TPEA Unsung Hero Award Nominations Encouraged
TPEA is accepting nominations for the 2010 Unsung Hero Awards until December 21, 2009. Any two state employees can nominate an individual state employee or group of state employees in the three award categories. Two of the three categories recognize a state employee or group of state employees for their contribution to advancing the mission, goals and services of their employing agency. The third category recognizes an individual or group that has provided outstanding volunteer outreach to their local, county or regional community.
Established in 2004, the TPEA Unsung Hero Awards were designed to give all state agencies an opportunity to recognize those employees who represent the ideals of a public servant and define public service. Follow this link to the official nomination form.
A committee of state employees will review nominations. Winners will be honored at the Unsung Hero Awards Luncheon in March, 2010 in Austin. All state employees are encouraged to participate in the Unsung Hero Award process. You do not have to be a TPEA member to participate.
TPEA is proud to recognize the outstanding work of so many state employees. State employees do incredible work under difficult circumstances, often without the recognition they deserve. Promoting the good work of state government also helps educate legislators and the general public about the benefits of maintaining a skilled and experienced state workforce. If you are aware of a fellow state employee who consistently contributes to your agency or community, no matter what their position or rank, please take the time to submit the Unsung Hero Nomination form.
Unexpected Increase in ERS Healthcare Costs Problematic
The Employees Retirement System (ERS) recently conducted briefings for TPEA, legislative offices, and other interested parties to alert them to an unexpected increase in health care costs. While this increase is based only on cost data from the final quarter of FY 2009, which ended on August 31, 2009, ERS experienced a significant and unexplained “spike” in costs relative to prior periods. If these higher costs continue, the cost of our health benefits will be greater than the funding provided in the Appropriations Bill. Most importantly, ERS is alerting interested parties that any ongoing increase in the healthcare cost trend above what was funded under the current Appropriations Bill could require reducing health insurance benefits and increasing employee costs for the FY 2011 program year which begins on September 1, 2010. Click here to see the ERS document summarizing this situation.
Spiraling health care costs have been the most difficult budgetary problem facing state employees and retirees for at least the last decade. During that period, health care costs have been increasing by rates three to four times greater than general inflation, often at double digit rates. While TPEA has generally been able to win legislative support for funding to maintain health benefits, this has come at the expense of needed employee pay raises and efforts to improve benefits for retirees. TPEA examined the problem of excessive health care inflation in the context of the national health care debate in our most recent Texas Public Employee issue.
The cost increase ERS experienced in the 4th quarter of FY 2009 was over 10 percent. Most of this was driven by an abnormally steep increase in hospital costs, up to nearly 12.5 percent. Hospital costs are driven by the number of people using services, and the services that are used. Analysis of ERS data has shown that health plan participants did not significantly increase their utilization of hospital services.
ERS has predicted if the cost trend is 8 percent, it will face a $50 million deficit this biennium. If the cost trend is 9 percent, ERS could face a deficit of $154 million, which would require significant benefit reductions, increases in co-payments, or other employee cost sharing features.
The crucial component in trying to determine the appropriate level of funding for the ERS health care program is the health care cost trend, which is essentially a prediction of health care cost inflation. ERS initially requested funding based on an assumed 8 percent cost trend over the 2010-11 biennium in its Legislative Appropriations Request (LAR) submission prior to last session. Ultimately, the legislature provided funding to cover a 6.5 percent increase in 2010 and a 6.8 percent increase in 2011. The legislature acted with the belief that this funding level would be sufficient to maintain current benefits over the course of the current biennium. The legislature assumed ERS could spend down its Reserve Fund as a method of finance to maintain health benefits, but they left no margin for error if the trends were higher than budgeted.
TPEA is hopeful that ERS, Blue Cross and Blue Shield of Texas (BCBSTX, which acts as the third party administrator of the ERS plan) and Caremark (which acts as Pharmacy Benefit Manager, PBM, for ERS) can act proactively to help control health care costs and lower the cost trend.
Participants can do their part to help keep health costs lower for themselves, and for the plan. As suggested to TPEA by ERS, plan participants can
- Go to a retail health clinic instead of an emergency room. These clinics are open night and weekend hours and take drop-in patients. They charge only a small copayment and offer quality, low cost care.
- Use their health plan’s Nurseline. They can get advice and direction about how and where to get treatment.
- Participate in disease management programs for chronic conditions. These programs help participants to manage their illnesses through personalized consultations and oversight. Respond to any letter or phone call you get from your health plan offering such a program.
- Take a health risk assessment to determine your current health status. It is far better to prevent disease than it is to manage it.
- See if your primary care physician can handle your medical issue without involving a specialist.
- Take advantage of programs your health insurance offers at no charge including weight management, tobacco cessation, improving your sleep and decreasing your stress.
Other ERS News
ERS Retirement Fund Bounces Back: The market value of the ERS retirement investment pool (including the main ERS retirement fund, LECOS, JRS) has rebounded strongly as the stock market has recovered from the financial crisis. The market valuation of ERS’ investment holdings was valued at $15.6 billion on February 28, 2009. By August 31 of this year the total market value had increased to $19.8 billion, and on September 30 it had further increased to $20.4 billion. From the end of February this year, through September, the ERS fund regained some $4.8 billion in value. ERS will have updated actuarial valuations of the fund later this month. While these investment gains are positive developments for the retirement fund they do not affect the likelihood that ERS retirees will receive the $500 supplemental payment, which is discussed below.
Some Pharmacies Leave HealthSelect Pharmacy Network: As the result of two class action lawsuits, a federal judge has ordered a change in the way certain drugs are priced that has the effect of lowering the base price of many name brand drugs. ERS is contractually obligated to use the lower base prices in reimbursing pharmacies participating in the Caremark PBM network for HealthSelect. As a result, a number of pharmacies dropped out of the network rather than accept the lower reimbursement. Potentially affected ERS participants should have received a letter notifying them if their pharmacy was leaving the network. Most pharmacies (95%) are continuing in the network, and participants have thousands of pharmacies to choose from. The only large chain remaining out of the network is Target. TPEA supports ERS’ decision, which has the potential to lower drug costs by $15 million a year. TPEA also appreciates the support of the pharmacies that continue to participate in the network. Click here to get more information on this issue.
Cheryl MacBride Appointed to ERS Board: Following the retirement of ERS Trustee Don Green, the ERS Board chose Cheryl MacBride of Austin from among 12 applicants to serve out the remainder of his term, through August 2013. TPEA wants to thank Don Green for his excellent service as an ERS Trustee, and we congratulate Cheryl MacBride on her deserved selection. Click here to see the ERS notice of this appointment.
TPEA Waits for Attorney General Decision on Retiree Payment
As we have reported previously, TPEA submitted a legal brief to Attorney General Greg Abbott providing legal reasoning to show that there are no constitutional or other legal impediments to prevent the issuance of the $500 supplemental payments authorized for most ERS and TRS retirees. Based on the timeline for his office rendering an opinion, General Abbott has until November 24 to issue his ruling.
Get Better Informed, Provide Your Home Email Address
TPEA has been working to inform state employees about relevant issues and concerns through our legislative update email program since 2003. TPEA takes pride in being the most reliable source of accurate and timely information on legislative developments and other concerns for active and retired state employees.
However, because this information is sent to your state email address, TPEA is necessarily constrained in the types of information and recommendations that we can provide. TPEA is therefore encouraging all interested state employees to provide their home email addresses, or other non-state email address, so that TPEA can offer you the full range of information we have available. TPEA will not sell or otherwise permit access to these addresses to any other party.
Follow this link to submit your home email address to TPEA.
Watch TPEA’s website www.tpea.org for special event announcements and to read about TPEA’s future schedule.