Grand Rapids board approves shift of Medicare-eligible retirees to Blue Cross/Medicare plans, board says it will cut district liability

The Grand Rapids Public School District Board of Education on a roll-call vote approved transitioning Medicare-eligible retirees from the district’s self-funded HealthPartners plan to fully insured Blue Cross Blue Shield Group Platinum Blue and Group Medicare Advantage Plus plans.

Superintendent Matt Gross outlined the proposal and the district’s rationale, saying the change preserves the percentage contributions promised to retirees at the time of their retirement while reducing the district’s liability and creating long-term budget stability. “What I’m recommending tonight and the team’s recommending tonight is that we transition Medicare eligible retirees from the district’s self funded HealthPartners plan to fully insured Blue Cross Blue Shield, platinum blue, and Medicare Advantage Plus coverage,” Gross said.

Why it matters: the district reports an actuarial OPEB (other post-employment benefits) liability of about $126,000,000 and annual pension-related…