(a) Non-Medicare-eligible retired employees who retired on or before September 30, 2008.  Any retired employee who retired on or before September 30, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under § 36-12-1 — § 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of his or her contract at the group rate for active state employees. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. In addition, any retired employee who retired on or before September 30, 2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for active state employees. Payment for coverage for these dependents shall be deducted from his or her retirement allowances and remitted as required in payment for the contract.

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(b) Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008.  Non-Medicare-eligible state retirees who retired subsequent to July 1, 1989, and on or before September 30, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, shall be entitled to receive for himself or herself non-Medicare-eligible a retiree healthcare insurance benefit as described in § 36-12-1 in accordance with the following formula:

If the retired employee is receiving a subsidy on September 30, 2008, the state will continue to pay the same subsidy share until the retiree attains age sixty-five (65).

Until December 31, 2013, when the state retiree reaches that age which will qualify him or her for Medicare supplement, the formula shall be:

(c) Non-Medicare-eligible retired employees who retire on or after October 1, 2008.  Any retired employee who retires on or after October 1, 2008, shall be entitled, until attaining Medicare eligibility, to be covered under § 36-12-1 — § 36-12-5 for himself and herself and, if he or she so desires, his or her non-Medicare-eligible dependents, upon agreeing to pay the total cost of the contract in the plan in which he or she enrolls. Payments of any non-Medicare-eligible retired employee for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract. Any retired employee who retires on or after October 1, 2008, shall be permitted to purchase coverage for his or her non-Medicare-eligible dependents upon agreeing to pay the additional cost of the contract at the group rate for the plan in which the dependent is enrolled. Payment for coverage for dependents shall be deducted from the retired employee’s retirement allowances and remitted as required in payment for the contract. The Director of Administration shall develop and present to the chairpersons of the House Finance Committee and the Senate Finance Committee by May 23, 2008 a retiree health plan option or options to be offered to retirees eligible for state-sponsored medical coverage who are under age sixty-five (65) or are not eligible for Medicare. This plan will have a reduced benefit level and will have an actuarially based premium cost not greater than the premium cost of the plan offered to the active state employee population. This new plan option will be available to employees retiring after September 30, 2008, and their dependents.

(d) Non-Medicare-eligible state retirees who retire on or after October 1, 2008.  Non-Medicare-eligible state retirees who retire on or after October 1, 2008, from active service of the state, and who were employees of the state as determined by the retirement board under § 36-8-1, and who have a minimum of twenty (20) years of service, and who are a minimum of fifty-nine (59) years of age, shall be entitled to receive for himself or herself a non-Medicare-eligible retiree healthcare insurance benefit as described in § 36-12-1. The state will subsidize 80% of the cost of the health insurance plan for individual coverage in which the state retiree is enrolled in. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such contract.

(e) Medicare-eligible state retirees who retire on or after October 1, 2008.  Until December 31, 2013, the state shall subsidize eighty percent (80%) of the cost of the Medicare-eligible health insurance plan for individual coverage in which the state retiree is enrolled, provided the employee retired on or after October 1, 2008; has a minimum of twenty (20) years of service; and is a minimum of fifty-nine (59) years of age. Payments for coverage shall be deducted from his or her retirement allowance and remitted from time to time in payment for such health insurance plan.

(f)  Retired employees, including retired teachers, who are non-Medicare-eligible and who reach the age of sixty-five (65) shall be allowed to continue to purchase group healthcare insurance benefits in the same manner as those provided to retired employees who have not reached the age of sixty-five (65).