Originally posted Oct. 10, 2006

For calendar year 2007, the State Teachers Retirement Board worked to lower premium increases through plan design changes while maintaining its commitment to the current legislative initiative, which would increase member and employer contributions to the Health Care Stabilization Fund by a total of 5%. The plan coverage changes approved by the board in June 2006 affect the Aetna and Medical Mutual Plus and Basic Plans, as well as the Paramount plans. The changes will result in gross health care cost savings of about $16.5 million — a savings for both the Health Care Stabilization Fund (through reduced claim payments) and for plan enrollees (through lower increases in premiums than originally projected). While developing the 2007 premiums for enrollees without Medicare, enrollees with Medicare Parts A & B and enrollees with Medicare Part B only, the Retirement Board also decided to return to its former contribution strategy of providing a premium subsidy of 2.5% per year of service, up to a 75% maximum, for benefit recipients. (Click here to see more ways STRS Ohio helps you meet your health care needs.) 

Many of the major plan features for 2007 focus on keeping STRS Ohio Health Care Program enrollees healthy. After all, maintaining good health is the best way to lower your health care costs. One of the keys to ensuring good health is to take advantage of preventive services, such as an annual physical and immunizations. For 2007, the Basic Plan was enhanced to provide 100% coverage of designated preventive services with no coinsurance or deductible.

The Retirement Board also enhanced the Basic Plan’s annual prescription drug benefit for 2007 and added an incentive to encourage the use of generic drugs. (Click here to learn more about the Basic Plan.)

Using generic drugs saves money for both you and the STRS Ohio Health Care Stabilization Fund. On average, generic medications cost 30% to 60% less than brand-name medications. And, generics are proven safe and effective. These medications contain the same active ingredients as their brand-name counterparts. 

STRS Ohio is working hard to keep your prescription drug coverage affordable. That’s why the STRS Ohio Prescription Drug Program, administered by Caremark, includes Tier 2 (select brand-name) medications. Tier 2 medications are chosen for their clinical effectiveness and economic value. Click here to see list of common Tier 2 drugs covered by Caremark.

There’s another important thing to remember about STRS Ohio’s prescription drug coverage for 2007. If you’re enrolled in an STRS-Ohio sponsored health care plan, you do not need to enroll in Medicare Part D. This is because STRS Ohio-sponsored plans offer prescription coverage that is as good as or better than the standard Medicare Part D prescription coverage. (Click here to see the Notice of Creditable Coverage.)

For more information about the 2007 STRS Ohio Optional Health Care Program, click here.

STRS Ohio Health Care Program News — Special Edition