Chair Talk
March 2014
Cheryl Streberger and I met with Jan Winters (Director OSE), Lauri Schmidt and Danielle Leutz (CSC) on Wednesday, February 12, 2014. The discussion at this meeting involved the State’s cost of health care and drugs for retirees.
The breakdown of health care and drug costs (include claim costs only not administrative costs) for fiscal year 2112-13 are:
- Total amount spent on retirees for the State Health Plan PPO (not drugs):
Health/Mental health $284,888,645 in fiscal year 2013
- Total spent on drugs for retirees in fiscal year 2013(includes Medco and MedImpact costs):
$172,392,975 in fiscal year 2013
- Generic drug dispensing rate (MedImpact for9 months):
Pre 65 retirees: 81%
EGWP (Medicare): 80.47%
This is to clarify questions about any changes in retiree health plan benefits. Changes must be authorized by the Director of the Department of Technology, Management and Budget (DTMB) and the Michigan Civil Service Commission in order to take effect. Over the years, specific health plan changes and effective dates have been included in written Memorandums of Understanding (MOUs) approved by both the DTMB Director and the Commission. The Commission removed from their January 15, 2014 Agenda the MOU presented by the Employer which included proposed retiree health plan changes tracking the changes approved by the Commission that same day for employees. This has provided time for SERA to meet with OSE and CSC Employee Benefits Division to discuss the proposed MOU and provide input. Therefore, calls to ORS and other Departments about any changes in retiree health plan benefits are premature as no changes have yet been approved.
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.