Chair Talk

October 2009

I recently received confirmation that Speaker Andy Dillon will attend our Friday, November 6, Coordinating Council meeting. The Speaker will join us for lunch and then talk to us about his Public Employee Health Care program (HB 5345). I have asked the Speaker to allow some time for questions at the end of his presentation. In addition to Speaker Dillon, he will be accompanied by a member of his staff and possibly the person who drafted the white paper  that explains his reasons for introducing the legislation for a Public Employee Health Plan. Speaker Dillon also has a web site (newideasformichigan.com) that has information about the legislation.

Alvin Whitfield and I have attended all hearings held on House Bill 5345. I expect the hearings will go on for some time before any action is taken on the bill. I have asked that we be put on the Committee schedule for our testimony on Thursday, November 5. Copies of our testimony will be available at the CC meeting the following day.

On September 25, John Bantjes, Alvin Whitfield and I met with Jan Winters, Susan Kant, Lauri Schmidt, Mary Pichini and Jill Nowicki. The subject of the meeting was a discussion involving proposed changes in the State Health Plan for Medicare retirees. Apparently reimbursement rates for the Medicare Advantage Plan are being cut drastically starting January 1, 2010. As a result of those rate cuts the State has to make a change in the Plan for Medicare retirees. During the time (2008 and 2009) that retirees were enrolled in the Medicare Advantage plan the State has saved well over $30 million dollars. The State has two options to consider: 1) Do a Medicare Supplemental Plan that we had before the Medicare Advantage Plan or 2) Move to a new Medicare Advantage Plan PPO administered by Blue Cross. I expect that we will be asked to attend another meeting soon to discuss these options further and provide our input. No matter what plan the State decides on it will have to go through the same process as other health plan changes have gone through in the past. There will be a signed Memorandum of Understanding between the State Personnel Director (Jeremy S. Stephens) and the Director of Management and Budget (Lisa Webb Sharpe). This MOU then has to be approved by the Civil Service Commission before it can go into effect. The effective date of any changes would be January 1, 2010.

I recently received notice from Susan Kant that premium rates for those retirees participating in HMO have raised dramatically effective October 1, 2009. The rate increases will be in the retiree’s October checks. For those who want to change insurance coverage they may do so in October and November. Normally, you have to wait six months for the change to take place but in this case ORS will make the change when they are notified by the retiree.

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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