State Retirees Would Lose Under Scott’s CIGNA “Medicare Advantage” Proposal
Fact Sheet #1
VRSEA represents 8,000+ State retirees and their dependents. On their behalf, we oppose the Administration’s proposal to move State retirees into a Medicare Advantage plan. We believe this issue may be taken up in the 2023 Legislative session. We are asking legislators who represent State retirees and their families, to understand the adverse impacts this proposal would have on these elderly constituents. Please support your constituents against any change in their retiree health care benefits without their knowledge or agreement.
Loss of Current Protections
- · The State believes it can save money by substituting a Medicare Advantage plan for state retirees and still remain in compliance current statute. VRSEA disagrees. 3 VSA ss631 requires the State to keep retirees in the same health plan as State employees. 3 VSA ss479 states that retirees are entitled to continuation of group insurance in the group medical benefit provided by the State of Vermont for active State employees.
- · Under the State’s proposal, State retirees age 65+ would no longer receive Medicare Part A & B benefits directly from the Federal Government. “Medicare Advantage” is not Medicare. The State would carve out 65+ retirees from their bargained State Employees Health Plan wraparound plan. The State would replace all State retiree health benefits with an insurance product managed by CIGNA.
- · State retirees would lose decades of protection under the negotiated State/VSEA labor contract. Retirees would be on their own, relying solely upon changing Administrations and budget priorities for their future health care benefits.
- · The State would have no control over the operation of a CIGNA’s Medicare Advantage Plan; legally this control cedes to CIGNA. Cigna would have total decision-making power over retirees’ claim denials, prior authorizations, and access to health care, including prescription drugs. Retirees would have to appeal to CIGNA for relief. They would be on their own with no health plan protection or oversight by the VSEA.
- · State retirees have given years of dedicated service to the citizens and State of Vermont, receiving less pay for the guarantee of keeping their same health care benefits in retirement. This has been a long-standing condition of employment with the State.
Contact:
Shelley Martin, VRSEA President, at (802) 595-1888, or 2020VRSEAwork@gmail.com
Bridget Morris, VRSEA Lobbyist, at bmorris@vtlobbyist.com