Retirees that were employed by an employer that praticipates in the State of Wisconsin Employee Trust Fund may be eligible for additional retiree health insurance coverage options. The Wisconsin department of Employee Trust Funds (ETF) provides retirement, insurance, disability, and other Wisconsin Retirement System benefits for current and former public employees, retirees, and their beneficiaries. Questions about your benefits from ETF qualified employment can be directed to ETF (Contact).
Accumulated Sick Leave Credit Program
The Wisconsin Employee Trust Fund's (ETF) Accumulated Sick Leave Credit Conversion Program allows state employees to convert unused sick leave to credits to pay for health insurance during their retirement. Along with health insurance premiums these credits can be used to help pay for pharmacy and optional Uniform Dental benefits. Sick leave credits can only be used to pay for health insurance premiums in the State of Wisconsin Group Health Insurance Program. Credits cannot be cashed-out or otherwise converted to pay for other benefits.
If eligible, unused sick leave credits can be used to pay post-termination state group health insurance premiums for the former state employee, their spouse and/or dependents. The premiums will automatically be paid from your sick leave credit account.
What Accumulated Sick Leave Credits Cannot Do:
- Be cashed out
- Earn interest
- Pay for supplemental benefits
- Pay for health insurance that is not part of the State Group Health Insurance Program
- Transfer to another person (unless you pass away)
- Be split into two accounts if you get divorced
- Pay for Medicare Part B premiums
Considerations When Leaving ETF Retiree Group Coverage
Leaving ETF Retiree Group Coverage to elect different Medicare coverage including a Medicare Supplment Policy, Medicare Advantage Plan, and/or Medicare Prescription Drug Plan may present challanges to beneficiaries. The first important consideration that a beneficiary and ETF annuitant must consider is there ability to choose between a Medicare Advantage Plan and Medicare Supplement policy. Depending on an annuitant's situation they may not have gaurantee issue rights to purchase a Medicare Supplement Policy without health underwiting due to leaving ETF Retiree Group Coverage. An annuitant should also consider the often significant out of pocket cost differences between ETF Retiree Group Coverage and a "marketplace" Medicare Advantage Plan.
Medicare Supplement Gaurantee Issue Implications:
Leaving an ETF Retiree Group Plan (RGP) voluntarily will not result in a guarnatee issue period to purchase a Medicare Supplement Policy without health underwiting. An ETF annutiant using up all of their sick leave credits and choosing to leave an ETF RGP is not considered an involuntary loss of employer sponsored coverage. However, there may be other ways to obtain gauranteed issue protections to purchase a Medicare Supplement Policy without health underwriting, a beneficiary can contact the Medigap Helpline with questions.
Loss of Creditable Coverage Special Enrollment Period (Medicare Advantage and Part D):
Beneficiaries who end their employer sponsored coverage (including an ETF RGP) have a special enrollment period to enroll into a Medicare Advantage or Medicare Prescription Drug Plan. This special enrollment period ends two months after the month the employer sponsored coverage ends. The loss of employer sponsored coverage can be either voluntary or involuntary to qualify for this special enrollment period.
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