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Public Employees Benefits Board approves roughly $34 cut to 2025 UMP Medicare (Part D) premium

Public Employees Benefits Board · September 5, 2024
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Summary

At a special Aug. 5 meeting, the Public Employees Benefits Board voted to amend the 2025 UMP Classic Medicare with Part D premium, lowering the monthly subscriber rate from $453.21 to $419.36 after a new CMS Part D subsidy and voluntary payment demonstration. Staff said the change passes savings to retirees and requires Moda to sign up for the CMS demonstration by a near-term deadline.

The Public Employees Benefits Board voted Aug. 5 to amend its 2025 Uniform Medical Plan (UMP) Classic Medicare with Part D premium, approving a revised monthly single-subscriber rate of $419.36, down from the $453.21 rate authorized July 11.

Molly Christie, a fiscal analyst with the Health Care Authority, told the board that two recent CMS actions — a larger-than-expected direct subsidy to Part D plans and a voluntary Part D payment demonstration — together “allow for an approximately $34 decrease in the UMP Medicare with Part D monthly premium for 2025.” Christie said the demonstration runs through 2027, although CMS will reassess funding for 2026 and 2027. She also noted the Medicare explicit subsidy applied in the calculation remains $183 per subscriber.

Board staff said the demonstration is voluntary and available to standalone Part D plans and employer group waiver plans such as UMP; Medicare Advantage plans combined with Part D (MAPD), including the agency's Kaiser and UnitedHealthcare products, are not eligible. Dave (agency staff) told the board that Moda, UMP’s pharmacy benefit administrator, must sign up to participate and commit to providing data CMS will request during the demonstration.

Chair Sue Birch read the resolution language for PEPB 2024-37, which amends PEPB 2024-36 to set the UMP Classic Medicare with Part D PDP premium as presented at the Aug. 5 meeting. Elliot Weinstein moved to adopt the resolution and Tom McRobert seconded. After no public comment objecting to the measure, the chair called a roll-call vote; members present voted to approve the resolution.

“Since the board has authorized a change that lowers premiums for retirees, we want to get these savings through,” Birch said as staff prepared written member materials. The board instructed staff to provide clear written information for members explaining the change and Moda’s role in registering for the CMS demonstration.

The board’s action was specific to UMP with Part D and does not extend the demonstration’s effects to MAPD plans. The resolution takes effect as read and the board will report additional member-facing information after staff completes written materials.