Deborah Silverstein's speech to STRS Board, August 14, 2008

As an STRS benefit recipient I am very thankful for the health care insurance that is offered to me. I can also appreciate the difficulty STRS faces in providing that benefit to me and I do realize that STRS is not required to provide that benefit. I retired 3 years ago from the Stow-Munroe Falls City School District. When I retired, my premium was $144 per month. Next January it will rise to $207 per month. That is a 43.75% increase over three and one-half years.

HB 315 will provide funding for health insurance for a while, but at a cost to still-active teachers. In addition to the increased percentage asked of them, many, who describe themselves as "hopelessly resigned" to the actuality of HB 315, feel that the increase required of Boards of Education will be passed on to them through decreased compensation settlements at the bargaining table. The money has to come from somewhere, and most school districts find it increasingly difficult to pass levies in order to provide the students with the education they deserve. As one active teacher states, "We can't just bandage the wound. We need to stop the bleeding." The ultimate goal has to be to change the way the system works and that change will have to be fundamental and profound. HB 315, while necessary under the present system, will only provide temporary relief and is not a solution to the problem as a whole.

As members we put our trust in you to make decisions on our behalf and hope those decisions are in our best interest. Members also look to you for leadership on issues such as this one. I strongly urge this Board to examine every possibility for a long term solution to the problem, including and especially HB 186 and SB 168, known as the Health Care for All Ohioans Act. That legislation, if enacted would provide an improvement in benefits at a reduced cost to individuals while resulting in no cost to STRS. In addition, it would save school districts millions of dollars.

I realize that this solution does not yet exist and there are many who think it is a good idea, but that it will never happen. I say, "Don't concede the war before you fight the first battle." Yes, it will be a great challenge and it will take much work, but it can be done. This is an issue where no one can sit back and wait for "them" to do the right thing. We all have to be "them" and work to make this happen. As a member, I hope you will be willing to lend us your support and work with us to provide a permanent solution.

Deborah Silverstein
Kent, OH
dsilverstein@neo.rr.com

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.

Alice Faryna M.D.
alicyna@yahoo.com
614-442-9310

Click image to enlarge.

.

.


.
.
.
.