Submitted by WSURA board representatives to the Ohio Council of Higher Education Retirees, Paul Wolfe and Richard Williams
There is considerable uncertainty about the effect of the Trump administration on the health insurance situation. What will happen to the Affordable Care Act is unclear but the expectation is that it will not have much effect of STRS. Because OPERS health insurance is linked to the state insurance exchanges, the effect is more uncertain.
The HPA (Healthcare Pensions Advocacy) group which looks at all Ohio state public pension systems thinks the health care system will need some cuts. They wanted to make recommendations for 50 years stability but decided the future is too uncertain to plan that far ahead. Pension payout is exceeding income, so some adjustments will be needed in 2019.
Some outside groups have been stating that state legislatures will get stuck with big bills for underfunded state pension systems but that is not a valid analysis for us. For Ohio and 16 other states the pension systems are responsible for themselves and for managing their investments and benefits.
One of the issues that received a lot of attention was the Medicare B premiums. The current law has a “hold harmless” clause that does not let Medicare premium increases exceed Social Security cost of living increases; however, another law requires that the premiums cover 25% of the costs. The result is that the 30% of Medicare recipients who are not getting Social Security are burdened with the total cost increase for everyone in the system. This is considered very unfair by them. STRS has sent a recommendation to our US senators and representatives that the “hold harmless” clause should be eliminated. This would not be beneficial to enrollees who will get a Social Security check and are thus protected by the “hold harmless” clause. Individual retirees are recommended to contact their Congressmen to express their individual opinions.
A new organization, POP-5 (Protect Our Pensions – 5 Ohio retirement systems) has formed and is soliciting members. Individuals are encourage to make their own decisions about joining but don’t be confused that this is one of the long-standing organizations, such as ORTA or PERI, etc.
