Saturday, July 6, 2024

Why Capping Future Healthcare Benefits May Not Be In The Best Interests Of SECU Staff And Retirees...


CMS Releases 2023-2032 National Health Expenditure Projections


The Centers for Medicare & Medicaid Services’ (CMS) Office of the Actuary has released projections of National Health Expenditures (NHE) and health insurance enrollment for the years 2023-2032. The Office of the Actuary projects that over 2023-2032, average annual growth in NHE of 5.6% will outpace average annual growth in gross domestic product (GDP) (4.3%). [link]

A 5+% inflation rate in healthcare costs for future and current retirees means that the benefit loses its worth quickly if capped. 5+% x $500 = @$25. So, that capped $500 monthly 2023 benefit is worth $475 in 2024; in 2025 drops to $450; in 2026 down to $425; and in 2027 lower yet to $400. In less than 5 years the employee has lost 20% of the value of the health benefit ( $400/$500 = 80%, or 20% less in purchasing power!). Why do this to long-term, dedicated employees?

😎 The SECU Board and ELT would never consider capping employee wages, would they?

  Of course not!.... would they? What's the difference?


  1. SECU's actions and decisions over the past few years have shown they no longer care about their employees(or members for that matter)
    Nothing surprises me anymore.
    It's all about trying to minimize what they spend on the workforce, because they aren't important anyway, right? Branch employees are peons that are easily replaced and not as important to the organization as the executive team... /s

    1. Everyone is replaceable.

    2. right .... 4 more in 2024!

  2. Next thing that will happen, they will stop paying for retirees medical until they reach the age of 65.

  3. The SECU BOARD will earn ‘bad press’ with this issue if they do the wrong thing.

  4. No worries! Just apply for a loan to cover your healthcare costs! Hopefully you have good credit so you can snag that A Tier rate! Goodluck!

  5. When can members expect to reap the rewards from the savings? Are member rebates being sent out next year?