Why increased contributions are imperative to save health care for all: Molly Janczyk

10/27/05

It has come to my attention that some educators hearing of the proposed plan for increasing active contributions to a fund dedicated for health care were DISTRAUGHT upon hearing that they would pay an add'tl $8 per paycheck (based on a $40,000 salary) even though they will receive a 3% - 4% salary increase based on their current salary. $8 dollars per ck would be the first year deduction. Each year the actives would go up .5% for 5 years to total 2.5% ultimately which = $40 missed each check total after 5 yrs. BUT each year they would also receive 3-4% raises based on each year's current salary so they will be earning approx. $500 hundred more by then and realizing $460 after the health care deduction.

Retirees never earn COLAS based on each year's pension but only on their first year of retirement. So, we are always losing more per year on a downhill spiral due to health costs increasing and inflation. We planned and did as we were told to provide for our retirements but no one told us in advance we'd face up to 800% increased in 3 years until AFTER WE RETIRED. We had our retirements robbed and paying these untenable and catastrophic costs have kept health care alive for future retirees with educator organizations stating such with written comments like 'retirees have been unfairly burdened.'

It is only fair that all educators help provide for their future health care and we only WISH someone had asked us to pay an addt'l $8 per ck vs. $600-800 per ck being taken without prior notice.

The health care fund will be used up at this rate as retirees cannot afford to maintain it. As actives we paid for our own health care and paid into the retiree fund for those retired just as anyone on Soc. Sec. does. BUT, the next generation pays for you.

Without the increased contributions of the first year of $8 up to $40 at the end of 5 years per ck THERE WILL BE NO HEALTH CARE FOR THE NEXT GENERATIONS OF RETIREES! Remember, actives still will average out at $500 raises over 5 years to cushion the top deduction at 5 years of $40.

Current retirees cannot afford their own healthcare at rates far beyond their capability of paying. Some retirees actually owe STRS after healthcare premiums are deducted. Current retirees were told we had healthcare second to none and as late as 2001, consultants were telling us we'd never have to worry about healthcare. Retirement literature told us NOT to purchase additional insurance which was not needed and would only erode our pension checks.

Then nearly overnight , our premiums soared and our deductibles and out of pocket maximums increased with our coinsurance going from being paid at 100% to only 80% making us pay for the 20% of medical costs. RX's went from $5 and $10 up to $30-150 for some RX's now down to maximum RX costs at $20-100 each for 90 day supply. The average retiree household has 20 RX's times those numbers. Add that to $500 each deductibles, $501 premium for spouse monthly and $148 beneficiary monthly, few hundred each month for RX's. 2006 premiums are up from current ones shown in presentation. They are only up 3% for 2006 to see how this year goes with this presentation and the new Medicare Part D RX program.

If you retire, you will pay: 2006: NON MEDICARE: Monthly premiums: $148 (self) $501 (spouse) $501 (dependents such as children if you still have them at home up to 22 yrs.)

RX's: $20, 50 or 100 each for 90 day supply times number per household and divided by 3 to get a monthly figure. (up to $1500 each person per yr.)

Out of pockets: $1500 medical (20% you pay up to $1500 each per yr.)

Deductibles: $500 each person in family including children.

IF THIS PLAN FOR INCREASED CONTRIBUTIONS DOES NOT GET IMPLEMENTED: 2007 will most likely bring:

Retirees paying for CATASTROPHIC coverage offered ONLY with :

Deductibles of: $1500 each person in family BEFORE ANY INSURANCE kicks in to help with costs.

Out of pockets :

$2500: each person pays this to meet their 20% up to $2500 each ($5000 max per family)

RX's:

STRS pays up to a certain amount and then enrollee pays 100% of their RX's after that amount. This year's figure is STRS pays the first $3100. This area cost would depend on how healthy you remain and how many RX's you have to take that are not generic (generic: $20) or may be off formulary. STRS decides which drugs on are their list as formulary: brand name ($50 for 90 days) and which brand drugs they decide are not to be on their list (formulary) and so cost $100 each for 90 days. Some drugs which cannot be 90 day supplies and must be purchased retail monthly would be $10 , $25 and $50 respectively.

Please look this all over and decide how distraught to be over $8 per ck vs. paying these amounts upon retirement.

You cannot save enough to cover your retirement health care cost and also be retired. Increased contributions is the ONLY way to dedicate a stream of money for the health care fund and the only possibility that actives will have healthcare in their retirements as FUTURE actives will pay into the fund for YOU!

To have healthcare we must all help pay for it incrementally. This should have been done 15 yrs ago and had we been told of the dangers, we would have volunteered to actually have a retirement with benefits now! As it is, nearly all able, have returned to work to pay for our healthcare for ourselves and our spouses who pay 100% of the premiums and have access only to healthcare by doing so. Without this legislation, that may be all that any of you can expec: Catastrophic only coverage with huge deductibles, access only premiums with every person in family paying 100% of the health premiums plus other costs listed.

A FEW DOLLARS NOW OR UNAFFORDABLE HEALTHCARE LATER!

Professors: tuitions continue to rise and so you can be reasonably assured your salaries will as well.