Why do participants in OPERS’ health care program pay less for their health care premiums than STRS Ohio retirees?
OPERS is also facing a funding challenge for its health care program. As a result, it implemented a Health Care Preservation Plan in January 2007. This plan divides its membership into three groups, based on when an individual is eligible to retire and/or when they were first hired. The initial health care premium subsidy for each of these groups varies depending on whether the enrollee is a retiree or a dependent and years of service. Annual increases in the subsidy are based on general cost inflation, not medical and drug trends. Further, the percentage of this subsidy decreases over time. So, for example: A 30-year OPERS retiree in 2007 pays a $0 premium that first year. However, that premium could increase to $264 per month in just five years.
