“LEGISLATORS OF both parties railed against ‘free’
health care for retirees, and last year—despite vigorous opposition from
AFSCME—the General Assembly passed SB1313, which requires that retirees
contribute toward the cost of their health care premiums,” said Henry Bayer, executive director, AFSCME
Council 31.
“CONTRARY TO some erroneous media reports, the
AFSCME Bargaining Committee did not ‘agree that retirees would contribute
toward their premium costs,'” Bayer said, noting that the law passed by the
General Assembly requires retirees to make premium contributions. “What the
Bargaining Committee has done is to dramatically reduce the amount that
retirees otherwise would have to pay,” Bayer said.
THE PROPOSALS that CMS wanted to impose would have
required retirees to pay as much as 20% of their pension toward their health
insurance. Under the CMS proposal, retiree premiums would have been set at $625
per month—more than $7,500 per year–for retirees with a covered spouse and a pension
in the range of $35,000. Retirees in that range on Medicare would have had to
pay $403 per month toward their State Health care
premium. Individual coverage for a retiree in that pension range would have
been set at $228 per month for those under 65 and $100 per month for those on
Medicare.
UNDER THE agreement negotiated by AFSCME, a
non-Medicare retiree with a pension annuity of $35,000 would pay $58 per month
toward premiums beginning on July 1, 2013, then $117 per month beginning July
1, 2014. A Medicare-eligible retiree in that pension range would pay $29 per
month in the first year and $58 per month in the second year of the contract.
The premium for a Medicare-eligible dependent would be $89 per month in Managed
Care and $142 per month in the Quality Care Health Plan--the same amount paid
today.
THE NEW contract also includes increases in
co-pays and deductibles for both active employees and retirees at well below
the level that the CMS was seeking.
“I KNOW very well that any increase in health
care costs will be burdensome to retirees living on fixed incomes, especially
those with smaller pensions,” Bayer said. “That’s why the union fought so hard
against efforts to drastically increase retiree health care costs. And thanks
to the long, tough battle waged by the AFSCME Bargaining Committee, those costs
will now be dramatically lower than the amounts that the State was planning to
impose.”
FOR MORE information, call (312) 641-6060.
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