AUGUSTA -- State health insurance experts will be in Augusta next week to explain how a change in service providers will affect health insurance for retired state employees who are Medicare-eligible.

Frank Johnson, executive director of the Division of Employee Health & Benefits, said the state is changing the type of plan used by 6,800 former state workers, their dependents and surviving spouses.

The change will save the state money because the state share of the monthly premium will be reduced from $320 a month per individual to $238 a month. The premium paid by former state workers to the federal government for coverage will remain unchanged at $96 a month, he said.

"For retired Medicare recipients, in terms of benefits, there will be no effect at all," he said. "The benefits will be exactly the way they are today."

Prescription drug co-pays for those in the program will continue to be $30 for brand-name drugs and $10 for generic.

The state switched from Anthem Blue Cross/Blue Shield to a company called Coventry Health Care, based in Maryland. Coventry provides similar coverage for Medicare-eligible retirees in other states, Johnson said.

"One of the reasons we found Coventry to be a viable vendor was they had implemented a similar program in Pennsylvania and West Virginia," he said.

The change takes effect Jan. 1.

The Maine State Employees Association, which represents retired state workers, referred all calls about the change to the state.

Johnson said one benefit will be added under the new plan: Annual physicals will now be covered.

Eventually, the state may be required by the federal government to join an HMO system for retiree health care, he said. That could present problems for those who live only part of the year in Maine.

"Our big concern is we have a lot of snowbirds that are here in the summer and go south in winter," he said. "We wanted to be sure they have access to physicians or providers they need, rather than specific networks."

So far, the state has conducted more than 20 information sessions to explain the new plan, Johnson said.

"There's a little anxiety when they come in because it's change, but once everything is explained, people are relieved and pleased," he said.

Susan Cover -- 620-7015

scover@centralmaine.com