LAPRA 2018 Legally Required Notices

5 Important Notice from the Los Angeles Police Relief Association (LAPRA) About Your Prescription Drug Coverage and Medicare Please read this notice carefully and keep it where you can find it. This notice has information about your current prescription drug coverage, under one of the following LAPRA-sponsored plans (the “Plan”) and about your options under Medicare’s prescription drug coverage: • Anthem Blue Cross Prudent Buyer PPO Medical Plan • Anthem Blue Cross CaliforniaCare Plus HMO Medical Plan • Kaiser Permanente HMO Medical Plan This information can help you decide whether or not you want to join a Medicare drug plan. If you are considering joining, you should compare your current coverage, including which drugs are covered at what cost, with the coverage and costs of the plans offering Medicare prescription drug coverage in your area. Information about where you can get help to make decisions about your prescription drug coverage is at the end of this notice. There are two important things you need to know about your current coverage and Medicare’s prescription drug coverage: 1. Medicare prescription drug coverage became available in 2006 to everyone with Medicare. You can get this coverage if you join a Medicare Prescription Drug Plan or join a Medicare Advantage Plan (like an HMO or PPO) that offers prescription drug coverage. All Medicare drug plans provide at least a standard level of coverage set by Medicare. Some plans may also offer more coverage for a higher monthly premium. 2. LAPRA has determined that the prescription drug coverage offered by the Plan is, on average for all plan participants, expected to pay out as much as standard Medicare prescription drug coverage pays and is therefore considered Creditable Coverage. Because your existing coverage is Creditable Coverage, you can keep this coverage and not pay a higher premium (a penalty) if you later decide to join a Medicare drug plan. When Can You Join a Medicare Drug Plan? You can join a Medicare drug plan when you first become eligible for Medicare and each year from October 15th to December 7th. However, if you lose your current creditable prescription drug coverage, through no fault of your own, you will also be eligible for a two (2) month Special Enrollment Period (SEP) to join a Medicare drug plan. What Happens to Your Current Coverage if You Decide to Join a Medicare Drug Plan? If you decide to join a Medicare drug plan, your current Plan coverage will not be affected. Although your LAPRA coverage will not be affected if you decide to join a Medicare drug plan, your LAPRA premiums will be higher, if you are retired, and you and/or your spouse decide not to enroll in Medicare D through LAPRA or enroll in another Medicare D plan. If you decide to join a non-LAPRA Medicare drug plan and drop your current LAPRA Medicare D Plan coverage, you may be able to enroll back in the Plan, if you remain eligible under the Plan for such enrollment. However, LAPRA reserves the right to amend or terminate the Plan at any time and there are no vested benefits under the Plan.