Saturday, March 06, 2010
BJ pension gobbled till late October by medical, inflation
COMMENTARY BY JOHN OLESKY
In 2009 it took every penny of the first 9.75 months of my BJ pension to pay for my medical expenses that year plus offset the 41% inflation since my 1996 retirement. That’s right: Until the final week of October 2009, my pension checks went for medical expenses and reduced buying power.
Along comes Aetna Medicare, which the Beacon Journal provides for its retirees, and says that the medical deductible for 2010 went from last year’s $150 to this year’s $250. That’s a 67% increase. The out-of-pocket maximum went from $4,000 to $5,000. That’s a 25% increase. Unfortunately, BJ retirees are not unique. It’s the same for other companies’ retirees who have Aetna Medicare or similar plans.
About the 41% inflation since 1996: It takes $1.41 to buy today what I could buy in 1996 for $1. Those numbers come from the federal government.
My Social Security, thankfully, has increased 45.3% since 1996, slightly more than inflation.
And I’ve been lucky – not skilled – with my investments amid the market turmoil. That helps keep me afloat financially.
Health care is devouring huge chunks of retirees’ incomes and of businesses’ profits while politicians posture, point, pout, procrastinate, provoke partisan passions and we puke our pensions into prodigious profits by pharmaceutical and insurance companies.
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5 comments:
Since no one has commented on my post, I'm guessing that:
1. BJ people are satisfied with the way things are.
2. BJ people think there's nothing they can do except to just take whatever is handed out with their health care.
John, I'll comment, but though I sympathies with you since you must have many illnesses, I am very satisfied with my health care provided by the BJ.
I only used $3 toward my deductible all year, I have no illnesses, don't need any medication of any kind,never had to and all the pills I have taken all year is maybe a dozen Aspirins.
I know this is extreme, and I am lucky, but I'm sure others are satisfied because whatever ails them may well be manageable cost wise.
Since you had asked for my separation paper you must think there is something you/we can do about it, if so let's discuss it.
Bob Abbot has been trying for a year or more and is hopeful for a favorable solution, but nothing is sure.
....Ott
Ott, that IS the point. I do NOT have a lot of illnesses. In fact, I consider myself reasonable healthy, and reasonably fortunate financially through my investments.
You are an incredible specimen. I envy your health and vigor.
Other retirees, I think, must be far worse off than me financially.
As for doing something about it, Bob Abbott is part of the printers' lawsuit against the BJ over it reneging on its health care promises. I am part of a similar lawsuit against the BJ on behalf of Guild retirees. I'd be happy to discuss the details with you or any other Guild retirees who would like to try to improve their situations.
I find discussions with you mentally invigorating.
John, my wife takes Lipitor which I order from Aetna, 3 month supply for $40, and she takes a generic for something. She goes to her doctor twice a year. I get a bill for the deductible and sometimes from a doctor who did something for her, I know not what.
All that comes to about a half of one pension check a year or less.
That is why I wonder how one can rack up the expenses you cite without some near catastrophic illnesses, you pay 15% and Aetna pays the rest, right?
Diabetes drugs and a number of others have no generics and Aetna does not put them on the first tier, so you end up paying actual drug costs. I probably could top Olesky. I hope the suit will net some results. but I probably will have to grin and bear it....maybe not grin.
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