Board staff told trustees Thursday that proposed Anthem Medicare Advantage rates for 2026 would require some retirees to begin paying premiums and that, as a result, retirees enrolled in those Anthem plans would no longer receive Medicare Part B reimbursements. ORS staff said the change affects members enrolled in Anthem’s Medicare Advantage senior plans and will be in effect for open enrollment that runs Nov. 1–30. Retiree open-enrollment materials are due to arrive to retirees on or around Oct. 27 and ORS staff will present to POA and SJRAA meetings in October. The staff also said a retiree health fair is scheduled for Nov. 5 at the Leininger Center.

The presentation made clear the benefit change is a pricing outcome from Anthem’s proposed plan designs; ORS does not control Anthem’s premiums. John Flynn, ORS CEO, said the proposed plan designs include some plan reductions to reduce overall costs and that the insurer was adding an Anthem Medicare plan. “What’s important to note is for police and fire retirees eligible for Medicare Part B reimbursements who are enrolled in the Anthem Medicare senior advantage plans, they will have to pay a premium, and, therefore, no Medicare Part B reimbursements will be available because of the rate increases,” Flynn said.

Trustees asked for clear notices to retirees. Trustee Andrew (surname withheld in transcript) said the phones would likely “ring off the hook” when retirees learn they will not receive a Part B reimbursement. Counsel Chen checked and confirmed questions from the public during the meeting and that staff would do outreach. Flynn said ORS would make the change a primary discussion point at representatives’ meetings in October and noted ORS mailed open-enrollment postcards to retirees.

The board did not take action on the Anthem rates at the meeting; ORS said it is working with the city and stakeholders on final plan design and that any member premium and reimbursement changes will be communicated during the scheduled open-enrollment and benefits outreach.