A message from the Coach (For Active Employees)

Dear Employees,
This city can’t run without you, its dedicated and hard-working employees. It benefits the residents for you to be at your job and feeling healthy, so providing good health-care coverage for you and your loved ones is an important part of my new job. And I know that you deserve quality coverage as part of your employment with the city.

Health-care costs are expected to increase 9 percent nationwide in 2010. For the city, it’s expected to increase from $289 million in FY10 to $311 million in FY11. Maintaining the high level of coverage and quality you have is important to me, but that means we’ll all have to share some of the increased cost. I have served on the city’s benefits committee for eight years. As a result, I can assure you that every option has been explored to keep the health plans affordable for you.

The city will maintain the 79 percent city, 21 percent employee ratio for active employees in the HMO plan, your most affordable option. But we’re all going to have to pay a little more, and to help offset the increase, we’ve increased copayments for doctors’ visits and non-generic prescription drugs by $5 starting May 1. Additionally, your contribution is increasing by an average of 8 percent for May 2010. View your new contributions.

I know it’s tough to pay more. But it’s the tough reality of health care today. I believe these new rates are very reasonable and certainly better than employees in other companies and industries are paying. Your dental coverage and DHMO rates are remaining the same. Rates will increase 9 percent for the indemnity dental plan.

If you have questions, please contact your HR liaison or attend an open-enrollment meeting.

You’re all valuable partners helping us keep down health-care costs through wise use of your health-care dollars. If you continue to do that and we continue to work together, we should be able to retain quality, accessible and affordable benefits.

Respectfully,

Annise D. Parker

Mayor

A message from the Coach (For Retirees)

Dear Retirees,
You worked for the residents of this city. I sincerely thank you for that. As you enjoy your retirement, we’re working hard to keep the health plans affordable in these dire economic times.

But health-care costs are going up every year, and at a faster rate than the city’s income. Maintaining comprehensive coverage for 68,000 employees, retirees and dependents and the quality you expect is important to me, and that requires we share the increased cost. That means that those who cost the plan the most will have to take on a bigger share of the costs.

Medical-claims costs for retirees who are under age 65 are 65 percent higher than the costs for active employees and retirees covered by Medicare. So this year, we’re increasing the contribution percentage that retirees under age 65 pay. Starting May 1, retirees under age 65 will pay 48 percent of the total premium for your coverage. (See the contributions chart)

Additionally, for members in the BCBSTX HMO and PPO plans, copayments for doctor visits and brand-name prescriptions are going up $5.

However, there is good news: We’re also introducing a money-saving option for retirees. The new Opt-out Opt-in feature allows you to dis-enroll from your city medical and dental coverage and re-enroll later – even years later. That way, if you find affordable insurance elsewhere, you can drop your city coverage for now, and then if you want to come back for whatever reason, you can re-join the city’s medical and dental plans.
And, for Medicare-covered retirees, we have more money-saving options than ever. This year, we introduced four new Medicare plans for retirees age 65 and older, giving you nine options from which to pick exactly the coverage that suits your needs. The new plans have great health-care coverage and doctors you expect, and all cost less than the BCBSTX HMO and PPO plans.

All seven of the Medicare plans cost you less than $100 a month per member – and one costs you just $3.50 a month per member.

I know the rising cost of health-care is a strain on your wallet just as it’s a strain on our budget. But by working together, we can keep your health coverage strong, and secure the future of our plans.

Respectfully,

Mayor Annise D. Parker

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