Page 14 - Sept 2017

ThirdVice President’s Report
Update on Aetna Medicare retiree health insurance plans
We are approaching the end of the first year of the Lodge 7-sponsored plan with Aetna for Medicare eligible annuitants and/ or spouses. At the time of enrollment last year, we communicated to eligible partici- pants that the rates for 2018 would have a “rate cap” on medical and pharmacy of $15 per participant plus any applicable taxes or
fees the Affordable Care Act (ACA) would impose.
We are happy to announce that there will be a reduc- tion of $2.94 in the core medical and pharmacy rates for both Aetna plans offered for 2018. We also know, how- ever, that the following is going to occur in respect to
taxes and fees:
On Jan. 1, 2018, the Affordable Care Act, or
“Obamacare,” fee will be reinstated. This fee had a mor- atorium for plan year 2017 with a reinstatement date of Jan. 1, 2018. As all of you know, the ACA has put a strain on healthcare and, as time passes, we see more evidence that it is further hurting the participants who have insurance. There is a chance that Congress will ex- tend the moratorium for 2018, but until that happens, we want all our participants to know what the ACA “Obamacare” Health Insurance Industry Fee (HIF) is and how it applies to not only the Aetna plans but also the plans offered by the BCBS with the City of Chicago as the sponsor.
Here are answers to some of the questions you might be asking:
What is the 2018 ACA “Obamacare” Health Insurance Industry Fee (HIF)?
This fee on health insurers (including HMOs) starts at $8 billion in 2014 and increases year over year before reaching $14.3 billion in 2018. After 2018, it will con- tinue to increase with premium growth. The fee, which applies only to insured business, will be based on each insurer’s share of the taxable health insurance premium base (among all health insurers of U.S. health risks). In December 2015, this fee was suspended for 2017 and will resume Jan. 1, 2018.
14 CHICAGO LODGE 7 ■ SEPTEMBER 2017
See the table below for more information:
What does this mean to Lodge 7 members in the FOP-sponsored Aetna plans?
The following are the Aetna premium rates for 2018. Medical Health Insurer fee: $33
Rx Health Insurer fee: $4.16
Total Health Insurer fee: $37.16
The table below shows the rates with and without the
Health Insurance Industry Fee. If the moratorium is ex- tended, the rates would be the same as 2017.
What do I need to do if I am on one of the Aetna plans and continue with Aetna?
Enrolled members who are making no changes need to do nothing. Labor First will coordinate any change in premium to the pension fund and your plan will continue in 2018.
When is the Open Enrollment for the Aetna plans?
Open Enrollment will be Nov. 15–Dec. 1. It is during this time that members can contact Labor First to adjust their Aetna plan coverage.
Who should I call with questions on the 2018 Aetna plans?
Labor First is your Retiree Benefits Administrator and Retiree Advocate. The dedicated call center for Fraternal Order of Police Lodge No. 7 Chicago Medicare Retirees on the Aetna plans can be reached at 312-248-7251 or 855- 979-8840. The call center is available Monday through Friday from 7 a.m. to 4 p.m. d
JAY RYAN