RECOM (Retired Employees City of Mesa) - Minutes of November 15, 2006, Meeting

Board Members Present:  Lin Adams, Kathy Barrett, John Gendron, Frank Mizner, Barb Seperich, Chuck Wennerlund.

Board Members Absent:  Fred Conway, John Smoyer.

Members Present: Don & Venita Ayers, Harold Bahr, Bob & Doris Benton, Sharon Bollman, Bob Butcher, Dean & Eleanor Childs, Jo & John Ferguson, Randy Fleishhauer, Nancy Mumpton, Win Orr, Marilyn Pitman, Genie Pritchard, Jean Russell, Phyllis Sanderson, John Schleff, Denny & Frances Spidel, Bob Taylor, Dale Voss, Marilyn Warden, Bev Watt.    Guests: Don & Pat Deasy, Nicole Gurley.

 

Introductions:  The meeting was called to order by Barb Seperich at 9:05 AM.  First-time attendee Win Orr, who retired from Safety Services in 2005, introduced himself.  Barb reported that Board Member Walter Switzer reluctantly resigned from the Board, due to schedule conflicts with Board and Membership meetings.  The Board has approved the appointment of John Smoyer to fill the remainder of Walt's term.  John will continue to serve as the Legislative Liaison for RECOM.    

Secretary's Report:  Lin reported that RECOM member Matilda Buckmister, wife of retired Mesa Fire Dept. employee Harry Buckmister, passed away on 10/13/06, but we didn't know about it until after the October meeting.  RECOM sent a condolence card to Harry and his family.  RECOM currently has 673 paid members.

Treasurer's Report:  No financial report was available.

Benefits Task Force:  Barb reported the Task Force is meeting at the current time and is reviewing how the Open Enrollment program worked this year.  John Oliver is attending the meeting, since Barb is at this meeting. 

By-laws Committee:  Kathy reported that the Bylaws Committee will present its recommended Bylaws changes to the Board on 12/6/06 and will present them to the membership in the near future.

Legislative:  Barb read a note from John Smoyer regarding Federal-level discussions of mandated coverage for detection of several diseases.  Many of these proposals share bipartisan support.  

 

Speaker: Nicole Gurley, Gurley Long-Term Care Insurance, provided information about long-term care (LTC):

  • Current cost of care is $72,000 annually; daily cost in Phoenix is $197
  • Average stay is 2.4 years = $180,000+; in 2026, estimated cost will be $522 per day
  • LTC is the biggest threat to retirement income
  • Coverage provides help when you no longer can live independently
  • Full range of services (home to hospice and facilities in between)
  • Long-term care = custodial care
  • Qualification for LTC requires inability to perform at least two of six activities of daily living (eating, dressing, continence, bathing, toileting, transferring from bed, etc.)
  • Risk of Need= 60%; at age 50, 1 in 5 people need it; at age 60, 1 in 4 people; at age 70, 7 in 10 people
  • Ways to fund LTC include self-funding (savings, etc.), insurance, and Medicaid (requires spending down assets first)
  • 2/3 of Medicaid's annual budget is spend on covering LTC
  • Medicare covers 100% for skilled care for only 20 days; it may cover some additional expenses between 21 and 100 days; covers little after 100 days
  • Questions when considering LTC - is the person between ages 18 and 84?; are assets greater than $30,000?; is the person reasonably healthy (to qualify for LTC insurance)?; is the premium affordable?     
  • Policy considerations - reputation of company (they should have billions in assets); company rating; length of time in business

 

The meeting was adjourned at 10:25 AM.

Next Meeting:  December 20, 2006 - 10:00 AM, Community Room, Mesa Fire Station 201, NW corner of 1st St. and Mesa Drive. There will be a short business meeting, followed by a holiday Open House/Social.

Future Meetings:  January 17 - Reverse Mortgages;    February 21 - Guardians and Conservators