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Are State Retiree Health Benefits Under Fire?

 

March 25, 2014
Tuesday PM


(SitNews)Juneau, Alaska - Concern is mounting among retirees that the Parnell Administration is poised to reduce constitutionally-protected health benefits they were promised as state and local employees. 

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The Administration recently came out with a revised retiree health plan.  A public comment period on the draft plan was set to close on February 28 but has been extended to April 30 in response to public concerns. 

The plan provides health coverage to 67,000 Alaska retirees and their families.

“The Alaska Constitution prohibits any diminishment or impairment of retiree benefits,” said Senator Wielechowski, who recently urged the Parnell Administration to review and reconsider the draft plan.

“These benefits provide the foundation for a happy and healthy retirement,” Wielechowski added.  “They are part of the agreement struck with employees when they were hired.  Changing the terms now of those agreements violates the Constitution and commitments made to many, many Alaskans.”  

Recently the Retired Public Employees of Alaska (RPEA) contracted with a health care expert to review the proposed plan.  The contractor, a former benefits manager with the state and representative of AETNA, identified about 75 potential reductions and 10 enhancements of benefits in the plan.

The Retired Public Employees of Alaska contracted with Healthcare Considerations, LLC to review the new AlaskaCare Retiree Benefit Plan booklet, which is currently out for public review. Wielechowski requested in his letter dated March 11th, that Deputy Commissioner Mike Barnhill provide a detailed written response to the Healthcare Considerations, LLC document that either affirms, denies or clarifies each of its findings by the end of March since the public comment period closes on April 30th.

Gary Miller, the Southeast Alaska chair of the RPEA, said his group has been working with the Administration for several months to address retiree concerns. 

“Many retirees are worried their benefits are being cut,” Miller said.  “The state must honor its commitment to Alaskans who devoted their lives to bettering their communities and Alaska as a whole.”

Wielechowski noted that the Administration has said its intent is not to reduce benefits.  “If that’s the case, they need to clarify the plan because it has certainly created lot of angst.”

He said he looks forward to seeing the Administration’s response to the specific issues raised by the RPEA contractor. 



Edited by Mary Kauffman, SitNews

On the Web:

Analysis of the changes
http://alaskasenatedems.com/docs/2014_changes_retiree-health-plan.pdf

Senator Wielechowski’s letter to the Department of Administration
http://alaskasenatedems.com/docs/031114_letter_DepCoBarnhill_retiree-health-plan.pdf



Source of News: 

Alaska Senate Democrats
laskasenatedems.com



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