This link will take you to the ORTA website which has listed the
health care monthly premiums for STRS retirees.
 

From: "Asbury, Damon" <AsburyD@strsoh.org
To: "molly janczyk" <mollyjanczyk@hotmail.com
Date: Mon, 8 May 2006 15:30:25 -0400

Molly:

I've been waiting to reply to you until I had some additional information to help explain the estimates for health care premiums for 2007.
 As you know these are still estimates at this time and subject to further discussion.  I asked Sandy Knoesel for some information about
actual premiums costs and expected costs to help prepare this response.

For a non-Medicare eligible benefit recipient with 30 years experience:

In 2004, the total monthly cost for health care for a 30 year non-Medicare benefit recipient was $541.  Of this amount, the benefit
recipient paid a monthly premium of $135.  In 2005, the total monthly cost went to $575, and the member premium went to $144 -- a 7% increase.
In 2006, the total cost rose to $605 and the member premium was scheduled to rise to $151 -- a 5% increase.  But, the board capped the
increase to 3%, so the premium was actually $148.  In 2007, based on projected claims experience, we estimate the total cost to be $678, with
the member premium to be $170.  This is 15% over the $148 the member paid last year, or 12.5% over the $151 premium which would have been in
place if the 3% cap had not been put in place.

For a non-Medicare eligible spouse:

In 2004, the total monthly cost for health care for this spouse was $427.  Of this amount, the benefit spouse paid the full monthly premium
of $427.  In 2005, the total monthly cost went to $486, and again, the spouse paid the full premium -- a 14% increase.  In 2006, the total cost
rose to $588 and the spouse premium was scheduled to rise to $588 -- a 21% increase.  But, the board capped the increase to 3%, so the premium
was actually $501.  In 2007, based on projected claims experience we estimate the total cost to be $659, with the spouse premium to be $659.
This is 32% over the $501 the spouse paid last year, but 12% over what they would have paid if the 3% cap had not been put in place.  Thus, the
spouse actually paid $1044 less last year than what the actual trend should have cost.

So the 12% is the projected trend increase from 2007 over what the actual trend should have been in 2006.  The fact that only a 3% increase
was applied in 2006, instead of the actual 21% trend, does make the actual out-of-pocket cost to be the estimated 32%.

The Board will be receive additional information at the May meeting concerning possible plan design changes and the impact adverse selection
which could result in some changes to the above information.