Summary Plan Description

Monthly Contributions

When your Retiree Health Plan Application is approved by the Trust Office, coverage is on a month-to-month basis as long as you and your dependents continue to meet the eligibility requirements and the required monthly contributions are made to the Trust Office.

Monthly Contribution Rate

There are different monthly contribution rates depending on (1) which individuals are participating in the Retiree Health Plan, and (2) which individuals are eligible for Medicare. Monthly contribution rates are established by the Board of Trustees and are increased as medical costs increase and the needs of the plan change. You will be notified of the current monthly contribution rate when you apply and will be informed, in writing, if this amount changes.

The Retiree Health Plan monthly contribution rates are currently subsidized by contributions paid on behalf of participants working under collective bargaining agreements. The subsidy is "service based" which means the actual cost of retiree medical coverage is reduced by an amount—0 percent to 25 percent—depending on the total number of hours of covered service you worked under the Carpenters Health and Security Plan of Western Washington, including prorated contributions transferred to the plan under "Money Follows the Man."

The "service-based" subsidy levels apply for retirees and dependents. It also applies to early retirees, Medicare-eligible retirees, and those of you covered by SecureHorizons. Effective January 1, 2008, post-retirement service counts toward your career hour total prospectively.

Medicare Part D offers a low-income subsidy for certain individuals. When you are enrolled in the Express Scripts Medicare Prescription Plan (please see Express Scripts Medicare Prescription Plan), the Trust Office will notify you if you qualify. This may mean a lower monthly contribution rate.

Retiree Medical Coverage—Service-Based Subsidy
Career Hours In
This Plan
Less than
15,000
15,000-
24,999
25,000-
24,999
35,000-
44,999
45,000-
54,999
Greater than
54,999
  0% 5% 10% 15% 20% 25%
How to Make Payments

The monthly payment or contribution is due by the tenth of the month prior to next month's coverage. For example, the contribution for February is due by January 10. Contributions to this plan can be made in several ways:

  • You can authorize automatic monthly deductions from the Carpenters Retirement Plan of Western Washington; or
  • You can authorize the Trust Office to bill you on a monthly basis. This is the only option available to retired lathers.
  • If you have a Retiree Health Reimbursement Account, it can be used to pay a portion of the monthly contribution, with the balance of the monthly contribution paid in one of the two ways indicated above.

Failure to make the required monthly contribution will terminate coverage at the end of the last month in which payment was made. When coverage is terminated for failure to pay the monthly contribution, it cannot be reinstated.

Helpful Hint

If you are covered under the Retiree Health Plan, it is important for you to enroll in Medicare Part A and Part B as soon as you are eligible to do so:

  • You pay a lower monthly contribution rate for the Retiree Health Plan if you are eligible for Medicare Part A and Part B.
  • If you do not enroll in Medicare, it increases your out-of- pocket expenses because the amount of benefits that would have been payable by Medicare will be subtracted from this plan's payable benefits, even if you are not enrolled in Medicare Part A and Part B (please see Coordination of Benefits With Other Plans and Medicare).
  • You do not incur the 10 percent penalty for late enrollment in Medicare Part B coverage.
  • Medicare Part D (prescription drug coverage) is provided under the Retiree Medical Plan. Please do not enroll in a Medicare Part D plan without first contacting the Trust Office.