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| 2004 STRS Ohio News E-mails |
| August Board News Details Retirement Board Actions and Discussion This week, the State Teachers Retirement Board held several committee meetings, as well as its monthly meeting. On the Friday of regularly scheduled board meetings, a report titled “Board News” is posted on the STRS Ohio Web site, as well as sent to a number of members and education organization representatives who have requested it. As a registrant on the STRS Ohio news e-mail list, you will also receive this report each month. The August report follows. STRS Ohio Board News — Aug. 20, 2004 2005 Health Care Program Features
Reduced Premiums For Older Members and Lower Drug Copayments and
Drug Out-of-Pocket Costs 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 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. The August meeting also marked the last meeting for Eugene Norris, who has served as an active teacher member on the Retirement Board since 1996, including two terms as chair. The Retirement Board recognized him for his dedication, wisdom and tireless service to the active and retired teachers of Ohio and noted his work on strategic planning, health care funding, investments and benefit enhancements. Performance Incentive Program Continued
For Eligible Investment Associates Retirement, Investment Transactions
Approved
Additional Items Reported at the Meeting Pension Bill Implementation Under Way; Health Care Reform
Pushed at the National Level STRS Ohio members and retirees have voiced their support for the system’s involvement at both the state and national level in the search for solutions to the growing costs of health care. In July, the National Coalition on Health Care, which represents at least 150 million Americans, including STRS Ohio, released its report, “Building a Better Health Care System: Specifications for Reform,” at a press conference in the nation’s Capitol. The report, which was over a year in development, lays out the major issues surrounding health care and provides optional solutions without promoting any particular solution. The primary goal is to put pressure on the next administration and Congress to move forward on health care reform. The Independent Fiduciary Performance Audit Has Begun |
