Chair Talk
May 2008
It has been another busy month for the State and SERA dealing with issues that affect retirees. Alvin and I have attended “work group” meetings to discuss HB 5913 that legislation deals with 115 trusts to pre-fund retiree health care benefits. Although the idea of pre-funding retiree health care makes sense — there are a lot of areas in the proposed legislation that raise more questions that it answers. State Employee Unions do not seem to support the legislation as it currently is. There are many questions as to how the trusts will be funded and whether or not they will be safe from withdrawals for reasons other than retiree health care. I received notice that HB 5913 (H-2) will be on the agenda for the May 15th meeting of the Health Care Reform Committee chaired by Rep. Mark Meadows. Alvin and/or I will attend this meeting.
Medicare Advantage
Alvin Whitfield, Leland Hall, Bruce Andrews and I attended a meeting with representatives from Blue Cross and Employee Benefits on April 17, 2008. The subject discussed was the lack of Medicare Plus Blue Providers out-of-state and the difficulties retirees are experiencing because of this. We discussed what steps Blue Cross is taking to convince providers that the Medicare Plus Blue has the same reimbursement rates as were paid prior to the Medicare Advantage plan. We also discussed the current Explanation of Benefits (EOB) and how they lack certain information (proceedure codes) for services provided. We hope to have a follow-up meeting to discuss the issues further.
Recently, retirees were sent a 4 page survey from Blue Cross/Blue Shield requesting health insurance information. The survey is lengthy and rather complicated. I have asked that representatives from BC/BS attend the May CC meeting to explain the survey and answer questions. I have been informed by the State that we should answer the survey to the best of our ability at this time. If retirees do not respond to the survey their health insurance coverage will not be dropped. There is a question in the survey about prescription drug coverage — you do not need to answer that question and you can cross it out. If you have questions or don’t understand the question, you can call the Medicare Plus Blue Group at 1-888-322-5557.
I realize that retirees are having several issues with Medicare Advantage. I believe that when issues are raised, staff at Employee Benefits and BC/BS are doing all they can to resolve those issues.
Memorandum Of Understanding
Interim approval of a Memorandum of Understanding was signed by the State Personnel Director and the Director of Management and Budget on 3/26/08. This Memorandum details proposed health care changes to take effect on 10/1/08. The MOU has to be approved by the Civil Service Commission before it can take effect. I have sent a letter requesting to appear before the Civil Service Commission on May 21, 2008 prior to their taking action on this MOU. I have received an official communication and have been assured that the MOU will not be on the agenda for the May Commission meeting. This decision will allow time for SERA to meet with representatives from Civil Service and the Department of Management and Budget to discuss the proposed changes and what impact they may have on retirees. I anticipate several meetings to discuss the changes/impact. I am looking forward to the meetings to discuss these important issues and possible impact on retirees.
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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