Chair Talk

May 2007

I would imagine that everyone has heard, seen or read all kinds of articles and news reports discussing the current budget conditions in the state. It is not my intention to discuss in detail what my views are. I am hoping that state retirees do not suffer any negative financial burdens as a result of the current budget crisis. We have not been informed of any specific changes in co-pays/deductibles in health, vision, dental or prescription drugs that may loom in the near future. I am sure that State officials will meet with SERA representatives if any changes/modifications are being planned.

I attended the 2007 Express Scripts Outcomes Conference last week. The amount of money that is spent on prescription drugs is massive if looked at on a national scale. State retiree drug costs total over $160 million with retiree co-pays of about 11% of that figure. We, as consumers/retirees can save the state and ourselves money if we do 2 things: 1) user generic drugs and 2) use the mail-order program. Currently retiree prescriptions are about 53% generic drugs. Mail-order prescription drugs are at about 49%. My wife and I both utilize the mail-order program. Due to our medical conditions we take a total of 16 maintenance drug prescriptions with 9 of those generic drugs. As the brand drugs go off patent and to generic we intend to change also. Last year our drug co-pays for the mail-order program was over $600 — and if we utilized the pharmacy our drug co-pays would have been over $1, 800. It doesn’t take a rocket scientist to see the difference in costs/savings for us.

Ron Tyson (Regional Director of Express Scripts) was recently promoted and a new replacement was named. Ron’s replacement is Cari Wegge. She is located in the Express Scripts office in St. Louis, MO. I met her last week and invited her to attend our November 9 CC meeting to meet SERA retirees. Lisa Stout is still the Account Manager in Michigan. Ron will still be involved in the State of Michigan account.

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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