A word of caution re: STRS Rx plan

From Molly Janczyk, August 24, 2006

Subject: Caution: Basic Plan

Thank you.

Please read below if you are thinking of changing to Basic Plan for 2007. Unless you use few drugs, the $5000 for RX is not based on our copays but on drug costs to STRS. Therefore, the $5000 would run out faster than it would if based on our copays. For those who use few RX or little medical support, it is more advisable.

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From Joyce Baldwin, Aug. 24, 2006

Subject: FW: Basic Plan

Molly,

Below are responses to your questions.

1) Does that mean 100% of what WE would pay at the $25, 75, 125 mail order cost for 3 mo. and $10, 30, 50 Retail costs or 100% of the actual drug cost without the copay?

Answer: It is 100% of tier 2 and tier 3 actual drug costs without the copay. For 2007, Tier 1 costs are completely excluded.

2) For ex., does it add up at costs WE would pay or quicker due to paying more than the copays we would pay.

Answer: It does not add up the costs you as an enrollee pay.

3) If I allow $300 a month for drugs, can I count on the costs that I would pay for those drugs to calculate how far the $5000 goes or lasts by adding the costs I would have paid as listed for recipient for 2007?

Answer: You cannot use the copayments you pay to calculate how far the $5000 goes or lasts for tier 2 and tier 3 prescriptions.

Additional information that may be used in open enrollment materials:

Enrollee's Maximum Annual Benefit --

Once STRS Ohio has paid $5,000 in retail and mail-service prescription drug costs for Tier 2 and Tier 3 drugs for an enrollee, that enrollee pays 100% of the full cost of Tier 2 and Tier 3 drugs for the remainder of the year. The enrollee continues to pay only the copayment for Tier 1 drugs. Tier 1 drugs are not subject to the maximum annual benefit.