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BENEFIT MESSENGER THE NMRHCA’S QUARTERLY NEWSLETTER
NEW MEXICO
RETIREE HEALTH CARE AUTHORITY
In This Issue:
2013 LEGISLATIVE SESSION UPDATE • E-NEWSLETTER • IMPORTANCE OF YOUR BENEFIT • PHYSICAL ACTIVITY • HEALTH CARE REFORM LAW July 2013 – Vol. 24 No. 2
2013LEGISLATIVE SESSION UPDATE
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he 2013 Legislative Session commenced on Tuesday, January 15th and adjourned on Saturday, March 16th. NMRHCA sponsored Senate Bill 71, which proposed an increase to the employee/ employer contribution levels from its current level of 3% to 5.25%. Although the bill made it to the Senate floor, it was not heard before the session ended. We thank Senator George Munoz of Gallup for introducing the bill and supporting the agency’s goals. Had the bill passed the Authority would have gained additional revenue over the next six years, which would have increased the Authority’s solvency period from FY 2029 to FY 2045. Although the Authority has made significant strides in stabilizing the agency and increasing its solvency period, the Board of Directors remains committed to this endeavor. “We will continue our efforts to improve the efficiency and effectiveness of the agency. We will continue our efforts to solidify the program and extend the Authority’s solvency,” said Board Chair Alfredo Santistevan. “It is important that we
communicate the significance of this issue and the importance of this benefit.” The provision of health care benefits to future and current retirees is an undertaking that is both important and daunting. The Board of Directors believes that the Authority’s long-term financial health is the responsibility of retirees and active employers/ employees. Moving forward, the Board will be looking to build on successes already achieved by implementing a legislative agenda that ensures that the responsibility for making certain that this benefit is available for current and future retirees is shared by all. Lastly, we would also like to thank Representative Lucky Varela, Senator Howie Morales, and Senator Stuart Ingle for their support of NMRHCA’s appropriation and budgeting process.
NEW E-NEWSLETTER INTRODUCED
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MRHCA will begin sending out an e-newsletter to retiree email accounts that the agency currently has on file, but will continue to mail out the paper copy as well. The agency hopes to eventually move from the traditional paper copy to the 1
e-newsletter. However, we do realize that not all our retirees utilize email and for those who do not, we will continue to send them a paper copy through mail. The introduction of an e-newsletter will significantly reduce printing and mailing costs for the 36,000 plus newsletters we mail out quarterly. There will also be a new PDF format version of the newsletter on our website that will make it more reader-friendly. You can find the newsletters under the tab “Newsletters” on the main page. Lastly, you can sign up for our e-newsletter on our website by clicking on the “Subscribe to Newsletter” link on the main page of the website. Although this will be an incremental transition, with your efforts you will not only aide in agency cost-savings, but will be a part of saving the environment.
THE IMPORTANCE OF YOUR BENEFIT
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MRHCA provides 300 participating public service employers and their employees’ retiree health care benefits. There are approximately 53,000 retirees, spouses, and dependents covered by NMRHCA. The provision of health care benefits to future and current retirees is an undertaking that is both important and daunting. As it stands now the Authority is solvent through FY29. What does this mean? This means that the Authority can cover retirees’ benefits through FY29 before the Authority exhausts its fund balance, which currently stands at $273 million. Although the cost of providing health insurance rises each year, the Board of Directors wants to assure you that this plan is manageable. As the Authority moves forward, the Board is continuously tackling this challenge. The Authority has made substantial adjustments to its revenues received from retirees as
well as active employees and their employers over the last few years. We will continue to increase premiums in line with the rise of medical costs. We have modestly increased cost sharing in the form of copayments, deductibles and coinsurance across all lines of coverage. Over the next four years, the Board of Directors will continue to implement changes that help extend the program’s solvency. From a financial planning perspective, the retiree health benefit is especially valuable because it helps pay for long-term costs. According to a 2013 Fidelity study, Fidelity estimates a 65-year-old couple retiring in 2013 will need about $220,000 to pay for medical expenses throughout retirement, not including nursing-home care. Commercially available coverage comparable to NMRHCA’s plans remains difficult to access and, in many cases, prohibitively expensive. Moving forward, we will be looking to build on these successes by ensuring that the responsibility for making certain that this benefit is available for current and future retirees is shared by all. By ensuring that our long-term financial health is the responsibility of retirees and active employers/employees and by effectively managing the benefit, our retirees can be reassured that most of their medical expenses will be covered in the future.
PHYSICAL ACTIVITY IMPROVES QUALITY OF LIFE
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o you want to add years to your life? Or life to your years?
F eeling your best boosts your zeal for life ! The American Heart Association recommends 30-minutes of moderate activity, but three 10-minute periods of activity are almost as benef icial to your overall f itness as one 30-minute session. This is achievable! Physical activity may also help encourage you to spend some time out2
It enhances your immune system and decreases the risk of developing diseases such as cancer and heart disease. R educed risk factors Becoming more active can lower your blood pressure by as much as 4 to 9 mm Hg. That’s the same reduction in blood pressure delivered by some antihypertensive medications. Physical activity can also boost your levels of good cholesterol.
doors. Sunlight on your skin helps your body produce vitamin D, which brings many added health benef its. Here are some reasons why physical activity is proven to improve both mental and physical health. P hysical activity boosts mental wellness. Regular physical activity can relieve tension, anxiety, depression and anger. You may not only notice a “feel good sensation” immediately following your physical activity, but most people also note an improvement in general well-being over time during the weeks and months as physical activity becomes a part of your routine. Exercise increases the f low of oxygen which directly affects the brain. Your mental acuity and memory can be improved with physical activity. P hysical activity improves physical wellness. Stronger immunity
P hysical activity prolongs your optimal health . Without regular physical activity, the body slowly loses its strength, stamina and ability to function well. And for each hour of regular exercise you get, you’ll gain about two hours of additional life expectancy, even if you don’t start until middle age. Moderate exercise, such as brisk walking, for as little as 30 minutes a day has the proven health benef its listed above as well as: • Improves blood circulation, which reduces the risk of heart disease • Keeps weight under control • Helps in the battle to quit smoking • Improves blood cholesterol levels • Prevents and manages high blood pressure • Prevents bone loss • Boosts energy level • Helps manage stress • Releases tension • Promotes enthusiasm and optimism • Counters anxiety and depression • Helps you fall asleep faster and sleep more soundly • Improves self-image • Increases muscle strength, increasing the ability to do other physical activities • Provides a way to share an activity with family and friends
THE NEW MEXICO RETIREE HEALTH CARE AUTHORITY FOSTERS QUALITY OF LIFE AND PEACE OF MIND BY RESPONSIBLY ADMINISTERING AFFORDABLE, SECURE HEALTH CARE BENEFITS FOR PUBLIC RETIREES AND THEIR FAMILIES.
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• Reduces coronary heart disease in women by 30-40 percent • Reduces risk of stroke by 20 percent in moderately active people and by 27 percent in highly active ones • Establishes good heart-healthy habits in children and counters the conditions (obesity, high blood pressure, poor cholesterol levels, poor lifestyle habits, etc.) that lead to heart attack and stroke later in life • Helps delay or prevent chronic illnesses and diseases associated with aging and maintains quality of life and independence longer for seniors So why not see for yourself ? Once you get over the inertia and f ind creative ways to f it physical activity into your life, we think you’ll agree that the effort to get moving is worth it.
FEDERAL HEALTH CARE REFORM – MORE POSITIVE THAN NEGATIVE FOR NMRHCA
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he Patient Protection and Affordable Care Act (PPACA) was signed into law in March, 2010. The main purpose of the act was to provide access to affordable health insurance for the approximately 50 million people in the country who have no coverage at all. Since expanding access to coverage was its
main goal, most of its main provisions do not have a direct impact on NMRHCA membership. Some of PPACA’s provisions were enacted quickly (such as requiring the coverage of dependent children up to the age of 26) while others are taking place over several years. January 2014 will see the implementation of the two major ways PPACA will be decreasing the number of uninsured – the expansion of Medicaid and the establishment of health insurance exchanges for individuals and small businesses. The State of New Mexico, with one of the highest uninsured rates in the country, has decided to fully participate in both of these elements of health care reform. There are still a number of important details about the implementation of these programs that are still being worked out and NMRHCA will continue to monitor how its members may be affected. There is no arguing that providing subsidized health coverage to tens of millions of people will cost money and there are indeed elements of PPACA that are designed to raise revenues. For example, higher
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This will be ref lected in rates that are lower than they otherwise would be.
income individuals are now paying more for their Medicare premiums. There are also plans to reduce the level of subsidies provided to private health plans that offer Medicare Advantage. Both NMRHCA and its members could see a modest increase in costs associated with the plans. Further, there are fees that NMRHCA will have to pay over the next several years to support some of PPACA’s provisions. However, PPACA has also provided some valuable revenue to NMRHCA that has directly benefited its members. For example, the Early Retiree Reinsurance program provided NMRHCA with $5.9 million that was, in turn, given directly back to its effected members in the form of premiums credits in December 2011 and 2012. PPACA is also requiring pharmaceutical manufacturers to provide funds to help close Medicare Part D’s (prescription coverage) donut hole. While NMRHCA members have always had full benefits through the coverage gap, the agency will start receiving additional subsidies.
We have seen and heard a number of alarming things being said about health care reform. Most of the more extreme statements are highly questionable but there are indeed costs associated with PPACA that will have some impact on NMRHCA and its members. However, up to this point, the funds received by NMRHCA are far larger than these costs. In summary, PPACA was enacted to reduce the number of uninsured. It has also been a net positive for NMRHCA and its members.
BOARD OF DIRECTORS Mr. Alfredo Santistevan, Board Chair NM State Treasurer’s Office ice4mac@mac.com T: 505.228.4487 Mr. Tom Sullivan, Vice Chair Superintendents Assoc. of NM nmcsa@unm.edu W: 505.277.6985 Mr. Joe Montaño, Secretary NM Assoc. of Educational Retirees jmountainman1939@msn.com T: 505.897.9518 Mr. Doug Crandall Retired Public Employees of NM dacinc2001@aol.com T: 505.294.5243
Ms. Elizabeth Jeffreys - Classified Employee Human Services Department Office of the General Counsel elizabeth.jeffreys@state.nm.us W: 505.827.7701 Ms. Jan Goodwin, Executive Director Educational Retirement Board jan.goodwin@state.nm.us W: 505.827.8030 Mrs. Olivia Padilla-Jackson NM Municipal League City of Rio Rancho opadilla-jackson@ci.rio-rancho.nm.us W: 505.896.8761 Mr. Wayne Johnson NM Association of Counties Bernalillo County kbrown@bernco.gov W: 505.468.7212
Mr. Wayne Propst, Executive Director Public Employees Retirement Assoc. wayne.propst@state.nm.us W: 505.476.9310 Mr. Terry Linton Governor’s Appointee terry@lintonandassociates.com W: 505.247.1530 Ms. Karen Sucher NEA-NM, Classroom Teachers Assoc., & NM Federation of Educational Employees smithsucher3@aol.com T: 505.286.8702 Mr. Mark Tyndall Executive Director 4308 Carlisle Blvd. NE Suite 104 Albuquerque, NM 87107 mark.tyndall@state.nm.us W: 505.222.6400
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PRESORT STD US POSTAGE PAID ABQ., NM PERMIT #1645
NEW MEXICO
RETIREE HEALTH CARE AUTHORITY
4308 CARLISLE BLVD NE, SUITE 104 ALBUQUERQUE, NM 87107-4849 810 WEST SAN MATEO, SUITE D SANTA FE, NM 87505-4144 800.233.2576 (TOLL FREE) 505.476.7340 (SANTA FE) 505.884.8611 (FAX) 8:00AM TO 5:00PM MONDAY窶認RIDAY PLEASE VISIT US ONLINE AT WWW.NMRHCA.ORG
CONTACT YOUR HEALTHCARE PROVIDERS DIRECTLY BCBSNM Medco Medicare Medco Non-Medicare Presbyterian Health Plan Presbyterian Senior Plans Lovelace Sandia Health System United Concordia Companies Delta Dental Davis Vision Standard Insurance
800.788.1792 800.551.1866 800.501.0987 888.275.7737 800.797.5343 877.446.9388 888.898.0370 877.395.9420 800.999.5431 888.609.9763
www.bcbsnm.com www.medco.com www.phs.org www.lovelacehealthplan.com www.ucci.com www.deltadentalnm.com www.davisvision.com www.standard.com
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