Jim Kimmel and Mark Meuser re: Medicare Advantage

Jim Kimmel to Mark Meuser, August 15, 2007
Subject: Fw: Medicare Advantage

Mark:
Thanks for your prompt reply. While I may not even be around in 10 to 12 years many retirees will be. Please keep an open mind to other health care alternatives if the legislation does not pass. There have been quite a few "errors in judgment" from this and previous boards as we all know. Keeping an open mind, but one focused on the needs of all retirees, should be primary.It is OUR money!

I would also like to suggest that the 88% rule which makes out of retirees "haves and have-nots" should be phased out. Those who currently enjoy the fruits of 5 more years of teaching should be able to keep their extra benefits. But it was a bad decision and has had a bad result for the fund. Doing this one thing could very well bring us back to 30 years AND do a lot for the health care stabilization fund.

When I retired the choice was not there. I might have taught beyond 30 years. The additional years back then did not provide much incentive. And STRS can't afford this largesse. Stopping the 88% situation over, say, five years to give those nearing retirement now a way to plan would also show the legislature STRS was truly interested in cutting excesses done during the Deyer era. Of course most of those board members who voted for the 88% rule were eligible to benefit from it. I understand that you were not on the board at that time. But that IS the long and short of it.

Thanks for reading my concerns

Jim Kimmel

From Mark Meuser, August 14, 2007
Subject: RE: Medicare Advantage

Dear Mr. Kimmel,

Thank you for your e-mail. I appreciate hearing from you.

I have noticed a number of articles describing both benefits and concerns regarding the issue of Medicare Advantage. If STRS does offer a Medicare Advantage plan, it would be totally voluntary. I would certainly not be in favor of it if it were mandatory. But as it is has been proposed, it could result in a reduction of premiums for some retirees. As such, it is worth looking into. It is on the agenda for this month's meeting.

STRS does not want to get out of the health care business. It may be forced to do so, though, if the legislation to assess teachers and school districts an additional 2.5% is not passed. If that legislation is not passed, the Health Care Stabilization fund will run out of money in about 10 or 12 years. Then we will be out of the health care business.

Sincerely,
Mark Meuser