Sheet Metal Workers' International Association
Local Union No.73
Pension Welfare and Annuity Funds
September 28, 2005
Sheet Metal Workers’ Local 73 Welfare Fund –
We’ve Got You Covered!
If You Read Nothing Else – Read This! In an actuarial comparison, the Fund’s prescription drug benefits are more valuable than the new Medicare Prescription Drug Coverage that will be available January 1, 2006. To continue to receive the Fund’s higher level of coverage, you do not need to do anything. We encourage you to read the remainder of this letter for more information. |
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Dear Retired Participant:
Beginning January 1, 2006, Medicare will offer Prescription Drug Coverage through private companies. This voluntary program, which is being developed by the Federal Government’s Centers for Medicare and Medicaid Services (CMS), is available to individuals who are eligible for and enrolled in Medicare.
Expect to receive a lot of mail from the private companies that will be offering Medicare Prescription Drug Coverage. Companies will begin advertising and sending you information on their Medicare programs in early fall, encouraging you to enroll in their programs. Don’t be surprised if you get phone calls as well.
Before you do anything, you should know that the Sheet Metal Workers’ Local 73 Welfare Fund will continue to provide prescription drug coverage for retirees on and after January 1, 2006. When comparing the Fund’s current prescription drug coverage to Medicare’s coverage, it is important to know that the Fund’s coverage is, on average for all participants, more valuable than Medicare’s Prescription Drug Coverage.
If you want to continue the more valuable level of prescription drug coverage provided by the Fund, you do not need to do anything. You will continue to be covered under the Fund as long as you remain eligible for coverage.
Retirees with Limited Income and Resources If you have limited income and resources, Medicare should notify you if you are eligible for Medicare Prescription Drug Coverage at no cost or at a reduced cost. For more information about coverage available to individuals with limited income, please contact Medicare at www.medicare.gov or 1-800-MEDICARE (1-800-633-4227). |
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Your Welfare Fund’s Prescription Drug Benefits
The chart below summarizes the prescription drug benefits currently provided by the Fund to Medicare eligible retirees.
Annual Deductible - $50 Per Person |
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Under The… |
For A Generic Medication Your Copayment Is… |
For A Brand Name Medication When A Generic Is Not Available Your Copayment Is… |
For A Brand Name Medication When A Generic Is Available Your Copayment Is… |
Retail Program For up to a 34-day supply |
30% |
30% |
35% |
Mail-Order Program For up to a 90-day supply |
30% |
30% |
35% |
What’s Next?
As you begin hearing more about Medicare Prescription Drug Coverage, the important thing to remember is that you do not need to sign up for this coverage. To continue your coverage with the Fund, you do not need to do anything. We’ve got you covered!
You may hear that there is a penalty in the form of higher Medicare premiums if you do not sign up for Medicare Prescription Drug Coverage right away. However, since you are covered by the Fund (which is more valuable than Medicare Prescription Drug Coverage), you will not need to pay the penalty, as long as you stay in the plan. You will receive a Notice of Creditable Coverage from the Fund in October that explains this further. If you enroll for Medicare Prescription Drug Coverage sometime in the future, you can use this Notice to avoid higher premiums. More information about this Notice will be included at that time. In the meantime, if you have any questions, please call the Fund Office.
Sincerely,
Board of Trustees
Sheet Metal Workers’ Local 73 Welfare Fund
Information in this letter is as of September 2005. Comparison of value is based on an actuarial determination based on Medicare methodology. Medicare’s Prescription Drug Coverage is still being finalized and information stated within this letter is subject to change. If there is a conflict between the benefits described in this announcement and the legal documents that establish the Plan, the legal documents will govern.