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Retirees and unions urge caution as SFHSS weighs consolidation and choice tradeoffs

Health Service System Board · July 11, 2019
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Summary

Multiple retirees and union representatives told the Health Service System board they are worried consolidation and carrier changes could raise premiums or reduce benefits for early retirees; they asked the board to protect retiree benefits and include unions in outreach.

Several retirees and union representatives addressed the Health Service System board during public comment, urging caution as staff studies models that could consolidate plan administration or reduce member choice.

Claire Zvonsky, representing retired employees and SEIU West Bay retirees, told commissioners the board previously consolidated plan offerings and that “premiums went up” afterward, urging staff to remember the past outcome when evaluating consolidation. Zvonsky said SFHSS should retain its practice of designing its own plan rather than simply purchasing an existing product from a carrier.

Fred Sanchez, president of Protect Our Benefits, called attention to the system’s charter constraints and warned that smaller group sizes and local market consolidation make competition and bidding more difficult. Sean Buford, president of San Francisco Fire 578, asked the board to consider the impact of changes on public safety employees who may retire before Medicare eligibility and urged caution about “drastic changes” that would affect early retirees.

Retiree Maureen O’Shea and retired employee Carrie Toda asked the board to preserve strong benefits that help retain city employees and to expand HMO choices where feasible. Public commenters urged the board to include active employee organizations in outreach and to provide accessible, multilingual engagement so members with limited digital access can participate in surveys and focus groups.

Board members and staff acknowledged the concerns, said they will solicit member input through workshops and surveys, and reiterated that no final decision will be made before broader engagement and further actuarial review.