Recently there have been press reports about the State Employees' Health Plan being “moved into” the OneCare Accountable Care Organization.  Some of this information has been misleading .  What follows is a quick summary that VRSEA has put together to bring our members up to date on this issue. 

• OneCare is an Accountable Care Organization which has been formed to implement and manage Vermont’s Health Care reform efforts for the entire state.
• Two of the objectives of health care reform are data-sharing among physicians and payment reform.
• OneCare is not an insurance company and will not replace BCBSVT as our health plan administrator.
• A OneCare attribution does not change your benefits, copays, premiums -  or who you can see for health care.  
• Many Vermont hospitals and physician practices are currently in the OneCare network, including UVMHC and Central Vermont Hospital.
• If you are seeing a doctor who is currently in the OneCare network,  your doctor may be sharing your health data in a secure way with OneCare.
• This is true whether you are covered by the State Employees Health Plan (pre-Medicare) , or Medicare and with State plan wraparound.
• You do have the right to “opt out” of having your individual data shared with OneCare.
• Your physician can answer your questions about OneCare,  and can also provide you with an “opt-out” form for data.
• If the State ends up attributing the State Employees Health Plan to OneCare effective January 1, we expect them to send all health plan members an “opt-out” form.

This is not a simple subject to explain,  but we hope this info is of value to you.  We will keep you posted with further details as they become available.

Sincerely,

Your VRSEA Board of Trustees

Hello Retired Vermont State Employees,

As part of Vermont’s COVID-19 response we are encountering a number of needs to serve COVID-19 positive individuals in Vermont’s most vulnerable populations. Some areas of current need are in Vermont’s long term care facilities, securing foster homes to provide short term care for youth who are COVID-19+, programs addressing food insecurity and shelter programs. All COVID-19+ situations will include appropriate PPE and applicable health/safety training. If you are willing and able to serve COVID-19+ individuals please do consider signing up at the below links or seek out local opportunities as the needs are many. There are of course opportunities as well to serve Vermonters that are not COVID-19 positive in each. If you aren’t in Vermont, feel free to check with your local agencies to see how you can be of service.

The Medical Reserve Corps:

We have an urgent need for medical volunteers to help respond to the spread of COVID-19 in Vermont. If you are a healthcare professional (licensed or non-), person with a health care administration background, or have experience in working with displaced people, please considering registering so that we may use your skills. 

http://oncallforvt.org/medical-reserve-corps/how-to-join/

Vermont DCF Foster Care:

You can help make sure children are safe and well cared for while they can’t be at home.

https://dcf.vermont.gov/foster

General Volunteers:

Thank you for answering Governor Scott’s call for volunteers and being willing to help other Vermonters in this time of need. The COVID-19 pandemic is rapidly developing, so we are calling on Vermonters to sign up, let us know what skills they can offer, and be ready to serve if needed.  If we need you and your skills, we will be in touch. Our hope is to develop a large pool of people willing to help should any rapidly developing situation require additional volunteers.

https://www.vermont.gov/volunteer#gsc.tab=0

Many thanks for considering this request. 

Be safe and well,

DHR - Commissioner's Office

The VRSEA October newsletter will provide a paper enrollment form and an opportunity to pay by check as in prior years!

We understand that some VRSEA members have had difficulty re-enrolling online.  If you have, please wait for the VRSEA October newsletter.  The newsletter will be coming out later this month with the usual paper enrollment form and envelope for your convenience. You will then be able to enroll using a paper enrollment form,  and pay by check as in past years. 

This is our first year using an online enrollment option - and as is often the case - things don’t always go as smoothly as planned.  We apologize for any inconvenience to our valued members. 

If you have enrolled online - or printed off a form online and mailed it in, - we thank you!  Please do NOT send in another registration form and check when you receive the newsletter. You are all set for the upcoming year! 

If you are unable to use the online option, please wait for the October newsletter with a paper enrollment form and envelope.   Stay tuned - and stay well!

State Retirees’ Pension Is Fully Funded for 2021:  We are pleased to report that the Legislature and the Governor have agreed to fund the Retirement Board’s annual actuarial funding request at the full recommended level for 2021. VRSEA thanks State Treasurer Beth Pearce and Governor Phil Scott for their support of state retirees and the state retirement pension system.  VRSEA has been concerned that the pension funding requirement might suffer from the state’s economic turndown resulting from the Covid-19 virus.  We are very appreciative that this did not happen. 

Another piece of good news concerns the funding of the Future Retirees’ medical benefit unfunded cost liability.  Up until now, current retirees’ medical coverage cost for the state has been on a pay-as-you-go basis.  However, for future retirees, some state funds have been set aside.  Funding a pay-as-you-go system and also accumulating significant funds to transition to a pre-funded OPEB (Other Post-Employment Benefits) system, has been difficult. Language included in the Fiscal Year 2021 Budget Bill will allow the Treasurer to invest the accumulated OPEB funds for future retirees in the same manner as the pension funds.  This allows a higher rate of return, to help achieve pre-funding of the future medical liability sooner, and knock a significant portion of liabilities off the books.  We owe a debt of gratitude to Treasurer Beth Pearce, who has been fighting for this change for years!

The following are recent changes regarding the Required Minimum Distribution (RMD) provision of the Vermont Deferred Compensation Plan (the 457 Plan): 

·         Under the Federal CARES Act signed in late March 2020, the normal Required Minimum Distributions (RMDs) are suspended for 2020, due to market volatility.   Prudential has suspended RMDs for the balance of 2020.    If you want (or need) the required minimum distributions for 2020, you will need to contact Prudential.   If instead, you are receiving a periodic withdrawal (i.e., monthly, quarterly, etc.),  you may voluntarily suspend your withdrawals for the remainder of the calendar 2020 year if you wish, but you must contact Prudential to do so; otherwise they will continue.   More information on this can be obtained from Prudential's Customer Service line at:  1-877-738-8376.

·         Under the Federal SECURE Act signed in late December 2019, the age for a required minimum distribution from all financial instruments for which RMDs are applicable, has been permanently changed from age 70.5 to age 72, for those who were born after July 1, 1949.   Information on this can be obtained on the IRS website: irs.gov/rmd and the Fact sheet FS-2020-4.

·         Please note that VRSEA has no further information about these changes.  Questions should be directed to Prudential at 1-877-738-8376. 

 

From “Seven Days”, April 8, 2020

Treasurer Reassures Retirees Pensions Will Be Paid

The good news, according to Treasurer Beth Pearce, is that the state has enough money — at least for now — to pay its bills.

Throughout the year, the state's cash position ebbs and flows as revenue comes in and payments are made. The next big outlay is scheduled for April 30, when the state is set to distribute $130 million to school districts. "We will be paying that on time and without disruption," Pearce said.

To provide an additional backstop, Pearce is calling on the legislature to extend the period during which she can borrow from restricted state funds to make payments. "It's like borrowing from yourself," she said. "It's cheaper than going out for a line of credit."

Pearce also oversees pension funds for state workers, teachers and municipal employees. Those were worth $4.6 billion at the end of the February — before the stock market tanked. The treasurer said she hasn't yet received an end-of-March update.

"They're gonna take some hits, and there's gonna be some volatility in the markets continuing," she said. "But we're long-term investors. We see things in a 30-year horizon. We have more than enough money, I want to assure retirees, to pay retirement bills."

Vermont State Treasurer Beth Pearce today issued the following statement about COVID-19 and the operations of the State Treasurer’s Office.

The spread of COVID-19 has disrupted daily life across the country. We are in a very serious public health crisis. I want to thank the many Vermonters who are on the front lines providing health care, ensuring public safety, supporting our children through school closures, and volunteering their time to lend a hand. And thanks to the employees at grocery stores and pharmacies who provide essential services to all of us. I am inspired by your leadership and commitment to Vermonters.

I want to assure employees, retirees, and vendors that payments from the State will continue without disruption. Our office is in close contact and working collaboratively with the Governor’s Office, the Department of Human Resources, and the Agency of Human Services to make sure that critical payments are available to Vermonters.

Treasury Operations Division - We are currently processing all State payments for which the Treasurer’s Office is responsible with no changes to the schedule. We ask that for any questions about payments you contact us at Tre.ServicesAccounting@vermont.gov.

Retirement Division - Retirees in Vermont’s defined benefit plans can rest assured that their benefit payments are secure and will continue to go out on the last business day of the month. Our staff continues to serve member and retiree needs through remote services. You are our customers and we will be there to help. Retirement counseling sessions are available by phone only. Staff are prioritizing those members who are within 90 days of retirement. Limited phone coverage will be available on the main number (802) 828-2305. If you leave a message, please leave your name and number, and staff will return your call between the regularly scheduled business hours of 7:45 a.m. to 4:30 p.m., Monday through Friday. Members are encouraged to email questions to tre.retirementcorrespondence@vermont.gov. If you are more than 90 days away from retirement and would like an estimate, you can access our online portal and receive this information by visiting retire.vermont.gov.

The Vermont Pension Investment Committee and Treasurer’s Office staff have been closely monitoring financial markets. While we expect continued volatility during these times, the State’s pension funds are long-term investments, and the portfolio is broadly diversified to respond to market volatility.

Unclaimed Property Division - Customers, most of your general questions can be answered by visiting our website at https://www.vermonttreasurer.gov/content/unclaimed-property. Our staff will continue to serve the public by phone and email and are available during normal business hours 7:45 a.m. to 4:30 p.m., Monday through Friday. For claimants, please send your e-mail requests to:  unclaimed.property@vermont.gov.   For Holders please send your email requests to tre.upcompliance@vermont.gov.  You can reach the Unclaimed Property Division at (802) 828-2407. If you leave a voice message, please be sure to include your name and phone number and staff will return your call. 

Financial Literacy Education - The Treasurer's Office has cancelled its April 9th Financial Literacy Awards Ceremony. Any questions about ongoing financial literacy education programs (Reading is an Investment, VerMoney, etc.) should be directed to tre.financialliteracy@vermont.gov. 

Vermonters are special. We take pride in our communities and make progress by working together. In this spirit, I pledge the full resources of the Treasurer’s Office to aid in our recovery from COVID-19. We will continue to update our website at https://www.vermonttreasurer.gov/. Together, we will get through these challenging times.

Source: MONTPELIER, VT — Vermont State Treasurer 3.26.2020

The following memorandum was released today by DHR, concerning prescription drug refills. State Employees and Retirees are urged to read and take advantage of the new guidelines when refilling your prescriptions.

From: DHR - Commissioner's Office
Date: March 17, 2020 at 2:49:22 PM EDT
Subject: Employee Pharmacy Benefit Regarding COVID-19 Prescription Drug Refills

Effective immediately and in compliance with the Department of Financial Regulation Insurance Bulletin #210, the following State Employee Health Plan design changes have been implemented related to pharmacy benefits and the COVID-19 pandemic.

Plan members are encouraged to use the mail-order service of Express Scripts that allows medications to be delivered directly to members' homes. This will ensure that members have the medications they need while also minimizing the need for Vermonters to physically visit pharmacies, consistent with the recommended practice of social distancing. This service is available at no additional cost, and the same coinsurance and deductibles apply.

As an alternative, members with ongoing medications can refill their medications earlier than otherwise permitted under the plan to ensure adequate supply. There is a one-time "refill too soon" exception for each medication that can be put in place at the pharmacy at the time of fill.

For more information and assistance in setting up either the mail-order service or to coordinate the "refill too soon" benefit, please contact Express Scripts at:

(800) 550-8090

The Vermont Legislature today adjourned until the 24^th of March in light of COVID-19 developments. The Rules Committee will continue to meet by phone on a daily basis in order to assess the state of affairs and to see when the Legislature should reconvene. Committees are expected to continue to “meet” via conference calls during the next week to focus on their priorities. The House focused this afternoon on some emergency legislation with regards to unemployment insurance, paid family leave, emergency health insurance and telemedicine measures throughout the COVID-19 crisis. The Governor is expected to hold a press conference this evening on the matter as well. The House spent the afternoon moving all other bills on the Notice Calendar through all stages of passage. This includes H.611, the Older Vermonters Act which can be found on page 1636 of today’s calendar. I cannot attach a pdf because the file is over 100 pages. Please copy and paste the link into your browser if you would like to read the language.

https://legislature.vermont.gov/Documents/2020/Docs/CALENDAR/hc200313.pdf

On Thursday afternoon the Senate Institutions Committee heard from the Vermont Business Roundtable about the unfunded liabilities. They did not hand out copies of their report but they reiterated the need for changes to the current system. They suggested stress testing the investments and reconsidering the make-up of the Vermont Pension Investment Council (VPIC) to include more experts in financial matters. They argued that the Council is not prepared to make decisions with regard to investments and that is why the expected rate of return and discount rates are inflated. They also asked the Committee to consider contribution rate changes and the change from defined benefit to defined contributions for new employees. They also stressed that the current investments will be under even more pressure as a result of this bear market.  Steve Howard from the VSEA then testified against the suggested plan design changes. He told the members the VSEA has proposed a bill which taxes those making over $500,000 to help make up for the pension liability issue. He argued that employees were not the ones to blame for the erroneous actuarial projections for this plan or the policy changes that have resulted in this problem and should not bear the burden to solve it.

David Coates, on behalf of the Roundtable then told the Committee that they have been unable to get time before Senate Government Operations or Senate Appropriations to explain their positions. Sen. Mazza (D-Grand Isle) then voiced his frustration with the fact that the Treasurer does not appear to have a plan to solve the issue. Howard defended her by explaining there is a plan in the works, but it is not ready for primetime. He told the Committee that there is a working group that has been planning behind the scenes. Committee members expressed great frustration that this process that the Treasurer is leading is taking too long. They want a solution this year. The pension gap is leading to an inability to bond which is reducing the capital budget by a substantial amount next year if they don’t address it. 

I spoke with a representative from the Treasurer’s Office today. She said those conversations with the unions came to a standstill since the VBR community refused to accept changes proposed by the Treasurer that still maintain the defined benefit plans. She does believe that their office has the support of both Appropriations chairs and don’t think VBR will be successful in changing the plan structure.

I am sure you all heard the Governor’s press conference this evening, but for those who missed it, he has placed a strict order on banning visitors from long term care facilities unless family members are in intensive, or end of life care. He also is asking state government to postpone unnecessary travel and to allow employees to work from home as much as possible.

Our team will try to keep tabs on these remote meetings next week and hope to have an update for you all then.

 

Pensions and Bonding Capacity Update in Senate Institutions

On Tuesday the Senate Institutions Committee received an update on the State’s pensions and bonding capacity from State Treasurer Pearce, Brad Ferland from the Agency of Administration, and Adam Greshin from the Dept. of Finance and Management. This was very much a repeat of the testimony from last week in Senate Appropriations and it was repeated again on Wednesday in Senate Government Operations. While all three witnesses agreed that the State faces a challenging situation with regards to liabilities, the course of action advocated for by Pearce differed from Ferland and Greshin’s analysis. 

Treasurer Pearce stressed the viability of OPEBs as a mechanism for lowering liabilities and argued that a defined contributions approach would be far more costly than adhering to the current defined benefit plan. While certain members of the Committee pressed Pearce for an immediate course of action, Pearce maintained that a working group is in the process of putting together a set recommendations and urged the Legislature against pursuing any perceived quick fixes in addressing mounting liabilities. Questions posed by Senators revolved around unpacking the pros and cons of pushing payments back relative to increasing the rate of paybacks. 

While Ferland and Greshin acknowledged that Pearce’s efforts have had a positive impact on reducing liabilities, the pair suggested that the State’s investment returns haven’t panned out as expected, citing flawed assumptions surrounding mortality, retirement, cost of living increases, and salary increases. It was argued that the efforts of the working group tasked with addressing State liabilities has been undermined by the absence of a holistic approach that takes the State’s four ‘buckets’ into account. The result has been a siloed process where each entity is singularly concerned with meeting their own short-term interests at the expense of long-term solvency. To address the situation, Ferland and Greshin advocated for a third party to assess the overall situation, identify all levers the State can pull, and assess a value to each of them, in addition to increased transparency around the process. 

Healthcare Reform

This week Senate Health and Welfare continued testimony on S.290, the healthcare reform bill. As a reminder the bill would introduce additional reporting requirements for OneCare. It also expands the Green Mountain Care Board’s authority over rate setting between hospitals and insurers, price transparency, and contracts with designated agencies. Additionally, it caps rate increases for administrative costs for insurers and requires AHS to report back to the Legislature on the impacts of joining the ACO for state employees.

The Committee heard testimony from a number of concerned parties including the Green Mountain Care Board (GMCB). GMCB Executive Director Susan Barret focused her testimony on a number of specific language requests which more appropriately fit the environment in which they operate. Some of this was related to confidentiality concerns. For instance, a request to gather more Fee For Service (FFS) information from hospitals and insurers to understand how each procedure or billable item adds up to their total operating budgets. GMCB said they can request this information but have to live within certain confidentiality restraints which will not allow them to publish all of this data. They also asked for many of the bills expectations to be turned into a study so they could come back to report on things they would need to do to accomplish the goals within the legislation.

The testimony continues next week and there may be an extensive mark-up process on this bill before it moves forward.

For simplicity, this week I am only including the bills that have been taken up. Ways and Means continues to go through the Miscellaneous Tax Bill and will most likely hold it for as long as they can. Usually this is the week after “crossover”. Crossover this year is Friday, March 13^th. This is the day that by rule, bills have to be out of their originating committee in order to be considered this Session by the other chamber. Of course members often find ways around this if necessary.

 

S.290	Sen. Lyons	Read First Time and referred to Senate Committee on Health and Welfare 1/14/20	An act relating to health care reform implementation

 

Misc. Tax Bill	Committee on Ways and Means	Still in Committee, not introduced	Miscellaneous Tax Bill- MAGI, Retirement Income Tax Discussion
H. 922	Committee on Gov. Ops.	Passed House, sent to Senate Gov. Ops 2/20/20	Act relating to miscellaneous amendments to the Vermont State Employees’ Retirement System
H.930	Rep. Scheurmann	Referred to House Healthcare	An act relating to accountable care organization benchmarks and recertification