STATEMENT FROM SENATE PRESIDENT PRO TEMPORE & HOUSE SPEAKER JILL KROWINSKI ON ADMINISTRATION’S PLAN TO MOVE STATE RETIREES INTO PRIVATE MEDICARE ADVANTAGE PLANS

Montpelier, VT - Today Senate President Pro Tempore Philip Baruth and Speaker of the House Jill Krowinski issued the following statement:

“We are deeply concerned about the Administration’s stated intention to move Medicare-eligible state retirees from the State of Vermont’s insurance plan into Medicare Advantage plans without the support of state retirees. We are particularly concerned about the potential legal, financial and health implications and believe this shift undermines collective bargaining rights.

“In November 2022, the Vermont’s Retired Employees Committee on Insurance (RECI), established by 3 V.S.A. § 636 to advise and make recommendations to the Secretary of Administration on state employee retiree health insurance benefits, voted to oppose the Administration’s proposal. Additionally, the Vermont State Employees Association (VSEA) and the Vermont Retired State Employees Association (VRSEA) have publicly opposed this shift.

“We share the concerns raised by many state retirees that access to essential health care services could be threatened. In April 2022, the Office of Inspector General for the U.S. Department of Health and Human Services (HHS) released a report highlighting a pattern of delayed or denied coverage for services through a Medicare Advantage plan. Investigators estimated that, in 2019, approximately 85,000 requests for prior authorization of care were likely to have been improperly denied and approximately 1.5 million payments for services were improperly denied. 

“Additionally, we are concerned about the legality of such a shift. 3 V.S.A. § 479(a) is clear that Medicare-eligible state retirees must be covered by the same medical plan as current state employees, stating that ‘a member who is insured by the respective group insurance plans immediately preceding the member's effective date of retirement shall be entitled to continuation of group insurance…in the group medical benefit plan provided by the State of Vermont for active State Employees.’

“Shifting the decision-making power to the private insurance industry, without support of state retirees, undermines the decades of protections that state retirees have enjoyed as a result of the state employees’ collectively bargained contract. We share the concerns of many retired state employees about the legality and the financial and health implications for our state’s retired public servants. State retirees have dedicated years of service to the State of Vermont and they deserve the assurance that the healthcare benefits they were promised will be protected.”

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

State Retirees Would Lose Under Scott’s CIGNA “Medicare Advantage” Proposal

Fact Sheet #2

VRSEA represents 8,000+ State retirees and their families.  On their behalf we assert that moving State retirees into a Medicare Advantage plan is a violation of State retirees’ statutory rights.   We understand that this issue may be taken up in the 2023 Legislative session.  We ask legislators who represent State retirees and their families, to understand the impacts this proposal would have on their elderly constituents.  Please support your constituents against changes to their current health plan without their knowledge or agreement. 

• The State Retirees’ Health Care Plan Is Guaranteed in Statute
• ·         State retirees have given years of dedicated service to the citizens and State of Vermont.  While employees, retirees agreed to lesser pay increases for the guarantee of keeping their same health care plan in retirement. This guarantee has been a long-standing condition of employment with State government.
• ·         For decades, and by design, state employees and retirees have been covered by the same health care plans. The benefits and conditions of coverage under the plans are negotiated through collective bargaining between the State and the VSEA.  When a person retires, he or she keeps their same plan, wrapping around Medicare.  This is a common understanding as a condition of employment when a person goes to work for the State.
• ·         The State now proposes to move State retirees out of the State/VSEA negotiated benefit plans into a standalone Medicare Advantage Plan.   In addition to other detrimental effects, VRSEA believes this would be a violation of current statute.
• ·         State retirees are entitled to keep the same health care plan they had as state employees.  3VSA 21 ss631 states, “For purposes of hospital-surgical-medical insurance, the term “employees” shall include employees as defined in subdivision (2)(A) and former employees as defined in this subdivision who are retired and who are receiving a retirement allowance from the Vermont State Retirement system…”. 
• ·         3VSA 16 ss479 (a) states, “As provided under Section 631 of this title, a member who is insured by the respective group insurance plans immediately preceding the member’s effective date of retirement shall be entitled to continuation of group insurance as follows: (1)(A) coverage in the group medical plan provided by the State of Vermont for active employees;…”

Contact:         

Shelley Martin, VRSEA President, at (802) 595-1888, or 2020VRSEAwork@gmail.com

Bridget Morris, VRSEA Lobbyist, at bmorris@vtlobbyist.com

State Retirees Would Lose Under Scott’s CIGNA “Medicare Advantage” Proposal

Fact Sheet #3

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 consent.   

Medicare Advantage Plans Are Being Sued

CIGNA is currently being sued by the U.S. Department of Justice for fraud.  Medicare Advantage plans are under fire nationally for lying to regulators, using restrictive utilization management practices, stinting on care, and fraudulent practices. 

United States Files Civil Fraud Lawsuit against Cigna for Artificially Inflating Its Medicare Advantage Payments: “As alleged, CIGNA obtained tens of millions of dollars in Medicare funds by submitting to the Government false and invalid diagnoses for its Medicare Advantage plan members.” (Southern District of New York United States attorney’s Office Press Release October 17, 2022)

The Cash Monster Was Insatiable’: How Insurers Exploited Medicare for Billions

“By next year, half of Medicare beneficiaries will have a private Medicare Advantage plan. Most large insurers in the program have been accused in court of fraud. . .  New York Times review of dozens of fraud lawsuits, inspector general audits and investigations by watchdogs shows how major health insurers exploited the program to inflate their profits by billions of dollars.” (New York Times October 8, 2022)

“Is Medicare Advantage really “better” than traditional Medicare?  According to the Kaiser Family Fund report published (9/6/2022) and its analysis of recent studies, coupled with our own experience serving Medicare beneficiaries who need care for significant illnesses or injuries, the answer is an unequivocal “no”.  (The Center for Medicare Advocacy 9/21/22 https://medicareadvocacy.org/kaiser-family-foundation-releases-report-regarding-differences-between-traditional-medicare-and-medicare-advantage/)

Contact:          Shelley Martin, VRSEA President, at (802) 595-1888, or 2020VRSEAwork@gmail.com

                        Bridget Morris, VRSEA Lobbyist, at bmorris@vtlobbyist.com

URGENT ANNOUNCEMENT FOR RETIRED STATE EMPLOYEES

The VRSEA Board of Trustees unanimously voted to

STRONGLY OPPOSE ANY CHANGES TO OUR MEDICAL PLAN

Unless you hear it from us, consider it a rumor. We plan to keep you informed & will have more details in our next newsletter —

Your Board is working with the State Dept of Human Resources and their consultant - who have proposed a change in your insurance plan - to understand in detail what this plan represents. Questions still remain. But this is what we know:

•      Currently your bargained health care plan makes sure that all members - both employees and retirees - are treated equally through the State Employee’s Health Plan.

•      VRSEA has expressed our concerns and the State understands that we oppose moving retirees from the legal protection of a collectively bargained health plan - to a separate “Medicare Advantage” Insurance plan.

•      Currently, the State Benefits Office resolves any issues or concerns about your retiree health plan locally. The terms and conditions of your health plan has been collectively bargained - and the State has authority over how your benefits are administered. This proposed Medicare Advantage plan has CIGNA as that authority.

•      The initial proposal by the state was for implementation 1/1/2023 but is now postponed.

•      It is clear that the state is not ready for any implementation or plan to educate all retirees who would be affected by this proposed plan.

•      Legislators are now asking about this proposal. VRSEA lobbyists are already working hard to monitor and stop any proposed legislation to take away your rights regarding your health care benefits - now and during the legislative session.

This is election season. We ask that you talk with your legislative representatives to express your concerns, hear how they would vote on issues regarding your retiree health care benefits, and VOTE for those who support your best interests!

Stay tuned.

NOTE: If you have already paid your VRSEA 2023 dues, please ignore the membership enrollment form coming in our next newsletter. You are already set for membership in 2023. We thank you for your ongoing support.

Vermont Retired State Employees Association, Inc.

“Working for Retired State Employees and Beneficiaries”

www.vrsea.org

August 11, 2021

The 2021 Annual Meeting of the Vermont Retired State Employees’ Association, Inc. was held by Zoom on August 11, 2021.  President Shelley Martin called the meeting to order at 12:02 p.m.  The following officers and trustees were present:  Shelley Martin, President; Kathy Callaghan, Secretary; Roger Dumas, Treasurer; Judy Hurley, Charly Dickerson, Allen Blake, Bruce Hyde, Jerry Schwarz, Vern Mackey, Mary Lou Bolt and Marc Metayer.  Nominating Committee Chair Bert Smith also attended.

President Shelley Martin officially welcomed everyone, explaining that the Annual Meeting was held by Zoom this year for everyone’s safety.  She opined that we hope to have an in-person meeting next year.  The President called for a moment of silence for those we have lost this year and members of their families.  She then introduced VRSEA Board members and Mr. Smith.

Secretary’s Report:   President Martin explained that normally the Secretary’s Report consists of the minutes of the prior year’s Annual Meeting.  Since the 2020 Annual Meeting was cancelled due to Covid-19, there was no Secretary’s Report this year.

Treasurer’s Report:   Treasurer Roger Dumas presented a comparison of the VRSEA budgets for the last three years.  He shared that the VRSEA Audit Committee of Helen Weed and Marie Maclay confirmed that the FY 2019 to 2020 records were in good financial order.  Roger presented the FY 2020-2021 year-to-date budget, and indicated that there may be a slight surplus at year end.  On the FY 2021-2022 budget, he explained that it has increased due to two new budget lines.  The Board has decided to have a Data Entry Processing individual to handle the hundreds of memberships and renewals we receive by mail each year.  In addition, there is a new 2022 budget line for Special Events.  Finally, the Treasurer reported that the 2022 pension COLA will be reported in the October 2021 VRSEA newsletter, which will be sent to all State retirees.

Nominating Committee Report:  Nominating Committee Chairman Bert Smith reported that no VRSEA members had contacted him to be considered for VRSEA Board membership in 2022.  He reviewed the fact that in 2020, no Annual Meeting was held due to Covid-19, and the existing slate of Trustees agreed to serve another year.  Bert then presented the Nominating Committee’s recommendation that five VRSEA Trustees be elected to serve a 1-year term, and five Trustees to serve a regular 2-year term.  This will bring the Board elections back into compliance with our By-Laws, which state that Trustees are elected for two-year terms.  The Annual Meeting attendees then voted by online ballot.  The attendees voted unanimously to re-elect all 10 of the current VRSEA Trustees, as follows:  Serving a 1-year term:  Allen Blake, Kathy Callaghan, Shelley Martin, Bruce Hyde and Judy Hurley.  Serving a 2-year term:  Charly Dickerson, Roger Dumas, Vern Mackey, Marc Metayer and Jerry Schwarz. 

Appreciation:  Roger moved and Charly seconded a motion to thank Bert Smith for his many years of exemplary service on the VRSEA Nominating Committee.  Along with Committee members Mike Wiater and Susan Hudson, Bert has faithfully executed the Committee’s duties for many years.  The Committee has produced excellent Trustee candidates when there were Board openings, which has greatly enhanced the VRSEA Board.  We owe Bert and his team a debt of gratitude.

President’s Report:   President Shelley Martin reviewed the fact that there is currently a Legislative Pension Task Force meeting to consider changes to the pension system.  She expressed appreciation for Vermont Treasurer Beth Pearce’s position that no changes should be made to the pension benefits for existing retirees.  Treasurer Pearce has reiterated this position many times to the VRSEA Board and to members of the Legislature.  The Pension Task Force must produce a preliminary report of their findings to the Legislature by October 15 and a final report by December 2.  VRSEA employs a professional lobbyist, Bridget Morris, who has done an excellent job on following the Task Force.  Legislative Chair Roger Dumas keeps the VRSEA Board informed on pension issues weekly and also does an excellent job.  

Next, President Martin explained the important differences between the VSEA retiree group (VSEA-RC), and our organization, VRSEA.  The VSEA-RC chapter is not an independent organization.  It is one of the many chapters of the VSEA union and answers to the VSEA Board.  VSEA-RC has no authority to act on behalf of their retiree members.  In contrast, VRSEA is a fully independent organization with full authority to act on behalf of its members. We answer only to our membership, and no other entity.   VRSEA exists to protect our members’ pension and retiree health care benefits and has no other agenda or affiliation. 

President Martin updated the group on the new Special Events that VRSEA is offering its members.  VRSEA is embarking on a series of Special Events for our members, beginning with the first one on August 19 at Lake Bomoseen State Park.  On Saturday, October 2, VRSEA will be participating in the Barre Fall Festival with a table and activities.  A member asked if anyone was car- pooling to Lake Bomoseen; Judy Hurley will be in touch with the member.  The President reminded members that VRSEA needs their emails to communicate more easily.  We do not share them.  

Lastly, President Martin expressed her appreciation to the VRSEA Board of Trustees and Committees for all their hard work throughout the year, and thanked VRSEA members for their support and trust in VRSEA.

President Martin adjourned the meeting at 12:30 p.m.

Respectfully submitted,

                                                            Kathy Callaghan

VRSEA Secretary

Topic: VRSEA Annual Meeting - 2022

Time:  August 24, 2022 at 12:00 pm EDT

Join Zoom Meeting

https://us02web.zoom.us/j/83421324753?pwd=SDlHMGRJdGhWRE1lL3RUdVJZZnN2UT09

Meeting ID: 834 2132 4753

Passcode: 988409

The State and the VSEA recently negotiated a new hearing aids benefit for State employees and retirees.  Effective January 1, 2023, State retirees and their dependents covered by the State Employees Health Plan, will each have a $1,500 benefit toward hearing aids – per ear – every 5 years.  The new benefit applies to the cost of the hearing aids only.  Audiologist visits and hearing tests continue to be covered as specialist visits under the health plan’s regular medical benefits.   VRSEA applauds the State for finally taking this step, as we have been asking for hearing aids coverage for many years.

The Vermont Retired State Employees Association (VRSEA) Board of Trustees recently voted to oppose the merger of the Vermont State Employees Credit Union and the New England Federal Credit Union.  State retirees may remember that the VSECU was started by state employees, for state employees.  Many state retirees have their banking with VSECU.  In addition, VRSEA has had its Association business dealings with VSECU for many years.  We trust them and they have treated us well.  A VRSEA Board member recently attended a meeting in Montpelier where both credit unions tried to explain why members should approve their merger.  After two hours of questions and answers, the companies could not come up with any compelling reason why members should vote to merge.  VSECU is a credit union for Vermonters, by Vermonters.   Keeping our Credit Union separate from the NEFCU helps us to retain control and to better serve the needs of our own Vermont community, which is very important and can be crucial.  The VRSEA Board of Trustees is encouraging VRSEA members to sign a petition to voice opposition to this merger. Petition Link Learn more about the issue at a website created by the group Calling All Members

The State Employee Health Plan is now covering At-Home COVID-19 rapid tests at no cost to members retroactive to December 1, 2021. The plan will cover up to 8 tests per member per month. The tests must be purchased at a pharmacy to be eligible for coverage (mail order or in person). Here are the details about how the plan will cover the tests:

For more information and details regarding the reimbursement process for both BCBSVT and ESI, please go to:

https://humanresources.vermont.gov/content/no-cost-covid-19-rapid-home-tests