Chair Talk

January 2009

I am starting my eighth year as Chair of the State Employee Retiree’s Association’s Coordinating Council and I am looking forward to another busy/challenging year. As I have been saying for a few years health care will be one of the big issues facing all retirees.

I have requested a meeting with Civil Service, Employee Benefits and BC/BS to discuss the recently mailed Evidence of Coverage (2009) and continuing issues with Medicare Advantage. The meeting is scheduled for Wednesday, January 14, at 9:30 a.m. I will send a report of this meeting to SERA Chapter Presidents as to the issues discussed.

I have read and heard of some discussion at the Federal level regarding Medicare Advantage. It is believed that the Medicare Advantage program may be scaled back significantly in the early months of the Obama administration. In the event that this happens there may be a significant effect on our current health care coverage. If Medicare Advantage is scaled back/discontinued it may be a “mixed” blessing. The majority of problems with Medicare Advantage have been with our out-of-state retirees being unable to find providers that accept the Advantage plan. Our Medicare Advantage Plan (unlike most others) pays the allowed Medicare amount. Providers are paid the same amount under our Advantage plan as would be paid if we had original Medicare and the supplemental BC/BS coverage the State provides. The State entered into the Private Fee for Service Medicare Advantage plan to save money. Approximate savings to the State because of the Advantage plan is in the $20 million range per year. If the State is forced to scale back/discontinue the Medicare Advantage plan they will have to look elsewhere to maintain those savings. That could result in higher co-pays, deductibles or reductions in benefits for all of us. The number of problems that some retirees are having with Medicare Advantage (out-of-state) is a small percentage of the total Medicare eligible retirees. That does not take away from the fact that some retirees cannot find/retain health care providers that they are comfortable with. The inability to find providers is a major issue. The State and BC/BS are doing everything they can to resolve these issues. We will continue to work with the State and BC/BS to resolve issues as quickly as possible.

I would request that all those SERA members that are Committee Chairs or serve on committees to continue that service this year. If you are unable to continue, please contact me.

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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