Chair Talk

August 2004

July 28, 2004

SERA Chapter Presidents:

SERA CC representatives met with Mr. David Fink COSE) and Peggy Moczul (EBD) on Friday July 23, 2004. During that meeting we learned the following:

1. We received a copy of what the retiree rates (effective October 1,2004) would be for the next fiscal year. The rates are for the State Health, Dental & Vision Plans. We were also given the rates for the various HMO plans. I have enclosed a copy of .1 the rates we were given. If you would look at the HMO rates, you will see that they have increased in cost significantly. The State will be notifying those Retirees that are enrolled in HMO’s that there will be an open enrollment so that Retirees may choose to leave the HMO’s and enroll in the State Health Plan effective October I, 2004. Of course, retirees could choose to stay in the HMO if they wanted. Retirees should be notified by mid or late August by Employee Benefits.

2. The State has not decided how the new Medicare Prescription Drug law will affect our state prescription program. While we were in the meeting a call was placed to the Governor’s office in Washington. Questions were asked and we were basically informed that until the Medicare regulations for prescription drugs were drawn up then there would be no “solid” answers to our questions. Mr. Fink notified me on July 26th the Health and Human Services Dept. issued a press release regarding this program. You may get more information at the following web address: http://www.hhs.gov/news

3. Mr. Fink informed us that the State would continue the Aetna Health Plan for retirees currently enrolled in this program. It would be looked at again next year.

We were notified in the meeting with OSE of changes to our Health Plan. Mr. Fink had remembered that he had said he would give us 90 days notice before implementation date. He would have preferred that the changes be effective October 1.2004. I believe that by agreeing to the November date, Mr. Fink’s credibility has gone up in my eyes.

The following changes to the State Health Plan (not HMO’s) go into effect November I, 2004:

I. Currently, some local pharmacies will fill a 90-day prescription for Maintenance drugs. This practice will cease and the state will only pay for 90-day prescriptions by mail order (Express Scripts).

2. A network for Durable Medical Equipment will be implemented. If equipment is needed and ordered from a network provider there will be no co-pay for the retiree. If a non-network provider is used there will be a 20% co-pay to the retiree.

3. Blue Cross will implement a program (Blue Health Connection) to take the place of the Coordinated Care Program. Blue Health Connection is a free program and is entered voluntarily by the retiree.

4. There will be third co-pay for prescriptions drugs ($30). This third co-pay will be for drugs written by your doctor that are non-formulary drugs. I have enclosed a list of formulary drugs and non-formulary drugs for your information.

We have been aware that these changes have been in the works for a while. I am sure that all retirees will receive information from the Benefits office and Blue Cross. If you would like to contact Blue Cross to schedule a presentation regarding the above health care changes, contact Ronda Couthen at 517-322-4366.

We will be discussing these changes at the August CC meeting in Escanaba. Hope to see you there.

Sincerely,

Bob Kopasz, Chair
SERA CC
P.O. Box 692
Mt. Morris, MI 48458
810-240-8380
bobkopaszserachair@gmail.com

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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