Since 1985, the state has provided healthcare for retired teachers through a plan called TRS Care. As of last year, 261,500 retired teachers, dependents and their surviving spouses, according to the State Comptroller. But in recent years medical costs have risen higher than what the state contributes to TRS Care leaving the fund with more than a billion dollar shortfall now.
“At its creation in 1985, TRS-Care was expected to remain solvent for just 10 years, with the understanding that additional funding or benefit changes would be necessary to maintain the plan. Its funding formula hasn’t changed since 2005, however, and hasn’t kept pace with plan costs, requiring periodic supplemental appropriations,” wrote Hegar in a special edition of his newsletter called FiscalNotes.
As ABC notes, unless state lawmakers change the plan’s design or add significant funding, retiree premiums are projected to triple this summer.
"Retired teachers are very fed up. I'm extremely frustrated," said Pat Hill who taught math in Collin County schools for 32 years. Hill, who’s 68, uses TRS Care to supplement her Medicare coverage. She said her cost will double.
But like all retired teachers under 65, Reanel Merriman relies on it solely for her medical coverage. "We pay about $450 a month. I have heard possibilities of it going up to more than $1,800 a month. But I think it will probably be raised $1,000,” said Merriman, 63.
That's more than her monthly pension.
More
People need to understand the differences here.....the healthcare cost basis has been climbing at a moderate rate....it's the insurance cost, deductibles, co-pays, and actual money out of citizens pockets that is rising at this high rate.
ReplyDeleteThe insurance companies are charging more throughput to the consumer while bloating their own companies....all boiling down to our expense!
The legislators are beholden to the insurance companies and pharma companies through campaign contributions - and refuse to craft legislation that increases competition and reduces costs...restricting lawsuits, allowing commerce across state lines, and taking insurance companies out of the decision making processes.
$1500 per month is $60 per day, or $2.50 for each and every hour of the day. Stupidly expensive. No wonder people can't afford "affordable health care".
ReplyDeleteWhat political party controls the state of TX? Oh yeah..
ReplyDeleteanybody wanna guess who they voted for?
ReplyDeleteDemocrats writing fiction again, I see.
ReplyDeleteDang, Trump was right again.
ReplyDeleteTheir coverage should be covered for early retirees, if they had the requisite years of service.
ReplyDeleteI don't understand why ANY government system would pay for coverage - other than supplemental (MEDIGAP)after age 65. That's redundant and just a plain stupid way to waste state taxpayer money.
Medicare is there for EVERYONE who paid into Social Security. So, why have additional coverage on top of it???
Maybe Mrs. Merryman should have waited to retire at 65 or later like most Americans?
ReplyDeleteThe government pension system will bankrupt our country. They hired people, told them they could work for 20 years and then pay them an absurd pension and health benefits for 40 years!! Back assward if you ask me.