Board Approves STRS Ohio Health Care Program Changes for 2015
At the May meeting of the State Teachers Retirement Board, the board approved a number of STRS Ohio Health Care Program changes that will take effect in the 2015 plan year. During the April 2014 board meeting, staff proposed health care program changes for plan years 2015 and 2016. The approved changes for 2015 follow the health care strategic framework adopted by the board in 2011 and are designed to improve the board’s ability to sustain the health care program by focusing on:
•Reducing non-Medicare program costs;
•Staying below the Affordable Care Act’s excise tax threshold in 2018;
•Guiding enrollees to lower cost plans, in-network providers and cost-effective services; and
•Offering subsidies only to members enrolled in an STRS Ohio health care plan.
The only actions taken on proposed changes for the 2016 plan year were related to the Medicare Part B reimbursement and to the dental and vision programs. Those actions are included along with the approved 2015 changes outlined below. The board is planning to take action on other proposed changes for the 2016 plan year at its June meeting. STRS Ohio’s upcoming newsletters in July and October will detail the 2015 and 2016 plan changes.
STRS Ohio Health Care Program Changes Approved for 2015
Reducing the subsidy multiplier by 0.1% to 2.2% per year of service — This is a continuation of the phased-in reduction that the board began in 2012. A retiree with 30 or more years of service will receive a subsidy in 2015 of 66% of the total cost of the plan. The 2014 subsidy for a retiree with 30 or more years of service is 69%.
Medical Mutual Plus and Basic Plan changes
Include two in-network primary care visits at $20 each in the Basic Plan.
Increase deductible and coinsurance out-of-pocket limits as follows:
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