There are approximately 750 retired subscribers in Wellesley’s insurance plans. Of this number, about 600 subscribers are 65 or over.

Approximately 480 of those 65 or over are already enrolled in Medicare. Within the remaining 120 or so, town officials estimated some 20 subscribers who could not enroll in the federal program, leaving about 100 subscribers who could be eligible for Medicare and, therefore, possibly affected by the adoption of mandatory Medicare.

According to Wellesley Retirement Administrator Laurie Lizak, “When they first learned that the town was considering the adoption of Section 18, retirees, who would have to transfer out of their (non-Medicare) plans, called us, and needless to say, you could tell they weren’t happy with the news. But since then, they’ve been put at ease somewhat by the action on Section 18, taken at the recent town meeting.”

Some Can Choose

While the town meeting adopted Section 18, it included a special provision that exempted certain retirees from the mandate. Specifically, it allows those retirees, who are eligible for Medicare but insured by another non-Medicare plan before July 1, to stay in that plan and not transfer into Medicare if they so choose.

“From talking with our Wellesley members, it appears that almost all joined Medicare when they became 65,” reports Stillman. As George Adzigian from the school department, and already on Medicare, jokingly said, “I could care less… I’m going to be 93 on my next birthday.”

Other members expressed some concern that their fellow retirees, who were not yet eligible for Medicare, would be forced into the program later. “It doesn’t affect me, but I think it’s unfair for persons under 65 because they won’t have a chance to plan for the various options that I had,” stated retired teacher Don LaBorne, Jr.

For retirees, who are currently eligible for Medicare but have not enrolled in that program, there is an important factor to consider. Under Section 18, a town must pay any penalty that is imposed by Medicare on a retiree who has been forced to enroll in the federal program, but it’s not required to do so for those who voluntarily sign up and must pay a penalty. 

“At press time, we didn’t have a final answer from officials on whether the town will pick up the penalty for this special group of retirees who aren’t being forced to join. We expect to have the answer shortly, so any Wellesley retiree, who can choose to enroll in Medicare or not, can contact me,” recommends Stillman.

Update: GASB Funds Approved

As reported in the May Voice, the Town Meeting had approved the appropriation of $600,000 towards the schedule to fund future retiree healthcare costs, which was established in response to the accounting standards promulgated by GASB (Governmental Accounting Standards Board). It was also then noted that the money for the appropriation was subject to a Prop 2 1/2 override.

A special election was recently conducted, in which about 62% of Wellesley’s eligible voters participated. Approximately 58% of these voters approved the override, which means that Wellesley will, in fact, be depositing $600,000 into its healthcare funding schedule.