Medicaid Update

Dear Members of the Maryland General Assembly,

The Department of Budget and Management is writing to inform you that we have updated the Frequently Asked Questions (FAQs) document on the transition of State retirees to Medicare Part D for their prescription drug coverage effective January 2025. These updates reflect some of the questions and concerns raised by legislators and retirees during the recent session and other important updates since January. These updated FAQs can also be accessed via the DBM website at this link:

In addition to the revised FAQs, we have developed a very high-level timeline of the transition process. This timeline may be useful for sharing during community meetings and other public engagements.

We hope these resources will help you answer questions from your constituents and explain the ongoing transition process. Additionally, DBM is in the final stages of the procurement process for a Part D Administrator, and we will share further updates once that vendor is onboarded, likely by July.

Thank you for your continued support and dedication to the well-being of Maryland’s retirees.

Thank you,

Dana Phillips
Director, Legislative and Intergovernmental Relations
Department of Budget and Management

Retiree Medicare Part D Transition Timeline:

Frequently Asked Questions (FAQ) About Retiree Prescription Drug Coverage Change Effective January 1, 2025:

What you need to know:

The State of Maryland’s prescription drug plan coverage for Medicare-eligible retirees is changing on January 1, 2025.

The current State-provided prescription drug plan for Medicare-eligible retirees will end on December 31, 2024. Retirees will need to enroll in a Medicare Part D plan during Medicare open enrollment between October 15 and December 7, 2024, to have prescription drug coverage on January 1, 2025. You will select a Medicare Part D plan from the options that will be available in your geographic area. To assist you with this transition, the State will provide one-on-one counseling to walk through your options with you this Fall.

We realize this is a big change, and you probably have many questions and concerns. We are committed to ensuring a smooth transition to your new coverage, including providing one-to-one counseling assistance in selecting a Part D plan. As soon as we have more details to share, our team at the Department of Budget and Management will answer all your questions and address your concerns.

What you need to do:

You do not need to do anything right now. Your current prescription drug plan coverage will continue through December 31, 2024.

Medicare eligible retirees do not need to enroll in Medicare Part D at this time, but here’s what you can expect in the coming months:

  • The State will be contracting with a company to offer both in-person education and informational sessions at locations around the state as well as virtual sessions online (via video). You will also have access to one-on-one counseling to assist you in selecting a plan.
  • Once a company is contracted, you will receive more information this summer (likely by July) regarding in-person and virtual education sessions that will help you understand what’s happening and what you’ll need to do. Among other information, these sessions will provide details about how to meet with a counselor and how to enroll in a plan during open enrollment.
  • The 2025 Medicare plan details will be released in early Fall (typically in September).
  • During Medicare open enrollment this fall (October 15–December 7), you will select a Medicare Part D prescription drug plan online or by phone. You will be able to speak on the phone with a licensed benefits counselor who will assist you in selecting a prescription drug plan.
  • You will need to take action before the close of open enrollment or you will not have prescription drug coverage after December 31, 2024. 

Please keep an eye out for future communications from the State with details of this transition.