MAHONING VALLEY Retired teachers fear increase in health costs

Local retirees said premium costs could double for some.
By JoANNE VIVIANO
VINDICATOR EDUCATION WRITER
Although it is still months away, some retired teachers are already facing the new year in fear.
Some are wondering if they should sell homes.
Some consider cutting medications in half, even into quarters.
Others wonder if they should try to find a job in this depressed economy.
As of Jan. 1, retired teachers across the state will face increases in the health insurance and prescription costs they must pay for the benefits provided through the State Teachers Retirement System. Facing financial shortfalls, the STRS board voted this spring to make the changes.
Local retirees said some will see premium contribution rates double.
"It's very scary," said Denise Bartholomew of Hubbard, legislative chairwoman of the Trumbull County Retired Teachers Association. "It's a very, very worrisome time.
"What do we do? We don't want to become Medicaid folks. We want to be independent, on our own. We worked all our lives to be independent," Bartholomew said.
Additional increases
The increase in premium rates will be difficult on its own, but the retirees will also be asked to pay 100 percent of their spouses' premiums and 50 percent of the cost of brand-name medications, said Marcella Crann of Boardman, legislative chairwoman of the Mahoning County Retired Teachers Association.
"It's going to be extremely difficult for a great number of us," Crann said. "Everybody is holding their breath right now as to how they're going to weather this and get through this."
Many retirees are asking pharmacists how much their medications will cost.
"There are a lot of concerns about how they're going to pay all the added costs for prescriptions as well as their spouse's premium," Crann said.
Jim Antell of Boardman, president of the MCRTA, said he'll see rates for himself and his wife jump from about $200 to nearly $600, with annual deductibles of $500 per person and copays of up to $2,000 total per person.
"We're definitely going to have to cut corners," he said. "We're figuring it's going to run us between $9,000 and $10,000 a year.
"The ones it's really going to hurt are teachers who retired before the 1980s," he added. "Even with Medicare, it's still $57 and for a spouse, $238. If they're getting $1,000 a month [pension], it's gonna hurt."
One alternative
A way to save costs is to select the catastrophic plan offered though STRS; this plan has lower premiums but higher deductibles and copays.
There are 37,000 members in the Ohio Retired Teachers Association. About 900 are in Mahoning County, 500 in Trumbull County and 200 in Columbiana County.
Bartholomew said a problem is that STRS does not have a dedicated source of money going into the health-care stability fund, but has relied on investment returns. As the stock market struggles, those returns have been abysmal, and the fund cannot support its members at the rate it once did.
Bartholomew said she is working with state legislatures to mandate some dedicated source for the health-care fund, so it constantly grows.
Controversy over director
STRS spending has been in the spotlight in recent weeks, and state legislators are calling for the resignation of Executive Director Herb Dyer.
Retirees have criticized Dyer amid news reports that STRS has given about $14 million in bonuses to employees since August 2000 and spent $869,000 on eight pieces of artwork for its Columbus office building. Over the same time, the value of the fund's assets declined by $12.3 billion.
David P. Travis, executive director of the ORTA, said it is unfair to associate these difficulties with the health-care issue. Basically, he said, health-care costs are skyrocketing, and the STRS has received no benefit from the stock market.
Travis said STRS has operating expenses of $100 million and assets of roughly $50 billion. If spending had been reduced, it would likely have paid for only one month of health-care benefits, he said.
"It's not a significant amount, as far as how it will affect benefits to teachers," Travis said. "But it's still wrong. ... It's still teachers' money, and it's still wrong to spend it in these economic times.
"Retired teachers had to cut back. ... [STRS officials] should cut back, too."
Crann said she's heard retirees talking about going back to work to pay the added health costs. Others suggest dividing prescriptions into smaller doses than doctors recommend.
"We're going to have to cut back, and nobody is talking about cutting back drug costs or health-care costs," she said. "If costs keep spiraling, how are we going to keep paying?"
Bartholomew said those at "the bottom of the pile" making only $1,000 or $2,000 from their pensions each month will be the ones who panic.
They are considering home sales that won't help much because there will be rent to pay.
"They're between the hard rock and the very hard place," she said. "It's a nightmare."
XThe Associated Press contributed to this report.