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Council approves supplemental retiree health plan after retirees cite short notice and enrollment confusion
Summary
The council voted to implement a supplemental retiree health plan administered by Benistar after PACE notified the city that retirees 65+ would lose eligibility. Retirees and council members urged more communication and agreed to reimburse a $2,100 prescription deductible for eligible retirees.
The Livingston City Council on March 3 voted to implement a supplemental retiree health plan administered by Benistar Group and underwritten by Hartford, after company PACE informed the city that retirees 65 and older would no longer be eligible for the city’s existing retiree coverage.
RC Cruz, the city’s HR coordinator, told the council PACE’s change left seven retirees and six dependent spouses who had lifetime benefits with limited options. Cruz said the Benistar plan would be a Medicare‑supplemental program that requires retirees to enroll in Medicare Part A and B and that the proposed prescription benefit includes a $2,100 annual out‑of‑pocket deductible. “Retirees to be eligible for this plan through Benistar … have to be enrolled in Medicare Part A and B,” Cruz said.
Retirees pressed the council for more time and help. Filoma Arondo, who said she worked for the city for 35 years, described receiving late notice and struggling with Medicare enrollment and conflicting federal guidance. “It’s been a true nightmare to try to understand enrolling into Medicare,” Arondo said, asking the council for clearer communication and more time.
Council members said the city had limited time to act: staff secured an extension from PACE only through March 31. Several members said staff had worked quickly to find options and that the chief concern was preventing any retiree from losing coverage. Council discussion focused on whether the city should reimburse retirees for the Benistar plan’s prescription deductible. Council member Paul and others raised practical questions about payment mechanics and enrollment assistance.
Karthik Prasad, a staff member from Congressman Adam Gray’s office who attended the meeting, offered federal office help for retirees who needed assistance with Social Security or Medicare enrollment.
The council approved a motion to implement and administer the Benistar supplemental retiree health plan and to authorize the city manager to execute required documents; roll call showed unanimous approval of the motion by the three council members present. The council also approved language to provide reimbursement to retirees for the $2,100 prescription deductible to help bridge the cost difference identified for the new plan.
The immediate next step is staff outreach to retirees to explain the enrollment steps, connect them with Benistar’s dedicated customer service team and coordinate support for Medicare enrollment. Council members also asked staff to coordinate with federal staff to help retirees with Social Security and Medicare appointments.
If retirees want to pursue alternate options after the plan is in place, staff said the city would allow opt‑outs and work through incentives or reimbursements on a case‑by‑case basis. The council vote does not obligate the city to long‑term changes beyond the contractual approvals the city manager will execute.
