Section 39.35.880 - Medical benefits(a) The medical benefits available to eligible persons are access to the retiree major medical insurance plan and to the health reimbursement arrangement under AS 39.30.300. Access to the retiree major medical insurance plan means that an eligible person may not be denied insurance coverage except for failure to pay the required premium.(b) Retiree major medical insurance plan coverage elected by an eligible member under this section covers the eligible member, the spouse of the eligible member, and the dependent children of the eligible member.(c) Retiree major medical insurance plan coverage elected by a surviving spouse of an eligible member under this section covers the surviving spouse and the dependent children of the eligible member who are dependent on the surviving spouse.(d) Major medical insurance coverage takes effect on the first day of the month following the date of the administrator's approval of the election and stops when the person who elects coverage dies or fails to make a required premium payment.(e) The coverage for persons 65 years of age or older is the same as that available for persons under 65 years of age. The benefits payable to those persons 65 years of age or older supplement any benefits provided under the federal old age, survivors and disability insurance program.(f) The medical and optional insurance premiums owed by the person who elects coverage may be deducted from the health reimbursement arrangement. If the amount of the health reimbursement arrangement becomes insufficient to pay the premiums, the person who elects coverage under (a) of this section shall pay the premiums directly.(g) The cost of premiums for retiree major medical insurance coverage for an eligible member or surviving spouse who is(1) not eligible for Medicare is an amount equal to the full monthly group premiums for retiree major medical insurance coverage;(2) eligible for Medicare is the following percentage of the premium amounts established for retirees who are eligible for Medicare:(A) 30 percent if the member had 10 or more, but less than 15, years of service;(B) 25 percent if the member had 15 or more, but less than 20, years of service;(C) 20 percent if the member had 20 or more, but less than 25, years of service;(D) 15 percent if the member had 25 or more, but less than 30, years of service;(E) 10 percent if the member had 30 or more years of service.(h) The eligibility for retiree major medical insurance coverage for an alternate payee under a qualified domestic relations order shall be determined based on the eligibility of the member to elect coverage. The alternate payee shall pay the full monthly premium for retiree major medical insurance coverage.(i) A person who is entitled to retiree major medical insurance coverage shall(1) be informed by the administrator in writing(A) that the health insurance coverage available to retired members may be different from the health insurance coverage provided to employees;(B) of time limits for selecting optional health insurance coverage and whether the election is irrevocable; and(2) indicate in writing on a form provided by the administrator that the person has received the information required by this subsection and whether the person has chosen to receive optional health insurance coverage.(j) The monthly group premiums for retiree major medical insurance coverage are established by the administrator in accordance with AS 39.30.095. Nothing in AS 39.35.700 - 39.35.990 guarantees a person who elects coverage under (a) of this section a monthly group premium rate for retiree major medical insurance coverage other than the premium in effect for the month in which the premium is due for coverage for that month.(k) In this section, "health reimbursement arrangement" means the plan established in AS 39.30.300.