The University launched a request for proposal (RFP) in fall 2024 to explore a different approach to current medical programs for retirees and their dependents who are eligible for Medicare. The RFP is the process the University uses to find the best solution by comparing proposals from vendors.
After extensive evaluation of each vendor’s proposal and consultation with various University groups, the RFP process is now completed.
In order to provide retirees with expanded choice and expert navigation assistance, the University is transitioning Medicare-eligible retirees from a group plan to individual marketplace coverage, effective January 1, 2026. The current group plan covers 4,000 retirees and offers eight plans through four carriers. The new platform includes access to all four carriers that are currently available through the University’s group plan as well as others at different price points to better meet individual needs.
No action is needed at this time. We completely understand the desire to take immediate action. Our team is hard at work on the implementation and communication plan to make sure University retirees have the best support throughout this process. While we don’t have more information to share now, you can anticipate in-person meetings, webinars, phone consultations, and one-on-one support to help you every step of the way. More information on the timeline and next steps will be shared early this summer.
Tentative Timeline
- August, 2024: RFP Issued
- October 2024: Update to UMRA regarding retiree impact and tentative timeline
- October–December 2024: RFP responses reviewed & vendor selected
- February 2025: Proposal presented to the Board of Regents for approval
- January–December 2025: Education and preparation
- January 1, 2026: New insurance effective date
Why make this change?
The University is committed to giving retirees access to the best options for coverage to meet their healthcare needs and one-on-one assistance from Medicare experts. In order to do that, we launched a competitive search process to find a solution that offers the best personalized plan options and value for University retirees.
What is an exchange model?
Under an exchange model, the University provides eligibility information to the selected vendor, which provides benefit plan advisors to help retirees shop for and enroll in health insurance, including Medicare Advantage and supplement plans (known as Medigap).
What does this mean for retirees?
Expanded Choice
Transitioning to an exchange model allows for a wider variety of plan choices. Under this model, retirees and their spouse are able to select different plans, so you can choose the best overall value for your family’s health needs and budget. The new platform includes access to all four carriers that are currently available through the University’s group plan as well as others.
Personalized, Trusted Support
This model provides specialized advisors to help retirees navigate the complexities of how private insurance and Medicare work together. These advisors are unbiased and earn a salary that is not commission-based. They can meet with you one-on-one to help you evaluate and select the best plan for each individual. For example, if you currently see a provider at the Mayo Clinic, representatives will take that criteria into account when making plan recommendations.
Ongoing Assistance
Beyond initial plan selection, the navigators provide lifetime advocacy, helping you with claims questions through the entire span of your coverage. You can call and speak with representatives or login to the user-friendly online portal for assistance any time.
Financial Savings
Joining a broader community of retirees in an exchange model increases carrier competition to push down premium costs for similar coverage.