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AFSCME to Gov. Rendell: Don't Cut Health Benefits for State Retirees!
Date:1/16/2008

few dollars in the short run. But over the years, it will turn into a devil's bargain."

According to Mazus, Medicare Advantage (MA) plans have many disadvantages for retirees, such as more limited physician acceptance and less forgiving appeals processes, compared to Medicare and the REHP. They also have disadvantages for Pennsylvania. MA-plan subsidies are partially paid out of increases in Medicare Part B premiums, which the state covers for low-income Medicaid recipients. In FY2007, this added $6.3 million to the state's Medicaid costs. Meanwhile, many insurance companies saw record profits last year, largely due to the federal subsidies for their MA plans.

"If this isn't bad enough, there are enormous implications for the future of Medicare," Mazus said. "The insurance company subsidies are draining the Medicare Trust Fund and putting the entire system at tremendous risk. It's unconscionable for our state to be a party to this."

AFSCME C13 is the largest public employee union in the commonwealth. RPEP/AFSCME Retiree Chapter 13 is the commonwealth's largest organization of public retirees.


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SOURCE AFSCME District Council 13
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