Health benefits called unfair

IU professors are expressing concern over the health benefits being offered to retiring faculty and staff. Currently, retirees are offered three options, none of which receive funding from IU.\nRetirees can choose from the IU PPO plan, Anthem Blue plan or the COBRA option.\n"These are tough times," said former IU professor Edward Grant. "But they should be able to do better than they are now."\nGrant, a distinguished professor of history who retired in 1992, said it was unfair that the University regards active faculty in a separate pool as retired faculty. Since active professors are not covered by Medicare, IU contributes to their health benefits. Once professors retire from the University, IU does not continue contributing money toward their insurance.\n"It seems to me that people of my generation got quite a shock at the end of their careers," he said.\nGrant recently sent a letter to the president of the American Association of University Professors complaining about the University's health plans. \nIn a letter to Ben Brabson -- an IU physics professor and also president of the AAUP -- Grant called the health care plan a "cruel joke."\nBrabson, also a Fringe Benefits Committee member on the Bloomington Faculty Council, was more neutral on the issue.\n"Whether or not the University owes the faculty health benefits is debatable," he said. "Older people, who are more likely to get ill, will obviously have to pay higher premiums."\nAt most universities, two-thirds of insurance costs for retired faculty and staff are covered by Medicare, Brabson said, with the University picking up the remaining one-third. \n"For active faculty it's a split between IU and the faculty member," he said. "For retired faculty, it's a split between the faculty member and the government." \nRetired faculty members have little voice in the insurance process, Brabson said. \n"If you separate the active faculty from the retired faculty, they have very little say," he said.\nBrabson said it was not until the mid-1980s that the University started considering retired faculty as separate from active faculty in terms of retirement health care.\nIU Director of Benefit Programs, Daniel Rives, said IU was responsible for sponsoring these programs, but did not provide funding for the IU PPO or Anthem Blue plan for retirees.\n"IU doesn't contribute to the premium," Rives said.\n"The IU PPO essentially offers the same benefits for retirees as it does for active faculty, but when the employee turns 65, Medicare becomes the primary, after which whatever is paid by Medicare is reduced."\nRives added that the University used the large number of employees to the advantage of the retirees.\n"We use the large number of employees to leverage costs and get preferential pricing," he said. \nThe COBRA option is also beneficial to employees because it lets them stay with their existing insurance plan or remain insured for up to 18 months after leaving IU, Rives said. \n"Retirees don't always sign up for our plans," Rives said.\nAstrophysics professor Richard Heinz said it was important for the University to contribute in some way.\n"I think they should contribute to retiree health care," he said. "A lot of retirees feel offended."\nHeinz, chairman of the BFC Fringe Benefits Committee four years ago, added that it was something the Committee wanted to deal with, but the school was unable to afford it at the time.\n"If they contributed, a lot of retirees wouldn't feel as disenfranchised," he said.\nCurrently the issue is under consideration by members of the AAUP.