Maryland's Retirees Fear Mounting Healthcare Costs Due To Prescription Drug Plan Changes

By FOX45
Posted on 05/02/24 | News Source: FOX45

Baltimore, MD - May 2, 2024 - It’s a natural progression in life, the older you get, the more medications you likely need.

“This one is for his heart. This is for kidneys. I don’t know what this one’s for,” said retired state employee Kathy Miller as she rifled through her and her husband’s prescriptions, “Doctor gave it to him, so we just take it.”

Like many retirees, their medicine cabinet is full, with each pill bottle containing a different drug intended to help the couple live longer, healthier lives.

“Some of them would put him in the hospital if he didn’t take these drugs,” she said.

But soon, Miller says they could be cutting back on certain medications – a decision that was not doctor-recommended.

Back in January, thousands of retired state workers received a letter from Maryland’s Department of Budget and Management, informing them of pending changes coming to their prescription drug plan. For those who qualify, the change would pull retirees from state benefits and place them on Medicare Part D.

A cost-saving measure for the state that Miller fears could cost retirees their health.

“The medication that's going to cost me the most is a medication for peripheral neuropathy,” she explained. “That medication is going to cost more than $2,700. So, I wonder, can we cut this out?”

Under the state’s coverage, the couple is under one plan. Last year, Miller says they paid exactly $824 for all of their medications. On Medicare, they’d be forced to take on separate plans. Miller estimates with two premiums and higher drug costs, the same medications would cost them $4,700.

“I don't think it's fair for the state to do this,” she said. “We're retired, we don't have time to save up for this.”

The changes are scheduled to take effect by the start of 2025 but have been a long time coming.

The measure was initially passed in a 2011 pension reform bill. However, the transition to Medicare Part D was delayed after a group of retirees sued the state, arguing the law breaks their previous contracts. In the federal court case Fitch v. State of Maryland, a judge ruled the retirees could keep their original plans as litigation continued. A ruling the state appealed, and recently, had overturned.

Early last year, the federal Fourth Circuit Court of Appeals decided against the temporary injunction, allowing the state to move forward with changes to its prescription drug coverage.

In a last-minute attempt to intervene, this legislative session two republican backed bills moved to restore the previous plan. Both bills failed to make it out of committee.

“The reason the bills didn't make out of committee was because Democratic Party leadership had no interest in making them out of committee. They felt that they would save money by basically throwing grandma from the train,” said Political analyst John Dedie.

Dedie argues the inaction by state leaders is putting some of the state’s most vulnerable in jeopardy. A group of people also known for having a high voter turnout rate.

“The problem is the state employees were promised ‘you stay with us when you retire, you'll have this wonderful benefit package,’” said Dedie, “I think that it's going to be interesting to see how the elections play out the next couple of cycles, how retirees react. Especially, in 2026 when they've gone through a year and a half of dealing with this.”

On Wednesday, a spokesperson for the governor’s office denied any promise was made, writing in part, “The court found that there was no contractual agreement between the state and the retirees.” The governor's office also declined to say whether Wes Moore is in support of the changes, only willing to say he is obligated to follow the law enacting them.

“Governor Moore talked about leaving no one behind and now he's leaving retirees behind,” said Dedie.

“He wants it to be someone else’s fault, but he’s the one who’s enacting this, and he has not met with any of us. Although, we have asked again, and again, and again,” said Miller.

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Miller claims she has personally emailed Governor Wes Moore at least 20 times expressing her concerns, but he has yet to hear back.