Retired Employees Association of the California Teachers Association
Long Term Health Care Issues Update

A significant number of REACTA members and CTA retirees received a letter from their long term care provider stating that premiums would be increased up to 90%. This started a series of postings on the REACTA Facebook page and discussion at our annual meeting. Since then REACTA has contacted CTA management about the problem. CTA asked our trust administrator and attorney to do some background research on past contracts between the trust and CNA. Although the trust no longer serves as the collector of premiums that get forwarded to the insurance company, the concern is whether CNA should treat those with coverage as individuals or part of a group. 

If you are currently covered by this long term care plan, there are three steps you can take to help build pressure on CNA:

1. Go to the website www.insurance.ca.gov 
for the California Insurance Commissioner, download a complaint form and send it in. You may call their LA office at 800-927-4357.

2. You should contact Katherine Walker from William C. Earhart Company. They administer the CTA Employee’s Health Trust. Toll free number is 877-396-2942. She is working with our Trust attorneys who are looking into this matter. 

3. When you get any feedback, please share this with other REACTA members either by sending me an email or posting on our REACTA Facebook page.

REACTA will continue to report on this issue. Thanks to Carol Kangas for contacting the Trust Administrator!

CSO-CTA Tentative Bargaining Agreement Language/Tripartite Bargaining

Attached for your information are two files regarding the recent bargaining between CTA and the employee unions that affect retirement benefits.  As Provided by Susan Popovich:  "I have received the language from the CSO Tentative Agreemen (which passed).  I am also attending the Annual REACTA Membership meeting (in Cambria) this October, where I hope and will try to make sure that there is an update on the health care changes.  CVT is not our of the picture as you will see when you read the language of the Agreement.  I truly believe there needs to be a very strong attempt made for REACTA to keep aware of the happenings of the Benefits Trust as it will be the one making the decisions from what I understand."  Rose Luna, CSO Trustee on the Benefits Trust replied:  "You are correct Susan.  The conversation on a larger pool will continue at the Trust level as we continue.  The part that does impact retirees are two changes:  (1) Reimbursement for Medicare Part B will be limited to the base amount.  For 2014 the Medicare Part B cost is $104.90.  (2) Plan changes were agreed to by the parties.  Those changes will take effect on 1/1/15.  Those changes are noted on the last page of the TA."

The files are:  CSO-CTA_TentativeAgreement_Language.pdf and CSO-CTA_Tentative_Agreement_Tripartite.pdf.

                                                         *  *  *  *  *  *  *  *  *

Long Term Health Care Insurance Increase Explanation
By Maureen Keating, REACTA Member, to President John Smith

As a follow-up to the information I gave at the REACTA Annual Meeting regarding the new billing procedure for the CNA Long Term Care Insurance, below is additional information I received from conversations with both Katherine Walker, Bookkeeper with the William Earhart Co, CTA Employee Health & Welfare Benefits Trust Administrator (503.460.5242), and with Continental Casualty Co., CNA, Long Term Benefits Insurer (800.738.9489).

The Health and Welfare Benefits Trust was paying one Anniversary year's premium for each individual's CNA policy.  This annual payment resulted in a 7% premium savings which was passed on to us. We were repaying the Trust monthly at this reduced rate through payroll deduction. Therefore, our policies are/were paid up to our policy's Anniversary Date.

Each Policy Holder should check their original Policy or call the William Earhart Co. or CNA (at the numbers above) to determine their Policy Anniversary Date. Everyone who initially signed up when the offer was first given in 2003, should have a November 1 anniversary date and already should have received a Quarterly bill from CNA.

The initial, and future, CNA premium bill will be Quarterly (for three months) unless the Policy holder contacts CNA to change the premium to Monthly, Semi-Annually, or Yearly. Only semi-annual or annual payments have "discount" rates. If you want to change the Quarterly payment, call CNA at any time, but if you have received a bill and want to change it, you do need to call before your payment due date and CNA  will send you a new bill reflecting the change.

Monthly Premiums ... this is the only payment plan that you can arrange for an automatic payment.  Under this payment plan, you will not receive the 7% discount.
Quarterly Premiums ... you will be billed every three months and not receive any discount.

Semi-Annual Premiums ... premium will be reduced 3½% and billed every six months.
Annual Premium ... premium will be reduced 7% and billed once a year.
Recommendation to have a designee on file with CNA. In case you become incapacitated or for other reasons do not pay your premium on time, a reminder notice will be sent to you and your designee 30 days after the due date. This could prevent the policy from lapsing as the designee would have the ability to pay the premium on your behalf.

The reasoning behind the CTA EH&WB Trustees voting to no longer do payroll deduction for both actives and retirees is that the Long Term Care is not a CTA plan, but is an individual plan for which we were able to get the "group rate" benefit. The Trust did not wish to be liable for the policy payments. The second reason is the cost to the Trust. Paying all benefits for a year in advance does take money out of the Trust. Additionally, if someone terminates their employment (for whatever reason, including retirement) there would be an amount due from the individual to the Trust to cover the months that the individual does not have a pay check from which to deduct the payment. Collecting money owed the Trust is a cost unto itself and is not always paid by the individual.

I hope this helps to clear up some of the issues. Again, it is highly recommend that each individual contact the William Earhart Co and/or CNA with any questions they have, or if they wish to change the payment plan, or just to verify, for themselves, the information contained in this memo. This is only an information memo and should not be viewed as a recommendation from REACTA

PS:  The CNA Representative had not heard anything about a 15% increase that someone mentioned.

                                    * * * * * * * * * * * * * * * *

Important Notice: 
Medicare Part B Premium Reimbursement

The CTA Employee's Health and Welfare Benefits Trust reimburses Medicare eligible retirees and/or their eligible dependent(s) for the premium cost for enrolling in Medicare Part B.  If you pay Medicare Part B premiums (usually deducted from your monthly Social Security check), and you are NOT receiving quarterly reimburse- ments to cover your premiums, you should contact the Administrator for the CTA Employees' Health Trust: the William C. Earhart Co. at:

CTA Only:  503-460-5242 (Ext 1, Katherine Walker - eligibility)

CTA only Toll Free:  877-396-2942 (Ext 2, Pam Howard - claims advocate)

Retiree Reminders...

Each year the CTA Employee's Retirement Benefits Trust Administrators send out a letter requesting all retirees to complete a form asking if there have been any changes in the status of the retiree.  These forms must be completed and returned to the administrator -- or your retirement benefits could be discontinued.  Contact the Administrator for the CTA Employees' Retirement Trust:  BeneSys Administrators at (925) 208-2277.
REACTA Links and Contacts

REACTA Hot Topics September 2018
REACTA Hot Topics August 2018
REACTA Hot Topics May 2018
REACTA Hot Topics April 2018
REACTA Hot Topics February 2018
REACTA Hot Topics January 2018
REACTA Hot Topics December 2017
REACTA Hot Topics October 2017
REACTA Hot Topics September 2017
REACTA Hot Topics August 2017
REACTA Hot Topics July 2017
REACTA Hot Topics June 2017
REACTA Hot Topics May 1027
REACTA Hot Topics April 2017
REACTA Hot Topics March 2017

REACTA Newsletter July 2018
REACTA Newsletter March 2018
REACTA Newsletter January 2017
REACTA Newsletter Sept 2016
Newsletter April 2016
REACTA Newsletter Dec 2015
REACTA Newsletter Sept 2015
Newsletter April 2015
REACTA Newsletter January 2015

Membership Form

Nomination Form

REACTA 2015 Revised Bylaws

California Teachers Association

National Education Association

California Staff Organization

California Associate Staff

National Staff Organization

State Teachers Retirement System

Consumer Price Index

Administrator for the CTA Employees' Health Trust:
William C. Earhart Co.
3140 N.E. Broadway
Portland, OR 97208
(503) 460-5242
(877) 396-2942

CTA Health & Welfare Trust Benefits Contacts List 

Administrator for the CTA Employees' Retirement Trust:
BeneSys Administrators
7180 Koll Center Parkway, Suite 200
Pleasanton, CA 94566
P. O. Box 154
San Ramon, CA  94583
(833) 265-2277
925) 208-2277
Fax: (925) 395-4101
Web site:  www.CTApension.org