Frequently Asked Questions (FAQ)
Updated January 1, 2010
Q1: Where can I go to get IRMP and SERMA questions answered?
A1: Medical benefits: If you have questions about your health plan coverage or issues with a medical claim, contact:
- Medical: CIGNA at 800-468-3510
- Prescription drug: Medco at 800-899-2713
- Vision: Eyemed at 866-798-9193
If the health plan is unable your answer your question or resolve your issue, contact the Intel Benefit Center at 877-466-9236. Through the Intel Benefits center you may engage a participant advocate. The Participant Advocacy service is available to all retirees and dependents (e.g., spouse) enrolled in IRMP. The specially trained Advocates will work with you on a confidential basis to make sure you receive your complete benefits.
Eligibility and Enrollment: If you have question on IRMP or SERMA eligibility and enrollment, contact the Intel Benefits Center at 877-466-9236
SERMA Balance: If you have questions on your SERMA account balance, , contact the Intel Benefits Center at 877-466-9236
General IRMP or SERMA questions: If you have general questions regarding IRMP or SERMA, contact the Intel Benefits Center at 877-466-9236
Q2: What is Intel’s retirement medical program?
A2: Intel’s retiree medical program is comprised of two parts: The Intel Retirement Medical Plan (IRMP) and a Sheltered Employee Medical Retirement Account (SERMA). The IRMP is designed to provide access to comprehensive medical coverage for eligible retirees who are Medicare-eligible (typically, age 65 and over) and eligible retirees who are unable to purchase health insurance coverage elsewhere due to medical conditions
SERMA is an account funded by Intel to help retirees purchase IRMP coverage.
Q3: Is the IRMP the best medical plan for early retirees?
A3: The IRMP is designed to provide access to comprehensive medical coverage for:
- Eligible retirees age 65 and over (Medicare-eligible)
- Eligible retirees with medical conditions who are unable to purchase health insurance coverage elsewhere
The IRMP may not be the best plan for healthy, early retirees.
- Early retirees (under age 65) who are healthy can often purchase health insurance that costs much less than the comprehensive coverage offered by the IRMP
- Insurance companies can distribute the risk over a larger population of covered members, thereby lowering member premiums
- IRMP benefits are generally more comprehensive than the benefit plans offered for sale to individuals by insurance companies
Q4: What is Intel doing to address the high cost of the IRMP?
A4: Intel recognizes and shares your concern with trends in rising health care costs. As health care costs rise and member utilization of the Intel Retiree Medical Plan (IRMP) increases, the cost of the IRMP also increases. Unfortunately, a lower cost alternative is not currently available. To keep current plan costs in check, Intel regularly negotiates rates with our suppliers and conducts annual benchmarking to ensure that our fees and coverage levels are competitive in the marketplace. Intel continues to provide access to comprehensive medical coverage with some premium subsidy through SERMA. We will continue to explore other options that deliver quality, cost-effective healthcare for our retirees.
Q5: What can retirees do to help control the IRMP costs?
A5: You play an important role as a health care consumer in helping keep costs down and getting the greatest value from your health plan. You can do this by being well informed and using your benefits wisely. For example, below are a few health care consumer tips to help you improve your health care experience and manage costs:
- Generally, you should access health care in-network whenever possible to take advantage of your health plan’s provider network discounts. When you use out-of-network providers understand that your out-of-pocket costs are higher.
- Follow your health plan’s guidelines when accessing services that require pre-authorization. When your doctor prescribes diagnostic tests or hospital services, work with your doctor and a CIGNA health advisor to understand all your available options. This will ensure you receive the most appropriate treatment at the right place and at the right time.
- Generics are just as safe and effective as brand-name drugs, but they cost about 41% less. Help keep costs down by requesting less-expensive generic prescription drugs in lieu of brand drugs whenever available and supported by your physician. Visit the Medco’s My Rx Choices at www.medco.com to review your prescription drug alternatives.
Q6: Will Intel change from CIGNA HealthCare or offer more than one medical plan choice for retirees?
A6: CIGNA HealthCare will remain the IRMP administrator for 2010. Because IRMP enrollment is relatively small, spreading the risk over more than one plan will add more volatility to the rates. We will continue to monitor retirement trends and evaluate the feasibility of offering multiple or different medical plan in the future.
Q7: Why can’t retirees enjoy the same plan rates as active employees?
A7: The plan rates are not that different. While Intel, like most companies, provides separate group rates to employees versus retirees, the employee group rate does not differ significantly from the retiree rate. The annual employee group rate for 2010 is $9,519 versus the retiree rate of $9,390.
Intel’s subsidy (amount Intel contributes toward the medical plan premiums) creates the noticeable difference between the premiums paid by employees and retirees. Intel, like most companies, subsidizes employee and family rates at approximately 75 percent. For retiree medical, Intel provides a premium subsidy, which is based on eligible years of service, in the form of SERMA.
It is the absence of Medicare, not a different group rate that causes the majority of the difference in premium costs for early retirees. Once the retiree reaches age 65, the subsidy is replaced by Medicare. For Intel to continue to provide a subsidy for early retirees until they are Medicare-eligible would be cost prohibitive and would provide the inequity of offering the same subsidy whether you are currently employed with Intel or not.
Q8: Will Intel fully subsidize the IRMP?
A8: Intel currently has no plans to fully subsidize the IRMP. It would be cost-prohibitive for Intel to do so. Intel designed the IRMP to be fully paid for by retirees, with some Intel subsidy through SERMA.
Q9: Where can I find more information about medical plans for retirees under age 65?
A9: The following resources may assist you in locating information about medical plans available on the open market:
- Talk to your insurance broker
- Try searching internet search engines for information on how to purchase medical insurance
Q10: Does the IRMP provide primary coverage if I am under age 65 and enrolled in Medicare due to a disability?
A10: The IRMP coverage is designed to pay secondary to Medicare coverage whether you are eligible for Medicare coverage based on your attained age or because of a disability. Consult the IRMP Summary Plan Description for provision details.
Q11: Can I enroll my spouse/same-sex domestic partner in the IRMP and use SERMA to pay the IRMP premiums?
A11: Yes, eligible retirees have the option to access IRMP coverage for any eligible dependent which includes spouse or same-sex domestic partner and dependent children. You also have the flexibility to use SERMA to help pay for this coverage. It is important to know, however, if you use SERMA to pay for the IRMP premiums for your eligible dependents, your SERMA will be depleted sooner.
Q12: Why do I have to be enrolled in the IRMP to enroll my spouse?
A12: The IRMP enrollment requirement helps to control movement in and out of the plan that contributes to higher premiums. You and your spouse are encouraged to maintain health coverage for regardless of their health status. Having all retirees “play by the same rules” reduces the possibility of enrolling in the IRMP only when benefits are needed and helps contain costs.
Q13: If I cancel my IRMP coverage, can I come back in at a later date?
A13: Yes, you may enroll in the IRMP during Annual Enrollment or with a change-in-status event, provided you show proof of 18 months of continuous health care coverage. Refer to the IRMP Summary Plan Description (SPD) for a list of all change-in-status events, and the Annual Enrollment Guide for more information. Remember, your enrollment form must be received by the Intel Retiree Health Service Center within 30 days of the date of your change-in-status event or by the Annual Enrollment deadline.
Q14: I am currently on Medicare and the Intel Retiree Medical supplemental Plan because I need to stay enrolled so my wife gets the same plan. She is younger, and is a ways from Medicare eligibility. Can I switch to other insurance and keep my wife on IRMP?
A14: When one spouse is on the Intel Retiree Medical Plan, both must be on it, so if your wife wants to stay with this plan, you also need to opt for it. The plan was designed that way to control costs. The Intel Retiree Medical Plan for Medicare is not a supplemental insurance policy. (Supplemental insurance is a different. You buy that in addition to your Medicare coordinating insurance.) Many retirees are confused about this.
IRMP coordinates with Medicare on items that are eligible for Medicare coverage. Medicare pays what it pays (typically 80%) and the Intel Retiree Medical Plan pays nothing. There are some items covered by the Intel plan that aren’t covered by Medicare. Retirees get some coverage for things like hearing aids, eye glasses and acupuncture. The Intel Retiree Medical Plan Medicare coverage limits your out of pocket maximum. For details go to Intel Retiree Medical Plan. Click on My Health Benefits.