Okla. Admin. Code § 590:10-19-5

Current through Vol. 42, No. 4, November 1, 2024

Section 590:10-19-5 - Medicare Gap Benefit

(a) The formula for the Pre-Medicare Increase is not an individualized actuarial calculation. The formula shall be based upon the difference between the average of the non-Medicare Supplement premiums and average of the Medicare Supplement premiums for all health insurance plans offered by the Oklahoma State and Education Employees Group Insurance Board to inactive or retired OPERS members. The formula shall use the average premium amounts for the member only and shall include as an offset the amount of the health insurance subsidy payment made by the System. The Pre-Medicare Increase to a retiree's benefit prior to becoming eligible for Medicare, will not always equal the additional cost of the retiree's health insurance.

(b) The Pre-Medicare Increase shall be reviewed and adopted by the Board prior to January 1 of each year to ensure that the formula is based upon new health insurance data.

(c) The Post Medicare Benefit is calculated using actuarially determined factors to reduce the benefit of the retiree thereby ensuring an actuarially neutral cost to the System.

(d) The Board shall adopt the appropriate actuarial tables to ensure the neutral actuarial cost to the System.

Okla. Admin. Code § 590:10-19-5

Added at 22 Ok Reg 1354, eff 5-26-05; Amended at 24 Ok Reg 1135, eff 5-11-07