Kathie Bracy's Blog: Dr. Alice Faryna, M.D.: Speech to STRS Board, August 14, 2008

Presentation to the Board members of STRS:

We, as retirees under STRS, are here to express our concern about the rapidly deteriorating status of employee and retiree health benefits affecting not only Ohio but the entire nation. For example, the state of California, facing a budget shortfall, has been forced to reduce the teaching force. In Ohio, we are especially concerned that the health benefit is not mandated. The most recent STRS health care newsletter states that introduction of new technology and drugs is driving costs up 20 to 30%. Current STRS strategies include education of benefit recipients about active management of health problems, chronic conditions and how to be better purchasers of health services. It is encouraging to read that STRS also plans to participate in influencing the health care agenda on the state and national levels.

The proposal to support Ohio HB 315, which calls for more contributions from teachers still in the workforce, is at best a temporary solution, and imposes additional financial burdens on teachers who are already facing increasing out-of-pocket costs from higher deductibles and/or co-payments. The costs to the districts are considerable. Please refer to the spreadsheet we have prepared on district health care costs which currently range from 11% to 30% of payroll, with a median of about 18%. Legislation is available at both the state and national levels to lower this percentage to single digits. (Ohio HB 186/SB168, or the national plan, HR 676).

We urge the Board to be more aggressive about comprehensive reform. Lower costs can only be achieved by creating the largest risk pool possible, removing profits and administrative waste from the formula, and allowing negotiation of drug prices.

We ask that you consider endorsing a single payer system at either the state or national level. This has the support of numerous organizations:

The Columbus City Council joined several other City and County governments in endorsing a state single payer plan.

The Cincinnati Federation of Teachers endorsed the single payer plan last fall.

This spring at the national annual conference of U.S. mayors, the single payer plan was unanimously endorsed. A survey of AMA members shows that 59% of physicians support single payer, including the 126,000 members of the American College of Physicians, and the 14,000 members of Physicians for a National Health Plan. Two years ago, the California legislature approved a statewide single payer plan which was vetoed by the governor. A compromise plan which retains a for-profit insurance industry and mandates purchase of insurance, was rejected by the Senate as unaffordable. California is now preparing another single payer bill.

We would be pleased to meet with the Board or SPC at another time for a more comprehensive discussion of the materials supplied in this packet.