Changes ahead for U of M retiree health insurance
One of our cycle-of-life events every fall is the annual health insurance enrollment period, preceded by an informative workshop presented by staff from the University of Minnesota Office of Human Resources (OHR). This year, OHR Health and Wellbeing Consultant Katie Kolodge explained the updates for 2025 and 2026, and her colleagues Jeff Altringer, Ryan Reisdorfer, and Lori Stotesbery were available for questions.
Kolodge noted that the federal Inflation Reduction Act has caused some health insurance plan changes. It eliminated the coverage gap and mandated a $2,000 out-of-pocket maximum on prescription drug costs. These are significant changes because, until now, the U of M plans were distinct because of their prescription drug coverage.
For 2025, the changes are primarily financial. The OHR 2025 Benefits Enrollment Guide for Retirees has been mailed and should be delivered by the week of October 21. You can also find a PDF of the guide via the OHR website.
For those retirees currently enrolled in U of M retiree health plans, you will see the familiar list of four health insurance companies and eight plans. Plan 1 from each company has higher premiums and lower out-of-pocket costs, while Plan 2 has lower premiums and higher out-of-pocket costs. Two of the eight plans are at the same rate, one has a 45 percent cost increase over this year, and increases for the rest range from 5 to 17 percent.
The enrollment guide includes comparison charts, which should be consulted closely to determine which plan best fits your needs, as well as a list of questions to help guide your decision-making. There are contact numbers for questions about the U of M plans offered by each of the four insurance companies.
If you are keeping the same plan for 2025, no action is needed.
If you are changing plans you must complete and submit the Continuation of Coverage form at the back of the guide by November 30. You will also need to inform your current insurance company to cancel coverage at the end of this year.
Dental plan options are staying the same, but rates are changing.
If you want to learn more about how Open Enrollment works and what your benefit options are at the University, OHR is hosting an Open Enrollment webinar at 12 p.m. on Friday, November 1. There is a link to register for the webinar on the OHR Open Enrollment website.
Bigger changes in the works for 2026
For 2026, bigger changes are in the works. There are many reasons: The federal changes minimized the distinctiveness of the U of M plans; costs are increasing; some retirees want different levels of coverage; and many employers, including higher ed, are moving to individual marketplace offerings. OHR’s goal is “to provide our retirees with expanded choice, expert navigation, and a better enrollment experience,” Kolodge said.
OHR has issued a request for proposal (RFP) for 2026, asking vendors to create a marketplace offering a greater number of plans and to provide certified navigators to help retirees choose plans that best fit their needs. OHR will spend this fall on vendor analysis and selection. Two UMRA members serve as our representatives on the U of M Benefits Advisory Committee and are part of the RFP review process.
To stay informed, you can sign up for email updates on the project on OHR’s Retiree Medical Plan Change RFP webpage.
If you have questions, you can also contact [email protected] or 612-624-8647 or 800-756-2363 and someone will respond.
—Julie Sweitzer, UMRA president
Update your contact information
If you have changed your email address, make sure you let UMRA know so that you will continue to receive communication from UMRA on this and other important topics. Go to retirees.umn.edu > Update Your Record.
University retiree health insurance for 2025 and beyond
Tue, October 15, 2024, at 11am
Katie Kolodge
Health and wellbeing consultant
Office of Human Resources, University of Minnesota
Event to be held via Zoom.
Make sure you register to attend UMRA’s October 15 Living Well Workshop via Zoom on University retiree health insurance. This year, Katie Kolodge, health and wellness consultant in the U of M Office of Human Resources (OHR) and a frequent presenter for these annual workshops, will provide an update on health insurance plan changes for 2025, including changes in federal law impacting prescription drug coverage. This will be the familiar information we rely on for our annual Open Enrollment choices.
But there’s more! For 2026, the health insurance picture for U of M retirees will change considerably. The October presentation will explain the significant changes coming in 2026. The University will change from offering insurance plans exclusively for U of M retirees to providing a health insurance marketplace with navigators to help retirees choose from a larger number of health insurance options. The expectation is that the choices available through this new “exchange program model” will offer a wider variety of premium options and will allow individual members to target the benefits that matter most to them personally.
If you would like to submit a question in advance, email Wendy Pradt Lougee, who will be moderating the Q&A during the webinar.
Reasons for the change are straightforward. The relatively small number of participants in the U of M-dedicated health insurance plans (the current model) was resulting in higher premium costs for retirees. A primary benefit of the U of M-dedicated plans was strong pharmaceutical coverage. But a change in federal law means that as of 2025 a new $2,000 out-of-pocket cap will be applicable to all covered Medicare Part D drugs. Thus, a primary incentive for separate University retiree health insurance plans has been removed.
Be assured UMRA has been included in the planning for this change. UMRA members Russell Luepker and Nancy Felton serve as our representatives on the University Senate Benefits Committee, and they are participating in the University’s request for proposal task force. For more information, please go to the Retiree Medical Plan Change RFP website OHR has established for retirees about this 2026 health insurance change.
The only decision UMRA members enrolled in U of M health insurance plans will need to make this fall is whether to continue their current insurance for 2025 (no action required) or to change their coverage.
The information about 2026 is intended to keep you informed well in advance of the actions you will need to take next year for 2026 insurance coverage.
Please register now for this workshop at 11 a.m. on Tuesday, October 15, via Zoom, mark your calendars, and be sure to attend this important presentation on University retiree health insurance plans.
—Julie Sweitzer, UMRA president
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