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Administrative Services outlines retiree-health savings, smoothing plan and staffing cuts; asks Senate for targeted restorations
Summary
The Department of Administrative Services described large retiree-health savings from Medicare Advantage, proposed a 10-year smoothing of reserves to absorb federal rate changes, and warned that position cuts in the House budget would slow central services and urged restoration of five positions and other technical fixes.
Charlie Arlinghaus, commissioner of the Department of Administrative Services (DAS), and deputy commissioners explained to senators how the state's retiree-health strategy and a planned enterprise resource planning (ERP) rollout affect the department's budget and staffing.
Retiree health and Medicare Advantage: DAS officials said a shift to a Medicare Advantage model for Medicare-eligible retirees produced large savings compared with prior self-insured costs. Cassie Keane, DAS deputy commissioner, described a procurement history that produced a period with a "$0 premium" Medicare Advantage contract and attributed much of the fiscal improvement in retiree-health spending to leveraging federal Medicare Advantage funding and changes to retiree premium contributions. She…
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