Public Employee Press

HIP/VIP raises limit on 2008 drug coverage

The annual limit on prescription drug coverage for retirees in the HIP/VIP medical plan is $2,235 for 2008, an increase of 4.7 percent over 2007.

The annual maximum for the HIP/VIP drug benefit was $2,000 in 2006 and $2,135 in 2007. Medicare Advantage plans like HIP/VIP generally require subscribers to use their prescription drug plan, even if the participant has the right to one provided by their former employer. So, when retirees enroll in HIP/VIP or any other Medicare Advantage plan, the DC 37 prescription drug benefit becomes their secondary plan.

Once subscribers in these plans reach the annual limit or coverage gap, theDC 37 Health and Security Plan picks up their drug coverage for the balance of the calendar year.Every year, HIP provides the DC37 Health and Security Plan with a list of union retirees in HIP/VIP. The plan then sends a reminder about the drug coverage procedures to the affected retirees.

Retirees with questions about their drug coverage may call the H&S Inquiry Unit at 212-815-1234.