State Universities Annuitants Association
Friday, August 21, 2009

Re: Dental Policy Change

By now all retirees and survivors who are currently enrolled in the State Employees’ Group insurance Program have received notice that a monthly premium will be charged for dental benefits. The premium will be the same as active State employees.

What you need to know:

· Everyone was blindsided by this decision; neither the unions nor any other organization such as SUAA were given any notice.

· ASFCME did file a grievance.

· Legal recourse is uncertain.

· This action was not a result of an end to a contract.

· A letter is being written to the Governor.

· SUAA is working with other organizations to address this change in benefits.

We will continue to find additional information regarding your health benefits and report to you as quickly as possible.

In the meantime, it is suggested that you do make your decision to either continue your dental care or waive the dental coverage. The election you make as stated in the letter (whether by choice or default) will remain in place until the next Benefit Choice Period.

As most everyone is aware, the State of Illinois is in a financial crisis. Governor Quinn has given notice that all non-union State employees must take 12 furlough days during this Fiscal Year (5 before year’s end and the other 7 from January 1 to June 30). The Unions are continuing to negotiate for their members because these furlough days do cause a financial change in their pensions, especially those within two years of retirement. Governor Quinn is making sure that financial cuts are made where ever he finds the ability to do so.

Again, please know that SUAA will keep you informed. Be sure to contact SUAA if you have any questions or comments. Let us know how these changes will adversely affect you.

Linda Brookhart, Executive Director

Additional information added 8.24.09:

A copy of the letter sent from CMS is available here: http://www.suaa.org/legislation.htm

1. The decision for retirees and survivors to pay a premium for dental insurance was made internally by CMS and Health Care and Family Services.  It was done as a budgetary measure to reduce insurance costs to the State.  The change is not retroactive.  Change goes into effect on October 1, 2009.

2. A retiree cannot add a spouse to the dental insurance  - benefits are already in place for this year.  In other words, the decisions made for healthcare during open enrollment are closed even though the CMS and Family Services made a determination after the season was closed.

3. If a married couple are both SURS recipients, one spouse cannot elect to drop the insurance and be covered by the other spouse’s policy.  Dental insurance is an additional benefit that is only offered to those who have health insurance.

4. Eye care will not be affected in days to come because eye care is a bundled benefit.  Retirees and survivors are covered even if they do not wish to be included.  Bundled benefits will not be changed or charged for at least during this fiscal year’s enrollment.

5. Dental care is considered an add-on benefit.

Please send additional questions to linda@suaa.org