LEGISLATIVE ACTION
RETIREES IN ACTION
A message from PEF Retirees President Steve Muscarella
What happened to ‘one nation,’ indivisible?
Enactment of national health reform
has given many PEF retirees and members a renewed optimism in the governance of this country. However, the legislative process starkly
highlighted the deep divisions between our political leaders and their constituencies on the right and the left. We are subjected to headlines such as
“Tea Partiers Vow Revenge,” our country’s sitting president is portrayed with a Hitler-like moustache, congressional members are spat on, called homophobic or racial names, and shock jocks use epithets in referring to our elected representatives. Can one honestly state we are a united
country, when political lines have become so polarized and intransigent? Many of us come to this moment with
understandable concern. We are tired and upset by the power of special interests and their sway over governmental affairs.
MUSCARELLA when Americans felt we
It may be time to shatter the complacency that has settled over American politics. Abuses of power, political contributions that ensure preferential treatment, gerrymandering and patronage have become accepted practice. Seniors can remember
were unquestionably the greatest country in the world. We were united in our love and respect for our country. Randolph Roth, a professor of history
and criminology at Ohio State University, is quoted in the April issue of American History magazine: “…. most patriotism in the United
States since the mid-19th century has been, ‘I’m an American and you’re not,’ and that kind of patriotism is destructive. It draws the line between us and them
within the society, rather than between us and people who live outside our society. As long as that kind of patriotism is out there, it’s the problem, not the solution.” Abraham Lincoln, paraphrasing the
Bible, stated: “A house divided against itself cannot stand.” The Greek philosopher Socrates
promoted civil discourse to examine accepted norms, institutions and ideals. We, too, should advocate for freedom of
inquiry and a commitment to the intellectual search for truth and fairness without intimidation. As seniors, we must demand free and
civil discourse and promote what we have in common as Americans. Let’s insist on a better America.
Outdated e-mail addresses
waste your PEF Retirees dues. Please e-mail your updated address to
jtropiano@pef.org.
How health care reform will affect you
BY DEBORAH STAYMAN and JOHN MURPHY
The recently signed federal health
reform legislation is the most sweeping health policy change enacted since Medicare was established in 1965. More than 32 million Americans who are currently uninsured are expected to obtain health insurance coverage under this law. Although federal guidelines and
regulations to implement the law have yet to be drafted or adopted, the state Department of Civil Service already is reviewing the legislation to analyze how it may affect state employee benefits and the NYS Health Insurance Program (NYSHIP). As information and insights about how
the law will affect PEF’s PS&T members becomes available, it will be posted online in an answers-to-frequently-asked- questions format at
www.pef.org. The following reflects our current
understanding of the effect this legislation will have on state employee health benefits.
Rate review
Although no starting date for it is
established in the law, a new Federal Insurance Rate Authority will be created to oversee and assist states in examining the rate increases proposed by insurance
Page 10—The Communicator May 2010
carriers. These insurance companies will be required to lower their premiums or pay rebates to policy holders if their proposed rate increases are deemed unreasonable and unjustified.
Dependent coverage
Starting next year (when the next state
health plan year begins January 1), both married and unmarried dependent’ children through age 25, who are not already covered by their own employer- provided health plan, will be allowed to remain on their parents’ health plans.
(See related story page 9.)
Excise tax
Many members are concerned they will
be taxed on their health benefits. The law provides for a new 40 percent excise tax on insurers to begin in 2018 on health plans that cost more than $10,200 for individual coverage or $27,500 for family coverage. The thresholds will be higher for persons, such as police and firefighters, in certain high-risk jobs. The insurance companies may try to
pass the cost of the tax on to employers and their employees. Currently, Empire Plan premiums of
$5,972 for individual coverage and $13,943 for family coverage are well below these thresholds, but they could meet or surpass it by 2018 if the reforms fail to
sufficiently reduce costs. Current HMO rates under NYSHIP also are below the thresholds.
W-2 reporting
Starting next year, the value of your
employer-paid health benefits will be reported on your W-2 forms.
Flexible spending limits
Starting next year, you will need a
prescription to get reimbursed for over- the-counter drugs through your Health Care Spending Account that allows you to use pre-tax income to pay out-of-pocket heath care costs. Currently, no prescription is required. Starting in 2013, contributions to the
Health Care Spending Account that allows you to use pre-tax income to pay out-of-pocket heath care costs will be capped at $2,500 per year. In future years, the cap would rise with inflation. The current cap is $4,000 and is set by the state as employer.
Medicare payroll tax
Starting in 2013, to help pay for
covering more Americans, the Medicare payroll tax will increase by 0.9 percent for individuals earning more than $200,000 and couples earning more than $250,000, plus a 3.8 percent assessment on
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PEF Information Line: 1-800-553-2445
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