PBGC Pension Recipient Age Up From 64 to 65 – Spouse Under Age 65

2 Person Contract

PBGC pension recipient turns 65 in May (their BCBSM medical ends April 30th).

Mail letter to the IRS on April 10th stating that PBGC pension recipient will be eligible for Medicare May 1st.  Include PIN and SS# in this letter.  This will key them to cancel the PBGC pension recipient in their system.  In the same envelope include Form 13441-A for their Qualified Family Member (QFM).   A sample form here is at the DSRA-BT website.  Be very careful that you have the correct premium, both total and 27.5%, for the correct individual HCTC plan.

BCBSM will establish a new contract for spouse only of same metal tier but in a non-HCTC division 60 days before the retiree turns 65.   The spouse may see an invoice from BCBSM for the full amount of the premium in the month prior to the PBGC pension recipient turning 65.  DO NOT pay this unless there is a delay in getting a new PIN number from the IRS and you are not able to make the May 10th payment cut-off.

Once the spouse receives their enrolled letter from the IRS, fill out a new BCBSM enrollment form DSRABT17 and check the HCTC box at the top.  Include your new PIN number on the enrollment form and a copy of your letter from the IRS.   To speed this process it is recommended that you email or fax this information.

Print out the IRS payment coupon (Form 13973) and make new payment to US Treasury - HCTC by May 10th.

If payment cannot be made by the 10th of the month, full payment must be made to BCBSM.

BCBSM in this instance must indicate in their records that the retiree made the payment.  In this situation, the IRS has introduced a new procedure that allows the HCTC AMP enrollee to request an immediate refund of the 72.5% HCTC credit. The retiree files form 14095 with the IRS for HCTC refund for the month of May. (Up to 12 week turnaround time.)  Form available at the IRS website or the DSRA-BT website.

Spouse of PBGC Recipient, Age Up from 64 to 65 – PBGC Pension Recipient is Under 65

2 Person Contract

Spouse of PBGC pension recipient turns 65 in May (their BCBSM medical ends April 30th).

PBGC pension recipient will mail a new 13441-A form to the IRS on April 10th.  Check box 6 on page 1, drop your spouse and fill in the single premium, both total and 27.5%.  Write a short note by box 6 stating, “I am removing my spouse from the policy because they will be eligible for Medicare as of May 1st.”

BCBSM will establish a new contract for PBGC pension recipient only, of same metal tier but in a non-HCTC division 60 days before the spouse turns 65.   The PBGC pension recipient may see an invoice from BCBSM for the full amount of the premium in the month prior to the spouse turning 65.  DO NOT pay this unless there is a delay in the IRS processing and you are not able to make the May 10th payment cut-off.

PBGC pension recipient should call the IRS around April 27th and confirm they have received their change and processed it (assuming IRS has not issued Welcome letter yet). Fill out new BCBSM enrollment form DSRABT17 and check the HCTC box at the top.  Include your PIN number on the enrollment form.

Print out IRS payment coupon (Form 13973), fill out with new amount, and send to US Treasury - HCTC by May 10th.  Your PIN number will not change.

PBGC Pension Recipient Age Up From 66 to 67

Spouse (under age 65) is in HCTC AMP program as a QFM.

PBGC pension recipient turns 67 in May.  Spouse’s eligibility for the HCTC expires May 1st.  Mail a letter to the IRS, approximately April 10th, stating that PBGC pension recipient is turning 67 in May and they need to cancel QFM HCTC AMP coverage effective May 1st.  This should go to the address on the 13441-A form.  Remember, if you’re caught using the HCTC beyond your eligibility date, you could face severe monetary penalties.

If the salaried retiree started drawing their PBGC pension before April 2, 2009 and the spouse is still under 65, the spouse is eligible for the DSRA-BT Qualified Family Member (QFM) subsidy. To request the subsidy for May, you must fill out a new BCBSM enrollment form DSRABT17 and submit to BCBSM in early April. Eligibility for this subsidy is for 24 months which for most households are the months the retiree is age 67 and 68.

Even if the spouse does not qualify for the DSRA-BT QFM subsidy, they will have to notify BCBSM that they are no longer in the HCTC AMP program.   Again, submit a new enrollment form and check “Change of Status” box in Section 1 and write that HCTC eligibility has expired effective May 1st due to PBGC pension recipient aging up to 67.

QFM in HCTC AMP program Age Up to 65

QFM in HCTC AMP turns 65 in May.  Their eligibility for the HCTC AMP expires May 1st.  Mail a letter to the IRS address on the 13441-A form, approximately April 10th, stating that they are eligible for Medicare May 1st and they should remove them from the program.

BCBSM will automatically cancel the QFM’s coverage effective May 1st.

Retiree in HCTC AMP program Age Up to 65

Retiree on an individual contract in HCTC AMP turns 65 in May.  Your eligibility for the HCTC AMP expires May 1st.  Mail a letter to the IRS address on the 13441-A form, approximately April 10th, stating that you are eligible for Medicare May 1st and the IRS should remove you from the program.

BCBSM will automatically cancel the retiree’s coverage effective May 1st


Also has the HCTC FAQ's

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