STATE

Westar Energy retirees' benefits to change

Move will impact about 1,700 people older than 65

The Associated Press

Westar Energy is notifying many of its retired employees that they will have to find their own Medicare supplemental plans beginning Jan. 1, rather than receiving group coverage through the company.

The change will affect about 1,700 retirees who are older than 65 and qualify for Medicare, Westar spokeswoman Gina Penzig said.

Westar will give the employees stipends to help buy individual Medicare supplemental plans, known as Part B, the Lawrence Journal-World reported (http://bit.ly/1qKKkib ).

“We worked with a third-party consultant to look at this group of retirees and the type of care they were needing,” Penzig said. “The results showed that under this change, at least 96 percent of them will be better off. Instead of having one plan trying to fit everyone’s needs, they’ll work with someone to figure out what level of coverage and cost of coverage fits their needs.”

Supplemental Part B Medicare benefits include such things as doctors, laboratory expenses, X-rays and other routine costs.

Westar said the company spends about $3.5 million a year for retiree health benefits. The change will help the utility reduce its costs, Penzig said.

Westar retirees will select their new plans through OneExchange, an exchange marketplace operated by Towers Watson. The company will set up employee meetings with individual counselors to help them choose their coverage options, Penzig said.