Chair Talk

May 2005

As many State Retirees are probably aware, there will be a change from Aetna the current health care provider to Blue Cross/Blue Shield for over 8,000 retirees. The State had approached all vendors seeking cost savings due to the budget shortfalls Michigan is currently faced with. It was determined by the State that there would be significant cost saving for the next 2 years if the switch was made to Blue Cross rather than Aetna. Aetna had been approached by State officials seeking cost savings but was unable to accommodate the State s request.

I am aware that many retirees have been enrolled in the Aetna program their entire lives. SERA had been advised for the past few years that the Aetna program would continue as long as there was no extra cost involved. Blue Cross had made a proposal to the State to serve the Aetna retirees with no added administrative costs. The cost savings are significant and if the switch was not made, I am sure that something else would have happened (increased co-pays & deductibles) for the State to save costs.

SERA is working with Employee Benefits & Blue Cross to make this transition as smooth as possible. There are meetings scheduled in May and June to accommodate as many Aetna retirees as possible to aid in the transition. The transition from Aetna to Blue Cross is scheduled for July 1, 2005.

Notices will be sent to Aetna retirees the second week of May. This mailing will include the Retiree Benefits Bulletin, a list of the scheduled state-wide meetings and a chart showing current Aetna coverage compared to the Blue Cross State Health Plan. In some cased the benefits are somewhat improved. I would urge Aetna retirees to attend one of the scheduled meetings. All retirees in the Aetna Health Plan have to remember that Medicare is normally the primary insurance carrier and that the Blue Cross Plan is secondary. I am sure that Employee Benefits and Blue Cross will go the extra mile to make this transition as smooth as possible.

I have Blue Cross as my secondary insurance and have been more that satisfied with the service/coverage I have received in the past. What we need to remember is that the 800 numbers for Employee Benefits (877-766-6447) and Blue Cross (800-843-4876) have been set up to accommodate those retirees that have questions/concerns involving this transition.

As of this date, we have not been informed of any other Benefit changes for State retirees. In the event there may be changes forthcoming, communications will be sent to all Chapter Presidents.

Editor’s note: Bob Kopasz is Chair of the Michigan SERA Council. He may be reached at P.O. Box 692, Mt. Morris, MI 48458; phone 810/240-8380

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