Federal Health Insurance Case Study

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Retirees irate over jumps in premium costs Retired state employees are howling about skyrocketing health-insurance costs. The current state budget had no premium increases for active employees, who got a one-time "bonus" of $1,000 (actually, about $675 after taxes) instead of a pay raise. But thousands of retirees felt a sort of sticker shock when they saw their first direct-deposit slips of the new year. "I received my Statement of Retirement Benefit Payments and found that my health-insurance premiums have increased 30.98 percent, from $358.84 to $470 for family coverage," retiree Jim Roberts said. "I had already received notice that the Medicare Part B premium had increased from $66.60 to $78.20, a more modest 17.4 percent." Roberts, a member of Capital Health Plan, said he hadn't kept up on changes in pension and insurance plans since retiring two and a half years ago. Department of Management Services figures indicate that CHP had the biggest premium increase for Leon County retirees in his Medicare class. …show more content…

In phone calls and angry letters to the Tallahassee Democrat and their legislators, many retirees mistakenly assumed that the jump in premiums was another mistake in the privatization of state personnel systems. And unlike almost all active employees, who fear losing their jobs if they speak out, retirees are not afraid to put their complaints on the record. But this time, it's not People

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