Thumbnail sketch of 5/14/09 STRS board meeting...A HARDSELL FOR MEDICARE ADVANTAGE!

From John Curry, May 14, 2009

From talking to CORE's Ryan Holderman, it was evident that today's STRS board meeting featured a hard sell by Greg Nickell and Sandy Knoesel for a Medicare Advantage program to be initiated next year for STRS retirees. Sounds like the presenters (I consider them salesmen) from Ingenix did their job, doesn't it? Three options are being considered at present.

1. A MANDATORY plan forcing of ALL retirees to go on a Medicare Advantage program (like exists at SERS).

2. An "opt out" version of #1 above wherein retirees could "opt out" of a Medicare Advantage program and revert to conventional Medicare.

3. A program similar to the current OPERS model in which a retiree could opt between choosing Advantage or the conventional Medicare.

Looks like, with a Medicare Advantage program, that STRS will get to play both doctor and healthcare insurance adjustor if a Medicare Advantage program is adopted, won't they?

We will have to fight this battle with all we have!

Ryan Holderman also mentioned that STRS discussed some "preliminary" figures on what healthcare will cost for retirees next year. These rates are not "set in stone" and so should be regarded as such. Here they are for some healthcare programs:

Medical Mutual "Plus" Plan for pre-65 year old retirees and spouses:

Retiree now pays $207 and will go to $233 per month!

Spouse is currently $760 and will go to $931 per month!

Basic Plan for per-65 year old retirees and spouses:

Retiree now pays $73 and will go to $76 per month!

Spouse is currently $336 and will go (yes, it went down) to $303 per month!

Is there any doubt that STRS wants to force retirees to go to a lesser coverage plan?

Basic Plan for Medicare eligible retirees and spouse:

Retiree now pays $73 and will go to $76 per month!

Spouse is currently $40 and will remain the same at $40

It should be noted that Cervantes, Brooks, Leone, and Puckett questioned the wisdom of changing to an Advantage plan.

More tables and information will be forthcoming from Ryan and others. Stay tuned.

John