LOUISVILLE, KY (WDRB) -- Healthcare costs for thousands of state retirees could increase at the start of the new year – leaving many with sticker shock this month while they sign up for next year's health plans.
It's all because of a lesser-known change in this year's budget.
When House Bill 265 was passed this spring, the budget bill lawmakers approved included language that changed the "mandatory" subsidy for spouses, children and families to a "discretionary" subsidy.
That gave the Kentucky Retirement System board of trustees the opportunity to cancel it, which it did during a vote at an August meeting. The subsidy helped pay for dependents of non-Medicare retirees. Lawmakers had not funded the program in six years; instead, the state has borrowed money from an insurance trust to help pay for it.
The change affects 5,725 retirees and is expected to save the state $19.5 million, according to figures from Brian Wilkerson, a legislative spokesman.
As a result, Jim Decker, a retired school bus mechanic for JCPS, says coverage for him and his wife will more than double to more than $800 a month.
"I was shocked... I was shocked," said Decker, when he learned of the change this month. "That means my wife is not going to have health insurance basically. Because we're living on my retirement and we just can't afford it at this point."
Greeting retirees on the state's KRS website is an hour glass and reminder that the dependent subsidy will end January 1st. Below that it reads:
"At its regular quarterly meeting on August 16, the KRS Board of Trustees decided to discontinue payment of a retiree dependent health insurance subsidy which the Board had been required to pay since the 2005-2006 fiscal year," according to release posted on the Kentucky Retirement System website.
And the Deckers aren't alone. This change will affect 5,725 retirees; the estimated savings to Kentucky will be $19.5 million.
Making matters worse, Jim's wife, Kay, lost her job in July and has since shopped around for other insurance coverage.
"And I got denied because I have high cholesterol," said Kay Decker.
Now the two aren't sure what to do. They're considering dropping Kay's health insurance altogether.
"I'll be honest with you, I've got twice going out, what I've got coming in. Since she lost her job, we're living off of savings until she gets a job," said Jim Decker.
The Kentucky Retirement System is holding a benefit fair at the Kentucky Fair and Expo Center in Louisville this Thursday (Oct. 18).
The Deckers plan to be there with plenty of questions. And they're sure they won't be alone.
A legislative spokesman says at least one lawmaker has started to receive calls about this change.
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