Your credit balance will accrue from month to month and year to year if the cost of the retiree medical coverage does not exceed the amount of credits in your account. As such, the accrued credits may be applied to retiree medical coverage at a later date. Credits are applied separately to the retiree’s account and to the account of the eligible spouse/domestic partner.

If you choose to participate in the University-sponsored retiree medical plan, your credits will be applied automatically each month toward the total premium of the plan you elect. If the cost of coverage is more than the credit allowance, the remaining amount will be deducted from a designated checking account.

If you choose to participate in a non-University-sponsored plan, you must pay the full cost of coverage up front.

• DDB claim forms must then be completed and submitted with proof of payment to BMS. This form is required annually.
• Once approved, BMS will reimburse you for the payment up to the current DDB credit allowance in the account you designate.

To the extent that the retiree medical plan costs more than the amount of the credits in your account, you will be reimbursed up to the DDB credit balance. In the event that both a retiree and his or her spouse/ domestic partner participate in the DDB program, two separate applications of credits will occur for two separate DDB accounts. However, withdrawals and/or reimbursements may be made to and/or from the same checking account.

Illustrative Examples of How DDB Credits May Be Applied

All examples below are based on illustrative, not actual, monthly premiums/credits to illustrate a monthly cost of coverage.

1. To purchase University-sponsored coverage

The illustrative cost of coverage is LESS than the monthly DDB credit allowance. You elect a Medicare Advantage HMO or PPO:

The illustrative cost of coverage is MORE than the monthly DDB credit allowance. You elect a Medicare Complementary Plan:

2. To purchase Non-University-sponsored coverage

You move to Arizona and purchase a local Medicare HMO:

What happens in this situation?

• You pay the full cost of the premium directly to the Arizona HMO.
• Submit a receipt/proof of payment with a completed form to the Retiree Benefits Service Center for reimbursement.
• A total of $401 is debited from your DDB accrual balance.
• The Retiree Benefits Service Center will transfer the $401 to your checking account via direct deposit.

3. Accrue credits for future use

Your eligible spouse or partner continues to work and enrolls you on his or her active coverage: