October 20, 2014

MBL Post-Retirement Medical Plan

Marine Biological Laboratory
Policy No. G.1.11

Human Resources

Initiated by:Human Resources Director
Approved by:MBL Director/CEO
Date:Nov. 20, 1993
Revision:#2 November 1, 2004
Distribution:Policy Book

1.0The MBL policy in effect at the beginning of 1993, will remain in effect for all current retirees and all employees who have met the age and service requirements prior to June 1, 1994.

1.1The policy in effect in 1993 was: The MBL provided fully paid medical insurance for staff who retired with 20 years of service at age 60 or 15 years of service at age 65. If the employee was enrolled in a family plan at the time of retirement, the MBL would pay the full family premium. At age 65 the retiree (and spouse, if applicable) would be enrolled in MEDEX 3, a supplement to Medicare A and B. The premium would be fully paid by the MBL.
1.2Dental insurance was offered at retirement as COBRA and was not included as part of the medical insurance coverage.

2.0Effective 1/1/94 the MBL policy for all employees, other than those referred to in (section 1.0) is:

2.1.Any employee hired on or after January 1, 1995, will not be eligible to participate in the post retirement medical benefit plan. Employees hired prior to January 1, 1995 will be subject to the following provisions:

2.1.1Subject to paragraph 3.0 (Required Premium Cost Sharing), MBL will provide medical coverage for employees who retire at age 60 with twenty (20) years of continuous service at MBL or who retire at age 65 with fifteen (15) years of continuous service at MBL.

2.1.2Spouses of eligible retirees will be eligible to participate if they are currently covered under the employee’s group plan, are not eligible for another medical plan, and contribute the required share of the premium.

2.1.3Eligible employees shall be entitled to have MBL provide the type of coverage (e.g. individual or family) which they had at their date of retirement. Retirees and spouses eligible for this policy who are between the ages of 60 and 65 will participate in the MBL group insurance plan which they had at retirement (or comparable plan). Retirees and spouses eligible for this policy who are 65 years of age and older will receive medical coverage under the Blue Cross/Blue Shield Medex 3 plan or a comparable plan.

3.0Required Premium Cost Sharing:

3.1MBL’s contribution toward premiums for post retirement medical benefits shall be capped at its contribution level for 1994 Comprehensive Major Medical premium. Any future cost increases above MBL’s contribution level for 1994 premiums shall be fully paid by the retiree and/or spouse.

3.2If an employee retires between age 60 and 65 and is covered by an individual plan at the time of retirement, the MBL shall contribute an amount equal to the total capped 1994 Comprehensive Major Medical premium, which was $185.47. When the retired employee turns 65, he/she will be transferred to the group Medex 3 (or comparable) plan and MBL will contribute an amount equal to the total capped 1994 Medex 3 premium, $146.77.

3.3If the employee is covered by a family plan at the time of retirement, the MBL will contribute an amount equal to the employer’s portion of the family premium for a full time employee at the capped Comprehensive Major Medical 1994 rates and cost sharing percentages until the employee reaches age 65. In 1994 the MBL paid 70% of the Comprehensive Major Medical premium or $311.22. When the retired employee turns 65, he/she will be transferred to the group Medex 3 plan (or comparable plan) and MBL will contribute an amount equal to the capped 1994 Medex 3 premium, $146.77.

3.4When a retired MBL employee reaches age 65 and the spouse is still under age 65 or if the retired MBL employee dies prior to age 65, the eligible spouse will be transferred to an individual group plan and be required to pay 100% of the premium. At age 65, the eligible spouse will be transferred to the group Medex 3 plan (or comparable plan) and be required to pay 100% of the premium.

4.0Failure by the retiree or spouse to remit required premium share to the MBL within 30 days of invoice date will result in termination of the participant in the group medical plan. Reenrollment in the plan at a future date will not be allowed.

5.0The election to participate in the MBL Post Retirement Medical Plan is a one time election. If at any time after retirement the retiree (or spouse) elects to end coverage in the MBL group plan, the retiree (or spouse) cannot elect to reenter the plan at a future date.

6.0MBL reserves the right to amend or terminate this policy in whole or in part at any time.

7.0Policy Clarification and Updates:
Policy clarification and updates are available from the Human Resources office.