IMPORTANT HEALTH CARE UPDATE 8/4/07

(This report is from Henry Trevino, Retired SA Fire Dept and Retiree Representative of the Pre-funded Health Care Fund. Thank you for keeping us up-to-date, Henry)


The Fire and Police Retiree Health Care Fund’s legislative initiative has been passed by the legislature and will become law on October 1, 2007. This legislative act has empowered the Board of Trustees to work within the dictates of the statute and bring the Fund into an actuarially sound financial condition. The Trustees will be working to assure that the Fund will provide health coverage for all Retirees far into the future. Achieving the financial health of the Fund will also assure active Police Officers and Fire Fighters that there will be a Fund to take care of their health needs when they retire.

The Trustees of the Health Fund are presently working on forming an ad-hoc committee to work on the Master Contract and the Plan Document to ensure that it complies with the dictates of the Statute. Certain adjustments to the document have to be made and some wording has to be clarified. Pre-Fund I and Pre-Fund II will be combined. The administration of coverage and benefits for each Fund must be brought together and adjusted so that all coverage is the same. One very important adjustment that will be made to the members of Pre-Fund I, will be to increase the lifetime limit to $1,500,000.00.

The Ad-Hoc committee and the Health Fund Board will be working on ways to keep the impact on benefits at a minimum but at the same time finding more efficient ways to administer the benefits. Wellness programs, such as cancer screening, diabetes, high blood pressure, heart problems, inoculations and other illnesses will be studied and initiatives put in place. We will be considering in-network and out-of-network incentives. Studies have proven that these programs can save a lot of money. Prescription Drugs are a very large part of benefits payments. The Board, through the Committee will be looking at ways to keep the drug coverage the same; however, finding more efficient ways to obtain and pay for drug coverage will be a major priority of the Board.

As I have said in the past, any changes or alterations to the master contract will be made after much study and public input. If changes must be made, they will be made only after the full impact on the Retirees is determined. All meetings will be open to all members and membership input will be solicited.

There will be changes, changes that not all will agree with. The Active Police Officers and the Fire Fighters will pay more in contributions. The Retirees will have higher deductibles and higher out-of-pocket expenses. We know nobody wanted these changes, however, without these changes the Fund, as we know it today, would not have been solvent twenty years from now. We have to face reality. Health expenses have increased uncontrollably. Contributions into the Fund in the past have been minuscule at best. Now, with these legislative changes we will have a fully funded fund in thirty years. Our type of Health Fund is probably one of less then five in the United States that is “Pre-Funded”. Many delegates have come to us at conferences to ask how they could get a fund such as ours started. Believe me when I say that we are indeed in an enviable position with a fund such as ours.

To improve the efficiency of providing services to the Members, we are going to need the help of all members of the Fund. I would like to start by asking all the Retirees to communicate with the Fire and Police Retiree Health Fund office with any health coverage questions. The Benefits Specialists at the office can directly access your coverage account and quickly resolve any health benefit problem you may have. The telephone number is; (210) 220-1385 or 1-866-652-4237.

We are presently soliciting bids from third party administrators. If a transitions from a third party administrator becomes necessary or an adjustment of services is required from the third party administrator, it will much easier if all members get used to calling the Fund office for service.

Please send in your claims form. These forms must be renewed every year. Some benefits are not being paid because the claims form has not been submitted. If you don’t have a claims form, call the office. They will mail you a form.


Henry Trevino