Check out other articles by CTMirror.org on Health at http://ctmirror.com/health
Up next: Shared sacrifice for retired teachers
By Jacqueline Rabe Thomas Feb 15, 2012 CTMirror.org
Excerpts:
Malloy wants to reduce the state's share of an individual teacher's health
care from one-third to one-quarter, saving the state $7.5 million a year.
Over the past four years, nearly 3,100 retired teachers have dropped out of
their local health plans to join the state plan, according to the Office of
Policy and Management. This has led to a 32 percent spike in enrollment in the
state's plan and millions in increased costs for the state.
***********************
Waves of retired teachers once
covered by their districts' health plans are opting to get insurance through
the state's less expensive policy.
If Gov. Dannel P. Malloy
has his way, his budget will slow this
migration by increasing the cost the state's 32,000 retired teachers and
spouses would pay to join the state's health plan. Almost two-thirds of the
state's retired teachers get insurance through the state.
Malloy wants to reduce the
state's share of an individual teacher's health care from one-third to
one-quarter, saving the state $7.5 million a year.
"This will encourage them
to stick with their local [health] plans," said Ben
Barnes, the administration's budget chief. "The state is not in
a position to be the insurer of last resort for this many people that were
never state employees."
Over the past four years,
nearly 3,100 retired teachers have dropped out of their local health plans to
join the state plan, according to the Office of
Policy and Management. This has led to a 32 percent spike in enrollment in the
state's plan and millions in increased costs for the state.
But for retirees like Janess Coffina, who taught in Stamford and Greenwich
public schools, she is counting on the state plan to be her refuge when she
turns 65 so she can abandon the skyrocketing costs her districts charge for
health insurance.
"I know times are tight
for everyone, individuals and governments alike. I just shake my head at how
Connecticut teachers as a group seem to be on the wrong end of the stick in
retiree benefits," the retired Spanish teacher wrote in a newsletter
to her colleagues of the $915 she pays a month for health care.
Barnes and the lobbyist for the
Connecticut Association of Retired Teachers said districts across the state are
purposely directing their retirees to enroll in the state's plan, a move that
can save municipalities millions each year. When a retired teacher joins the
state's plan, districts shed all financial responsibility.
"They're getting them off
their tab," said Randy Collins, who represents the state's retired
teachers at the state Capitol.
Plausible solution?
Retired teachers say they doubt
that this increase will lead to fewer retirees signing up for the state's
health plan.
The $47 a month proposed
increase to $226 a month for a retiree still has the state's plan costing
significantly less than local coverage.
For example, in Greenwich the cost is
$915 a month. And in other Fairfield
County districts, the
cost is easily $800 a month for retirees, Collins said.
"When you consider what
I'm paying now (for local coverage), this will absolutely not convince me from
enrolling (in the state's plan)," Coffina said
during an interview. She spends one-quarter of her pension on health care.
Barnes said Stamford is one of the main culprits in this
influx of teachers switching to state coverage. A Stamford official Wednesday acknowledged that
their retirees do have incentives to move to the state's plan.
"We don't give any
incentives, the incentives are already there," said Meryl
Meitelen, an official in the city school district's
benefits department.
"It's up to them, they
have a choice. If they want to leave, they can, it's going to be cheaper for
them to do that," she said. The state's plan also covers hearing and
vision and covers much more dental than Stamford.
Officials from the Teachers'
Retirement Board, which administers the state's health plan for teachers, have
been unavailable since this proposed increase was announced last week. It is
unclear where the 3,100 retired teachers who joined the state's plan had been
teaching. It is also unclear if this proposed state increase will somewhat
equalize the costs of state and local premiums.
Regardless if the increase
slows the pace of teachers enrolling in the state's plan, the president of the
retired teachers group says this change will have a huge impact on the 19,000
retired teachers already on the state's plan.
"This is getting to be
extremely expensive," said Michael Norman, a retired teacher from Manchester. "So many
teachers are already making the decision between food and medication. This
isn't going to help that."
Barnes said he is confident the
changes will not limit retired teachers from getting insurance.
"It's still very
competitive with other plans," he said.
This health plan has been on a
fiscal roller coaster the last several years. The Democratic controlled General
Assembly and former Gov. M. Jodi Rell deferred paying
the state's $30 million annual share for two consecutive years.
Last year, Malloy fully funded the health plan, and did not ask
retired teachers to chip in more, despite the
"shared sacrifice" mantra he said was needed to close a historic
budget gap.
This year they weren't so
lucky, as Malloy needed to find $330 million in new money
for his education initiative,
his state employee pension
initiatives and his small rate increases for nonprofit
service providers.
"This is not
acceptable," said Collins of the state increase. "The state should
have been raising their share not decreasing it."
The retired teachers also
suggest that the state consider increasing the $34 a month it gives
municipalities for each retiree they cover. Instead, Malloy's proposed budget
would send $7 less each month for every retiree in a move to save the state $2
million.
"I would like to see the
state encourage towns to do the right thing. This isn't doing that," Coffina said.