Nancy Hamant: WCRTA STATEMENT TO STRS BOARD, OCTOBER 19, 2006

WARREN COUNTY RETIRED TEACHERS ASSOCIATION

NANCY B. HAMANT, LEGISLATIVE CHAIR

TO: STRS Board

Date: October 19, 2006

SUBJECT: REDUCTION OF MEDICARE REIMBURSEMENT

My name is Nancy Hamant. I am a 28.6-year STRS member. Thank you STRS Board for the opportunity to speak to you on behalf of Warren County’s educators.

Our WCRTA members are deeply concerned that the STRS Board is considering reducing the current Medicare monthly reimbursement/subsidy for 2007.

WCRTA members do not understand this action for the following reasons:

At age 65, after STRS members join Medicare, Medicare becomes the primary payer covering 80% of a medical charge, with STRS paying 80% of the 20% remaining after Medicare pays. This is an enormous savings for the STRS Health Care Stabilization Fund

In 2006, STRS started receiving Medicare Part D payments for drugs purchased by STRS Medicare recipients. STRS has stated that the Medicare Part D payments will extend the STRS Health Care Stabilization Fund by almost THREE years

WCRTA understands that Congress intended the Medicare Part D payments to ensure that businesses (in this case STRS) did not “DROP” retirees from prescription plans nor unduly charge them for prescriptions

It is unconscionable that STRS is considering reducing the monthly Medicare subsidy to STRS Medicare members. This will direly affect STRS’s oldest members. They are being hit doubly hard by reductions in health care services, increases in monthly premiums for health care and now this reduction.

WCRTA requests that STRS reconsider this action and not let it become another loss of benefits as the “thirteenth check”.