‘We need it’: Retired Myrtle Beach city employees fight policy that cuts healthcare coverage

Months after a Myrtle Beach policy that changed healthcare benefits for retired city employees was adopted, current and former employees voiced their opposition during a Tuesday council meeting.

Some retired employees from various departments worry they will not be able to afford health insurance and requested that council members reconsider reinstating their previous policy for coverage.

Before this change, city employees who retired before the age of 65 could remain on the city’s self-funded health insurance plan as long as they paid the premium during retirement, said city spokesman Mark Kruea, adding that premiums for active city employees are paid by the city.

But, he said, premium prices for retirees have increased in recent years.

“Since more affordable and comparable coverage is available for them from the private market, the decision was made as part of the budget process to no longer offer that option” to retirees younger than 65, Kruea said.

However, many retired employees tried that option, saying that the prices doubled.

Medical premiums for the retired city employees under 65 would jump to $1,392.19 per month from $830.42, according to numbers provided by the city. That’s about $17,000 a year.

Retirees can use their retiree health reimbursement money, which is funded by the city, to pay those premiums. But Kruea said the increase “could quickly drain” that account.

Instead, the city suggests that former employees find individual health plans which they say are cheaper and will allow their retiree health funds to last for a longer period of time. Depending on how long an employee was with the city, amounts could differ. Retirees receive $50,000 from the city with 15 years of employment. Employees with 20 years of service get $100,000.

The new policy does include a reduction in the retiree health reimbursement account, Kruea said, but that contribution is not available to employees hired after July 1, 2019.

Kruea told The Sun News Tuesday the city’s consultant team has met with many retirees to help them choose a plan that works best for them, but some retirees are unhappy with that option.

Roger Odachowski, president of the Professional FireFighters Association of South Carolina, said the city changing their healthcare coverage for all its employees, is an issue of morality.

“For [the] men and women who have dedicated their lives and careers to the city, whether it was in a contract, we know what’s right and what’s wrong.”

Odachowski spoke during the public comment portion of the council meeting after participating in a news conference held by the Myrtle Beach Professional FireFighters before the meeting. He has been retired for 15 years from another department.

The local firefighter union held a rally outside of the council meeting to protest the changes in their healthcare coverage.

We “have not forgotten the physical and emotional sacrifices of the retired men and women of the Myrtle Beach Fire Department,” the union said in a press release posted to Facebook. “[But] the Myrtle Beach city government has sadly forgotten.”

Martin Eells, who worked for the fire department for 35 years, said the council’s move is no different than defunding the police. He added that healthcare coverage is needed more in the retirement years due to the physical and mental stresses that come from police officers and firefighters’ line of work.

The work we do can “cause injuries and illnesses that go far beyond and shorten our careers,” he said. “So that’s why we need it.”

Kruea said the city currently has 101 retirees under the age of 65.

Those receiving Social Security benefits will automatically be enrolled in Medicare during the month they turn age 65, according to the American Association of Retired Persons.

The new policy was approved as part of the city’s budget for the 2021-2022 fiscal year, which was adopted in June.

Mayor Brenda Bethune said council will look into the matter but can’t make any promises.

“This council supports, values and appreciates all city team members past and present, and I believe we have gone above and beyond our call of duty to show that.”

This story was originally published September 15, 2021 at 3:23 PM.