NJMG hikes retiree medical insurance

Insurance. (Photo credit: Christopher S. Penn)

North Jersey Media Group is telling retirees of The Record their medical insurance will cost a lot more on Jan. 1.

In a letter dated Nov. 9, Benefits Manager Cynthia Greco says, "During the 2012 year, we experienced higher than expected claims under our medical plan."

"For every dollar of premium collected, Aetna has paid $1.11 in [medical/pharmacy] claims," she says.

Imagine that: a health insurance company losing money.

"As a result of this experience, rates for the retiree medical plan will be increased effective January 1, 2013," Greco says.

In order to limit the premium increases, the out-of-pocket limit for in-network benefits will be raised to $3,000 per individual and $6,000 per family, compared to $2,250 and $4,500, respectively.

Health insurance coverage for my wife and son will go up to $1,004.27 per month, compared to $873.28 now, according to NJMG.

The new premium exceeds my monthly pension payment.

Another change is that the medical premium will no longer be deducted automatically from monthly pension checks, but no bills will be sent out.

NJMG sent retirees a supply of payment coupons, and a coupon and check are due on the first of the month, effective Jan. 1.

I don't know whether I will be able to buy health insurance for my wife and son on one of the new exchanges being set up in each state under the federal Patient Protection and Affordable Care Act.