May 18, 2009

We received your inquiry to ACAP regarding the issue of dental coverage for retirees.  This is an issue that has come up in the past for retirees.  I spoke with Rene Yoder from NMSU HR Services and she provided the following information:

“The retiree health insurance is a private contract directly with BCBSNM specifically for the retiree population. The active employees are part of the State of New Mexico medical and dental programs. The retiree program is completely separate and does not include dental. We have, in the past, looked into dental for retirees, however most dental plans require a minimum level of participation to guarantee rates and our retiree population is relatively small. It is difficult to find an affordable dental plan for small groups.”

“If an employee has the dental plan when they retire, the state of New Mexico does offer the retiree COBRA coverage for up to 18 months at 102% of the cost of the plan.”

They have researched adding a dental plan for retirees but the cost of the plan is such that the majority of retirees would not be able to participate.  In addition, there is normally an employer contribution required and given the state of current financial issues, it is highly unlikely that NMSU would even be able to implement such a plan.

If you have any other questions or concerns, please don’t hesitate to contact me at 527-7745 or you can contact Rene Yoder at 646-2047.