2012 COLA

August 19, 2011

by Mike Causey

Although federal workers face at least one more year without a pay raise, government retirees are cautiously looking forward to a cost of living adjustment of around 3.3 percent in their January checks. That COLA, if it holds up, would be the first inflation-catchup federal, military and Social Security retirees have had since they got a 5.8 percent increase in 2009.( SORRY BUT I NEVER RECEIVED A 5.8 COLA)

The actual amount of the 2012 COLA won't be known until mid-September. The raise could be higher if inflation creeps up this month and in September. It would be less if living costs drop between now and the end of September.

By law, retirees are supposed to get COLAs to match the rise in inflation as measured by the Bureau of Labor Statics Consumer Price Index. But for the past few years, inflation has been flat and there were actually months when living costs dropped. Result: No retiree COLA in 2010 or 2011. That(No retiree COLA) despite the fact that health insurance premiums for retirees (and workers) have been going up. And up.

In recent months, there has been back-and-forth inflation. The January COLAs for retirees are based on the rise (if any) of the CPI from the third quarter of the previous year to its level for the current year. The third quarter measuring period is July, August and September. So that means there are still two months (August and September) left in the countdown.

Courtesy of Lorraine Rumore, Research Chair.

CALL TO ACTION

To Congressman John L. Mica:

I am concerns about how my earned federal civilian retirement and health benefits could be affected by the budget-cutting attempts.

1. 1.) Federal civilian retirement does not face the same solvency challenges as trust funds that support Social Security and Medicare. Indeed, the Civil Service Retirement and Disability Fund (CSRDF) is fully funded and actuarially sound. In summary, by definition, under the financing arrangements set out in current law, the system is not now and never will be ‘insolvent’ or without adequate budget authority for payment of benefits.

2. 2.) Federal retirement will not be directly affected by the boom in the senior population because the federal retirement population is a function of the size of the federal work force, not the general population.

3. 3.) Disturbing is the plan to require our public servants to pay an increasingly higher share of Federal Employees Health Benefits Program (FEHBP) premiums.

4. 4.) Disturbing also is the suggestion to use the Chained -Consumer Price- Index (C-CPI-U) to set cost-of-living adjustments. The proposals would serve to further erode the benefits public servants have earned doing the nation’s work.

Can I count on you to preserve COLA equity between all federal retirement programs and defend the integrity of a system that provides deferred compensation and benefits to individuals who have dedicated their careers to public service? Please, reply to this letter.

You’re Constituent,

FEHBP

INSURANCE CO-PAYMENTS:

We have to expects that co-payments in many FEHBP plans will jump sharply this year as insurance companies determine what the U&C (usual and customary) cost is, or should be, and then base co-payments according. Imagine you have a physical that costs $500, and the insurance company says the U&C is actually $400. Your normal co-payment would be $20. But now the company sets the U&C level at $400, for a service that costs $500, and the company requires that you pay 20 percent of the U&C(.20x$400=$80), which means your co-payment will be $80 on a $500 service. Your co-payment jumped from $20 to $80. They might even require you to pay a percentage of the$500, which might mean you would even pay more co-payment. The point is you have to look very close at co-payments and extra costs this year. That is especially true when it comes to medications.

OPEN SEASON:

The Office of Personnel Management has set the 2010 Federal Benefits Open Season to begin Monday, November 8^th and run through Monday, December 13^th. During Open Season, federal employees and retirees can enroll in or change their health, vision and dental plans.

Diane Thompson from BlueCross BlueShield of Florida will be our speaker for our November 15^th meeting.

ATTENTION WOMEN

9 -- that is the number of states and the District of Columbia where there is still no specific law that makes it illegal for insurers to reject applicants who are survivors of domestic violence by citing the history of domestic violence as a pre-existing condition.

Unfortunately, the gender inequalities across our broken heath care system don't end there. In many states, insurance companies can still discriminate on the basis of gender -- charging women higher premiums than men simply because of their gender or denying coverage because of so-called "pre-existing conditions" like being pregnant, experiencing a prior pregnancy complication, or having undergone a C-section. And health plans in the individual market often do not cover basic maternity care.

President Obama's proposal for health insurance reform would end the days of discrimination based on gender. Insurance companies would be banned from denying coverage because of a pre-existing condition and would have to cover preventative care like mammograms.

For America's women and families, the time is now for health insurance reform.

We just can't wait any longer for health insurance reform. Help spread the word by sharing this message with your family, friends and online networks.

Let's get it done.

Nancy-Ann DeParle
Director, White House Office of Health Reform

HEALTH CARE REFORM

Why do you think health insurance companies are pouring money into congress and running misleading ads to stop Health Care Reform? They don’t want it, because it is good for the country and not necessarily good for their profit margin. Their actions clearly state where they are coming from and those same actions should emphasize why we need Health Care Reform. Let us look at what is happening around the country right now.

In California, Anthem Blue Cross announcing their rates would go up as high as 39 percent. Elsewhere, large insurers have requested premium increases of 56 percent in Michigan, 24 percent in Connecticut, 23 percent in Maine and 20 percent in Oregon. Do you think this won’t continue in the future without Health Care Reform?

Now, the insurance companies have the vote as well as the lobbyists. We lost one person one vote a long time ago, and now the Supreme Court has legalized the theft. All we can do is empty out our pockets and say thank you at the same time. We have been had.

SENATE HEALTH CARE BILL

This is to inform NARFE members about a victory on health care reform legislation.

This protective language was added by the Senate leadership in response to concerns raised by NARFE and federal-postal organization allies regarding a proposal that would have the Office of Personnel Management (OPM) play a significant role in national health care reform -- partially administering a health care delivery system consisting of at least two national, private nonprofit insurance plans.

The following FEHBP protections will be added to the bill through the “manager’s amendment” which includes the OPM-administered “multi-state” health plans .

• Premiums of FEHBP and the proposed OPM-administered multi-state plans would be calculated in separate risk pools.

• The OPM Director would be required to ensure that the multi-state plans are administered separately from the FEHBP.

• FEHBP insurance carriers would not be required to offer coverage through the multi-state program.

• The OPM Director may establish separate units or offices within the agency to ensure that the administration of the multi-state plans do not interfere with the effective administration of FEHBP.

• The OPM Director may not allocate fewer financial or personnel resources to the agency’s administration of FEHBP.

• The OPM Director may appoint additional personnel to carry out the administration of multi-state plans.

Senators voted 60-39 to accept the manager's amendment around 8 AM Tuesday, December 22, clearing the way for one remaining procedural vote on Wednesday, December 23 and a final vote on the legislation Thursday, December 24.

COMMENTS ON HEALTH CARE

Yesterday, I sent you a message announcing the Senate passing Health Care legislation and asked for your comments. The following comments are not identified by their author's name. I felt it was not necessary to identify the members.

I can't promise that I will be able to answer the questions raised in the comments. I merely report the news on this event. It is worth getting the opinions of the members. That is also news.

COMMENTS ON HEALTH CARE as of December 22, 2010

#1

Thanks Bob,

I oppose any bill that adds to the national debt. This one is supposed to reduce the debt, but I remain skeptical and the devil is in the details. Not a detail and evidently un addressed is the need to reduce the proportion of our health care dollars (I've read 90%) spent on keeping old people like me alive when it is time to go. There should also be a cap on the amount spent on any individual because medical advances and technology are making some treatments horribly expensive. We are on the road to fiscal disaster unless we control health care spending.

#2

A major achievement for Obama and the Democrats. I am still hoping that a public option will be included in the final bill to keep insurance companies under control.

#3

I hope you are right. I still don't understand all the secrecy behind

closed doors when promised open door with CSPAN. Also, I can't

understand their math even though it won't kick in for 4 years or the

mad rush.

#4

How about passing on all the facts and not just this pack of lies.

HEALTH CARE

I pass this on as noting an event in history. I also welcome all comments, and will print the comments as long as they are signed.

bob

Dear Friend,

After months of debate this year, and decades of gridlock before, our country is closer than ever to passing the single most important piece of domestic legislation since Social Security. This is no small feat. There's a reason that presidents from Truman to Nixon to Clinton have called for, but been unable to achieve, health reform: it's incredibly difficult.

The current legislation in Congress includes many of the protections found in the bipartisan Patient’s Bill of Rights that has been repeatedly defeated by special interests. President Obama addresses that, as well as the broader substance and fierce urgency of health reform, in his latest weekly address.

There are some great elements of this bill that will take some time to set up, such as the new insurance marketplace -- the Exchange -- that allows people without insurance and small businesses to compare plans and buy insurance at competitive prices. But there are a lot of other benefits for families that will kick in during the first year if we get this passed:

In the first year, we will make it illegal for insurance companies to drop coverage for Americans.

In the first year, more of your money will start going where it belongs: towards your care instead of excessive insurance company profits or TV ads. We will start forcing insurance companies to report the proportion of premium dollars that are not spent on medical care -- including profits. If a company isn’t spending enough of its premium dollars providing benefits for families, it will have to issue rebate checks to its customers to make up the difference.

In the first year, all insurance plans will have to begin covering preventive services, helping to shift our health care from just sickness to wellness. If you purchase insurance on your own, you will receive preventive care from your doctor without paying a co-pay.

In the first year, seniors will see major relief in paying for prescription drugs. The gap in coverage with Medicare, the so-called "donut hole," will start to close for good.

This bill will reduce premiums for your family, shifting the balance of power from your insurance company back to you.

Health reform extends coverage to 30,000,000 Americans without adding a dime to the Federal deficit. In fact, it represents the largest reduction to the deficit in well over a decade.

The final bill hasn't taken shape yet. There are several more steps in the process, and the President is committed to making it the best bill possible to provide security for those who have insurance and affordable, quality coverage for those who don't.

It is important to look past the bickering and cable chatter and remember that we are on the verge of providing real benefits to Americans who can’t wait any longer.

Sincerely,

Nancy-Ann DeParle

Director, White House Office of Health Reform

MINUTES OF NOVEMBER 16,2009

NARFE Chapter 2247

Ormond Beach, FL

Minutes of Chapter Meeting - November 16, 2009

President Bob Wehrli called the meeting to order at 11:30 on this date. 44 members including new members, guests and speaker Diane Thompson, Account Manager Central Region, Blue Cross. Bob thanked the members for their donations of food to be taken to Halifax Urban Ministries by Lee Sherman after the meeting as well as the toys also donated that will be taken to the Ormond Beach Police Station by Bob Wehrli. The proceeds from both the October and the November 50/50 raffle will also be sent to the Halifax Urban Ministries. All participated in the pledge of allegiance to the flag and the moment of prayer. Minutes and Treasurer’s report were accepted as read and filed.

COMMITTEE REPORTS

Membership: Lee Sherman introduced new members Richard and Georgia LaPierre and Frances Sorensen, wife of Fredrick Sorensen, who transferred from Chapter 58.

Legislation: John Lowe shared his impressions on the success of the Senior Expo and thanked those members who volunteered to help set up and man the booth.

Sunshine: Judy Boring sent a get well card to Dewey Morris with our best wishes.

OLD BUSINESS

No old business was brought up at this meeting.

Our speaker this month, Diane Thompson, is the Account Manager for the Central Region Blue Cross. Diane sent us the best regards of Tony Falanga who is retired and is doing well. The object of Ms. Thompson’s talk was to update the membership on the 2010 Benefit Program with its new rates and changes. Brochures are available for comparison viewing. Open season is from November 9th to December 14th. Ms. Thompson invited members to call her at (800) 555-8228 Ext 27918 or e-mail her at diane.thompson@bcbs.com for individual questions on Blue Cross/Blue Shield benefits and costs. BC/BS is moving toward a wellness component of its program; i.e. coverage for health risk assessment, physical exams, nutrition for children, vaccines by pharmacy free of charge, speech generating devices for stroke, Alzheimer’s, throat cancer patients. Also gym discounts at God’s and other gyms, Jenny Craig e-diet; free odometers for walking at work, discount through Beltone, vision supplement program and the like. Ms. Thompson fielded a number of questions from the membership. Bob Wehrli thanked Diane Thompson for her very relevant talk.

NEW BUSINESS

Christmas Luncheon: Alice Mauzy, our hostess, told the members all was set for the Christmas Luncheon to be held at the Ocanside Country Club on Thursday, December 3 beginning at 11:30. The meal will be served at 12:00 noon with the menu to include tilapia, sirloin and vegetarian main dish. Apple crisp and ice cream will be served for dessert. Cece Dougherty will sell tickets for drinks and Marguerite will welcome the entertainers “The Talk of the Town.” Tickets are $21.00 and can be obtained by sending a check to Cece Dougherty 932 Northbrook Drive, Ormond Beach, FL32174-3972.

John Lowe gave us news of the equivalent of the Cash for Clunkers program, now for appliances. From April 16th to 25th, appliance dealers are offer rebates of 20% off new appliances when the old appliance is turned in.

Bob Wehrli modeled the new cobble aprons acquired to advertise our chapter at Sr. Expo, postal workers outreach and conventions.

Results of the raffles are as follows: The 50/50 raffle was won by Carmen Cook, with the other $22.00 donated to the food bank. Lee Sherman won the $10.00 voucher coupon.

The meeting adjourned at 1:25 p.m. Moved by Victor Dean; seconded by Mary Ann Whitaker.

M. Araya

Secretary

GEHA VS BC/BS

FOR MEMBERS ON MEDICARE WITH STANDARD OPTION SUPPLEMEMTAL PLANS

At our November 20, 2009 meeting we heard the Blue Cross/Blue Shield representative discuss changes in their plan for the coming year. One of the changes is their shameless annual increase in premiums. Federal retirees get no COLA next year but BC/BS raised their premium another 9%. This is nothing new. Somehow GEHA manages to have minimal or no increases (That’s right, there were two years that I know of that GEHA did not increase their premiums) while BC/BS raises their premiums 8 to 10 % every year. And why shouldn’t they? We have members who are willing to pay some $2000/year more to BC/BS than they would pay GEHA for exactly the same coverage! In fact, this year it will cost subscribers who are loyal to BC/BS $2624.16/ year more for family and $1138.32/year more for individuals. And what do they get for the higher premiums? NOTHING. With GEHA you keep the same doctors, and same hospitals. The only thing that changes is your premium.

In past years it was difficult to select a carrier. We had to compare deductibles and copays for each plan and examine the list of preferred providers and participating physicians. Life became much simpler after Medicare – one of the advantages of aging. Once we are on Medicare, deductibles, copays, participating physicians and preferred providers are no longer an issue. Medicare pays their portion and our FEHB plan pays the rest – all of it. No deductibles, no copay, nothing. We can go to any physician in the country without looking at a list. The same is true for hospitals. In fact, before making a trip to Italy a few years ago I checked with GEHA on insurance. Since Medicare pays nothing when you are out of the U.S., GEHA picks up the entire medical cost – just like BC/BS.

So why did I pay $2256 more for BC/BS this year after preaching the advantage of post Medicare GEHA? You can be sure it had nothing to do with loyalty. The deciding factor was the cost of prescriptions. GEHA pays 50% and BC/BS pays $65 or $10 for a 90-day supply of brand name or generic drugs, respectively. With a prescription bill of more than $21,000 (one Rx alone costs $2000 for a 90 day supply) simple arithmetic pointed the way to BC/BS. But if you do not have huge prescription costs, GEHA is the obvious choice for you.

There is a change this year. GEHA still pays 50% toward prescriptions but with a maximum of 500.00 so I have to do the arithmetic again. Maybe I can switch back to GEHA. We had them for four years and only switched to BC/BC because our prescription costs took a gigantic leap.

It’s simple arithmetic, folks. Save yourself money and force BC/BS to work harder at controlling costs. As long as you are willing to pay an extra $218.68/ month (Medicare couples) or an extra $94.86/month for individuals on Medicare, BC/BS will never have reason to keep their rates competitive.

One final note: Our speaker from BC/BS mentioned the Blue Cross name as a criterion in selecting a plan. Nonsense! No one cares who pays after Medicare. The provider only bills Medicare and Medicare automatically passes the information on to the secondary insurer. They don’t even have to know who your secondary insurer is.

Nicholas Calvano November 20, 2009

FEHBP Premium Increase

On September 29th, OPM announced FEHBP Premiums will increase an average of 8.8 percent in 2010. The (FEHBP) premium increase of 8.8 percent for 2010 comes in a year when no cost-of-living adjustment (COLA) is expected.

The premiums for retirees in (Blue Cross/Blue Shield Standard option) will jump by 12.4 percent for the family plans and 15.1 percent for self-only coverage. The 2010 rate hike is within the range of increases in other large group health insurance programs and the Office of Personnel Management (OPM) is serious about reducing prescription drug costs. However, FEHBP premiums could have been lowered if it were not for OPM’s decision to reaffirm the previous administration’s policy of declining a payment available to other public and private employers who provide drug coverage as generous as Medicare’s. As much as $1 billion could be available to OPM. This money could lower annuitant premium costs.( I have written about this subject before.)

While the FEHBP rate increase is bad news, we can take some comfort in the House’s approval on September 24 of NARFE-backed legislation (H.R. 3631) which would protect all federal annuitants – including retirees and survivors who are not eligible to receive Social Security – from the 2010 Medicare Part B premium increase.