County staff has notified REAOC that two retiree-related items have been placed on the Board of Supervisor’s Tuesday, July 27th agenda.  Agenda Staff Reports #41 & #43, if adopted, can have a significant impact on your health plan coverage and your finances.  Please see the very important message below regarding these items.

Given the short timeline in which to respond, REAOC officers, directors and volunteers have been pouring over the mound of paperwork involved in reviewing and analyzing the recommendations proposed by the county’s Human Resources Department.  The following describes some of the proposed changes:
 

Agenda Item 41:  Wellwise and Sharewell plan costs will dramatically increase by 24.6% for 2011 if current recommendations are adopted.  Pre-65 retirees enrolled in Wellwise will see increases ranging from $223 to $558 per month.  For pre-65 retirees enrolled in Sharewell increases range from $78 to $180 a month.  For post-65 retirees enrolled in Wellwise cost increases range from $101 to $492 a month.  Sharewell enrollees who are post 65 will see increases in rates from $35 to $123 a month. The grant is scheduled to increase by 3% which will offset about $9 per month of the average retiree premium.  Most retirees 65 through 68 will see their grants increase about $4.50 per month to offset a portion of the increased rates.  We do not know what the Medicare Part B premium rate will increase at this time although it remains mandatory for health plan coverage in a County plan for anyone over age 65.

REAOC is not in agreement with the calculations used to determine the cost of coverage in these plans and has sent a letter to the Board of Supervisors requesting a continuance of the item so that REAOC representatives can meet with county staff to discuss these extraordinary increases.  The letter is attached for your review. 

Agenda Item 43:  Anthem Blue Cross is recommended to replace the CIGNA HMO Plan.  The proposed replacement plans are described as comparable with overlapping network coverage and with cost increases over current CIGNA plan costs of 3%. A rate reduction of 32% from current CIGNA costs is quoted for retirees with Medicare Parts A & B.  However, Blue Cross offers a number of plans, and retirees during Open Enrollment will have the option to determine if any of the Blue Cross plans meet their needs.  Retirees currently enrolled in CIGNA who do not elect a change during open enrollment will be placed in a Blue Cross Plan by the county.

Kaiser rates will increase between 8 to 22% depending on the plan in which retirees are enrolled.  A new offering, SCAN, will provide a Medicare Advantage plan.

The Exclusive Care Plan (County of Riverside) will no longer be available effective January 1, 2011 to retirees.  A SCAN plan with home health services will be made available for qualifying post 65 retirees.

Further information will be made available for your review as rate tables are finalized.