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LANSING UPDATE

From: Ellen Hoekstra
AFT Retirees Update
July 27, 2009

For it being the middle of the summer, a lot is happening in Lansing. One major issue that every AFT Michigan retiree should be aware of is House Speaker Andy Dillon’s proposal to place all public employee and retiree benefits under one umbrella. Based on the information available, AFT Michigan opposes this proposal, which would undercut the ability to collectively bargain for active employees’ health care and to have meaningful input into the MPSERS retiree health care plan that is designed specifically for retirees such as you.

Moreover this proposal feeds into the public misperception that those people who have worked in the public sector “have it too good”, when in fact public employees worked very hard and often traded off salary increases to assure that they would have good pension benefits, including quality retiree health. The public also does not see the increases in health care cost sharing that you have had, mainly because these changes don’t come legislatively but through the MPSERS Board. (See article that follows for the most recent set of changes.)

You are urged to call, write, or e-mail your state representative and state senator, and make the following points:

• You oppose having school retirees lumped into one state mandated pool with every other employee and retiree in the state because retirees’ health needs are different from active employees;
  
  
• As a retiree, you have seen increases in the amounts you pay for your prescription drugs, doctor office visits, and your premium ,and you resent the implication that you “have had it easy” when you worked hard and contributed a great deal throughout your years of work in public education.
  
  
• You would like to know what their views are on this important issue and if they will vote to protect the retiree health care that you earned.

MPSERS Board Approves Changes to School Retirees’ Health care

The School Employee Retirement Board has approved a set of changes in your retiree health care that will begin on January 1, 2010. The package includes two enhancements:

• Your benefits will include “mental health/substance abuse parity”—with 90% coverage on outpatient facility and physician services; and
• Your hospice benefits are improved with coverage expanded from 6 to 12 months, members permitted to retain hospitalization benefits while in hospice care, and coverage increase to include evaluation, consultation and supportive services for the patient and family.

There are increases in cost-sharing as well. There will be increases in the coinsurance maximum, the pharmacy maximums, and the deductibles, with incentives built in to participate in a “health living” survey for non-Medicare members (Medicare members have already completed the survey).

Also, both Medicare and non-Medicare contracts will no longer have a family deductible maximum—the maximum will be computed on an individual basis. This change will affect a relatively small number of members.

Finally, there will be a new copayment each time a member uses an emergency room of $50. However, at AFT Michigan’s suggestion, this copayment will be waived for members who are admitted to the hospital as a result of the emergency room visit. The goal of this copayment is to reduce unnecessary emergency room visits, not to keep members from going there when there is a real emergency.

For more details, mark your calendar for the morning of Saturday, September 12 at the International Union of Operating Engineers, Local 547 Hall in Detroit at 24270 W. 7 Mile Road. AFT Michigan is partnering with Local 547 and other groups to provide a workshop that will go into some depth on these changes to your retiree health care and answer your questions regarding how these changes will affect you.

Days No One Will Answer the Phone at ORS

If you have questions about your retirement benefits, three days NOT to call the Office of Retirement Services are August 7, August 21 and September 4. These are furlough days (unpaid days off) for state employees and state offices will be closed, including the Office of Retirement Services. The Governor established these days as a result of the state’s budget problems.

Prepared by Ellen Hoekstra
Capitol Services, Inc.