Support Lacking for state retiree insurance increases

Key Illinois lawmakers said Tuesday they sense little support for an increase in rates the state charges for health insurance.

The comments came as legislators and the Quinn administration got down to the task of trying to craft a budget plan for the year that starts July 1. The General Assembly has set May 7 as the target date for adjournment.

"We’re coming to that time when we have to put some rubber to the road," said Sen. Donne Trotter, D-Chicago, the Senate Democrats’ top budget negotiator. "I think people are at the point (where) we need to quit pussyfooting."

Higher fees for retiree health insurance has been one idea floated by the administration for helping to close the $13 billion budget gap. The increases would be particularly hard on people who retired at relatively young ages and do not qualify for Medicare.

"The proposed increases are indeed quite dramatic," said Sen. Jeff Schoenberg, D-Evanston. "There is far from a clear consensus around the idea of requiring individual retirees to contribute to their health plan."

In this budget plan, Quinn proposed capping the state subsidy for retiree health insurance at $300 per month, for an estimated savings of more than $250 million. According to the Commission on Government Forecasting and Accountability, the full monthly cost of insuring non-Medicare retirees ranges from $590 to $804 a month, depending on whether they are enrolled in managed care or a fee for service plan.

The amount retirees pay for health coverage also depends on how long someone worked for the state. People with 20 or more years of service pay nothing for retiree insurance.

COGFA determined that, on average, the change would increase monthly premiums by $490 a month for those in traditional fee-for-service programs and nearly $278 a month for managed care participants.

"I had a sense there wasn’t much bipartisan support for the governor’s proposal," said Rep. Raymond Poe, R-Springfield, a member of COGFA. COGFA discussed the proposal at a meeting last week.

"I think every member of COGFA that expressed an opinion on it was definitely opposed to a drastic increase for those retirees who are non-Medicare eligible," said Rep. Richard Myers, R-Colchester, a co-chairman of COGFA.

Schoenberg, another COGFA co-chairman, advised Quinn against trying to impose the rate increase without General Assembly approval.

"The most prudent course of action would be for the General Assembly to act on this question one way or another, if for no other reason than to avert any legal challenge," Schoenberg said.

The Quinn administration did not respond to a request for comment.

By: DOUG FINKE (doug.finke@sj-r.com)

The State Journal- Register

Letter from ISEA Retirees Exectutive Director to Govenor Quinn Regarding Changes in Dental Coverage

October 26, 2009

Honorable Patrick Quinn
Governor
State of Illinois
207 State House
Springfield, IL 62706   

Dear Governor Quinn:

On August 25, 2009, I wrote to you requesting that your administration reconsider your policy to charge State of Illinois retirees and survivors for their dental coverage as most are unable to afford even a modest change.

Since that time Congress has stopped the premium increase on Medicare Part B for those retired individuals on Social Security.  This was because there is no cost of living increases for social security recipients in 2010.  Congress and the President are also developing plans to give retirees a $250 payment to help meet some of their financial obligations.

Although some retirees are capable and find work, many retirees and survivors are unable to find suitable employment and are not capable working.  Even though cost of living increases are not given it does not mean that commodities and services have not increased.  Television networks have aired programs on the plight of the retirees during this difficult time.

We would like to see your administration and the legislature follow Congress and the Presidents lead in providing relief for our retirees and survivors by removing the charge for dental coverage.

Sincerely,

Rudy J. Kink, Jr
Executive Director

Bills of interest to State Retirees

SB3310 - Amends the State Employees Group Insurance Act of 1971. Provides that the State shall pay the cost of dental benefits at the same rate that the State paid for such benefits prior to October 1, 2009 on each member who is a retiree or survivor. Effective immediately.
* This bill was sponsored by ISEA Retirees
* Contact you legislator to show your support

HB5856 - Amends the State Employees Group Insurance Act of 1971. Provides that the State shall pay the cost of dental benefits at the same rate that the State paid for such benefits prior to October 1, 2009 on each member who is a retiree or survivor. Effective immediately.
* This bill was sponsored by ISEA Retirees
* Contact you legislator to show your support

Social Security Offset Removed   Public Act 095-1043 removed the social security offset on survivor benefits, effective July 1, 2009.  Governor Quinn signed the new legislation passed by the General Assembly.  If questions, click on ISEAR Links and your retirement system.    

Bills of interest to University Retirees
Currently No Bills

Bills of interest to Judicial Retirees
Currently No Bills

Bills of interest to General Assembly Retirees
Currently No Bills

Bills of interest to Teachers Retirees
Currently No Bills

ISEA Retirees maintains a full time Lobbyist acting as a watchdog with our legislative representatives each and every time they are in session.   Our Lobbyist, Tom Ryder,  actively monitors all legislation and safeguards retiree interests.  He keeps us aware of any proposed legislation... always acting in the best interests of Illinois retirees.

Tom Ryder served as an Illinois State Representative for the 97th District for more than 18 years. He resigned in November 2001 to become Vice President for External Affairs of the Illinois Community College Board where he served until February 2004. He is now a lobbyist and public speaker.

Ryder served in House Republican Leadership for a decade, first as Conference Chair and then as Deputy Republican Leader. He served as the House Republican Budgeteer for many years and was the longest serving Co-Chair of the Joint Committee on Administrative Rules.

Ryder received many awards during his tenure including Legislator of the Year from both the Illinois Education Association and the State Superintendent of Education, Leader for Peace from the Illinois Violence Prevention Authority, and he is a member of the Illinois Health Care Association Legislative Hall of Fame.

Ryder is the only Illinois legislator to serve as the national Chairman of the Council of State Governments. Ryder chaired several national committees for CSG and was the first CSG Toll Fellow to serve as CSG Chair. Additionally, Ryder is the founding Co-Chair of the Bowhay Institute for Legislative Leadership Development for the Midwest Legislative Conference.

Ryder is an attorney who started his law practice in Jerseyville, Illinois. He received a B.A. with honors in Political Science form Northern Illinois University and a law degree from Washington and Lee University in Lexington, Virginia.

Ryder and his wife Peggy are the parents of Josh, a seminary student studying to be a youth minister, and Tim, a recent graduate in Public Relations from Drake University in Iowa.

ISEA RETIREES
1548 West Jefferson Street Springfield, IL 62702   Tel: 217-698-6070   Fax: 217-698-6079