11 BEACON STREET, BOSTON, MASSACHUSETTS 02108-3024 May 2020 s Message PresidentAS MEMBERS’ TACKLE CORONAVIRUS FRANK VALERI and began doing so on March s we go to press in late WE ARE HERE 16th. March, life in our coun- We are in regular, ongoing FOR YOU communication with federal, state Atry – like much of the world – has come to a standstill as and local officials to help support develop treatments and a cure. any aspect of their work impacting the coronavirus crisis unfolds. My Meanwhile, it is important to follow public retirees. This includes com- hope is that the worst is behind us expert advice and take the steps nec- municating to you that your Social by the time this newsletter is pub- essary to protect ourselves. Security and pension payments lished in mid-April. However, I fear Here at Mass Retirees we have would be made on time! that may not be the case. done our best to protect our team, In all the years since the creation While our public health officials while maintaining our mission to be of these programs, not a single pay- and medical experts work to slow here to help our members. As we ment has ever been missed. And I the spread of COVID-19 and tend to saw the situation deteriorate over- do not envision future payments to the sick, it is important we remain seas, we took the needed steps in safe. I have all the faith in the world February to ensure that we could that our medical professionals will fully run our operations remotely CONTINUED ON PAGE 2 u MEDICAL INFLATION DRIVES GIC PREMIUMS UP ue to a jump in health NO INCREASE IN care costs, monthly INSIDE THIS ISSUE Dinsurance premiums for COPAYMENTS OR those enrolled in the state’s Group DEDUCTIBLES WEP UPDATE Insurance Commission will increase Congressmen Richie Neal (MA) & Kevin Brady (TX) for Fiscal Year ‘21. The new plan Medicare, is 5.1%. This increase is rates will be effective July 1 but are in-line with overall health insurance Page 3 paid in the June pension checks. market trends between 5% and 7%. While members will see an The GIC indicated that the driving increase in their monthly premiums, factor is medical inflation, in other MATTHEW VENO GIC’s New Executive Director their copayments and deductibles words, the cost of the product itself. After nearly a decade of sta- will remain unchanged from FY20. Page 8 As we anticipated by us in ear- bility with the price of health care lier reports, the average increase across all plans, non-Medicare and CONTINUED ON PAGE 2 u GIC FY21 PREMIUMS SEE PAGES 10 & 11 The Voice of the Retired Public Employee professionals to safeguard our PRIM Board, to protect our pensions. President’s retirement funds. Following the 2008 A special thanks also needs to be Financial crisis, the state’s Pension extended to Mass Retirees Executive Message Reserves Investment Management Vice President Paul Shanley. Since CONTINUED FROM PAGE 1 u (PRIM) Board, along with local retire- joining PRIM in 2008, as the financial ment systems, worked hard at struc- markets collapsed, Paul has played a retirees ever being in doubt. turing diverse asset allocation and key role in ensuring that every pos- Our Association has also been putting protections in place to help sible step has been taken to protect in regular contact with officials from mitigate losses in the event of a our pension assets. the state GIC, Blue Cross Blue Shield Because of this collec- and the MIIA to guarantee that tive work, our public pension retirees’ healthcare needs will con- systems will remain strong tinue to be met. Should any of our and ready to capitalize on members come in contact with the economic success in the coronavirus, all testing and medical future. treatments are fully covered. We are going through We are also making sure that a very difficult time, but we we regularly communicate with our will persevere and overcome members. In lieu of our springtime these challenges. We will do DEB GOLDBERG PAUL SHANLEY area meetings, we are holding a STATE TREASURER EXECUTIVE V.P. so because we are strong series of telephone town halls. This PRIM CHAIR PRIM BOARD MEMBER and we were prepared. allows members to engage with us, Meanwhile, please know ask questions and stay informed – all severe financial crisis. that we are here for you. If you have from the safety of your own home. There is no doubt that those questions or need help, do not hes- It is times like these when we measures are now being tested. So itate to call upon us. We can be can truly appreciate how import- far all indications are that while our reached either at the office number ant it is to have the highest quality 104 retirement systems have suf- or at the personal contact numbers health insurance benefits, along fered significant losses, the risk mit- contained on your membership with access to some of the best doc- igation steps put in place over the card. You can also email us at info@ tors and hospitals anywhere in the past 12 years have proven effective. massretirees.com. world. I want to thank State Treasurer I also want to take special notice Deb Goldberg, as well as her prede- We are all in this together. of the work that has been done over cessor Steve Grossman for the work the years by our public pension they have both done, as chairs of the the average premium increase and the lowest 3%. The higher end Medical is 3.2%. Approximately 75,000 increases are impacting the Tufts of the total number are in the Health and UniCare plans that offer Inflation most popular plan, UniCare OME a broader network and products. CONTINUED FROM PAGE 1 u with CIC, followed by Harvard “While we may have antici- Medicare Advanced (over 16,000) pated rate increases, we’re par- services, costs began to rapidly and Tufts Medicare Complement ticularly concerned by the higher accelerate in 2019. The cost of pro- plan (almost 9,500). The premium increases for the non-Medicare viding services such as labs and increase for all three of these plans plans and their impact on retir- X-rays, ER visits, prescriptions and is 3.3%. ees who are not Medicare eligi- surgical procedures have risen It’s important to remember that ble,” comments Association CEO even though overall utilization has the benefits across all Medicare Shawn Duhamel. “This segment of decreased. The impact of this is plans remain the same as FY2020. retirees are already paying more in reflected in the plan rate increases The GIC will continue to offer the deductibles and copayments and presented at the GIC’s February Tufts Medicare Preferred, the only these increases, in terms of real 27th meeting. Medicare Advantage option. dollars, will only further undermine For the GIC’s six Medicare On the non-Medicare side, the supplement plans, insuring average increase will be 5.5%, with approximately 103,844 enrollees, the highest increase being 7.6% CONTINUED ON PAGE 18 u 22 May 2020 WEP REFORM UPDATE COSPONSORS GROW IN HOUSE, AS SENATE PROPOSAL EMERGES upport for reform of the Republican proposals aim to reform spouse. Social Security Windfall the WEP for current retirees and Another area of difference SElimination Provision create a new Social Security for- is how the competing proposals (WEP) continues to grow would impact future retir- on Capitol Hill. ees. For anyone first eli- The proposal crafted gible for Social Security by Massachusetts on or after 1/1/22 the pro- Congressman Richard posals seek to ensure Neal, H.R. 4540, now has that current active public 140 cosponsors in the employees are not unin- House of Representatives. tentionally harmed by the This bill has the full support new formula that would of Mass Retirees, along replace the WEP law. This with broad endorsement unintended problem sur- from a growing number of faced in 2016, when it was national retiree organiza- discovered that the biparti- HOUSE WAYS AND MEANS COMMITTEE tions and public employee CHAIRMAN RICHIE NEAL (D-SPRINGFIELD) & san WEP reform bill (H.R. unions. RANKING MINORITY MEMBER KEVIN BRADY (R-HOUSTON) 711) would have slightly Neal’s Republican counterpart mula for all future retirees, there are reduced Social Security benefits of on the Ways and Means Committee, important differences. some future retirees with substan- Texas Congressman Kevin Brady, The largest difference would tial credit under Social Security. has his own WEP reform proposal apply to current retirees impacted by Both Neal and Brady have H.R. 3934. Senators Ted Cruz (R-TX) the WEP. Neal’s proposal restores up worked closely with stakeholder and Bill Cassidy (R-LA) have intro- to $150 a month in relief payments groups over the past three years duced legislation in the US Senate for those first eligible for Social to develop a new set of proposals (S. 3401) that mirrors that filed in the Security before 1/1/22. Republican aimed at grandfathering or holding House by Brady. proposals provide $100 a month While the Democrat and for the retiree and another $50 for a CONTINUED ON PAGE 4 u Hall) and West your continued loyalty.” Springfield. In place of these area meetings, “Our fore- we will be holding a series of tele- SPRINGTIME most concern phone town halls. Our first Tele-Town is the health Hall with 675 members was a big AREA MEETINGS and safety of success. We also will be increasing our members,” our outreach through digital media.