Retirement Board Continues Detailed Review of Health Care Program
- Retirees rate the physician network as critical when choosing a health care plan, while active teachers rate premiums as their top concern.
- Both groups are least willing to reduce the hospital or physician networks to prolong the program’s solvency.
- There is generally a higher tolerance to changes regarding prescription drug benefits.
- Nearly half of all respondents are willing to accept a 20% increase in premiums to extend the fund solvency five years.
- Nearly half of active member respondents said they are willing to delay enrollment until Medicare eligibility to improve the likelihood of lifetime coverage.
- There is no clear “normal” with regard to the entity that provides coverage. Ohio is one of 16 states that provide coverage through the retirement system. Other sources include state agencies, the last employer and the open market.
- Subsidy levels and designs vary greatly among states.
- Some states limit coverage based on Medicare enrollment.
- STRS Ohio’s total contribution rate of 28% (member + employer) is in the bottom quartile of states’ contribution rates.