A red herring from chef Damon's kitchen?

From Jim Kimmel, September 13, 2006

---------

I received the HEALTH CARE NEWS from STRS yesterday and was struck by one statement: "the Health Care Stabilization fund will be adequate to fund the health care program on a full-reserve basis (ie., a 30-year funding period).

What is this all about? What does "full-reserve" basis mean.? First of all an unfunded liability of 30 years is only a suggestion even for the whole pension system -- a guideline. I suspect that what they are saying about health care is that even if we win the 5% increase from teachers and school boards there will be no help on the horizon to lower spousal or beneficiaries' health care premiums because they are "saving" the money going into the health care stabilization fund to get to that 30 year "funding period". It seems to me that they are promoting the Basic Plan at the same time they are raising the premiums of the OMM and Aetna plans to do what Dyer wanted all along -- "Get out of the health care business". Like the frog on the skillet, it will be gradual as the heat is incrementally turned up. Unlike the frog on the skillet WE will notice it right away -- and are noticing it right now. Where did this 30 year funding period come from? Just an excuse to keep raising premiums so that only the sickest will stay in the good programs until they will be "too expensive" and will "need to be canceled" just to attain some unnecessary goal of 30 year funding period STRS made up to destroy the health care program -- and a lot of retirees in the process.

Why is STRS so "worried" about a 30 year funding period for the Healthcare Stabilization Fund now when they previously did not even want to have a dedicated revenue stream and have been extremely cavalier about health care in general. I think there is a RED HERRING being served up and I think the name of the chef is Damon!!