1 retirement board meeting may 11, 2011 retiree benefits briefing & overview presented by the...
TRANSCRIPT
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Retirement Board Retirement Board MeetingMeeting
May 11, 2011May 11, 2011Retiree Benefits Briefing & OverviewRetiree Benefits Briefing & Overview
Presented by the Presented by the Peralta District Benefits OfficePeralta District Benefits Office
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AgendaAgenda
1.1. Current Post Employment Benefits for Peralta Current Post Employment Benefits for Peralta RetireesRetirees-”What do our retirees get”?-”What do our retirees get”?
1.1. Medical InsuranceMedical Insurance2.2. Reimbursement of Medicare PremiumsReimbursement of Medicare Premiums3.3. Life Insurance Life Insurance
2.2. Review of our population Review of our population 1.1. Review of census Review of census 2.2. Participation distributionParticipation distribution3.3. Medicare Coordination & Outreach effortsMedicare Coordination & Outreach efforts
3.3. Federal Subsidy ProgramsFederal Subsidy Programs1.1. Medicare D- Medicare Drug Reimbursement Program Medicare D- Medicare Drug Reimbursement Program
of 2005 of 2005 2.2. ERRP- Early Retiree Reinsurance Program (2010)ERRP- Early Retiree Reinsurance Program (2010)
Two handouts:Two handouts:Annual Open Enrollment Announcement Sept 2010Annual Open Enrollment Announcement Sept 2010Medicare Reimbursement FormMedicare Reimbursement Form
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Current Current Other Post Employment BenefitsOther Post Employment Benefits
(OPEB)(OPEB) Medical ($147m = Actuarial Accrued Liability for current retirees Medical ($147m = Actuarial Accrued Liability for current retirees
only, per most recent study performed by Bartels & Associates)only, per most recent study performed by Bartels & Associates) Refer to the “Peralta Benefits – Everyone” ed. Sept 2010, pages Refer to the “Peralta Benefits – Everyone” ed. Sept 2010, pages
19-21:19-21: Pre 2004, benefits continue for the lifetime of the retireePre 2004, benefits continue for the lifetime of the retiree Post 2004, benefits continue to age 65Post 2004, benefits continue to age 65
Payment arrangements for surviving spousesPayment arrangements for surviving spouses We do not pay for surviving spouses of retireesWe do not pay for surviving spouses of retirees
We bill Kaiser survivors through Benefits DynamicsWe bill Kaiser survivors through Benefits Dynamics CoreSource bills survivors directly CoreSource bills survivors directly
We do not pay for dental insurance unless the retiree and/or dependent is We do not pay for dental insurance unless the retiree and/or dependent is enrolled in the Kaiser Senior Advantage Planenrolled in the Kaiser Senior Advantage Plan
We pro-actively cull records through an interactive data baseWe pro-actively cull records through an interactive data base Reimbursement of Medicare Premiums ($1m)Reimbursement of Medicare Premiums ($1m)
We reimburse retirees based on premiums they pay and as calculated We reimburse retirees based on premiums they pay and as calculated by the Center for Medicare and Medicaid Services (CMS)by the Center for Medicare and Medicaid Services (CMS)
Reimbursements are income sensitive; not the same for everyoneReimbursements are income sensitive; not the same for everyone Life InsuranceLife Insurance
Continues to age 66Continues to age 66 Runs about $2000/month; $24k/year Runs about $2000/month; $24k/year
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Enrollment Distribution of our Enrollment Distribution of our RetireesRetirees
E3E3
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Medicare Medicare Census, Costs & Savings Census, Costs & Savings
E6E6Fiscal Year Retiree 65 > Spouse Total0708-0609 1,766,410.45 431,521.38 2,197,931.83 0709-0610 2,587,846.75 631,920.18 3,219,766.93 0710-0211 1,398,038.52 490,507.66 1,888,546.18
Amounts Not Paid Due to Coordination of Benefits
Special Note:1. 343 on CoreSource; 72 not coordinated with Medicare; We saved $1.8m in this fiscal year to Medicare coordination2. 247 on Kaiser; 49 not coordinated with Medicare; they cost us an additional $300,000 in higher annual premium costs• About 20% of our retirees may not be coordinating with Medicare-see how much we save when they do!
From Bartels
From Coresource
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1991 - 19941991 - 1994
19911991
77
1994 - 19971994 - 1997
88
1997 - 20001997 - 2000
99
2000 - 20032000 - 2003
1010
July 1 2004 forwardJuly 1 2004 forward
1111
Pre 2004 hiresPre 2004 hires
1212
Post 2004 hiresPost 2004 hires
1313
Summary of transitionSummary of transition
1991 - 20041991 - 2004 ““Those retirees who are eligible for Medicare Part A Those retirees who are eligible for Medicare Part A
coverage at age 65 shall apply for such coverage coverage at age 65 shall apply for such coverage so long as there is no additional cost to the retiree…so long as there is no additional cost to the retiree…
Retirees eligible for Medicare B are not required to Retirees eligible for Medicare B are not required to enroll in that program so long as it requires enroll in that program so long as it requires payment.”payment.”
2004 – present2004 – present Faculty members hired before July 1, 2004, 3.cFaculty members hired before July 1, 2004, 3.c
“ “ When such employees reach the age of Medicare When such employees reach the age of Medicare eligibility (currently age 65) they shall enroll in eligibility (currently age 65) they shall enroll in Medicare Parts A and B, provided the District pays Medicare Parts A and B, provided the District pays 100% of the current and future costs of Medicare 100% of the current and future costs of Medicare premiums. The District shall pay or reimburse the premiums. The District shall pay or reimburse the retiree for the current and future costs of the Medicare retiree for the current and future costs of the Medicare premiums. premiums.
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Outreach effortsOutreach efforts
Annual meetings/luncheon with Kaiser and Annual meetings/luncheon with Kaiser and Medicare representatives to deliver on-site Medicare representatives to deliver on-site enrollmentenrollment
Telephone banksTelephone banks Personal mailingsPersonal mailings Options to control costsOptions to control costs
Discontinue Kaiser Traditional Plan for Discontinue Kaiser Traditional Plan for Medicare-eligibles, only offer them Kaiser Senior Medicare-eligibles, only offer them Kaiser Senior Advantage…(or Kaiser Out of Area plan or Advantage…(or Kaiser Out of Area plan or CoreSource)CoreSource)
Send letter to inform all retirees of District Send letter to inform all retirees of District commitment to provide lifetime benefits under commitment to provide lifetime benefits under the current plans available to themthe current plans available to them
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Medicare Drug Subsidy Medicare Drug Subsidy ProgramProgram What is the subsidyWhat is the subsidy
We receive a subsidy for those retirees over 65 and We receive a subsidy for those retirees over 65 and on our self-funded rx plan currently with Caremark.on our self-funded rx plan currently with Caremark.
We receive a discounted premium for those retirees We receive a discounted premium for those retirees on our Kaiser senior advantage plan.on our Kaiser senior advantage plan.
How much have we received?How much have we received?
Plan Year Subsidy received by PCCD2005 - 2006 116,814.00$ 2006 - 2007 255,508.00$ 2007 - 2008 143,162.00$ 2008 - 2009 289,029.00$ Total Subsidy Received 804,513.00$
Subsidy for plan years 2009 - 2010 pending
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Early Retiree Reinsurance Early Retiree Reinsurance Program Program The Early Retiree Affordable Care Act provides The Early Retiree Affordable Care Act provides
$5 billion in financial assistance to employers, unions and state and $5 billion in financial assistance to employers, unions and state and local governments to local governments to
help group plans maintain coverage help group plans maintain coverage for early retirees age 55 and older for early retirees age 55 and older who are not yet eligible for Medicarewho are not yet eligible for Medicare
Peralta’s applications were approved in Fall 2010 (Separate Peralta’s applications were approved in Fall 2010 (Separate applications were required for CoreSource and Kaiser)applications were required for CoreSource and Kaiser)
Must maintain a wellness campaign for our early retirees as a Must maintain a wellness campaign for our early retirees as a condition of participating in the programcondition of participating in the program
Showed them the 2010 wellness calendar Showed them the 2010 wellness calendar Vendor websitesVendor websites Benefits fair activitiesBenefits fair activities
We will design a more comprehensive approach in the fall We will design a more comprehensive approach in the fall Subsidy monies due Peralta are pending-Subsidy monies due Peralta are pending-
If useage patterns continue, we project about $400k/year in subsidy If useage patterns continue, we project about $400k/year in subsidy However, once the pool of $5b is gone, it is gone However, once the pool of $5b is gone, it is gone
We are competing with private entities and other municipalitiesWe are competing with private entities and other municipalities
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Other QuestionsOther Questions