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



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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"><strong><a href="https://www.sciencedaily.com/releases/2022/08/220803161028.htm" target="_blank" rel="noreferrer noopener">Education, Job, and Social Life May Help Protect Brain from Cognitive Decline | ScienceDaily</a></strong></h4>



<p>New research on Alzheimer’s finds that staying active — not just physically but also socially and intellectually — may help build up a so-called “cognitive reserve” that can provide protection against the disease. Researchers say the study highlights the importance of activities we often consider “leisure,” such as reading and socializing, in lifelong learning.</p>



<h4 class="wp-block-heading"><strong><a href="https://apnews.com/article/student-loan-forgiveness-biden-plan-d9c8e18774a744187c9af634bf4eb728" target="_blank" rel="noreferrer noopener">Student Loan Forgiveness Could Help More Than 40 Million | The Associated Press</a></strong></h4>



<p>President Joe Biden announced plans to forgive up to $20,000 in federal student loan debt. Officials say more than 40 million people could be eligible for forgiveness and 20 million could see their student debt eliminated entirely.</p>



<h4 class="wp-block-heading"><strong><a href="https://coloradosun.com/2022/08/22/colorado-health-insurance-purchasing-alliance/?mc_cid=421fd18be6&amp;mc_eid=a158e71f49" target="_blank" rel="noreferrer noopener">Colorado&#8217;s State Employee Health Insurance Plan Aims for Reform | The Colorado Sun</a></strong></h4>



<p>The State of Colorado is teaming up with the Colorado Purchasing Alliance to offer cost-saving options to enrollees in the state’s Cigna health insurance plans. Those workers — about 19,000 of them — will have access to lower negotiated rates and a tool for comparing providers on price and quality ratings.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.npr.org/2022/08/17/1117832975/teachers-school-supplies-irs" target="_blank" rel="noreferrer noopener">For the First Time in 20 Years, Teachers Can Deduct More for School Supplies | NPR</a></strong></h4>



<p>Since 2002, teachers have been able to deduct up to $250 in out-of-pocket classroom expenses from their taxes. For the 2022 tax year, that amount increases to $300. The deduction will continue to increase in future years to account for inflation.</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: Lifestyle Factors Such as Social Life May Protect Against Alzheimer’s


<h4 class="wp-block-heading"><a href="https://coloradosun.com/2022/06/23/colorado-option-public-health-insurance/" target="_blank" rel="noreferrer noopener"><strong>Federal Government Approves Colorado Option Health Insurance Plan | The Colorado Sun</strong></a></h4>



<p>The federal government has given its approval to Colorado’s plan to offer standardized lower-cost health care plans in the state. Colorado Option plans will be available to those who shop for insurance on their own and will be required to offer premiums that are lower than what insurance companies charge for other plans.</p>



<h4 class="wp-block-heading"><a href="https://www.barrons.com/articles/retirement-longevity-risk-stock-market-51657907372?tesla=y" target="_blank" rel="noreferrer noopener"><strong>Why Retirees Should Worry More About Longevity and Less About the Markets | Barron&#8217;s</strong></a></h4>



<p>Recent research finds many retirees may be underestimating the biggest risk they face in retirement: living longer than they plan for. The survey, which took place prior to 2022’s market losses, found retirees rank market volatility as their top risk, followed by longevity and the cost of health care, while the research suggests longevity should take top billing, followed by health and then market risk.</p>



<h4 class="wp-block-heading"><a href="https://www.npr.org/sections/health-shots/2022/07/15/1111316589/988-suicide-hotline-number" target="_blank" rel="noreferrer noopener"><strong>The New 988 Mental Health Hotline is Live. Here’s What to Know. | NPR</strong></a></h4>



<p>As of this month, anyone experiencing a mental health crisis can dial 988 for help. The new three-digit number replaces the former 10-digit hotline and connects callers to a network of local call centers around the country. The federal government is investing hundreds of millions of dollars to support the service.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/stay-the-course-or-pivot-a-mid-year-financial-check-in/" target="_blank" rel="noreferrer noopener"><strong>Stay the Course or Pivot? A Mid-Year Financial Check-In | Next Avenue</strong></a></h4>



<p>We’re halfway through 2022, and it’s a good time to check in on your finances to see if you’re on track to meet your goals. Here are some key questions to ask yourself when assessing your financial situation.</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 Authorities Approve Lower-Cost Colorado Option Health Insurance


<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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News You Should Know: Lifestyle Factors Such as Social Life May Protect Against Alzheimer’s

News You Should Know: Federal Authorities Approve Lower-Cost Colorado Option Health Insurance

What’s in a Health Insurance Premium? Comparing Retiree Health Care Costs

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