Retired Teachers Chapter News
SHIP puts money back in our pockets
Nov 15, 2007 3:25 PM
In my last column I reminded retirees of our continued active participation as retirees in the life of the union. We benefit from this symbiotic relationship because the UFT actively works to protect, support and improve our benefits.
One of the many benefits available to us as retirees is membership in the Supplemental Health Insurance Program (SHIP), a program that year after year has helped us defray rising health-care costs by putting money back in our pockets.
The purpose of SHIP is, as its name implies, to supplement other benefits. It predates the Welfare Fund and was organized more than 30 years ago by retiree leadership as a supplement to their health coverage. Today more than 59,000 retirees and their spouses/domestic partners are enrolled in SHIP — more than 9,300 of that total are 80 or over. SHIP is a popular program because it’s the best buy in this out-of-control health-care market.
As an example, SHIP reimburses 50 percent for out-of-pocket costs for at-home nurse’s aides/home health aides after a hospital stay of more than three to four days up to a lifetime maximum of $20,000. (It is recommended that you secure aides through a certified agency.) SHIP supplements Welfare Fund reimbursement for hearing aids, provides a hospitalization deductible for a stay of overnight or more, defrays the costs of ambulances and ambulettes, surgical stockings, durable medical equipment, orthotics, dental costs and more.
For years, SHIP maintained very, very low premiums even as reimbursement benefits improved and expanded. But then the disastrous Medicare Part D prescription drug plan was passed, health-care costs skyrocketed and SHIP’s continued generous reimbursements landed it in the red. In 2005 it paid out more than $3 million reimbursing out-of-pocket co-payments for mail-order prescription drugs after the first $500 to an annual maximum of $1,000. To restore its financial equilibrium, the SHIP board of trustees — made up of UFT and RTC Executive Board members — raised the premium to $120 per person per year. In today’s world of out-of-control health-care costs, SHIP continues to be an excellent bargain for retirees even with the increased premium.
In 2006, Medicare Part D rules changed so that Medicare-eligible members are no longer entitled to prescription drug reimbursement. The Welfare Fund is picking up the entire out-of-pocket 5 percent cost at the catastrophic level after members leave the donut hole. Non-Medicare-eligible retirees enrolled in SHIP, however, do continue to receive reimbursement. When co-pays for mail-order prescription drugs are over $1,500 for the year, SHIP reimburses after the first $500.
SHIP Director Irene Lospenuso indicated that while there are no immediate changes in SHIP benefits, the Board of Trustees continues to analyze benefits for the future. A new benefits booklet is also being prepared.
She had some good news for retirees enrolled in automatic pension deduction. Instead of quarterly deductions, SHIP premiums will be deducted monthly starting in January 2008. The 4,000 SHIP members not on automatic deduction will be required to make one payment for the full $120 premium in January. To apply for automatic pension deduction authorization call 1-212-228-9060 and leave a message requesting the authorization form which will enable you to have $10 automatically deducted each month instead of paying the the whole $120 premium at one time.
Lospenuso reminds SHIP members that SHIP is a reimbursement program, not an insurance program so proper documentation for each claim is required before you can receive reimbursement. And since SHIP pays claimants directly, missing documentation will hold up payment until the claim is properly filed. She advised retirees not to send original documents because they will not be returned. To provide proof of payment, copy the front and back of your canceled check or copy the check from your bank statement. In addition, be reminded that claims must be filed within one year of the date of service or payment by your carrier, whichever is later.
The entire SHIP booklet or SHIP claim form can be downloaded from the UFT Web site at www.uft.org. Click on My Chapter, then News & Services under Retiree, then SHIP under Benefits. The back of the claim form provides instructions for how to process the claim.
For answers to questions about SHIP benefits or procedures, call the SHIP office at 1-212-228-9060, Monday to Friday, from 10 a.m. to 5 p.m.; or write to SHIP at Bowling Green Station, PO Box 390, New York, NY 10274.
