Shirlee Zerkel outlines proposed HC changes

From Shirlee Zerkel, April 13, 2009

Subject: Staff proposed health care change!

To All,

I would like to remind you that the staff has proposed a plan to cut $81 million from the 2010 health care budget for retirees. In short, raises in premiums and deep cut in benefits. These are to be discussed at the Friday April Board meeting. I am not sure if a vote will be called for them.

Some of 2009 and 2010 plan items from the "Report From the Member Benefits Department-Health Care of March 20, 2009 are as follows:

2009

1. Announce to the membership the elimination of open enrollment for the health care year 2011.

The last regular open enrollment will be in Oct. 2010.

2. Eliminate postage-paid envelopes for mail order refills.

3. New arrangements for all specialty drugs.

4. Start new low-cost generic in the mail program (like we can get at our local Walmart, etc.)

2010

1. Last Open enrollment in Oct. 2010 for 2011 as announced in 2009

2. Modify fully insured plans premium subsidy method-increases for Ault Care, Kaiser and aramount.

3. Those plans, like the self-insured, coverage levels will likely be reduced.

4. Plus and Basic Drug plans merge with a $200 deductible before STRS pays any of

medications.

5. Additional step therapies for new drugs prescribed

6. Add another tier for prescription drugs. Enrollee will pay 100% of discounted cost.

7. Board has 3 options:

...A. Reduce what STRS pays of the premium to 60%/30% from 75%/37.5%

...B. Limit Medicare Part B reimbursement to STRS health care enrollees only

Reduce STRS premium subsidies to 65%/35% from 75%/37.5%

Increase deductible Plus from $500 to $1,000 for in-network and out-of-pocket to $2,000

Increase deductible Basic from $1,500 to $2,000 for in-network and out-of-pocket to $4,000.

...C. Two year increase in employee contributions plus 2009/2010 plan changes.

Next steps for 2010 Health Care Program

1. Finalize Scenario 2 options in April -- Board Action requested!

2. Contract summary presented for ASO RFP

3. 2010 HCAP program -- Board action requested

4. Medicare Part D subsidy -- Board action requested.

There are more plans in the report for our future in the section called: "Parking Lot items". Wonder what they mean by "Parking Lot" I don't think the most of us, retirees want to go there for the cuts are even more drastic.

These are the staff recommendations for our reductions. But I did not see recommendations for cuts to bonuses, wages, and reduction of staff. Of course they would not recommend that, for it would affect them personally. I realize that the cuts to our benefits effect a much greater savings than cuts to theirs, but it would be nice to see some pain shared when the system is in such a financial crisis.

In short, the future of health care for us is not really health care at all!

Shirlee Zerkel