Retiree Prescription Drug Benefits

Penn's Prescription Drug Coverage

Penn's retiree medical plan include prescription coverage.

Medicare-Eligible Plans

The Medicare-eligible medical plans include prescription coverage through Silverscript. Note that the Medicap Security 65 plans permit you to opt out of its prescription coverage, whereas the Aetna Medicare Plan does not permit you to opt out of its prescription coverage.

Some important points to note:

• You cannot enroll in Penn’s prescription plan if you enroll in a non-Penn sponsored Medicare Part D plan.
• You will need to provide your Medicare Beneficiary Identifier (MBI) from your Medicare card.

For additional information, see the Penn Retirement Planning Guide for 2025.

Non-Medicare Eligible Plans

if you enroll in any of the non-Medicare eligible medical plans, prescription drug coverage is provided for you and your enrolled dependents. The Prescription Drug Plan is administered by CVS/caremark. However, the prescription plan structure differs depending on which medical plan you select.

For additional information, see the Penn Retirement Planning Guide for 2025.

Opting Out of Penn’s Prescription Drug Coverage

If you’re eligible for and have decided to enroll in a non-Penn sponsored Medicare Part D plan, you must opt out of Penn’s prescription drug coverage. You cannot enroll in Penn’s prescription plan if you are also enrolled in an individual Medicare Part D plan. If you enroll in both, the Centers for Medicare & Medicaid Services (CMS) will disenroll you from Penn’s prescription coverage.

You also cannot enroll in Penn’s Aetna Medicare Plan (PPO) if you elect a non-Penn sponsored Medicare Part D plan. If you enroll in both, CMS will cancel both your medical and prescription coverage as of the date you enrolled in both plans.

Opting out of Penn’s prescription drug coverage is considered permanent. This means you will not be able to obtain this coverage in the future unless a Medicare change in policy adversely affects your coverage. Under this circumstance, you must notify the Penn Benefits Center immediately.

Medicare Part D

Through Medicare Part D, Medicare beneficiaries have access to prescription drug benefits administered by private companies such as health insurers. Beneficiaries can get the prescription drug benefit in one of two ways: (1) as a separate policy for prescription drugs, or (2) as part of private health plans that also provide overall medical coverage. Similar to Medicare Part B, there is a monthly premium for Medicare Part D. Changes may be made annually to Medicare Part D deductibles and thresholds.

For up-to-date information about Medicare Part D, contact Medicare at 800‑633‑4227 or visit Medicare’s website. If you are hearing-impaired, call 877‑486‑2048.

Split Family Coverage

Split family coverage occurs when one person is under age 65 (not eligible for Medicare) and enrolled in an under age 65 medical plan, and one person is age 65 and older and enrolled in a Medicare-eligible plan for retirees. Certain rules apply:

Retiree under age 65 / dependent age 65 and older - If the retiree enrolls in Penn’s medical coverage, prescription drug coverage is automatically provided through Penn. The dependent must also enroll in Penn’s prescription drug plan even though he/she is eligible for Medicare Part D.

Retiree age 65 and older / dependent under 65 - If the retiree elects not to enroll in Penn’s prescription drug coverage, the dependent can remain covered under Penn’s prescription drug plan only until he/she reaches Medicare-eligible age.