
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<h4 class="wp-block-heading"><a href="https://www.planadviser.com/bipartisan-support-shown-federal-ira-re-introduced-bill/" target="_blank" rel="noreferrer noopener"><strong>Bipartisan Support Shown for Federal IRA in Re-Introduced Bill | PLANADVISER</strong></a></h4>



<p>Lawmakers in Congress are renewing efforts to establish a federal individual retirement account (IRA) program for workers who don’t have a retirement plan at work. The program would be similar to the automatic enrollment programs that multiple states, including Colorado, have launched in recent years.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-federal-auto-ira-bill-has-bipartisan-support/" target="_blank" rel="noreferrer noopener"><strong>Medicare Will Remove Limits on PET Scans Used With New Alzheimer’s Drugs | The Hill</strong></a></h4>



<p>The Centers for Medicare and Medicaid Services (CMS) said it is removing its limit on covering PET scans that can help diagnose patients with Alzheimer’s disease. The decision will make it easier for Medicare recipients to get prescriptions for the newer Alzheimer’s medications that treat amyloid plaques in the brain.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/dont-let-yourself-get-smished/" target="_blank" rel="noreferrer noopener"><strong>Don’t Let Yourself Get Smished | Next Avenue</strong></a></h4>



<p>Scammers are constantly changing their tactics to try to fool people, and “smishing” — or phishing via text message — has become increasingly common. Here are some tips for spotting and avoiding scams from friendly-sounding text messages.</p>



<h4 class="wp-block-heading"><a href="https://www.vox.com/the-highlight/23850582/millennials-aging-parents-boomers-seniors-family-care-taker" target="_blank" rel="noreferrer noopener"><strong>Baby Boomers’ Aging Could be a Caregiver Crisis for Millennials | Vox</strong></a></h4>



<p>Many people in the Baby Boomer generation are beginning to reach the age when they start to require more care. That means younger generations are finding themselves in a “sandwich” situation wherein they are simultaneously taking care of children and aging parents. Experts say it’s an important issue to discuss and plan for as parents get older.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Federal Auto-IRA Bill Has Bipartisan Support


<h4 class="wp-block-heading"><strong><a href="https://www.npr.org/sections/health-shots/2023/10/04/1203417818/medicare-drug-price-negotiations-begin" target="_blank" rel="noreferrer noopener">Drugmakers Will Negotiate with Medicare on Price. But They&#8217;re Suing, Too | NPR</a></strong></h4>



<p>Major drug manufacturers say they will participate in Medicare’s new drug price negotiation program. The government has identified the first 10 drugs for which it aims to lower prices under the program. At the same time, drugmakers are fighting the program, arguing that lowering prices will cut into their research and development budgets.</p>



<h4 class="wp-block-heading"><a href="https://www.insiderintelligence.com/content/colorado-passes-law-regulating-ai-in-insurance" target="_blank" rel="noreferrer noopener"><strong>Colorado Cracks Down on AI Discrimination in Life Insurance | Insider Intelligence</strong></a></h4>



<p>Beginning next month, life insurance companies in Colorado will be prohibited from using artificial intelligence (AI) and other technologies in a way that leads to discrimination based on protected characteristics such as race and gender. Colorado is the first state to enact such a law specific to the use of emerging technologies in insurance underwriting.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-drug-manufacturers-agree-to-medicare-drug-negotiations/" target="_blank" rel="noreferrer noopener"><strong>Auto Workers Aren&#8217;t Striking Only For Higher Wages. They Want Their Pensions Back, Too | Bloomberg via Yahoo! Finance</strong></a></h4>



<p>Members of the United Auto Workers union are on strike across the country, asking for higher wages but also the return of defined benefit pensions. While workers hired before the Great Recession have access to a pension, newer workers don’t. Automakers say the costs of reopening their pension plans are too high, but unions argue the companies can afford to once again offer the valuable benefit.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2023/10/06/401k-to-ira-rollovers-new-labor-department-rule-likely-to-raise-investor-protections.html" target="_blank" rel="noreferrer noopener"><strong>401(k)-to-IRA rollovers: Government likely to raise saver protections |CNBC</strong></a></h4>



<p>It’s common for workers who leave a job to take their 401(k) account balance with them and roll it over into another account such as an IRA. But workers who seek out advice on rollovers might not always get the best advice. That’s because rollover advice can fall outside the legal guidelines for fiduciaries, who are required to act in their clients’ best interests. Experts expect the federal government to issue a new rule soon to close those loopholes.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Drug Manufacturers Agree to Medicare Price Negotiations


<h4 class="wp-block-heading"><a href="https://www.cbsnews.com/news/ethereum-merge-blockchain-cbs-news-explains/" target="_blank" rel="noreferrer noopener"><strong>Why &#8220;The Merge&#8221; Could Change the Future of Cryptocurrency | CBS News</strong></a></h4>



<p>There’s a big upgrade happening in the world of cryptocurrency, dubbed “The Merge.” Experts say the Merge will reduce the environmental impact of Ethereum, one of the most popular cryptocurrency blockchains, and ultimately make the digital currency more useful.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.kiplinger.com/taxes/605209/savers-credit-and-earn-act" target="_blank" rel="noreferrer noopener">Big Changes to the Saver’s Credit Could Be on the Way | Kiplinger</a></strong></h4>



<p>Lawmakers in Washington, DC have introduced a new package of retirement reforms called the Enhancing American Retirement Now (EARN) Act. Included in the EARN Act is a provision that would change the way the Saver’s Credit works, depositing the credit directly into a retirement account instead of being a credit on your tax returns.</p>



<h4 class="wp-block-heading"><a href="https://www.reuters.com/business/healthcare-pharmaceuticals/walmart-unitedhealth-offer-joint-program-preventive-healthcare-seniors-2022-09-07/" target="_blank" rel="noreferrer noopener"><strong>Walmart, UnitedHealth to Offer Preventive Healthcare Program for Seniors | Reuters</strong></a></h4>



<p>Walmart and UnitedHealth Group have agreed to a 10-year partnership aimed at improving access to preventive care for seniors enrolled in Medicare Advantage plans. The partnership will kick off next year at Walmart locations in Florida and Georgia, with plans to expand to other areas in the future.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2022/09/05/how-much-cash-you-need-in-an-emergency-fund-at-every-career-stage.html" target="_blank" rel="noreferrer noopener"><strong>How Much Cash You Need in an Emergency Fund at Every Career Stage | CNBC</strong></a></h4>



<p>A common piece of financial advice is to keep three to six months’ worth of expenses in a savings account for emergencies. But that rule of thumb doesn’t necessarily apply to everyone; you may need significantly more cash on hand, depending on where you are in your career, what kind of work you do, and whether or not you have a significant other.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: What to Know About Cryptocurrency’s Big ‘Merge’


<p>As enrollment in Medicare Advantage plans continues to grow, evidence is mounting that these comprehensive plans offer better outcomes and can even cost less for retirees than traditional Medicare.</p>



<p>In its annual <a href="https://bettermedicarealliance.org/wp-content/uploads/2022/07/BMA-State-of-MA-2022-FIN.pdf" target="_blank" rel="noreferrer noopener">“State of Medicare Advantage” report</a>, the Better Medicare Alliance states Medicare Advantage enrollees spend almost $2,000 less per year on plan premiums and out-of-pocket costs than those enrolled in original Medicare.</p>



<h4 class="wp-block-heading"><strong>Medicare Advantage vs. Traditional Medicare</strong></h4>



<p>Medicare Advantage plans are offered by private insurers and serve as “all-in-one” or “package” plans. They combine the benefits of Medicare Parts A (hospital insurance) and B (medical insurance) with Part D (prescription coverage) into one comprehensive plan. These plans also usually cover extra services that aren’t covered by original Medicare, like dental and vision and even gym memberships. They also have yearly limits on out-of-pocket spending on services that Part A and Part B cover, while original Medicare doesn’t.</p>



<p>Over the past decade, enrollment in Medicare Advantage plans has doubled to more than 28 million people, which amounts to 45% of all Medicare beneficiaries. In Colorado, that number is nearly 48%.</p>



<p>With a focus on preventive and primary care, Medicare Advantage plans help ensure that enrollees receive regular screenings and care so that any medical problems can be addressed before they become more serious and costly. The report from Better Medicare Alliance finds Medicare Advantage plans cover all Medicare-covered services for 24% less than traditional Medicare.</p>



<p>In addition to cost savings, the report also found patients enrolled in Medicare Advantage plans often have better health outcomes, including higher rates of vaccination and cancer screenings, lower rates of hospitalization, and higher rates of follow-up care.</p>



<p>With regard to COVID-19, Medicare Advantage enrollees were hospitalized at a nearly 19% lower rate in 2020 and had a lower mortality rate, according to the report.</p>



<h4 class="wp-block-heading"><strong>Medicare Advantage and PERACare</strong></h4>



<p>Colorado PERA offers Medicare Advantage plans through its health benefits program, <a href="https://www.copera.org/health-benefits-peracare" target="_blank" rel="noreferrer noopener">PERACare</a>. PERACare includes <a href="https://www.copera.org/over-age-65-medicare" target="_blank" rel="noreferrer noopener">three Medicare Advantage plans</a>: two national PPO plans with UnitedHealthcare and a regional HMO plan with Kaiser Permanente of Colorado.</p>



<p>PERACare also includes a subsidy, based on years of service, to help offset the cost of plan premiums. The maximum subsidy in 2021 was $115, which, depending on the plan chosen, could result in a $0 premium for PERACare coverage.</p>



<p>“We chose to offer Medicare Advantage plans because we could offer plans with lower premiums and a more coordinated approach that delivers better health outcomes,” said Jessica Linart, PERA’s director of insurance. “We’re glad to see the information in this report supports our efforts.”</p>



<p>The open enrollment period for PERACare begins on Oct. 17 and continues through Nov. 17.</p>



<p>To learn more about PERACare’s Medicare Advantage plans, visit <a href="https://www.copera.org/peracare" target="_blank" rel="noreferrer noopener" class="broken_link">copera.org/peracare</a>.</p>


Report: Medicare Advantage Plans Cost Less, Provide Better Outcomes Than Traditional Medicare


<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2022/08/12/drug-prices-passage-of-inflation-reduction-act-gives-medicare-historic-new-powers.html" target="_blank" rel="noreferrer noopener"><strong>Drug prices: Passage of Inflation Reduction Act Gives Medicare Historic New Powers | CNBC&nbsp;</strong></a></h4>



<p>Medicare will soon be able to negotiate directly with drug manufacturers on the prices of some name-brand medications, leading to savings for retirees and the federal government. The recently passed Inflation Reduction Act will also limit out-of-pocket spending to $2,000 for participants in Medicare’s Part D prescription drug plan.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-congress-passes-bill-giving-medicare-power-to-negotiate-drug-prices/" target="_blank" rel="noreferrer noopener"><strong>FDA Finalizes Rule to Make Hearing Aids Available Over the Counter | The Hill</strong></a></h4>



<p>The Federal Drug Administration has finalized a rule that will allow some hearing aids to be sold over the counter. The rule applies to hearing aids for people with mild to moderate hearing loss, and products could appear on store shelves as soon as this fall.</p>



<h4 class="wp-block-heading"><a href="https://www.fool.com/the-ascent/personal-finance/articles/americans-are-saving-the-least-money-since-2009/" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Americans Are Saving the Least Money Since 2009 | The Motley Fool</strong></a></h4>



<p>During the early days of the COVID-19 pandemic, many Americans reduced their spending and ramped up their savings, but that trend has since reversed. New data from the Federal Reserve Bank of New York show the personal savings rate in the United States has dropped to its lowest level since 2009. Americans have also racked up record debt, with total U.S. household debt surpassing $16 trillion for the first time ever this year.</p>



<h4 class="wp-block-heading"><strong><a href="https://finance.yahoo.com/news/finances-keeping-night-not-alone-175326930.html" target="_blank" rel="noreferrer noopener">Finances Keeping You Up at Night? You’re Not Alone | Yahoo! Finance &nbsp;</a></strong></h4>



<p>It turns out having a financial plan is good for more than just your wallet — it’s also good for your overall health. A recent study from Northwestern Mutual found that people who make financial plans and work with an advisor are happier and get better sleep than those who don’t.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Congress Passes Bill Giving Medicare Power to Negotiate Drug Prices


<h4 class="wp-block-heading"><a href="https://www.npr.org/2022/07/27/1113494056/fed-interest-rate-hike-july-meeting" target="_blank" rel="noreferrer noopener"><strong>Another Big Fed Rate Hike to Battle Inflation. Economy Hangs in Balance | NPR</strong></a></h4>



<p>The Federal Reserve issued another .75% increase for its benchmark interest rate. It’s the fourth time the Fed has raised rates this year, marking some of the most aggressive action the Fed has taken to fight inflation in decades. The question is whether the moves will be able to rein in inflation without hurting the economy.</p>



<h4 class="wp-block-heading"><a href="https://www.thinkadvisor.com/2022/07/20/fbi-warns-of-fake-crypto-apps-spoofing-financial-institutions/" target="_blank" rel="noreferrer noopener"><strong>FBI Warns of Fake Crypto Investment Apps Spoofing Financial Institutions | ThinkAdvisor</strong></a></h4>



<p>Cybercriminals appear to be trying to capitalize on the cryptocurrency trend. The FBI warned recently that scammers are posing as legitimate financial institutions, creating fake websites and apps to steal victims’ money. The FBI has so far identified 244 victims who have lost approximately $42.7 million.</p>



<h4 class="wp-block-heading"><a href="https://www.sciencedaily.com/releases/2022/07/220720102532.htm" target="_blank" rel="noreferrer noopener"><strong>Wearable Activity Trackers Encourage Us to Walk Up to 40 Minutes More Each Day &#8212; ScienceDaily</strong></a></h4>



<p>New research shows wearable activity trackers — such as FitBit devices or Apple Watches — can have measurable effects on people’s fitness habits. The review of several hundred studies found activity trackers encourage people to walk an average of 40 minutes more per day. That’s encouraging news in the fight against conditions for which a lack of activity can be a contributing factor, such as heart disease and type 2 diabetes.</p>



<h4 class="wp-block-heading"><a href="https://www.kiplinger.com/retirement/604974/planning-to-retire-in-the-next-3-5-years-what-to-consider-today" target="_blank" rel="noreferrer noopener"><strong>Planning to Retire in the Next 3-5 Years? What to Consider Today | Kiplinger</strong></a></h4>



<p>If you’re within a few years of retirement age, it’s time to start thinking more seriously about what that transition is going to look like. Here are some key factors to consider as you make final preparations and adjustments to your retirement plan.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Federal Reserve Makes Another Big Rate Hike


<h4 class="wp-block-heading"><a href="https://apnews.com/article/health-xavier-becerra-medicare-government-and-politics-2ae8ccf461192e337d744bd5981fc192" target="_blank" rel="noreferrer noopener"><strong>Medicare Recipients to See Premium Cut — But Not Until 2023</strong></a><strong> | The Associated Press</strong></h4>



<p>Officials announced earlier this year that Medicare was reevaluating 2022’s Part B premium hike, which was tied to an expensive new Alzheimer’s drug. Health and Human Services Secretary Xavier Becerra said that while he believed the premium should be reduced mid-year, legal and operational hurdles mean the reduction won’t happen until 2023.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2022/06/04/theres-a-push-in-congress-for-a-new-national-retirement-savings-plan.html" target="_blank" rel="noreferrer noopener"><strong>There’s a Push in Congress for a New National Retirement Plan to Fill Big Savings Gap</strong></a><strong> | CNBC</strong></h4>



<p>Lawmakers in Washington, DC are considering legislation — known as Secure Act 2.0 — that would make some major changes to retirement plans like 401(k)s and IRAs. But a bipartisan group of lawmakers is also exploring the idea of a national retirement plan that covers those without access to a retirement plan through their employer, potentially modeled after the federal Thrift Savings Plan.</p>



<h4 class="wp-block-heading"><a href="https://www.cbsnews.com/news/tax-refund-irs-interest-payments/" target="_blank" rel="noreferrer noopener"><strong>IRS Sitting on Your Tax Refund? There’s a Bright Spot.</strong></a><strong> | CBS News</strong></h4>



<p>The IRS went into tax season with a backlog of millions of tax returns still awaiting processing from last year. The good news, if you’re still waiting on your refund, is that the IRS pays interest on payments that are 45 days late or more. The current interest rate is 4 percent, but that’s likely to increase later this year.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/overcoming-your-bias-against-aging-can-improve-your-life/" target="_blank" rel="noreferrer noopener"><strong>Overcoming Your Bias Against Aging Can Improve Your Life</strong></a><strong> | Next Avenue</strong></h4>



<p>You know the old saying, “mind over matter”? Research shows it can apply to aging — people with positive views of getting older tend to be healthier and more active in their later years, and vice versa. The author of a recent book discusses how to challenge and change deeply held beliefs about aging.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Medicare Part B Premium Reduction Scheduled For 2023


<h4 class="wp-block-heading"><a href="https://coloradosun.com/2022/04/15/colorado-hospital-profits-prices-hcpf/" target="_blank" rel="noreferrer noopener"><strong>Why Colorado’s Ongoing Fight Against High Hospital Prices Is Now A Lot More Complicated</strong></a><strong> | The Colorado Sun</strong></h4>



<p>A recently released report found Colorado is one of the most expensive states in the country for hospital care. The state is pushing for hospitals to lower costs, and hospitals say they’re making progress, but the COVID-19 pandemic has added another element to the conversation.</p>



<h4 class="wp-block-heading"><a href="https://content.copera.org/news-you-should-know-new-factors-in-colorados-ongoing-fight-against-high-hospital-costs/" target="_blank" rel="noreferrer noopener"><strong>Are Rising Interest Rates Making Savings Accounts a Smart Option Again?</strong></a><strong> | Yahoo! Finance</strong></h4>



<p>While rising interest rates can have negative effects on some aspects of consumer finances, one area that stands to benefit is saving accounts. Banks are likely to start offering higher interest rates on savings accounts, though it may take some time to see those changes take effect.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.kiplinger.com/personal-finance/604519/which-of-the-3-financial-phases-are-you-in" target="_blank" rel="noreferrer noopener">Which of the 3 Financial Phases Are You In?</a> | Kiplinger</strong></h4>



<p>Your financial life can be divided into three distinct phases: build and grow, transition, and distribute and deploy. Which stage you’re in isn’t determined by just your age but also what your priorities and goals are.</p>



<h4 class="wp-block-heading"><a href="https://www.forbes.com/sites/lawrencelight/2022/04/20/your-aging-parents-need-care-what-can-you-do/?sh=9cdedb04d201" target="_blank" rel="noreferrer noopener"><strong>Your Aging Parents Need Care: What Can You Do?</strong></a><strong> | Forbes</strong></h4>



<p>Aging can be a difficult topic to discuss, especially with elderly parents who may be facing losing some of their independence. Here are some tips from an expert on when and how to start those tough conversations.</p>



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<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: New Factors in Colorado’s Ongoing Fight Against High Hospital Costs


<p>Prices for many prescription drugs have been rising for years. According to <a href="https://www.aarp.org/politics-society/advocacy/info-2021/prescription-price-increase-report.html" target="_blank" rel="noreferrer noopener">a 2021 report from AARP</a>, many of those prices have been rising faster than inflation, and that can be particularly challenging for retirees living on fixed incomes.</p>



<p>Colorado PERA, which offers pre-Medicare and Medicare coverage to public sector benefit recipients and their families, is joining other public plan administrators across the United States in urging Congress to take action and address the rising costs of prescription drugs.</p>



<p>The <a href="https://www.healthcareroundtable.org/" target="_blank" rel="noreferrer noopener">Public Sector HealthCare Roundtable</a>, a nonprofit, nonpartisan group of which PERA is a member, <a href="https://www.copera.org/pera-on-the-issues/pera-joins-other-public-plans-urging-action-on-drug-prices">sent </a><a href="https://www.copera.org/pera-on-the-issues/pera-joins-other-public-plans-urging-action-on-drug-prices" target="_blank" rel="noreferrer noopener">a</a><a href="https://www.copera.org/pera-on-the-issues/pera-joins-other-public-plans-urging-action-on-drug-prices"> letter</a> to congressional leadership in mid-March requesting lawmakers support a number of drug pricing recommendations put forth by the Senate Finance Committee.</p>



<p>Those recommendations include:</p>



<ul><li><strong>Allowing Medicare to negotiate Part B and Part D drug prices:</strong> Under current federal law, Medicare is not allowed to negotiate prices directly with drug manufacturers, so the government has to pay whatever price manufacturers set. By allowing direct negotiation, Medicare could secure lower prices for many expensive, name-brand medications.</li><li><strong>Penalizing drug manufacturers when a medication’s price rises faster than inflation:</strong> This proposal would require pharmaceutical companies to pay a rebate to Medicare when the price of a drug rises faster than the Consumer Price Index, a widely used measure of inflation.</li><li><strong>Capping out-of-pocket expenses for Part D prescription coverage:</strong> There is currently no hard cap on out-of-pocket drug spending in Medicare Part D plans, so retirees can end up spending thousands of dollars a year. This proposal would set the out-of-pocket maximum at $2,000 a year.</li></ul>



<p>PERA Director of Insurance Jessica Linart said prescription drug prices are among the fastest-rising costs associated with health care, and changes are needed to ensure programs like PERACare can continue offering coverage that’s within an affordable range.</p>



<p>“We often hear from PERACare enrollees who say the cost of medication is one of their biggest challenges in retirement,” Linart said. “We’re urging Congress to take up this issue and pass these much-needed reforms as soon as possible.”</p>



<p>Learn more about PERACare coverage <a href="https://www.copera.org/health-benefits-peracare" target="_blank" rel="noreferrer noopener">here</a>.</p>


PERA Joins Other Public Plans Urging Action on Drug Prices


<p><em>In this story:</em></p>



<ul><li><em>Retirees enrolled in PERACare pre-Medicare plans will see higher monthly premiums in 2022</em></li><li><em>PERACare plans operate under different circumstances than plans on the individual marketplace</em></li><li><em>PERA is working to lower costs wherever possible</em></li></ul>



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<p>Colorado Gov. Jared Polis announced last month that Colorado residents can expect to see <a href="https://stateofreform.com/featured/2021/10/colorado-reinsurance-savings/" target="_blank" rel="noreferrer noopener">big savings on individual insurance premiums in 2022</a> — about 24 percent, on average. That’s great news for people who don’t receive health insurance through an employer and have to purchase coverage on their own. For retirees enrolled in PERACare’s pre-Medicare plans, it likely came as a surprise that their premiums would instead be going up next year.</p>



<p>PERACare plans operate under slightly different circumstances than those on the individual marketplace, which in Colorado is called <a href="https://connectforhealthco.com/" target="_blank" rel="noreferrer noopener">Connect for Health Colorado</a>. While those differences can have an impact on a plan’s premium, there are a number of other important factors to consider when shopping for health insurance.</p>



<h4 class="wp-block-heading"><strong>Connect for Health Colorado and PERACare</strong></h4>



<p>Insurance premiums — the amount insurance companies charge each month for coverage — are driven primarily by the cost of services and prescription drugs. Those costs have been rising across the country for years, and premiums have largely followed suit.</p>



<p>Colorado lawmakers have made multiple attempts to rein in premium increases in recent years, but they don’t always apply to all plans. In 2020, the legislature established the state’s <a href="https://doi.colorado.gov/insurance-products/health-insurance/health-insurance-initiatives/reinsurance-program" target="_blank" rel="noreferrer noopener">reinsurance program</a>, which helps cover the cost of expensive claims to keep plan costs down. That program is the key factor in reducing individual premiums for 2022, but it only applies to plans in the individual marketplace and not group plans like those offered by PERACare.</p>



<p>Demographics can also play a big role in the cost of health insurance — think of how a large number of younger people in a group brings down the average age of that group, for example. Insurance plans sold on Connect for Health Colorado are open to the general public and therefore cover people across a wide range of ages and circumstances. PERACare’s pre-Medicare plans, on the other hand, cover only retirees who aren’t yet eligible for Medicare — ages 50 to 64.</p>



<p>Older Americans are more likely to use more medical services than other sections of the population, so plans that only cover aging patients can be more expensive to administer. In addition, the prices for many services, in particular hospital and ER costs, are higher in Colorado than in other areas of the country.</p>



<h4 class="wp-block-heading"><strong>What PERA is doing to lower costs</strong></h4>



<p>PERA’s Director of Insurance, Jessica Linart, said PERA understands the challenge of rising health care costs for retirees, and her team negotiates with PERACare insurance carriers to lower costs wherever possible. That can include administrative fees, which are a small portion of the overall cost of a plan. Other costs, like prescription drug prices, can be harder to control because carriers have already negotiated those prices with manufacturers and providers.</p>



<p>One area where PERA can help lower costs is by encouraging retirees to choose less expensive care options.</p>



<p>“PERACare plans have lower copays for higher quality doctors, lower copays for generic drugs versus brand names, and lower costs for outpatient surgeries versus surgeries performed at a hospital,” Linart said. “All of this can help bring down the overall claims costs, which can ultimately lead to lower premiums.”</p>



<p>PERACare plans also cover preventive care at 100 percent and include a fitness center benefit and weight loss programs to help retirees maintain their health, which can reduce overall costs long-term.</p>



<h4 class="wp-block-heading"><strong>Other factors to consider</strong></h4>



<p>Premiums aren’t the only cost to consider when shopping for health insurance. Plans can have vastly different out-of-pocket costs like co-pays, coinsurance and deductibles. Then there’s a plan’s out-of-pocket maximum, which is the most a person will pay in a year. There can often be a trade-off with these costs: higher out-of-pocket costs in exchange for lower premiums.</p>



<p>It’s also important to check a plan’s network of providers and formulary, which is the list of covered drugs. Plans will sometimes opt for a small network and formulary to keep prices down. Linart said PERA usually opts for a broader network and formulary, which can be more expensive but provides retirees with more options.</p>



<p>“We encourage retirees to compare their options in PERACare and on the individual marketplace, to find the coverage that best suits their needs for provider and medication access, benefits and monthly premium,” Linart said.</p>



<p>Open enrollment for PERACare’s pre-Medicare and Medicare plans <a href="https://content.copera.org/peracare-working-to-cut-costs-as-medicare-advantage-enrollment-grows/" target="_blank" rel="noreferrer noopener">runs through Nov. 17</a>. Open enrollment for Connect for Health Colorado runs through Jan. 15.</p>


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