Letters

May 28, 2004

Mr .David H. Fink, Director
Office of the State Employer
P.0. Box 30026
Lansing, MI 48909

Dear Mr. Fink:

At our recent meeting, you requested that SERA provide you with its rationale for our request that Aetna be continued as the secondary insurance provider for a group of Medicare-eligible retirees. We are pleased to do so.

A couple of years ago, when the State was implementing the PPO for persons under 65, SERA requested continuation of Aetna as the health insurer for retirees 65 years of age or older as an accommodation for some of our most senior members who for many reasons are most resistant to change, especially as it affects concerns such as health insurance. We were pleased that your predecessor agreed to continue this coverage for these seniors.

Since that time, the covered individuals have either died or are further entrenched in their fear of change as a result of growing older.

Once again, SERA respectfully requests that the State of Michigan continue the Aetna coverage for these individuals. Our justification for this request is that since all of the individuals covered have Medicare as their primary provider, there is no additional cost of this coverage to the state of Michigan. Medicare establishes reimbursement rates.

Each year, the number of retirees covered by Aetna becomes smaller and smaller, while the factors that precipitated our original request has become exacerbated. Quite frankly, we do not believe the “squeeze is worth the juice.” We believe the human relations aspect of granting our request far outweighs any other considerations in this cost neutral decision.

We appreciate the opportunity to once again “make our case” on the significance of this issue that is probably difficult to comprehend by non-seniors.

Sincerely,

Robert Kopasz, Chair
SERA Coordinating Council