the legal publication that explains administrative provisions and benefits for covered retirees and their covered dependents

THE TENNESSEE PLAN

Supplemental Medical Insurance for Retirees with Medicare

PLAN DOCUMENT AND

SUMMARY PLAN DESCRIPTION

TABLE OF CONTENTS

INTRODUCTION

DEFINED TERMS

ELIGIBILITY, FUNDING, EFFECTIVE DATE AND TERMINATION PROVISIONS

ELIGIBILITY

FUNDING

ENROLLMENT

SPECIAL ENROLLMENT PROVISION

SUSPENSION OF COVERAGE DUE TO MEDICAID (TennCare) ENTITLEMENT

TERMINATION OF COVERAGE

COVERAGE REINSTATEMENT FOLLOWING VOLUNTARY CANCELLATION

SURVIVOR DEPENDENTS

SCHEDULE OF BENEFITS

THE TENNESSEE PLAN

NON-DUPLICATION OF MEDICARE BENEFITS

ALLOWED CHARGES

OUT-OF-COUNTRY CARE

MEDICARE PART A HOSPITAL BENEFITS

MEDICARE PART B MEDICAL BENEFITS

WOMEN’S HEALTH AND CANCER RIGHTS ACT

MEDICARE PART A & PART B – HOME HEALTH CARE EXPENSES

EMERGENCY CARE DURING FOREIGN TRAVEL

COVERED MEDICAL BENEFITS

COVERED CHARGES

MEDICARE PART A DEDUCTIBLE

MEDICARE COINSURANCE AMOUNTS FOR HOSPITALIZATION UNDER MEDICARE

PART A

ADDITIONAL HOSPITAL DAYS

POST-HOSPITALIZATION SKILLED NURSING FACILITY CARE

BLOOD DEDUCTIBLE UNDER MEDICARE

PATIENT LIABILITY COINSURANCE UNDER MEDICARE PART B

HOSPICE CARE

EMERGENCY CARE DURING FOREIGN TRAVEL

PLAN EXCLUSIONS

CLAIM PROVISIONS

CLAIM SUBMISSION

WHEN CLAIMS SHOULD BE FILED

APPEAL PROCEDURES

COORDINATION OF BENEFITS

THIRD PARTY RECOVERY PROVISION

SUBROGATION AND REFUND

RESPONSIBILITIES FOR PLAN ADMINISTRATION

PLAN ADMINISTRATOR

CLAIMS ADMINISTRATOR AND PLAN ADMINISTRATOR ARE NOT FIDUCIARIES

FUNDING THE PLAN AND PAYMENT OF BENEFITS

PLAN IS NOT AN EMPLOYMENT CONTRACT

CLERICAL ERROR

MISREPRESENTATION/FRAUD

REFUND DUE TO OVERPAYMENT OF BENEFITS

AMENDING AND TERMINATING THE PLAN

HIPAA PRIVACY COMPLIANCE

GENETIC INFORMATION NONDISCRIMINATION ACT OF 2008 (GINA) ….………………………………32

SPECIAL NOTICE

GENERAL PLAN INFORMATION

TYPE OF ADMINISTRATION

The Tennessee Plan Restatement Date July 1, 2023 Revised Date October 31, 2024

INTRODUCTION

This document is a description of The Tennessee Plan (the Plan) sponsored by the State of Tennessee (Plan Administrator). No oral interpretations can change this Plan. The Plan described is designed to help fill in the coverage holes in Medicare Part A and Part B coverage and is comparable to coverage offered in a Medicare Gap National Association of Insurance Commissioners (NAIC) Model D Benefit Plan. This is a summary of Plan eligibility and benefits effective July 1, 2023. For eligibility and expenses incurred before July 1, 2023, refer to previous publications relative to the State offered The Tennessee Plan (Supplemental Medical Insurance for Retirees with Medicare).

The Tennessee Plan is a supplemental medical insurance plan for retirees with Medicare authorized under the provisions of Tennessee Code Annotated (TCA) 8-27-209. Funds collected for the purpose of the operation of the Plan are maintained by the State of Tennessee in a discrete account.

Coverage under the Plan will take effect for an eligible Retiree and designated dependents when the Retiree and such dependents satisfy all the eligibility requirements of the Plan. The Plan is only available to qualified Retirees and their eligible dependents when the retiree’s initial employment with the state or other qualifying employer commenced prior to July 1, 2015.

The Plan Administrator may make changes to the Plan, including benefit coverage, deductibles, maximums, co-payments, exclusions, limitations, definitions, eligibility or terminate the Plan at any time upon due authorization from the insurance committee. If the Plan is terminated, amended, or benefits are eliminated, the benefits available to Plan Participants are limited to Covered Charges incurred before termination, amendment or elimination.

Failure to follow the eligibility or enrollment requirements of this Plan may result in delay of coverage or the inability to enroll in coverage. Reimbursement from the Plan can be reduced or denied because of certain provisions in the Plan, such as coordination of benefits, subrogation, exclusions, medical necessity, failure to timely file claims, or lack of coverage.

The Plan will pay benefits only for the eligible expenses incurred while this coverage is in force. No benefits are payable for expenses incurred prior to the coverage effective date or after the coverage has terminated. An expense for an eligible service or supply is incurred on the date the service or supply is provided.

If an appeal is made, no recovery action (legal or otherwise) shall be initiated under any section of this Plan until the appeal process has been exhausted and the Plan benefits requested in such appeals have been denied in whole or in part.

Fraudulent acts may subject the participant to disciplinary action including, but not limited to, the recommendation of the participant’s termination of insurance coverage, and/or criminal prosecution.

DEFINED TERMS

The terms used in this document that describe covered medical benefits carry the same meaning as those services defined under Medicare Part A and Medicare Part B.

The following terms have special meaning and when used in this Plan Document will be capitalized.

Allowed Charges The Plan will consider the Allowed Charge to be Medicare’s Part A or Medicare’s Part B approved amount for those covered services billed by a covered Provider. The Medicare approved amount is the amount recognized as reasonable by Medicare for health care expenses of the kinds covered by Medicare. The Medicare approved amount also includes amounts considered payable under the Medicare B fee schedule. The Plan will not pay charges that exceed Medicare’s approved amounts. For covered services under the Plan and excluded under Medicare Part A or Medicare Part B, the Allowed Charge will be the Usual, Reasonable, and Customary Charges as determined by the Claims Administrator. The Plan will not pay charges that exceed Allowed Charges. The Enrollee is responsible for payment of any charges that are not allowed under the Plan.

Benefit Period A Benefit Period begins when a Plan Participant enters a hospital as an inpatient. Successive stays in one or more hospitals or skilled nursing facilities count as one Benefit Period unless sixty (60) days or more elapse between the day of discharge and the next admission. When a Plan Participant enters a hospital after sixty (60) days have elapsed since the last discharge from the hospital or skilled nursing facility, a new Benefit Period begins.

Calendar Year means January 1st through December 31st of the same year.

Claims Administrator is the entity designated by the State Insurance Committee to adjudicate claims under the plan of benefits; to respond to inquiries from employees, Retirees and Plan Participants; to exchange eligibility and claims payment information with Medicare and to perform other services as determined by the State Insurance Committee and the Plan Administrator.

COBRA means the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended.

Covered Charge(s) means those Medically Necessary or clinically necessary services or supplies that are covered under this Plan.

Employer shall mean the State of Tennessee, University of Tennessee, State of Tennessee Public Institutions of Higher Education, agency of the State of Tennessee, any Local Education or Local Government agency within the State of Tennessee which is authorized by statute or action by the State, Local Education, or Local Government Insurance Committees to participate in this Plan. The State of Tennessee, University of Tennessee, and the other public institutions of higher education are separate employers.

Enrollee is a retiree or dependent of a retiree who has met all the eligibility requirements of the Plan and has been enrolled into the Plan.

Illness means sickness or disease, including mental infirmity, which requires treatment by a physician. For purposes of determining benefits, Illness includes pregnancy, childbirth, miscarriage or complications of pregnancy.

Incurred means those services or supplies provided to or received by a Plan Participant. Such expenses shall be considered to have been incurred at the time or date the service or supply is actually provided.

Injury means a physical injury to the body caused by unexpected external means.

Legal Guardian means a person recognized by a court of law as having the duty of taking care of a child and managing the property and rights of that child.

Lifetime is a word that appears in this Plan in reference to benefit maximums and limitations for Covered Charges. Lifetime is understood to mean while covered under this Plan. Under no circumstances does Lifetime mean during the lifetime of the Plan Participant.

Medically Necessary or clinically necessary shall mean services or supplies, which are determined by a physician to be essential to health and are:

(A) Provided for the diagnosis or care and treatment of a medical, behavioral health/substance abuse or surgical condition;

(B) Appropriate and necessary for the symptoms, diagnosis or treatment of a medical, behavioral health/substance abuse or surgical condition;

(C) Within standards of medical practice recognized within the local medical community;

(D) Not primarily for the convenience of the covered person, nor the covered person’s family, physician or another Provider; and

(E) Performed in the most appropriate, cost effective and safe setting or manner appropriate to treat the covered person’s medical, behavioral health/substance abuse or surgical condition. The fact that a physician has prescribed, performed, ordered, recommended or approved a service or treatment does not, in and of itself, make it medically or clinically necessary and appropriate. The Claims Administrator will determine if an expense is medically necessary and/or clinically necessary.

Medicare is the Health Insurance for the Aged and Disabled program under Title XVIII of the Social Security Act, as amended.

Plan means The Tennessee Plan, a benefits plan for eligible Retirees and their eligible dependents as described in this document.

Plan Administrator is the State of Tennessee acting through the State Insurance Committee. The State Insurance Committee shall determine the benefits available to Plan Participants, set the monthly premiums necessary to fund the Plan’s anticipated expenses, provide for the administration of the Plan and establish eligibility criteria for participation in the Plan.

Plan Participant is a Retiree or Retiree’s dependent who meets the Plan’s eligibility requirements, has applied for and qualified for coverage and who has paid the Plan premium. Plan Participants are certified by the Plan Administrator to the Claims Administrator.

Plan Year is the 12-month period beginning on January 1 and ending on December 31.

Provider means 1. any legally licensed physician or any physical therapist, speech therapist, occupational therapist, or other health care providers performing a covered service ordered by a physician; 2. any licensed independent laboratory, hospital, skilled nursing facility, rehabilitation facility, hospice agency, home health care agency; or other facility/agency included for Plan coverage; 3. urgent care facilities and other health centers or clinics performing covered services given by covered physicians or other healthcare providers that would otherwise be covered by the Plan. To be covered, a Provider must meet Medicare criteria as a covered provider, meet Plan definitions and limitations, render a covered service within Plan limitations, be operating within the scope of their license, and operating according to the laws of the jurisdiction where services or supplies are given or delivered.

Recover, Recovered, Recovery or Recoveries means all monies paid to the Plan Participant by way of judgment, settlement, or otherwise to compensate for all losses caused by the Injury or Sickness, whether or not said losses reflect medical or dental charges covered by the Plan. Recoveries further includes, but is not limited to, recoveries for medical or dental expenses, attorneys' fees, costs and expenses, pain and suffering, loss of consortium, wrongful death, lost wages and any other recovery of any form of damages or compensation whatsoever.

Refund means repayment to the Plan for medical or dental benefits that it has paid toward care and treatment of the Injury or Sickness.

Retiree is a former employee who has retired from the Employer and receives a benefit from the Tennessee Consolidated Retirement System (TCRS), or an employee who has retired from the employer and participates in a higher education optional retirement plan (ORP).

Shared Parenting means a court approved parenting plan, describing the role each parent will have in the child’s life, including a residential schedule indicating the times and places where the child will reside.

Pursuant to TCA 36-6-410, the parenting plan shall designate the parent with whom the child is scheduled to reside a majority of the time as the custodian of the child solely for the purpose of all other state and federal policies and any applicable policies of insurance that require a designation or determination of custody. The statute further provides that if there is no designation in the plan, the parent with whom the child is determined to reside the majority of the time shall be deemed the custodian for the purposes of such statutes.

Sickness is a person's Illness, disease or pregnancy (including complications).

Special Qualifying Event is a personal change in status, such as divorce or termination of spouse or ex-spouse’s employment, which results in the loss of group health coverage and may allow persons to enroll or change benefit elections.

Subrogation means the Plan's authority to pursue and place a lien upon the Plan Participant's claims for medical, behavioral health/substance abuse, surgical or dental charges against another party.

Total Disability (Totally Disabled) in the case of a dependent child means the complete inability as a result of Injury or Sickness to perform the normal activities of a person of like age and sex in good health.

Tricare is the United States Department of Defense health care program for members of the uniformed services, their families and survivors.

Usual, Reasonable and Customary Charge is a charge which is not higher than the usual charge made by the Provider of the care or supply and does not exceed the usual charge made by most Providers of like service in the same area. A review of the charge will consider the nature and severity of the condition being treated. It will also consider medical complications or unusual circumstances that require more time, skill or experience. To calculate reimbursements, the Plan will use the actual charge billed if it is less than the Usual, Reasonable and Customary Charge. The Claims Administrator has the authority to decide whether a charge is Usual, Reasonable and Customary.

ELIGIBILITY, FUNDING, EFFECTIVE DATE

AND TERMINATION PROVISIONS

ELIGIBILITY

Eligible Classes of Retirees. All Retirees of the Employer who meet the eligibility requirements shown in the “Eligibility Requirements for Retiree Plan Coverage” section below.

Eligibility Requirements for Retiree Coverage. A qualified Retiree is eligible to be a Plan Participant from the first day that he or she satisfies the requirements for Retiree coverage.

Eligibility Requirements for Retiree Plan Coverage. A person is eligible to be a Plan Participant in the “Retiree Plan Coverage” provision of the Plan from the first day that he or she is:

(1) Per TCA 8-27-209, a retired state of Tennessee employee, as defined in TCA 8-27-204(a)(1); covered by Medicare benefits; an individual whose initial employment with the state or other governmental agency qualifying the person for plan membership commenced prior to July 1, 2015; and who is

a. an eligible retired state employee, eligible retired employee of the University of Tennessee, or eligible retired employee of the state university and community college system drawing retirement benefits through the Tennessee consolidated retirement system; or

b. an eligible retired employee of the University of Tennessee or the state university and community college system participating in any other retirement plan offered through their employment with the University of Tennessee or the state university and community college system, regardless of whether such retired employee is drawing a retirement benefit;

(2) Per TCA 8-27-307, a retired Local Education employee participating in the Tennessee consolidated retirement system provided that the retired employee is covered by Medicare benefits and is also drawing a monthly retirement allowance from the Tennessee consolidated retirement system, and whose initial employment with a participating local education agency or other qualifying employer commenced prior to July 1, 2015; or

(3) Per TCA 8-27-706, a retired county judge, county official, or employee of employer participating in the Tennessee Consolidated Retirement System who is covered by Medicare benefits, drawing a monthly retirement allowance from the Tennessee Consolidated Retirement System, and whose initial employment with a qualifying employer commenced prior to July 1, 2015.

The qualification by the Retiree could be due to the receipt of a TCRS disability benefit and participation in Medicare Part A, or the receipt of a TCRS service or disability benefit and the attainment of age 65 and participation in Medicare Part A. (Note: Local Government participants must enroll earlier than the State or Local Education participants when they become Medicare eligible. They cannot stay in the State of Tennessee sponsored health plan once they become Medicare eligible.)

An otherwise qualified Retiree shall become eligible to apply for enrollment as a late applicant in the Plan upon cancellation of participation in a Medicare Advantage Plan and enrollment in traditional Medicare (Parts A and B).

Eligible Classes of Dependents. A Dependent is any one of the following persons:

(1) A covered Retiree’s spouse who is eligible for Medicare Part A. The term "spouse" shall mean the person recognized as the covered Retiree's legally married spouse under the laws of the state where the covered Retiree lives. The Plan Administrator may require documentation proving a legal marital relationship.

(2) A covered Retiree’s child(ren) who are eligible for Medicare Part A from birth to the limiting age of 26 years who meet at least one of the following five criteria:

(a) Natural or adopted children regardless of where they live; adopted children, in connection with any placement for adoption of a child with any person, means the assumption of legal obligation of total or partial support of a child in anticipation of adoption. The obligation may be determined by court records or other appropriate documentation as determined by the Plan Administrator.

(b) Stepchildren for whom the Retiree or spouse has legal custody, joint custody or Shared Parenting;

(c) Children for whom the Retiree is the Legal Guardian;

(d) A Retiree’s child for whom the Plan has received a qualified medical child support order requiring the child to be enrolled in a health insurance plan pursuant to State or Federal statutes and who is also eligible for Medicare Part A;

(e) Dependents required to be covered by any applicable State or Federal law.

(3) Dependent children who meet at least one of the criteria shown above and who are incapacitated (the complete inability as a result of Injury or Sickness to perform the normal activities of a person of like age and sex in good health) who have qualified to participate in Medicare Part A and whose incapacitation was certified by Medicare as beginning prior to the child’s 26th birthday. The child must meet the requirements for dependent eligibility listed in this section.

The Plan Administrator may require at reasonable intervals, not more than once each year, subsequent proof of the dependent’s Total Disability and dependency. The Plan Administrator reserves the right to have such dependent examined by a Physician of the Plan Administrator's choice, at the Plan's expense, to determine the existence of such incapacity.

These persons are excluded as dependents:

(1) Any dependent not eligible for Medicare Part A, even if all other eligibility requirements are met;

(2) Foster children;

(3) Dependents not listed in the above eligibility requirements:

(4) Parents;

(5) Legally divorced spouse;

(6) Other individuals living in the covered Retiree’s home who are not eligible as shown in the above eligibility section;

(7) Any person who is covered under a State of Tennessee sponsored health plan as an employee or

Retiree;

(8) Any person who is covered under TennCare or CoverKids; or

(9) The child of a child (grandchild) of the Retiree or of the retiree’s spouse [except as noted in (2)(c) “Eligible Classes of Dependents above].

If both mother and father are covered separately under the Plan, their children will be covered as dependents of the mother or father, but not of both.

Eligibility Requirements for Dependent Coverage. A qualified family member of a Retiree will become eligible for dependent coverage on the first day that the Retiree is enrolled for Retiree Plan Coverage and the family member satisfies the requirements for dependent coverage.

Verification of dependent eligibility may be required at time of enrollment. At any time, the Plan may require proof that a spouse or a child continues to qualify as a dependent as defined by this Plan.

FUNDING

Cost of the Plan. The monthly participation contribution rates for coverage under the Plan are established by the Plan Administrator.

Regular payment of Plan contributions is required. After the first payment, Plan contributions become due as they are billed. Claims will not be paid if premiums are not paid through the incurred date of the services for which the claims are submitted.

After the first payment, a deferral period of a full calendar month is allowed for premiums being billed directly or collected through ACH instead of through payroll deduction. If the Plan contribution is not paid within the deferral period, coverage is terminated retroactively to the last month for which Plan contributions were paid.

When coverage for Plan Participants who are billed directly or collected through ACH has been canceled for failure to pay within the deferral period, a one-time opportunity for coverage reinstatement is allowed. Plan Participants seeking reinstatement of coverage must request reinstatement within 30 days of being notified that coverage was canceled. The Plan Participant must sign and return the required documentation, and all current and past due premiums must be received within 30 days of the request for reinstatement.

If the Plan Participant receives a State of Tennessee TCRS benefit check, the Retiree’s and covered dependent’s portion of the premium will be deducted automatically from the TCRS monthly benefit payment. If the Retiree’s TCRS benefit is not sufficient to cover the cost for the coverage, or if there is a limitation in the TCRS benefit system on the number of allowed deductions, the Retiree will be billed directly. The Retiree may also choose automatic payment from a bank account.

The level of monthly contributions is set by the Plan Administrator. The Plan Administrator reserves the authority to change the level of Retiree contributions. Should the rate change, the Plan Administrator will notify Plan Participants in writing at least 30 days before the change goes into effect.

ENROLLMENT

Enrollment Requirements. A Retiree must enroll for Retiree only or Retiree and dependent coverage by filling out and signing an enrollment application along with the appropriate deduction authorization, if applicable.

Retirees who are eligible for Medicare at retirement may elect to enroll in the Plan at retirement. Retirees who become eligible for Medicare by virtue of age after the Retiree’s retirement may elect to enroll in the Plan at the time of Medicare entitlement.

Dependents eligible under this Plan Document may only enroll in the Plan if the Retiree is enrolled in the Plan. Dependents eligible for Medicare at the time of the Retiree’s retirement may enroll upon the Retiree’s enrollment or January 1 of the year following the Retiree’s enrollment. Dependents that become eligible for Medicare after the Retiree’s enrollment in the Plan may enroll in the Plan at the time of Medicare entitlement if the Retiree is still participating in the Plan.

Timely Enrollment - The enrollment will be "timely" if the completed enrollment form is received by the Plan Administrator no later than 60 days after the person is initially eligible (at retirement or Medicare entitlement) for coverage or within 60 days of the person becoming eligible under a Special Enrollment Provision (see below).

Applications not received by the Plan Administrator within the initial 60-day eligibility period will be considered “late”, and the Retiree and/or his eligible dependent(s) applying for coverage must answer specific health questions for review by the Claims Administrator. The Claims Administrator will review the answers to the health questions for those submitting late applications and determine if enrollment will be approved or denied.

Dependents who elect the January 1 (see previous paragraph above) following retiree’s enrollment as their effective date must submit enrollment application to the Plan Administrator no later than December 31 of the prior year for the application to be considered as timely enrollment; otherwise, the application will be considered “late”, and the dependent will be required to answer health questions to qualify for enrollment.

Retirees and their dependents (including surviving dependents of deceased retirees) who qualify for enrollment under the eligibility provisions of the Plan and enroll with a local education or local government agency joining the State of Tennessee Group Insurance Program for the first time, shall not be considered as “late applicants” if:

• The retiree’s initial employment with a qualifying agency (Tennessee Consolidated Retirement System eligible agency) commenced prior to July 1, 2015; and

• The dependents are eligible dependents of the retiree or eligible surviving dependents of the deceased retiree; and

• The retiree is receiving a pension from the Tennessee Consolidated Retirement System, or (if deceased) the retiree was eligible to receive a TCRS pension at the time of death; and

• The retirees and dependents (or surviving dependents of the deceased retiree) transfer from an active employee health plan, Medicare Supplement Plan, or a Medicare Advantage Plan sponsored by the joining agency.

This provision does not apply to retirees or dependents who are never eligible for Medicare and those who are not yet eligible for Medicare.

If two Retirees (legally married spouses) are covered separately under the Plan and the Retiree covering any dependent children terminates coverage, the dependent coverage may be continued by the other covered Retiree; no Waiting Period is required if coverage has been continuous.

Effective Date of Retiree Plan Coverage. A Retiree will be covered under this Plan on the date specified below upon satisfactorily completing the eligibility and enrollment requirements of the Plan:

(1) Retiree eligible for Medicare at retirement – For “timely” enrollment, the first of the month following termination of coverage in the State of Tennessee Sponsored Health Plan, if enrolled, or on the first of the month following the date of retirement, whichever is later. If the date of retirement is the later date and falls on the first of the month, the retiree’s coverage may be effective on that date.

Application must be received by Plan Administrator (Division of Benefits Administration) within 60 days of termination of active group health coverage or the date of retirement, whichever is later.

(2) Retiree not eligible for Medicare at retirement – For “timely” enrollment, on the date of Medicare entitlement for the Retiree. Application must be received by Plan Administrator (Division of Benefits Administration) within 60 days of Medicare entitlement.

(3) Late applicant – For approved enrollment, on the first day of a month, according to calendar established by the Plan Administrator, following approval of enrollment by the Claims Administrator

(4) Retiree transferred from new agency’s active employee group or Medicare Supplement or Medicare

Advantage Plan to the State’s The Tennessee Plan (Supplement Medical Insurance for Retirees with Medicare) – For approved enrollment, on the first day of a month coinciding with the new agency’s effective date in the State’s Group Insurance Plan.

Effective Date of Dependent Coverage. A dependent's coverage under this Plan will take effect on the date specified below upon satisfactorily completing the eligibility and enrollment requirements of the Plan:

(1) Dependent and Retiree eligible for Medicare at the time of Retiree’s retirement and Retiree applies timely to enroll self and dependent in the Plan

a. On the date of the Retiree’s effective date in the Plan’s Retiree Plan Coverage. Application must be received by the Plan Administrator within 60 days of termination of active group health coverage or the date of retirement, whichever is later.

(2) Dependent not eligible for Medicare when the Retiree becomes eligible for Medicare and enrolls in the Plan

a. On the date of Medicare entitlement for the dependent. Retiree must submit application to be received by the Plan Administrator within 60 days of the dependent’s Medicare entitlement.

(3) Dependent eligible for Medicare before Retiree becomes eligible for Medicare and enrolls in the

Plan

a. On the date of the Retiree’s effective date when the retiree enrolls in the plan no later than 60 days after their initial eligibility date, or

b. January 1 of the year following the Retiree’s enrollment in the plan no later than 60 days after their initial eligibility date. Application to enroll dependents must be received by the Plan Administrator no later than December 31st of the calendar year of the Retiree’s enrollment.

(4) Late applicant

a. For approved enrollment, on the first day of a month, according to calendar established by the

Plan Administrator, following approval of enrollment by the Claims Administrator and approved enrollment of the Retiree

b. The approved Dependent’s enrollment shall be voided if the Retiree is not approved for enrollment or otherwise chooses to not enroll in the Plan

(5) Dependent transferred from new agency’s active employee group or Medicare Supplement or

Medicare Advantage Plan to the State’s The Tennessee Plan (Supplemental Medical Insurance for Retirees with Medicare) along with the eligible, enrolled Retiree associated with the dependent

a. For approved enrollment, on the first day of a month coinciding with the new agency’s effective date in the State’s Group Insurance Plan

b. The approved Dependent’s enrollment shall be voided if the Retiree is not approved for enrollment or otherwise chooses to not enroll in the Plan.

Right to Return Policy If you are not satisfied with The Tennessee Plan, you can cancel it within 30 days of the receipt of your identification card and member handbook. You will receive a refund of any premiums paid in advance. Any claims paid during this period will be recovered.

SPECIAL ENROLLMENT PROVISION

(1) Individuals Losing Other Coverage. A Retiree or dependent who would have been eligible to enroll in this plan at the time of retirement, but elected not to enroll, may enroll if all of the following conditions are met:

(a) The Retiree or dependent was covered under a group health plan or had health insurance coverage at the time coverage under this Plan was previously offered to the individual.

(b) If required by the Plan Administrator, the Retiree stated in writing at the time coverage was offered that other health coverage was the reason for declining enrollment.

(c) The coverage of the Retiree or dependent who lost the coverage was under COBRA and the

COBRA coverage was exhausted or was not under COBRA and either the coverage was terminated as a result of loss of eligibility for the coverage (including as a result of legal separation, divorce, death, termination of employment or reduction in the number of hours of employment) or all Employer contributions towards the coverage were terminated.

(d) The Retiree or dependent requests enrollment in this Plan not later than 60 days after the date of exhaustion of COBRA coverage, or the termination of coverage, or Employer total contributions are terminated, described above. Coverage will begin no later than the first day of the first calendar month following the date the completed enrollment form is received.

For purposes of this provision, a loss of eligibility occurs if:

(i) The Retiree or dependent has a loss of eligibility on the earliest date a claim is denied that would meet or exceed a Lifetime limit on all benefits.

(ii) The Retiree or dependent has a loss of eligibility due to the Plan no longer offering any benefits to a class of similarly situated individuals.

(iii) The Retiree or dependent has a loss of eligibility as a result of legal separation, divorce, cessation of dependent status (such as attaining the maximum age to be eligible as a dependent child under the Plan), death, termination of employment, or reduction in the number of hours of employment or all employer contributions towards the coverage was terminated.

(iv) The Retiree or dependent has a loss of eligibility when coverage is offered through an

HMO, or other arrangement, in the individual market that does not provide benefits to individuals who no longer reside, live or work in a service area, (whether or not within the choice of the individual).

(v) The Retiree or dependent has a loss of eligibility when coverage is offered through an

HMO, or other arrangement, in the group market that does not provide benefits to individuals who no longer reside, live or work in a service area, (whether or not within the choice of the individual), and no other benefit package is available to the individual.

The coverage of the Retiree or dependent enrolled through a Special Enrollment Provision will be effective:

(a) the day after the loss of other coverage; or

(b) the first day of the month following loss of other coverage;

If the Retiree or dependent lost the other coverage as a result of the individual's failure to pay premiums or required contributions or for cause (such as making a fraudulent claim), that individual does not have access to the Special Enrollment Provisions.

(2) Dependents.

The dependent may be enrolled under this Plan as a covered dependent of the covered Retiree if the dependent is otherwise eligible for coverage when both of the following conditions are met.

(a) The Retiree is a participant under this Plan (or is eligible to be enrolled under this Plan but failed to enroll during a previous enrollment period and is enrolling at this time), and

(b) A person becomes a dependent of the covered Retiree through marriage, birth, adoption or placement for adoption.

In the case of the birth or adoption of a child, the spouse of the covered Retiree may be enrolled as a dependent of the covered Retiree if the spouse is otherwise eligible for coverage.

The dependent Special Enrollment Provision is a period of 60 days and begins on the date of the Special Qualifying Event.

The coverage of the participating Retiree’s dependent enrolled through a Special Enrollment Provision will be effective:

(a) in the case of marriage, as of the date of marriage or the first of the subsequent month if the spouse is eligible for Medicare Part A;

(b) in the case of a dependent child's birth, as of the date the Medicare Part A coverage is effective; or

(c) in the case of a dependent child's adoption or placement for adoption, the date of the adoption or placement for adoption if the dependent child is also eligible for Medicare Part A.

SUSPENSION OF COVERAGE DUE TO MEDICAID (TennCare) ENTITLEMENT

A Plan Participant becoming eligible for Medicaid (TennCare) may notify in writing the Plan Administrator to suspend benefits and charges for coverage under this Plan for the period of Medicaid eligibility, not to exceed 24-months. The notice of such suspension must be received by the Plan Administrator within 90 days after determination of Medicaid eligibility.

Upon receipt of timely notice to suspend coverage under this Plan, the Plan Administrator will return to the Plan Participant that portion of charges that correspond to the period of Medicaid eligibility, less the amount of any claims administered.

Coverage under the Plan may be reinstated on the date the Retiree or eligible dependent loses eligibility to Medicaid if such loss occurs within 24 months after suspension. The Retiree must provide written notice of loss of Medicaid entitlement within 90 days after the date of such loss and pay the Plan Contribution charges for the period for which coverage is reinstated. Coverage may not be reinstated if the loss of eligibility to Medicaid occurs greater than 24 months after suspension.

TERMINATION OF COVERAGE

The Plan Administrator has the authority to cancel coverage of a Plan Participant for cause, for making a fraudulent claim, for failure to cooperate with subrogation recovery, or for an intentional material misrepresentation in applying for or obtaining coverage or obtaining benefits under the Plan. The Plan Administrator may either void coverage for the period of time coverage was in effect or may terminate coverage as of a date to be determined at the Plan's discretion. The Plan will collect reimbursement on any claims if benefits are paid in excess of the Plan Participants’ paid premiums.

When Retiree Plan Coverage Terminates. Retiree coverage will terminate on the earliest of these dates:

(1) The date the Plan is terminated.

(2) The day the covered Retiree ceases to be in one of the Eligible Classes, including but not limited to death.

(3) The end of the month for which the required contribution has been paid if the charge for the next period is not paid when due.

(4) If A Retiree commits fraud or makes a material misrepresentation in applying for or obtaining coverage, or obtaining benefits under the Plan, then the Plan Administrator may either void coverage for the Retiree and covered dependents for the period of time coverage was in effect or may terminate coverage as of a date to be determined at the Plan Administrator's discretion.

(5) A Retiree’s failure to respond to the Plan’s requests for information and/or pay any owed subrogation expenses to the Plan may result in termination of coverage on a date determined by the Plan Administrator. Any Retiree or dependent who has been disenrolled from the Plan pursuant to the “THIRD PARTY RECOVERY PROVISION” section of this Plan Document for failure to cooperate and/or pay outstanding medical expenses shall be ineligible to rejoin the Plan for a period of three (3) years.

(6) The end of the month in which the Plan Administrator receives a written or electronic request to terminate the policy signed and dated by the Retiree.

When Dependent Coverage Terminates. A dependent's coverage will terminate on the earliest of these dates:

(1) The date the Plan or dependent coverage under the Plan is terminated.

(2) The date that the Retiree's coverage under the Plan terminates for any reason including death. (See

“Survivor Dependents” section below for extension of coverage option.)

(3) The end of the month in which a covered spouse loses coverage due to loss of dependent status.

(4) The end of the month in which a dependent child ceases to be a dependent as defined by the Plan.

(5) The end of the month for which the required contribution has been paid if the charge for the next period is not paid when due.

(6) If a dependent commits fraud or makes a material misrepresentation in applying for or obtaining coverage, or obtaining benefits under the Plan, then the Plan Administrator may either void coverage for the dependent for the period of time coverage was in effect or may terminate coverage as of a date to be determined at the Plan's discretion.

(7) The end of the month in which the Plan Administrator receives a written or electronic request to terminate the policy signed and dated by the Retiree.

Premium Refunds. Premium refunds will be limited to three months from the date of notification to the Plan Administrator with the following guidelines:

(1) Retiree or designated representative fails to notify Plan Administrator of eligibility change: Retirees (or their designated representative) who do not notify the Plan Administrator about a change in their insurance enrollment eligibility within sixty (60) days of the change will receive a three month refund of their portion of the premium from the date of notification to the Plan Administrator unless the Retiree owes the Plan for claims paid inappropriately; overpaid benefits above the Retiree premium refund amount will be billed to the Retiree.

(2) Plan Administrator fails to follow through on Retiree request for change: If a Retiree (or his designated representative) notifies the Plan Administrator to change insurance enrollments within sixty (60) days of an eligibility change and the Plan Administrator fails to follow through on the request, the Retiree will receive his entire portion of the refund.

(3) Fraud cases: When the office of the State Comptroller has determined that fraud exists, the Retiree will forfeit his portion of a refund.

COVERAGE REINSTATEMENT FOLLOWING VOLUNTARY CANCELLATION

In the event that an Enrollee has voluntarily canceled coverage for himself and/or his eligible dependents and wants the coverage reinstated, the Enrollee may do so by meeting all of the following conditions:

(1) Premiums were paid current on the coverage termination date;

(2) The policyholder and/or his dependent(s) continue to meet the eligibility requirements of the plan;

(3) The policyholder submits a written request for reinstatement within one full calendar month of the coverage termination date.

SURVIVOR DEPENDENTS

In the event of the death of a covered Retiree, the coverage will terminate at the end of the month in which the death occurred. If the Retiree elected family coverage, the surviving eligible and enrolled dependent(s) who were covered under the Plan at the time of the Retiree’s death may continue enrollment in the Plan, subject to the terms and conditions of the Plan. The surviving dependent(s) must apply to continue coverage within 60 days of the notice of termination of coverage under the Retiree. If the dependent receives a TCRS benefit, premiums will be deducted by the Tennessee Consolidated Retirement System. If no TCRS benefit is continued or if the premium exceeds the monthly TCRS benefit, the premium payments must be submitted as determined by the Plan Administrator. Dependents must continue to meet the definition of an eligible dependent.

Dependents acquired by the survivor(s) after the death of the Retired Employee will not be eligible for coverage under the Plan.

SCHEDULE OF BENEFITS

THE TENNESSEE PLAN

The Tennessee Plan is a supplemental medical insurance for Retirees with Medicare plan that is comparable to coverage offered in a Medicare Gap NAIC Model D Benefit Plan. The Plan is designed to fill in some of the coverage holes in Medicare Part A and Medicare Part B coverage. Unless otherwise stated in this document, there is no prescription drug coverage under this plan.

NON-DUPLICATION OF MEDICARE BENEFITS

This Plan shall not duplicate any benefits provided by Medicare.

ALLOWED CHARGES

The Plan will consider the Allowed Charge to be Medicare’s Part A or Medicare’s Part B approved amount for those covered services billed by a covered provider. The Medicare approved amount is the amount recognized as reasonable by Medicare for health care expenses of the kinds covered by Medicare. The Medicare approved amount also includes amounts considered payable under the Medicare Part B fee schedule. The Plan will not pay charges that exceed Medicare’s approved amounts. For services covered under the Plan and excluded under Medicare Part A or Medicare Part B, the Allowed Charge will be the Usual, Reasonable, and Customary Charges as Determined by the Claims Administrator. It is the Plan Participant’s responsibility for payment of any charges that exceed Medicare’s approved amounts or any ineligible claims.

OUT OF COUNTRY CARE

This Plan will provide benefits for covered expenses Incurred outside the USA as shown in the Schedule of Benefit grid in this section. Plan benefits will be based on the currency exchange rate in effect at the time services are rendered. The Plan Participant may be required to pay the provider at the time of service. If expenses outside the USA are Incurred, the Plan Participant must submit a translation of the bill to include diagnosis, description of service, charge for each service (currency of the country if not in US dollars), date(s) of service, and name of country where services were rendered. The Plan reserves the authority to reimburse the Plan Participant directly.

MEDICARE PART A - HOSPITAL BENEFITS

The following summary of benefits is an outline of the maximum amounts or specific limits that may apply to benefits payable under the Plan. For a detailed description of each covered service, please refer to the sections entitled Covered Medical Benefits, Plan Exclusions, and Defined Terms.

Note: Medicare Part A deductible and coinsurance amounts generally increase each Calendar Year.

Plan payments will be based on the Medicare deductible and coinsurance in effect at the time approved expenses were Incurred.

Medicare Part A Deductible. The amount the beneficiary must pay each Benefit Period before Medicare begins to pay.

Medicare Coinsurance. The daily amount the beneficiary must pay for each day of inpatient care.

Lifetime Benefit Reserve Days. The Medicare coverage that becomes available when the beneficiary has been in a Hospital more than 90 days in a benefit period. The 60 reserve days can only be used once during the person’s Lifetime.

Calendar Year. Twelve consecutive months beginning January 1 and ending December 31.

Medicare Part A Expenses

Medicare Approved Amounts

Medicare Pays This Plan Pays You Pay

Hospitalization

• First 60 days per Benefit Period

All Allowed Charges but the Medicare Part A deductible

Medicare Part A deductible

$0

• 61st through 90th day All Allowed Charges but the Medicare coinsurance amount

Medicare coinsurance amount

$0

• 91st day and after while using 60 Lifetime Benefit Reserve Days

All Allowed Charges but the Medicare coinsurance amount

Medicare coinsurance amount

$0

• Once Lifetime Benefit Reserve Days are used, an additional 365 benefit days

$0 100% of Medicare eligible expenses

Usually $0

Skilled Nursing Facility Care

• First 20 days All Allowed Charges $0 $0

• 21st through 100th day All Allowed Charges but the Medicare coinsurance amounts

Medicare coinsurance amount

$0

• 101st day and after $0 $0 All costs

Blood

• First three pints (Medicare Part A & Medicare Part B combined per Calendar Year)

$0 100% of Medicare eligible expenses

$0

• After three pints All Allowed Charges $0 $0

HOSPICE CARE

You must meet Medicare’s requirements, including a doctor’s certification of terminal illness

All but very limited co-payment/coinsurance for out-patient drugs and inpatient respite care

Medicare co-payment/coinsurance

$0

MEDICARE PART B – MEDICAL BENEFITS

The following summary of benefits is an outline of the maximum amounts or specific limits that may apply to benefits payable under the Plan. For a detailed description of each covered service, please refer to the sections entitled Covered Medical Benefits, Plan Exclusions, and Defined Terms.

Medicare Part B Deductible. The portion of the Medicare approved amount that the beneficiary must pay each Calendar Year before Medicare begins to pay (based on the Medicare Part B deductible in effect at the time approved expenses were Incurred).

Patient Liability Coinsurance. The portion of the Medicare approved amount (usually 20%) that the Plan Participant must pay after the Medicare deductible and Medicare coinsurance payment (usually 80%).

Medicare Part B Expenses

Medicare Approved Amounts

Medicare Pays This Plan Pays You Pay

Medicare Part B Deductible

$0 $0 All costs

Part B Excess Charges (charges above Medicare approved amounts)

$0 $0 All costs

Blood

• First three pints (Medicare Part A & Medicare Part B combined per Calendar Year)

$0 100% of Medicare eligible expenses

$0

• After three pints First: $ 0 until you meet the Medicare Part B deductible

Then: 80% of Allowed Charges

First: $ 0 until you meet the Medicare Part B deductible

Then: 20% of Allowed Charges

First:

Medicare Part B deductible

Then: $0

Clinical Lab Services All Allowed Charges $0 $0

Other Covered Medicare Part B Services

Generally 80% of Allowed Charges after Medicare Part B deductible

Generally 20% of Allowed Charges

$0 (after Medicare Part B deductible is met)

WOMEN’S HEALTH AND CANCER RIGHTS ACT

Plan coverage of a medically necessary mastectomy also includes post-mastectomy coverage for reconstruction of the breast, surgery on the other breast to achieve the appearance of symmetry, prostheses, and physical complications during any stage of the mastectomy, including lymphedemas. This coverage will be provided in consultation with the attending physician and patient. Benefits are subject to the same annual deductibles and coinsurance as other services, if applicable.

MEDICARE PART A & PART B – HOME HEALTH CARE EXPENSES

The following summary of benefits is a brief outline of the maximum amounts or specific limits that may apply to benefits payable under the Plan. For a detailed description of each covered service, please refer to the sections entitled Covered Medical Benefits, Plan Exclusions, and Defined Terms.

Medicare Part A & Part B Home…