Retiree Health Benefits- Changes To Come

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Story Published: Aug 26, 2008 at 6:36 PM MST

Story Updated: Nov 21, 2008 at 1:15 AM MST

By Araksya Karapetyan

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Currently, the state of Idaho has a retiree medical plan for those who are over 65-years old. If this new legislation passes, that plan would essentially go away.

"They want us out of the system. That's what they want," says Ray Ward, retired from Dept. of Transportation.

"I am frustrated. You make your plan retiring to now they want all the money to come from us for insurance,"says Linda Merrill.

"They're just pushing us out the door," says Glenn Phillips, retired from Butte County Judicial System.

"I'm not pleased at all. All they're doing is dazzling us. They're not being truthful," says Darrell Tinker, retired from I.F. Dept. of Transportation.

The truth is, the change is coming about because of two reasons, a depletion of the reserve fund, and the GASB 45.

"Requires the state and local government to put liability surrounding retiree benefits other than pensions on the bottom line for state of Idaho that requires the Medicare benefit," says Teresa Luna, Dept. of Administration.

Before 2008 the state didn't have to put health care liability on its bottom line.The new standard would add 477-million dollars of liability which could then affect the state's bond rating.

"Because of GASB 45 the intent of the legislation is to mitigate that dollar figure and lower it to under one hundred million," says Luna.

That means some, may have to pick up that extra tab.

"As time goes on we recognize cost goes up, but certainly retirement funds don't go up," says Phillips.

These former state employees, who've given the state, years of their lives, now want the state to give something back to them.

"My husband worked for the state for 35 years, and that's loyal. Didn't have overtime and made a lot lower wage, but we were true blue Idahoans," says Merrill.

"The promised us all these benefits when we got hired, and we stayed with them through these hard times," says Phillips.

But harder times, may just be around the corner.

"Between 55 and 65 , no Medicare you pay $1,030 a month, this is more than people get in benefits," says Ward.

" Not staying?" asks Araksya Karapetyan.
"Probably not. No. We'll probably get out," says Ward.

For most retirees the financial changes may not be so dramatic, but it could be for those with expensive medications.
For everyone, the limitations and changes in their plan may be disruptive, because they'll be going from a premium state plan to Medicare.
The legislation is coming up this session. If it passes, as is, it will take effect January 2010.

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