Shirlee Zerkel: Some answers from Greg Nickell

From Shirlee Zerkel, March 31, 2010
Subject: Fwd: Question about 2011 Benefits Lever

Here are some of my questions and Mr. Nickell's answers to information from the March 18,2010 Health Care Report from the Member Benefits Department. I have his permission to send it out.

Shirlee
From Greg Nickell, March 31, 2010
Subject: RE: Question about 2011 Benefits Lever.

Dear Ms. Zerkel:

I have attempted to answer your questions below. My responses are in red.

Respectfully,

Greg Nickell

From Shirlee Zerkel, March 30, 2010

Subject: Question about 2011 Benefits Lever

Dear Mr. Nickell:

Someone who attended the last Board meeting brought me the handout concerning Health Care. I have some questions about the Prescription Drug Benefits. I understand the first one about Delect Home Delivery in summer 2010. But the information mentioned next about a Part D (PDP).

1. For the retiree, will this be like the Medicare Part D? It would be an actual Medicare Part D plan and replace the current prescription program for those who are enrolled in the STRS Ohio health plans administered by Aetna, Medical Mutual and Paramount and eligible for Medicare.

2. Will there be another premium for those over 65 to pay? No, it would continue to be part of the premium that includes the STRS Ohio medical coverage.

3. Will this Part D be optional for us? It is not optional if you enroll for STRS Ohio medical coverage. You can not purchase medical or prescription coverage individually under the STRS Ohio programs.

4. Whose federal subsidy will be increased: Express Scripts or STRS's? STRS Ohio would receive more subsidy money which would be placed into the Health Care Stabilization Fund to provide subsidy to retirees in the future.

5. Then on page 13 of the handout, it states that STRS Ohio administrative cost be eliminated.

Would that means STRS staff would be reduced and the subsidy would increase? It means IT staff maintenance of the programs to file monthly subsidy claims to the government would be eliminated and the monthly staff time spent reconciling the monthly submissions and also the annual reconciliation of the prior year is eliminated. These eliminations only equate to partial reductions in total time for the individuals doing this work. For both the IT staff and the health care services staff, the individuals involved all have work beyond 40 hours on average each week even with the elimination of this requirement.

Thank you for considering my questions,

Shirlee Zerkel