Now let’s compare retiree health benefits:
Health Allowance:
$602 for Non-Medicare Eligible Retirees
$645 for Medicare Eligible Retirees (generally age 65+)
Number of Plans:
Non-Medicare Eligible Retirees: 3
Medicare Eligible Retirees: 3
Plus, an additional 7 plans for members of specific unions.
Health Allowance:
$200 – $400 for Non-Medicare Eligible Retirees, based on years of service
$389 for Medicare Eligible Retirees (generally age 65+)
Number of Plans:
Non-Medicare Eligible Retirees: 4
Medicare Eligible Retirees: 5
What can we conclude from this information? Well, there’s no doubt that there is opportunity for savings at both the city and the county.
Here are a few recommendations to lower health costs and reduce the burden on taxpayers:
City of San Diego:
Eliminate the cafeteria-style plan.
Reduce the number of plans to three. At least two out of three should be lower-cost HMO plans.
Increase the co-pay for employees and retirees.
Significantly reduce or eliminate the health allowance for retirees.
County of San Diego:
Reduce the number of plans available to retirees.
Approve the Jacob/Slater-Price proposal .
What are your thoughts? Do you have additional recommendations?