Health-insurance battle rages between candidates

By BobGates/ RGATES@CNC.COM

Thursday, October 20, 2005



Requiring retired city employees to take and pay for their own Medicare coverage has become a major campaign issue in the race for mayor.



Mayor Bill Scanlon, who last year proposed a plan to require all city retirees to take Medicare coverage and pay for it themselves - later adopted by the City Council - says the move was necessary to keep the city solvent.



Scanlon's opponent, Patrick Lucci, vows to repeal the so-called local-option law and says the change was age discrimination.



Scanlon estimates having retirees on Medicare B coverage could save the city $1.5 million - based on an average annual health bill of $1,500 per enrollee of expenses covered by the plan.



Lucci disputes the figures, but could provide no number of his own.



Scanlon uses figures projected by a health-care consultant.



The move, which took advantage of an existing state law, was needed to treat all retirees fairly and reign in future medical said Scanlon.



The move sends some medical bills to the federal government to be paid by Medicare Part B.



"I'm trying to make sure there is a city here in 25 years to pay these benefits, both medical and pensions," Scanlon said.



In addition, he said the move put all retirees on a level playing field by forcing them to all take the same coverage. In the past, some paid for Medicare Part B coverage while others relied only on the city's medical insurance coverage.



In addition to forcing 145 Medicare-eligible retirees to take Medicare Part B, at a cost of $78.20 per person each month, the local option law will also require another 360 retirees who are not yet 65 to take it when they reach 65.



Scanlon said that additional cost Medicare was already being paid by a majority of retirees.



The largest cost increase for retirees is $318 per year, Scanlon said, after a comparison of what retirees were paying previously and what they now pay for Medicare Part B, plus premiums for supplemental health insurance coverage.