Retirees, enrolled in the Optional Medicare Extension (OME), will pay an average of 5.2% more for their state insurance. Medicare HMO enrollees will actually witness a decrease in their premiums of -7.2% on average. Non-Medicare retirees insured under the Indemnity Plan will see an average increase of 8.4%.

For those non-Medicare retirees insured under the HMO plans, the average increase for Fallon is 8.3%, while Tufts, Harvard Pilgrim, Neighborhood and the two UniCare plans come in at a 7.4% increase. All increases are well below the national average (12-15%) and below the 2006 Medicare Part B increase of 11%.

"Once again, we would like to see no increase at all. Not to defend the GIC, but looking at the national averages and even other plans across the state, things could be far worse," explained Association Legislative Liaison Shawn Duhamel. "It is also important to look at the total cost of health coverage, from Medicare Part B, copayments, deductibles, and the rates themselves. We can't lose sight of the bigger picture in terms of the overall cost to our members."

Other key changes affecting the Basic (non-Medicare) Indemnity Plan are a new outpatient surgery deductible of $75 per quarter; skilled nursing is now limited to 45 days in a calendar year (80% coverage); a new $15 copayment for the first four office visits to a mental health professional; and an increase in the third tier of the prescription drug benefit to $90 for a 90-day supply (also applies to Medicare OME plan).

While most retirees participate in the Indemnity and OME plans, a number of retirees remain insured under one of the various managed care plans offered by the GIC. Harvard Pilgrim is changing their offering from a POS plan to a PPO, which brings some benefit changes that could impact some members.

Tufts, Fallon, Health New England, Neighborhood, Indemnity Plan Plus, and Indemnity Plan Community Choice each have new provisions. Members are advised to make themselves aware of these changes.

Details on the new plan design, along with specific rate information, have been mailed to members by the GIC. Up-to-date information can also be found on the Association's website, www.massretirees.com.