, Do You Know About Using 509A for Your Health Insurance?

Heartland AEA employees who take a bona fide retirement (draw IPERS) qualify for 509A, which is a state law that says you can decide whether or not you want to continue under the Agency’s health insurance at 100% your cost through the end of the month prior to the month in which you turn 65. (You begin Medicare on the 1st of the month in which you turn 65.) You are not considered an actual retiree until a signed retirement letter has been approved by the Agency’s Board of Directors.   

How It Works 

• Retirees are billed from the Agency’s Business Office quarterly but are allowed to pay monthly or use automatic deduction to pay their premium. 
 
• Retirees with HRA balances can use this money to pay their premiums. (HRAs have no maximum balance, so some employees use the higher health plan deductible of $2,000 in order to receive the HRA and then save the contributions in order to use the money towards premiums after retirement.)
 
• Retirees stay on the same coverage as employees and still re-enroll annually during April for the following benefit plan year as a retiree until terminated from the plan.
 
• 509A doesn't apply to dental coverage, so retirees are offered COBRA dental at 102% their cost for an additional 18 months after retirement, or they go directly through Delta Dental for their own private plan.
  

If you have any questions or want to set up a meeting to discuss retirement, contact Juliette Houseman.