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A proposal to help educators limit "out of pocket expenses for health insurance using the money for future needs. Paul Hubbert, secretary executive of the Alabama Education Association, spoke about the proposal in November AEA 14 Bulletin.
It would cover a deficit of $ 238 million in plans of teachers health insurance.
However, the proposal could pose long-term problems, said Marc Reynolds, the director of retirement systems Alabama's deputy, who oversees the program.
Hubbert wrote that to navigate a rough 2011 in Public Education Employee Health Insurance Program could touch the savings account program established for future needs.
But Reynolds cautioned against using the program long-term savings for short-term solutions.
"They are financing their ongoing operations of the savings without any real plan to put it back," said Reynolds. "In some point, the savings will be gone. Let's benefits for seniors, $ 22 billion that Medicare reimburses the Medicare drug plan for retirees eligible "prescribing and
$ 8 million higher premium surcharge that smokers pay.
Combined, must make decisions that will PEEHIP fiscally sound, while the most fair and painless as possible, "wrote Hubbert. He called the problems of income of the budget period more difficult in a generation.
Reynolds said the current plan is unsustainable PEEHIP because it lacks funds to pay for future retiree benefits, estimated at about $ 12 billion.
The constitutional superannuation Hubbert suggested to use $ 60 million set contains only $ 600 million of the $ 12 million needed for the future, said Reynolds.
In recent years, the Board PEEHIP make decisions about medical coverage plan and sought additional income needed from the Legislature, keeping low member contributions. But Hubbert and Reynolds said state revenues is not only there to collect additional insurance plan costs for 2011.
The long-term changes are needed, said Reynolds.
In October, Reynolds gave the Board of other income-generating options. These include a slight increase in monthly premiums for members and changes in copayments for doctor visits, prescription drugs and services related.
Hubbert said after the October meeting he did not expect the Board to act quickly on the immediate problem, but rather to wait to see how much financing can help the Legislature next session. He said that the personal costs of the employee under the health coverage are part of the package that attracts good teachers in Alabama.
Workers in full-time education who are nonsmokers pay $ 2 per month for single coverage premium health and $ 134 for family coverage. Part-time employees pay a different rate. All but two or three school systems in the state to participate in the health plan PEEHIP.
Most PEEHIP board members, representing various education groups have said that their constituents understand some changes are coming.
Another indication of change came when the Superintendent of Education Joe Morton asked the Board of Education approve the freezing of PEEHIP tax contribution at K 2011-12 the budget.
The state school board passed a resolution at its last meeting to support the freeze at 2010 levels.
The budget went to the governor change is not just to increase their monthly contribution, "he said. Other changes include the co-pay increases and other adjustments to the health plans that could help balance the bottom, Morton said.
"There is a combination of changes in the Legislature could do to make this work" said. Thus, if there is any growth in the Trust Fund for Education, "could go to class."
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SEPT 13, 2009 EMAIL NEWSLETTER imperia invest
