Common use of Retirees Health Insurance Clause in Contracts

Retirees Health Insurance. 1. The State agrees to assume upon retirement the full cost of the Health Benefits coverage for State employees and their dependents including the cost of charges under Part B of the Federal Medicare Program for eligible employees and their spouses, but not including survivors, for employees who accrue twenty-five (25) years of pension credit service, as provided under the State plan, by July 1, 1997, and those employees who retire for disability on the basis of fewer years of pension credit in the State plan. 2. Employees who are barred from participation in the Traditional Plan will not be eligible to select Traditional Plan upon retirement. Retirees will not be offered a plan for which they were ineligible as active employees. 3. Co-payments for retirees participating in the Traditional Plan and NJ Plus will increase July 1, 2004 to $6.00 for generic prescription drugs, $13.00 for preferred, and $26.00 for other brand prescription drugs. The mail order co-payments for retirees for a 90-day supply will increase to $6.00 for generic, $19.00 for preferred and $32.00 for other brands.