MEA members, retirees need to protest MPSERS plan to shift health care costs

The Michigan Public School Employees Retirement System (MPSERS) is recommending drastic increases in what retirees pay for health care.

MPSERS Board members need to hear about how these drastic increases in out-of-pocket expenses for health care will impact MEA members and retirees.

“The state is legally obligated to fund the retirement system,” said Chuck Agerstrand, MEA retirement consultant. “Under the Engler administration the funds saved for retiree health-$350 million-were funneled to the general fund. Now the system is being funded on the backs of retirees.”

The MPSERS Health Initiative Review Committee (HIRC) is recommending cost-shifting proposals that include increasing what retirees pay for prescription drugs. The proposals would:

—Increase the retail prescription drug co-pay to $30 when purchased at the local pharmacy.

— Introduce a $50 prescription drug deductible.

— Add an additional 10 percent cost to members starting with the fourth maintenance drug refill at a retail pharmacy.

— Change the mail order minimum and maximum from $10 and $50 to $10 and $75 for up to a three-month supply.

These proposed changes would become effective Jan. 1, 2005. An additional cost shift of indexing the minimums and maximum for retail and mail order drugs will become effective Jan. 1, 2006.

In addition, retirees also will pay more for medical expenses by paying higher deductibles. The plan increases the medical deductibles to $235 for an individual and $470 for a family from the current deductibles of $165/$330, respectively.

The proposals do include what the health committee calls enhancements to promote health awareness by slightly expanding vision and dental benefits. Retirees will pay such huge increases in all other aspects of their health benefits that the enhancement coverage is negligible.

MEA and MEA-Retired are fighting for our members and spoke out against these changes at the HIRC meeting on May 21. The MPSERS Board needs to hear from you- active and retired members-about how these changes will hurt retirees. Retirees may no longer be able to afford prescription drugs or able to seek medical care.

Public school employees worked in our schools educating and caring for children for many years and were promised retiree benefits. Now, the state is not meeting its obligation to fully fund the public school employee system and is propping up a structurally unsound system on the backs of teachers, secretaries, custodians, paraprofessionals, bus drivers and other school employees.

NOTE: Board members listed here whose term has expired are still serving on the board. The governor has not yet appointed their replacements. You should contact them with your thoughts on this issue.