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LANSING UPDATE

From: Ellen Hoekstra
Legislative Update
December 21, 2010

RETIREE UPDATE FOR DECEMBER, 2010

NEW LEGISLATORS SWORN IN

The state legislature has effectively finished this year, causing this two-year legislative session to draw to an end. Retirees are encouraged to become acquainted with their new state legislators…. really, they can't tell if you voted for them by looking at you! On January 1, Governor-elect Rick Snyder will be sworn into office. Expect a busy first several months at the Capital.

RETIREMENT HEALTH COSTS TO THE SYSTEM DECREASED 13.6 PERCENT

The Michigan Public School Employees Retirement System Board has held its final meeting for the year. In good news, board members learned that total per capita retirement health costs to the system decreased by 13.6 percent from 2008-9, which was well under the goal of keeping costs to no more than a 1.3% increase. Ninety percent of this downward trend was driven by Medicare. The healthcare experience for both pre-Medicare and Medicare retirees was financially in line with what normal costs are for other similar groups.

SHIFT BACK TO MEDICARE ADVANTAGE: NEW CARDS ISSUED

Retirees who are on Medicare should have received information from the Office of Retirement Services about a shift back to a Medicare Advantage plan. This change will help with cost containment for retiree medical care, which is a good thing because sometimes when costs go "up", they end up getting shifted to retirees.

The shift will begin on January 1, 2011. Blue Cross Blue Shield of Michigan’s Medicare Advantage program is called "Medicare Plus Blue" and provides all of the Medicare Part A (hospital) and Part B (medical) coverage as well as health management. If you are eligible for Medicare, you will be automatically enrolled in Medicare Plus and should receive a new BCBSM/Catalyst ID car prior to January 1. When you receive services or fill prescription, you will need to present only this card and will no longer be required to present your red, white, and blue Medicare card.

Some of the advantages of returning to the Medicare Advantage plan include:

• Having to carry and present just one ID card

• Having a single "Explanation of Benefits" statement so you no longer need to scrutinize Medicare statements with Blue Cross's.

If you have not received your ID card or have questions about health care claims, you can call 1-800-422-9146 on weekdays from 8:30 a.m. to 5:00 p.m., Eastern Standard Time, except on holidays.

Ellen Hoekstra
Capitol Services, Inc.