RPECIN THIS ISSUE:

President’s Letter

Executive Director’s Note

Uncertainty for Seniors

OIC Honors RPEC Volunteers

Retirees Living Abroad

PEBB Report

Your Voice for Retirement Security

Volume 35, Issue 2 | Retired Public Employees Council of Washington

Our mission is to unite retired public employees for their

mutual benefit and welfare.

Did you know that RPEC has a chapter just for retirees who live outside of Washington State? In fact, there are nearly 600 members who belong to Chapter 99. Some Chapter 99 members even live in foreign locales such as Dangriga, Belize and Shizouka, Japan.

[read more on page 6]

While there have been problems with the Affordable Care Act (ACA), many seniors are concerned with the proposals and discussions regarding replacing the ACA due to the harmful impacts to retirees.

[read more on page 4]

“There is often a lot of confusion for seniors around health care, especially Medicare” said Dwight Trager, SHIBA volunteer from Olympia, “I think that any answers that we can provide, are important to lessen that burden.”

[read more on page 4]

Spring 2017

OIC Honors RPEC Volunteers

Uncertainty for Seniors with Federal Health Care Proposals

Chapter Spotlight: Retirees Living Abroad

1-800-562-6097

info@rpecwa.org

www.rpecwa.org

Your Voice for Retirement Security

TODAY!

Our legislative day is one of the most important events for RPEC. We have the opportunity to engage our elected officials during the legislative session in order to address the needs of our members. This year we had a record number of members participating and our visibility continues to grow.

The legislative day is just a part of the work we have been doing. Members and staff have worked hard on campaigns of candidates who support our issues, we have reached out to legislators to tell our stories educating them on how their votes impact seniors’ lives and stability, we have testified in front of legislative committees, and we have collaborated with other groups that help support our issues.

Our recent legislative day provided us with the opportunity to advocate on issues with the Washington Education Association - Retired (WEA-Retired). Our members were able to connect with WEA-Retired members on the same issues. We all realized that we have more in common both in the workplace as well as retirement. When working, we provided public service in schools as social workers, juvenile rehabilitation, mental health counselors, and many occupations not noted. In retirement we all deserve equal treatment and pension protections for our work as public servants.

Collaboration with the WEA-Retired on retirement security makes us a stronger advocacy group. Working with others on senior issues in addition to our voting record of 94% members registered to vote we are a voice that is being heard. To quote Kit Raney, President of WEA-Retired:

This morning I was listening to a reporter discussing a study on how Americans can get their messages through to legislators. They said communications that resonate with lawmakers come from their constituents, not from those who are out-of-district, and that direct contact and developed relationships are important. Furthermore, they said that due to the need for those relationships, being a member of a non-profit association can make a big difference.

RPEC members are the real world example both on the state and federal levels. Members have built relationships with their lawmakers during the election cycle through endorsements; during legislative session with meetings, phone calls, and emails; and during down-time when invited to speak to RPEC Chapters in their districts. The results are that almost every state legislator knows about the need to fully fund the pensions, has heard from Plan 1 members who are hurting financially due to the lack of a COLA, and understands that the health insurance subsidy for Medicare eligible retirees in PEBB was cut. In addition, we see that the House budget includes the restoration of the PEBB subsidy even in a year when the state is financially strapped.

On the federal level, our Congressional delegation (including all 10 Representatives and the 2 Senators) know RPEC members, who meet with them every year to discuss issues.

RPEC members also join with the over 250,000 other retired public employees across the country through our affiliation with AFSCME to lobby in support of Medicare, Social Security, Medicaid (long-term care focus), and other programs important to seniors.

There are significant concerns to retirees on the federal level. Currently there are proposals on following programs:

• The Medicare State Health Insurance Assistance Programs (SHIP) is state counseling services that help seniors understand their Medicare, Medicare Advantage, Medigap (Medicare Supplemental Insurance) and Medicaid benefits. Proposed funding cut of 94%. This affects the Insurance Commissioner’s Office SHIBA program.

• The Community Development Block Grants (CDBG), which provide states money for public facilities, housing

President’s Letter Executive Director’s Note

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- Brenda Williams, RPEC Acting President

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“WEA-Retired and RPEC have been working more closely together for the last year or two thanks to the efforts of your RPEC Executive Director. We have the same issues so it makes sense to work together. When we were invited to join with RPEC on the Legislative Lobby Day, it seemed like a natural next step and members were excited about it. WEA-Retired has had a Lobby Day almost every year but we have never attracted enough member participation to be a presence on the hill. Being a part of the over 200 members participating in this Legislative Lobby Day was inspiring and energizing. Legislators could not ignore our presence or message. The best part of this was not the lobbying…it was having the opportunity for the members of our two groups to connect. And connect they did! I had so many of my WEA-Retired members comment on how much they enjoyed getting to know the RPEC members and finding out how much we share in common.”

Thank you to all who made this legislative day a success. We are not done yet. We will continue to fight on issues that impact our members. We will continue to fight on behalf of senior issues at the local and federal level. We know Social Security, Medicare, health care, Medicaid and the cost of living are important issues that affect our seniors greatly. Having to make decisions on what to give up because there is not enough money to cover costs on a fixed income is devastating and seniors need some relief. We continue to move our issues forward. We still need you to keep up your connections with your elected officials. To connect with your elected officials go to http://app.leg.wa.gov/DistrictFinder/. Enter your address and select either Legislative or Congressional.

By continuing the conversations with your representatives will keep our issues at the forefront.

President’s Letter - [continued]assistance and other programs for seniors like Meals-on-Wheels. Proposed funding cut of 50%.

• LIHEAP (low income Heat and Energy Assistance Program for seniors). Proposed funding cut of 11%.

• The elimination of the Senior Community Service Employment Program (SCSEP), which helps older adults get public service jobs.

RPEC members will be informed and mobilized either by emailed Legislative Alerts or phone trees (set up at the Chapter level). Thank you for your continued activism. It is what makes this organization powerful. Below are additional proposals of interest that are still alive.

State Legislation as of 4-10-2017

Bill Number: Description, Status, RPEC Position

SB 5177: Requiring long-term care workers to be trained to recognize hearing loss. Passed Senate & House, Awaiting Governor’s signature, Support

HB 1153: Concerning crimes against vulnerable persons, Passed House & Senate, Awaiting Governor’s signature, Support

SB 5274: Defining Salary for purposes of the Washington State Patrol retirement system. Passed Senate & House, Awaiting Governor’s signature, Support

Federal Legislation as of 4-10-17

Bill Number: Description, Status, RPEC Position

HR 707: Voucherize Medicare, Referred to House Energy and Commerce & Ways and Means, Oppose

HR 628: Eliminating preexisting condition exclusions, Referred to House Energy and Commerce, Support

HR 1205: Repeal the Government pension offset and windfall elimination provisions. Referred to the House Committee on Ways and Means, Support

HR 1114 / S 427: Social Security Expansion Act, Referred to House Education and the Workforce/Committee on Finance, Support

S 469: Allows for the importation of affordable and safe drugs by wholesale distributors, pharmacies, and individuals. Referred to Committee on Health, Education, Labor, and Pensions, Support

HR 1776/ S 771: Improving Access To Affordable Prescription Drugs Act, Referred to the Committee on Energy and Commerce, and in addition to the Committees on Ways and Means, and the Judiciary/ referred to the Committee on Finance, Support

While there have been problems with the Affordable Care Act (ACA), many seniors are concerned with the proposals and discussions regarding replacing the ACA due to the harmful impacts to retirees. RPEC is highlighting the following area of concern with the Washington Congressional Delegation as discussions of a replacement continue.

• Age Rating: The ACA imposed a 3:1 limit on “age rating”, meaning, it restricted insurers from charging older adults more than three times what young people pay in the same geographic region. The first proposal to replace the ACA (which failed) increased that limit to 5:1. This would have led to a dramatic increase of average premiums of $3,200 for those 60 years of age and older. This would bring average annual premiums up to $17,900 for someone aged 60 or older who purchases health insurance on the individual market. Additional studies have concluded that a 64-year-old with a $25,000 income, could see their premiums increase as much as $7,000. If that same 64-year-old had an income of just $15,000 a year, the premium increase would actually be higher, up to $8,400. RPEC is advocating for maintaining the 3:1 rate.

• Long-term Care Cuts: Proposals to replace the ACA have consistently included cuts to Medicaid, including one in the AHCA, American Health Care Act, cutting $880 billion from

“There is often a lot of confusion for seniors around health care, especially Medicare” said Dwight Trager, SHIBA volunteer from Olympia. “I think that any answers that we can provide, are important to lessen that burden.” Dwight Trager is one of several RPEC members honored by the Washington Office of the Insurance Commissioner in April for their work as volunteers for the SHIBA Ombudsmen Program.

The RPEC Ombudsman program is part of the Office of the Insurance Commissioner’s Statewide Health Insurance Benefits Advisors (SHIBA). SHIBA provides free, unbiased information about healthcare coverage and access to help improve the lives of all Washington residents. It cultivates community commitment through partnerships, services, and volunteering.

“This important program is subject to constant worries about funding,” said Trager. These fears continue as its funding is now at risk in the White House 2017 Reduction Options

Insurance Commissioner Honors RPEC Volunteers

Uncertainty for Seniors with Federal Health Care Proposals

www.rpecwa.org4

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Medicaid which is particularly important to the over 6 million seniors and their families who require long term care. 70 % of Americans ages 65 and older will eventually require long-term care services and supports, which include nursing facilities, home health aides, personal care, and family caregiving. Medicaid covers sixty percent of nursing home residents and forty percent of long term care services and support. RPEC is working to protect the support for low income seniors who require long-term care.

• 4 years cut from Medicare Trust Fund Solvency: The proposal to repeal the .09 % payroll tax on high income earners (individuals earning $200,000 and couples earning $250,000) reduces the solvency of the Medicare trust fund by 4 years. That is the tax on investment income and various taxes on health care providers, including insurance companies, makers of medical devices and including tanning salons. RPEC members consistently set an agenda that includes protecting and preserving Medicare for current and future generations.

• Impact on Americans 50-64 years old: Insurance premiums for this age group would rise from $1,700 a year to $14,600 a year under the AHCA, jeopardizing care for more than 6 million people. (A separate fund had been created that would allow the Senate to provide a larger tax credit for this age group, however, the added funding will still not be sufficient and seniors will not be able to buy adequate coverage.) It repeals essential health benefits, which means weaker plans that can exclude coverage for things like hospitalizations, mammograms and laboratory services. RPEC consistently fights for access to affordable insurance coverage.

document. “This creates unnecessary uncertainty for those with questions about their Medicare coverage,” continues Trager. “We continue to urge members to contact their Congressmen to insist that this cut not be authorized.”

As many retirees take time to volunteer for programs that help our community, it is also important to take time to honor their contributions. “SHIBA’s outstanding volunteer advisors are an integral part of the consumer protection work we do here at the Office of the Insurance Commissioner,” stated Insurance Commissioner Mike Kriedler. “Last year, our volunteers donated 98,000 hours of their time to help Medicare consumers in our state. At a national average volunteer rate of $23.65 per hour, this amounts to

approximately $2.3 million in valuable donated time and effort”. This year’s honors go to the following for their work in SHIBA’s Ombudsman Program: Dwight Trager, Betty Anderson-Till, and Nancy Heley.

Did you know that RPEC has a chapter just for retirees who live outside of Washington State? In fact, there are nearly 600 members who belong to Chapter 99. Some Chapter 99 members even live in foreign locales such as Dangriga, Belize and Shizouka, Japan.

These RPEC members are not alone, according to the Social Security Administration over 400,000 American retirees live abroad. From 2010 to 2015, the number of retirees living oversees increased by 17 %. Many cite lower cost of living, moderate climates, and closeness to family as reasons for choosing to spend their retirement years outside of the United States.

Sunny locales such as Mexico, Costa Rica, and Panama are popular designations. Retirees who chose to live abroad continue to receive their pensions and Social Security but must find alternatives to healthcare coverage as they cannot access Medicare outside of the United States.

Chapter Spotlight: Retirees Living Abroad

www.rpecwa.org6

All Chapter 99 RPEC members receive RPEC newsletters and updates and can attend our biennial conventions. They also have access to the discounts through the AFSCME Advantage Program. The Council Office often hears from Chapter 99 members who appreciate maintaining their connection to Washington State and staying informed about changes to their retirement. One such member is Eleanor Elster, who retired from DSHS and now lives in Southern California. When asked about the information she receives from RPEC, Eleanor remarks that “it is very informative, I feel that my dues are well spent”. Eleanor enjoys the spring sunshine and lack of rain but advises retirees who are chasing warm weather to consider that summers where she lives can be unbearably hot at times.

Many retirees who spent their careers serving the people of Washington State have decided to create a new life for themselves elsewhere. Some have moved to be closer to family; others have sought refuge from our wet and rainy winters. Whatever their reasons may be, RPEC appreciates the support of our Chapter 99 members who are a vital part of our efforts to protect the retirement security of all public sector retirees.

As a member of RPEC, you can receive all kinds of discounts including those for car rentals, hotels, condo, and airlines. As affiliates of AFSCME, who has partnered with Union Plus, we take part in discounts gained from leveraging the power of 1.6 million members. For the one stop shop for all your travel needs visit www.afscme.org.

If you’re interested in getting a discount on your next flight, the website will connect you to Expedia and will automatically cut the cost of your airfare. You could also save up to 25% on the cost of your next car or condo rental.

According to the National Center for Health Statistics, 48 million (20 %) Americans have some degree of hearing loss. It is the third most prevalent chronic health condition in older adults, after arthritis and heart disease, making it an issue of national concern. One of every two people over the age of 50 has difficulty understanding what people say in busy environments, and yet coverage for hearing aids is severely limited.

Medicare excludes hearing aid coverage and only two-thirds of states cover adult hearing aids through Medicaid. On top of that, no state mandates that private health insurance plans cover hearing devices for adults. These statistics leave those without coverage to pay out-of-pocket an average of $4,500 per pair for these vital instruments.

Senate Bill 5179, requiring coverage for hearing instruments under public employee

Member Travel Discounts PEBB Report

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and Medicaid programs, has passed the Senate and out of the House Health Care Committee. Since the bill was not passed, we are strongly lobbying both chambers to include the coverage in the budget..

PEB Board Meeting Update - Gwen RenchThe Public Employees Benefit Board met on April 12th. It was reported that out of 31 bills introduced that impact PEBB, none have yet made it to the Governor and only 7 made it out of the chamber where it originated.

In terms of the impact on PEBB from the proposed budgets, only the Senate’s budget proposed actuarial value reductions, meaning that the overall cost of the plan would have to be shifted more onto employees/retirees. The House’s budget proposal did include money to fund an increase in the state subsidy for retirees who are Medicare eligible.

The switch in retiree basic life insurance, which began on January 1st, 2017, increased the amount retirees were provided from a maximum of $3,000 (for those under 65) to a base amount of $5,000 (without age restrictions). The one-time decision of whether to retain the previous insurance or take the new offer, resulted in a decrease in the overall number of retirees who purchased life insurance from 13,889 to 11,075.

The next meeting of PEBB will be May 18th at the HCA office in Olympia. These meetings are open to the public.

Contact UsRetired Public Employees Council | 906 Columbia St SW, Ste 501 | Olympia, WA 98501

1-800-562-6097 | 360-352-8262 info@rpecwa.org | www.rpecwa.org | www.facebook.com/rpecwa

Dreamland, by Sam Quinones. As the nation grapples with a devastating opioid epidemic, concerns have primarily focused on young people, but many seniors in America also have been impacted. Over the past several decades, physicians have increasingly prescribed older patients medication to address chronic pain from arthritis, cancer, neurological diseases and other illnesses. These drugs unfortunately can often hurt more than they help.

The author of Dreamland, Sam Quinones, explains the campaign to market OxyContin and the disastrous consequences on rural America. It begins with the sincere efforts of medical professionals to treat pain, false information then is circulated regarding its addictive nature while a small community develops access to a supply of heroin. The results are a massive epidemic in opioid use and the deaths of 33,000 due to overdose in 2015.

Book Review by Ken Williams

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Your Voice for Retirement Security