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| Past STRS Ohio News Items & Reports |
| Retirement Board Approves 2005 Health Care Premiums At its Aug. 20 meeting, the State Teachers Retirement Board approved a package of health care premiums for 2005 that will result in lower costs for two-thirds of the participants in the STRS Ohio Health Care Program. In addition, changes to the AdvancePCS prescription drug program could benefit up to 95% of the system’s health care plan enrollees. As an example, an STRS Ohio retiree who has Medicare will pay from $12 to $36 less in 2005 for Aetna or Medical Mutual Plus Plan coverage. If that individual’s spouse also has Medicare, he or she will save $36 in annual premiums for Aetna or Medical Mutual Plus Plan coverage. These cost savings will benefit more than 66,000 of the approximately 101,000 retirees, spouses and dependents enrolled in these plans. Most non-Medicare retirees will experience only a slight increase in premiums. For example, a 30-year teacher will pay an additional $108 in 2005 for Medical Mutual Plus plan coverage or an additional $288 in 2005 for Aetna Plus Plan coverage. Non-Medicare spouses will experience an increase of $59 per month in their premiums, going to $486 monthly if they are enrolled in the Medical Mutual Plus Plan. The monthly premium for non-Medicare spouses enrolled in the Aetna Plus Plan will increase to $506 per month from $435. These changes will affect about 6,400 enrollees. Helping to offset these increases — and adding to the older retirees’ premium savings — will be reductions in drug copayments effective Jan. 1, 2005. While retail copayments for a 30-day supply of generic drugs will stay at $15 per prescription, the copayment for Tier II (select brand-name drugs) will drop to $25 from $35. In addition, the retail copayment for Tier III (other brand-name) drugs will be reduced to $50 from $75. Mail-service copayments for Tier II drugs will also be reduced to $50 from $70 for a 90-day supply; the Tier III copayment will drop to $100 from $150. Generic drug copayments will remain at $30 for a 90-day supply. Participants in the Aetna and Medical Mutual Plus Plans will also see their maximum out-of-pocket cost for prescription drugs drop to $1,500 from $2,500. This means that once an enrollee pays a total of $1,500 out-of-pocket in retail and mail-service copayments, STRS Ohio pays for all covered drugs for the remainder of the year. The Retirement Board also approved changes to the Aetna and Medical Mutual Catastrophic Plans that include lower premiums for all categories of enrollees — including spouses — and significantly reduces the medical deductible and raises the maximum annual drug benefit. In 2005, STRS Ohio will pay up to $2,250 per enrollee for retail and mail prescription drug costs, versus the current limit of $1,500, before the enrollee must assume 100% of the cost. The reductions in copayments for Tier II and Tier III drugs previously mentioned will also apply. Currently, about 3,700 individuals are enrolled in the Catastrophic Plans, which were offered for the first time this year. By reducing premiums and out-of-pocket costs for 2005, more members with low medical and drug costs may find this a viable option for their medical coverage. In approving the staff’s recommendation, the board noted that these changes:
In a special meeting between the Retirement Board’s Health Care Committee and the Healthcare Advocates for STRS (HCA) on Wednesday evening, Aug. 18, the HCA representatives voiced their support of the 2005 changes. In late October, all current enrollees in the STRS Ohio Health Care Program will receive personalized information that outlines their 2005 plan options, monthly premiums and benefit features for 2005. Return to the list of past STRS Ohio news items & reports.
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