Roanoke Times
Copyright (c) 1995, Landmark Communications, Inc.
DATE: WEDNESDAY, March 31, 1993 TAG: 9303310271
SECTION: VIRGINIA PAGE: C-4 EDITION: METRO
SOURCE: JOEL TURNER STAFF WRITER
DATELINE: LENGTH: Medium
"Some people are receiving a monthly pension of $900, but they have to spend more than half of it just to get health insurance," said Thomas, D-Roanoke.
"I feel strongly that it's not right for the rates to be so high for them."
Local governments have not been required to keep retirees in a group health insurance plan after they left their jobs. As a result, the retired employees have been forced to obtain insurance individually.
But come July, Roanoke and other localities with populations above 20,000 will be required to offer health insurance for retired employees who have worked 15 years and retired before age 65.
Thomas, a co-patron of the bill, said it is intended to help retired municipal workers obtain health insurance at a reasonable cost.
"The city will have to get them into a group plan so the rates won't be so high," Thomas said.
The law applies only to city workers who retire before they reach 65. When they reach 65, they are eligible for Medicare and the city is no longer required to offer health insurance for them.
While the law will enable retired workers to join group plans, the city may require those workers to pay part or all of the premiums.
The law provides that a locality, when providing this coverage, may provide that the retiree be rated separately from active employees covered under the group plan.
Ken Cronin, city personnel manager, said city officials are working on a plan to meet the requirements of the new state law.
"We aren't ready to say how it will work or what it will cost," Cronin said. "We will offer them coverage."
Cronin said the city has several alternatives for providing the coverage and determining how it will be financed.
"We are aware of the new law and we will be in full compliance," said City Attorney Wilburn Dibling.
by CNB