Chair Talk

June 2008

On Monday, June 2, 2008, SERA representatives (Alvin Whitfield, Leland Hall, John Bantjes, Bob McKerr and I) met with representatives of the State (Sharon Bommarito, OSE Director; Tom Hall, OSE; Jan Winters, Civil Service; Susan Kant, Emp. Ben. Director and Lauri Schmidt, Emp. Ben.) to discuss the impact of the proposed health care changes for retirees that are scheduled for October 1, 2008. I am hopeful that this will be the first of a series of meetings to discuss concerns retirees have about the proposed increases of co-pays and deductibles. In the past we have basically received/tracked what active non-represented (NERES) employees receive regarding health care changes. That system has worked well over the years, but the dramatic increases in co-pays and deductibles (especially prescription drugs) proposed for 10/1/08 calls for more attention from this organization. The proposed changes will have a more detrimental effect on those retirees that have lower pensions. Using my situation as an example: I utilize the home-delivery and generics as much as possible and my co-pays total $592 per year now—if the proposed increases go in effect my cost would be $1600 per year. That increase is almost 3 times what I am currently paying. I believe that those retirees that are on the lower end of the pension amounts will feel the greatest impact. I also believe that we, as an organization need to voice our concerns about this issue and having meetings with representatives from OSE and Civil Service is where we need to start.

I have been saying for some time that the rising cost of health care is one of the biggest issues facing retirees—this year is a prime example. It seems that more employers (public/private) utilize cost-sharing as a way to reduce their health care costs. I believe that we need to do more than just pass on the costs to those that can least afford them. The cost of health care is not just a State issue but also a national issue.

We will continue to monitor any bills that are introduced that may have an impact on retirees. Alvin Whitfield and I have a meeting with Representative Mark Meadows on Monday, June 9. Representative Meadow’s staff called me to set this meeting up. I am sure that HB 5545 will be discussed.

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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