According to the study, 91% of all state retirees, age 65 and over, are enrolled in the federal Medicare program. The study only focused on the GIC's Pool 1, which includes those state retirees insured in the Indemnity and Optional Medicare Extension (OME) plans. Retired teachers, survivors, and other non-state retirees, insured through the GIC, were not included in the study.

Of the 29,101 state retirees age 65 and older, 26,492 are enrolled in Medicare A & B. This leaves just over 2,600 post-65 retirees not enrolled in Medicare.

"There are far more retirees, over 65, enrolled in Medicare than we had previously suspected. With 91% of them under Medicare, the GIC is saving significant amounts of money each year," explained Association President Ralph White. "Medicare enrollment was mandated in 1991 for the simple reason that it saves money. Hundreds of millions each year, would be the general ballpark."

As White points out, the significance of retirees enrolling in Medicare is the fact that the state saves money, by no longer having to provide the retiree with 100% of their insurance coverage. Once a retiree enrolls in Medicare Parts A and B, 80% of the cost of the health care (excluding prescription drugs) is borne by the federal government.

While no specific study has been released by the GIC demonstrating the exact savings, it is known that for retirees contributing at the 90/10 split, the state saves $250.38 per individual plan and $646.92 for family coverage each month. A conservative review of the raw numbers alone points to a savings that could well exceed $200 million a year.