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State officials propose one-year delay to cut in retirees’ pharmacy benefit as actuary warns of multi‑million shortfall
Summary
The state’s employee benefits board and its actuary told the Senate Insurance & Commerce Committee that reinstating pharmacy coverage for Medicare‑eligible retirees would cost about $38.5 million in 2021 and convert a projected surplus into a roughly $7 million deficit; the board proposed delaying the pharmacy change to Jan. 1, 2022 and offering a $25 monthly premium credit for retirees who opt into Medicare this year.
Chairman Lowery convened the Senate Insurance & Commerce Committee to hear an emergency briefing on changes to the state employee and public‑school retirees’ health plan after widespread public concern.
Amy Fletcher, secretary of the Department of Transformation and Shared Services and a witness for the Employee Benefits Division (EBD), told lawmakers the August 5 board vote that scaled back or removed pharmacy coverage for Medicare‑eligible retirees prompted a high volume of emails and phone calls. Fletcher offered the board’s alternative proposal: postpone loss of pharmacy benefits for 65‑plus retirees until Jan. 1, 2022, allow retirees to opt into Medicare Part D this year with a $25 monthly premium credit if they do, and apply a 5% premium increase in…
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