Health Insurance Our Number One Priority
ARTC HealthCare Proposal
By  Louise and Richard Follman,  ARTC Insurance Chairpersons

Talking Points for:  Those NOT eligible for Medicare; Subsidy to local Boards of Education.

Requirements:

• You are NOT eligible for Medicare because you are not yet age 65.
• You are NOT eligible for Medicare because you or your spouse never earned 40 quarters of Social Security.

Special Note:   Teachers in the state of Connecticut do not have the right to pay into Social Security!

• Retired Teachers/Spouses had to purchase Health Insurance coverage from their local district.
• To date over 18,000 Retired Teachers/Spouses are covered by their local district plans.
• The state subsidy to help Retired Teachers/Spouses increased in January 1996 to $105, and then the subsidy increased to $110 in July 1996.
• To date the $110 subsidy still stands. It is 12 years since there has been an increase.
• From 1996 to 2007 Health Insurance costs have risen by 136%.
• A New York State report has health insurance inflation, from 2000 - 2006, at 73% - 75% when general inflation has increased (in this same time) by 14%.
• The present range of cost to a local school district health insurance plan is $6,800 - $8,800 per individual. This differs from school district to school district according to areas of coverage.
• The ratio paid by Retired Teachers/Spouses, relative to health insurance costs to their pension, has increased dramatically over the years. The Teachers Retirement Board (TRB) has stated that a reversal of payments has occurred over the time period stated above. THEN - The State of Connecticut covered 80% of costs;   NOW - Retired Teachers cover 80% of the cost.

Proposal:
A long-term solution MUST be achieved so that costs are balanced and equitably shared between the Retired Teacher/Spouses and the State of Connecticut.

First year - $110 plus $55 = $165.
Second year - $165 plus $55 = 220

The increases stated above will double the base of $110 and allows time for the funds to be attained.

• Each succeeding year afterward a compounded Medical index COLA be added to the $220. The subsidy would NOT exceed 100% of the payment.

The Cost

• TRB analysis as of 2005 for 18,000 Retired Teachers/Spouses based on a $55 monthly increase is:
  >   State of Connecticut share for 1 year -   $ 3,959,280.
  >   Fund share for 1 year                           -   $ 7,920,720.

Funding for Fund Cost

• (TRB) From 50,000 active teachers currently contributing 1.25% of their salaries:
  >   Add 1st year        +.25% to 1.50%
   >   Add 2nd year      +.25% to 1.75%

Because? The active teachers who fund a great portion of the Health fund have the right to expect it will be viable when they retire!

Please remember:
The subsidy has NOT increased in 12 years!

Our Motto:

"It's a tough pill to swallow!"