State retirees to get letters on insurance premium settlement State retirees should soon be getting letters in the mail setting out their rights in the settlement that will return health insurance premiums to them. The letters, which will be mailed to retirees by Feb. 9, will detail how retirees can opt out of the settlement if they choose and how they can object to legal fees that will be paid out of the premiums. Sangamon County Associate Judge Steve Nardulli approved the form of the letter during a hearing Thursday. Please dont chuck it in the trash when you see it, said John Myers, one of the attorneys representing retirees. The case involves premiums charged to retirees for state-subsidized health insurance. Retirees were charged premiums of 1 percent a month of their retirement benefits if they were covered by Medicare and 2 percent if they were not. The state Supreme Court ruled last summer that retiree health insurance is a protected pension right and the state could not charge premiums to retirees who were previously not required to pay them. The state has estimated about $63 million in premium money will have to be refunded to about 90,000 retirees. Notifying retirees is just one step in a lengthy process that must be followed when a class-action lawsuit is settled. Under a schedule previously approved by the court, the refunds themselves must be made no later than June 15. Retirees who want to participate in the settlement and receive a refund do not have to do anything with the letter. However, if a retiree for some reason does not want to participate, a form must be filled out and returned. Opting out is not in anyones interest that we can imagine, attorney Edward Kionka said. The letter also explains how a retiree can object to the amount of legal fees that will be paid out of the premiums collected, reducing the amount that a retiree maybe reimbursed. Those fees have yet to be determined. A hearing on them is scheduled for April 1. However, Nardulli said he does not plan to award attorneys a percentage of the total refunds due to retirees. Attorneys had requested up to 15 percent of the premiums collected to cover legal expenses. Nardulli said he will use a method based on hourly rates, amount of work involved and other factors.
Posted on: Sat, 24 Jan 2015 05:36:43 +0000
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