Some health care facts for educators

Some health care facts for educators

Health Care Champions / Health Care Initiative

Power Point Bullet Points:

STRS Health Care Program covers retirees and disabled members.

· STRS provides a premium subsidy for members only; spouses pay full cost of premium.

· Non Medicare for 2007:

30 year service retiree cost is $651 of which STRS pays $488.

Spouse pays full cost of $581.

15 year service retiree pays $407 and $581 for spouse.

Retiree with a covered spouse pays $744-$988 per month.

· Medicare for 2007:

30 year retiree pays $67, spouse $301 = $368 per month.

· STRS is not required to provide retirees with health care coverage.

· STRS Health Care Program (SHCP) is currently financed by:

--- 1% of employer's contribution.

--- Revenues earned from investment of the money in the fund.

--- Premiums paid by members.

· The Health Care Stabilization Fund (HCSF) began in 1984. $5.4 billion has been allocated since 1984.

· STRS is spending $1.3 a day to pay our SHCP costs.

· The fund stands at $4 billion dollars today.

· There is no ongoing dedicated revenue stream for SHCP.

· In 2009 STRS will start to use the principal in the fund to pay costs.

· Contributions to STRS currently limited by law:

--- 10% from members.

--- 14% from employers (the amount has not changed

in 23 years).

· 1% of the employer's contributions go to HCSF.

The Crises at Hand / Another 5% is Needed to Sustain the HCSF for the long term!

· The Health Care Initiative Solution

--- Cost shared by both employers, and active teachers.

--- Employers will contribute 2.5%, and active teachers

will pay 2.5% of the needed 5% increase.

--- These costs will be phased in over five years at .5% a

year. These contributions will be permanent.

--- At the end of the five year phase-in a teacher

earning $40,000 a year will pay $40 per mouth.

--- The new dedicated revenue stream will generate

$94 million for the HCSF, and about $500 million a

year by the end of the phase-in period.

Benefits / Consequences

· Help employers recruit and retain valued career educators

· Help employers manage workforce, accompanying payroll, and health care costs.

If Initiative Fails

· You will have skyrocketing HC premiums after 2009, and eventually No Health Care Benefits.

· Educators will have to bargain for large salaries to be able to save for health care in retirement.

· Educators will have to work well into their 60's, 70's or longer, which will greatly increase school districts health care costs.

· The State of Ohio, and Ohio's taxpayers will have a huge problem with hundreds of thousands uninsured seniors educators.

Go to www.concernedohio.org click on the link to www.STRSOH.org/champions.

Once connected to the Health Champions webpage Click on Online Resources; then Click on Frequently Asked Questions About the Initiative. You will find more complete discussions about key points. The bottom line is that the pension fund is not a dedicated source of revenue now or in the near future for our health care. They are separate funds, and health care is not guaranteed by law. STAY on message!