Kentucky lawmakers break promise to teachers
Retaining and recruiting teachers for Kentucky classrooms won't be easier after lawmakers this year reneged on a promise made in 2010. (Getty Images)
Kentucky teachers took an undeserved financial hit from the Kentucky legislature during the 2025 session.
For background, the 'Shared Responsibility' law (House Bill 540) was passed in 2010. The Kentucky Teachers Retirement System (TRS) board and education community members, including active and retired teachers, school board members, superintendents and experts, collaborated to find a solution.
The bill established the TRS retiree health fund (health insurance trust), which exists independently from the Kentucky Teachers' Retirement Fund. At the time, although suggested and requested due to a history of underfunding by the state, the legislature refused to include increased matching contributions by the state into the Kentucky Teachers' Retirement Fund to begin addressing its much-publicized unfunded liability.
The funding structure of HB 540 required active teachers to pay 3.75% of their salary, retired teachers under the age of 65 to pay the equivalent of the monthly cost of Medicare Part B, and school districts to contribute 3% of their gross payroll to the health insurance trust.
Notably, HB 540 included a provision stating that once the health insurance fund achieved sufficient prefunding, as determined actuarially, the 3.75% contribution from active teachers shall be 'decreased, suspended, or eliminated.' The same was true for the amount school systems paid in.
While receiving widespread praise for its collaborative development, the Shared Responsibility bill passed through the Kentucky House and Senate without any opposing votes. Gov. Steve Beshear signed it into law on April 13, 2010.
Overall, the bill was a significant step towards securing financial support for retired teachers' health care. It reflected a commitment to the education community while relieving Kentucky taxpayers of a $5 billion liability.
Sounds good? Right? Not so fast. The 2025 Kentucky legislature put the brakes on the 'shall, in an actuarially accountable manner, be either decreased, suspended, or eliminated' part related to active teachers' and school systems' contributions to the health insurance trust.
Now that the retiree health insurance trust is nearly 100% funded, lawmakers voted to renege on the deal that was made in 2010 by passing House Bill 694 (AN ACT relating to Teachers' Retirement System benefit funding).
To paraphrase the new law, when the Teachers' Retirement Fund and the health insurance trust are fully funded, the 3.75% presently going to the health insurance trust may be decreased, suspended, or eliminated. In addition, the school funding for the retiree health insurance trust will be diverted to the Teachers' Retirement Fund.
According to the actuarial analysis of HB 694, the Teachers' Retirement Fund will not be 100% funded until 2047. This means teachers will have to wait many more years than initially legislated to have a reduction in the 3.75% deducted from their paycheck. Heavy sigh.
Gov. Andy Beshear vetoed HB 694. In his veto message, he stated, 'House Bill 694 breaks a promise made to teachers in 2010 and does so without even giving them an opportunity for input.' That's right; the education community was left out of the bill-making process this time around.
Beshear went on to mention that teachers would 'need to pay much longer than the law calls for' and that 'breaking this promise is unfair to the teachers we rely on to guide our children and the future of the Commonwealth.'
Disappointingly, 67 members of the House and 29 members of the Senate voted to override Beshear's veto, basically on partisan lines, with the overwhelming majority of the 'yea' votes coming from Republicans.
No doubt, this legislation takes money right out of the pockets of hard-working teachers.
Like many others across Kentucky, teachers have children to raise, student loan obligations to meet, car and mortgage payments to make, utility bills to pay and groceries to buy, all on a limited budget. In addition, teachers purchase school supplies, necessities and extras for their classrooms.
The 3.75% deducted from Kentucky teachers' paychecks equals approximately $1,400 to $2,800 annually. This amount adds up over time while straining teachers' monthly budgets. This move does nothing to retain and recruit Kentucky teachers at a time when teachers are becoming harder to find.
It is the job of those in power in the legislature to fulfill their obligations to teachers. Transparent and authentic commitments supporting teachers that ensure fair compensation and benefits are vital in creating sustainable educational environments. Before passing legislation that hurts educators' financial bottom line, lawmakers would be wise to keep in mind that our Kentucky public school teachers have the future of the commonwealth in their classrooms.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Health Line
7 days ago
- Health Line
Does Medicare Cover a Kidney Transplant?
Key takeaways Medicare covers most services related to organ transplantation performed in approved hospitals, including heart, intestine, kidney, liver, and cornea transplants. Medicare Part A covers inpatient services during hospitalization. Part B covers doctor's services related to the transplant, and Part D helps cover prescription drugs needed for transplantation, including immunosuppressant drugs. Medicare generally covers almost all costs related to Medicare-approved organ transplants, including pre-transplant services, surgery, follow-up care, immunosuppressant drugs, and medical care for the organ donor. In this article, we'll discuss when Medicare covers organ transplants, what you need to know about Medicare coverage, and what out-of-pocket costs you can expect for organ transplantation. Which Medicare part covers a kidney transplant? Medicare Part A is hospital insurance. It covers any necessary services related to the following transplants: heart lung kidney pancreas intestine liver In addition, Medicare also covers other transplants that aren't organ transplants. This includes the following transplants: cornea stem cell bone marrow Under Part A, covered services include most inpatient services during hospitalization, such as laboratory testing, physical exams, room and board, and pre-and post-op care for you and your organ donor. On the other hand, Medicare Part B is medical insurance, which means it covers any doctor's services related to your transplant. Services covered under Part B include those related to your diagnosis and recovery, such as doctor's or specialist's visits, laboratory testing, or certain prescription drugs. Part B will also cover these services for your organ donor when necessary. Part C Medicare Part C (Medicare Advantage) covers all the services listed above in Part A and Part B. Some Part C plans also cover prescription drugs and possibly additional health perks, like fitness memberships and meal services. Medicare Advantage Special Needs Plans (SNPs) are plans that offer coordinated services for people with chronic or disabling conditions. These plans can be especially beneficial to people who have certain conditions that may require an organ transplant, such as end stage renal disease and chronic heart failure. Part D Medicare Part D helps cover prescription drugs needed for organ transplantation. While Part D coverage varies by plan, all Medicare prescription drug plans must cover immunosuppressant drugs. These medications, which weaken your immune system to make it less likely that your body will reject a new organ, are required for transplantation. Most prescription drug plans also cover other medications that may be necessary for organ transplant recovery, such as pain relievers, antidepressants, and others. When does Medicare cover organ transplants? Once a doctor has determined that a Medicare beneficiary requires a covered organ transplant, the program should cover the procedure. Medicare doesn't set any criteria for covered organ transplants, but exceptions to this are people undergoing intestine or pancreas transplants must have their transplants at a hospital with a Medicare-approved liver and kidney transplant program, respectively. In addition, organ transplant programs generally have eligibility requirements. What these requirements are depends on the type of transplant and may involve limitations on age or people living with certain health conditions. How much does an organ transplant cost with and without Medicare? According to a 2020 research report on transplant costs in the United States, the average costs for organ transplants include: Heart transplant: $1,664,800 Lung transplant: $1,295,900 (double lung) or $929,600 (single lung) Intestine transplant: $1,240,700 Liver transplant: $878,400 Kidney transplant: $442,500 Pancreas transplant: $408,800 Medicare pays for most services and costs associated with Medicare-approved organ transplants. Services include: pretransplant services, such as testing, lab work, and exams surgery follow-up services immunosuppressant and other necessary prescription drugs, in some cases Medicare also pays for all costs related to finding a donated organ and all medical care for the organ donor, such as doctor's visits, surgery, and other necessary medical services. While Medicare covers almost all organ transplantation costs, you'll still owe out-of-pocket costs. Out-of-pocket costs for organ transplant in 2025 Type of cost Medicare Part A Medicare Part B Medicare Part C Medicare Part D Monthly premium $0 to $518, depending on your work history $185, depending on your income depends on the plan you choose depends on the plan you choose Deductible $1,676 per benefit period $257 per year depends on the plan you choose $0 to $590, depending on the plan you choose Copay and coinsurance coinsurance of 0% to 100% per day, depending on how many days you stay 20% of the Medicare-approved amount for covered services depends on the plan you choose coinsurance or copays depend on the plan you choose You may have other costs associated with your organ transplant surgery that Medicare doesn't cover. These out-of-pocket costs may include: transportation and lodging for the surgery child care or other expenses at home potential loss of income What if you can't afford a kidney transplant? Your Medicare coverage should significantly lower your out-of-pocket cost for your transplant. In addition, you may be able to lower your remaining out-of-pocket costs by enrolling in a Medicare supplement plan or Medigap. Medigap helps cover Original Medicare deductibles, copayments, and coinsurance. Some Medigap plans also cover Part B excess charges and foreign travel costs. That said, you cannot use Medigap with Part C. Your transplant provider may also offer a payment plan so that you can spread the cost over a longer period of time. In addition, if your income falls below a certain threshold, you may also qualify for Medicaid. In addition, the American Transplant Foundation lists several organizations that offer resources on fundraising for a transplant. Are liver transplant patients eligible for Medicare? If you are not eligible for Medicare but anticipate that you require an organ transplant, your eligibility for Medicare depends on either your age or the type of transplant that you need. Anyone ages 65 and over is automatically eligible for Medicare, and by law, no insurance plan can deny you based on a preexisting condition. That said, if you are younger than 65 and you need a transplant, you can only qualify for Medicare if you are living with end stage renal disease (ESRD) and are undergoing dialysis. Other types of needed organ transplants do not count for this exception. Takeaway An organ transplant can be an expensive surgery, but Medicare generally covers beneficiaries for almost all services under their plan. Part A covers most hospital-related services, while Part B covers most medical-related services. Part D can help cover prescription drug costs for immunosuppressants you may need to take before or after the transplant, while Medigap can help tackle some of the out-of-pocket costs associated with each Medicare plan. Contact your doctor or healthcare team for more information on what Medicare will cover for your organ transplant surgery and what to expect. The information on this website may assist you in making personal decisions about insurance, but it is not intended to provide advice regarding the purchase or use of any insurance or insurance products. Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S. jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance.
Health Line
7 days ago
- Health Line
Does Medicare Cover Blood Tests for Cholesterol and How Often?
Key takeaways Medicare covers cholesterol testing as part of cardiovascular screening blood tests, including tests for lipid and triglyceride levels, which are covered once every 5 years. For those diagnosed with high cholesterol, Medicare Part B covers continuing blood work to monitor the condition and response to prescribed medication. Cholesterol-lowering medication is typically covered by Medicare Part D (prescription drug coverage) and Medicare Advantage (Part C) plans. Medicare covers cholesterol testing as part of the cardiovascular screening blood tests. It also includes tests for lipid and triglyceride levels, which are covered once every 5 years. However, if you have a diagnosis of high cholesterol, Medicare Part B will usually cover continuing blood work to monitor your condition and response to prescribed medication. If you need cholesterol-lowering medication, it's usually covered by Medicare Part D (prescription drug coverage) and Medicare Part C (Medicare Advantage) plans. Keep reading to learn more about what Medicare covers to help diagnose and prevent cardiovascular disease. What else does Medicare cover to help diagnose and prevent cardiovascular disease? Cholesterol testing isn't the only thing Medicare covers to help identify, prevent, and treat cardiovascular disease. Medicare Part B will also cover an annual visit with your primary care doctor for behavioral therapy, which may include suggestions for a heart-healthy diet. Additional preventive services covered by Medicare Medicare covers other prevention and early detection services — many at no charge — to help identify health issues early. Diagnosing health conditions early can maximize the success of treatment. These tests include: Preventive services Coverage abdominal aortic aneurysm screening 1 screening for people with risk factors alcohol misuse screening and counseling 1 screen and 4 brief counseling sessions per year bone mass measurement 1 every 2 years for people with risk factors colorectal cancer screenings how often is determined by the test and your risk factors depression screening 1 per year diabetes screening 1 for those at high risk; based on test results, up to 2 per year diabetes self-management training if you have diabetes and a written doctor's order flu shots 1 per flu season glaucoma tests 1 per year for people with risk factors hepatitis B shots series of shots for people at medium or high risk hepatitis B virus infection screening for high risk, 1 per year for continued high risk; for pregnant women, 1st prenatal visit and at time of delivery hepatitis C screening for those born 1945 to 1965; 1 per year for high risk HIV screening for certain age and risk groups, 1 per year; 3 during pregnancy lung cancer screening test 1 per year for qualified patients mammogram screening (breast cancer screening) 1 for women ages 35 to 49 years; 1 per year for women ages 40 years and older medical nutrition therapy services for qualified patients (diabetes, kidney disease, kidney transplant) Medicare diabetes prevention program for qualified patients obesity screening and counseling for qualified patients (BMI of 30 or more) Pap test and pelvic exam (also includes a breast exam) 1 every 2 years; 1 per year for those at high risk prostate cancer screenings 1 per year for men over age 50 years pneumococcal (pneumonia) vaccine covered; specific vaccine as recommended by your doctor tobacco use counseling and tobacco-caused disease 8 per year for tobacco users wellness visit 1 per year If you register at you can get direct access to your preventive health information. This includes a 2-year calendar of the Medicare-covered tests and screenings you're eligible for. What to expect from cholesterol testing The cholesterol test is used to estimate your risk of heart disease and blood vessel disease. The test will help your doctor evaluate your total cholesterol and your: Low-density lipoprotein (LDL) cholesterol: Also known as 'bad' cholesterol, LDL in high quantities can cause the buildup of plaques (fatty deposits) in your arteries. These deposits can reduce blood flow and can sometimes rupture, leading to a heart attack or stroke. High-density lipoprotein (HDL) cholesterol: Also known as 'good' cholesterol, HDL helps carry away LDL cholesterol and other 'bad' lipids to be flushed from the body. Triglycerides: Triglycerides are a type of fat in your blood that is stored in fat cells. At high enough levels, triglycerides may increase the risk of heart disease or diabetes. Lipoprotein(a): Your doctor may order this test to check your Lp(a), a type of LDL (bad) cholesterol. Medicare doesn't cover this test. Takeaway Medicare covers the costs of testing your cholesterol, lipid, and triglyceride levels every 5 years. These tests can help determine your risk level for cardiovascular disease, stroke, or heart attack. Medicare also covers other preventive services, including wellness visits, mammogram screenings, colorectal cancer screenings, flu shots, and more. The information on this website may assist you in making personal decisions about insurance, but it is not intended to provide advice regarding the purchase or use of any insurance or insurance products. Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S. jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance.
Newsweek
04-06-2025
- Newsweek
Medicare Penalties Would Change for 700,000 Seniors Under New Bill
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. Members of Congress reintroduced the Medicare Economic Security Solutions Act in Washington, D.C., proposing sweeping reforms to Medicare Part B late enrollment penalties. The legislation would limit penalties to 15 percent of the monthly premium and restrict their duration while also removing penalties for individuals who delayed enrollment due to other coverage, such as COBRA, retiree plans, or Veterans Affairs (VA) benefits. Why It Matters More than 700,000 Medicare beneficiaries currently face permanent increases in their Part B premiums because of late enrollment, with average penalties reaching 30 percent. As more Americans work beyond age 65 and delay claiming Social Security, confusion about Medicare enrollment deadlines has become increasingly costly. The bill aims to simplify enrollment, encourage continued employment among seniors, and shield vulnerable populations from financial hardship due to administrative mistakes or legitimate coverage choices. The reforms could deliver significant relief to older Americans, many of whom live on fixed incomes and struggle to afford healthcare. U.S. Rep. Nikema Williams (D-GA) speaks during a rally at the Fight Colorectal Cancer "United in Blue" flag installation on the National Mall to spotlight the rise in young adult Colorectal cancer cases on... U.S. Rep. Nikema Williams (D-GA) speaks during a rally at the Fight Colorectal Cancer "United in Blue" flag installation on the National Mall to spotlight the rise in young adult Colorectal cancer cases on March 10, 2025, in Washington, D.C. Morefor Fight Colorectal Cancer What To Know The Medicare Economic Security Solutions Act would amend Title XVIII of the Social Security Act to cap the Medicare Part B late enrollment penalty at 15 percent of the monthly premium. The penalty would apply only for a period twice as long as the duration an individual went without coverage after becoming eligible, replacing the current system that applies a 10 percent penalty for each full 12-month period of delay—often for life. The new rules would apply to premiums paid for months beginning after a 90-day waiting period post-enactment. The Act would exclude from penalty calculations any months during which a person had employer-sponsored COBRA, retiree health coverage, or VA health coverage. Under the current law, only periods of active employment with employer coverage are exempt, leaving some retirees and veterans exposed to penalties even if continuously covered. The bill would also broaden special enrollment periods for Medicare Part B, applying not only to those leaving active employment but to those whose COBRA or retiree coverage terminates. This change would allow more Americans to enroll without penalty when transitioning from such plans, addressing gaps left by the current rules. Medicare's enrollment system has become more confusing as the population works longer and many delay Social Security benefits. Unlike those automatically enrolled in both Social Security and Medicare, individuals who work beyond 65 and have alternative insurance must actively enroll in Medicare Part B. Those who miss the window face harsh, lifetime penalties. "The Late Enrollment penalties in Medicare are confusing and can be hefty. Parts A, B, and D each have their own penalty calculations and timeframes, with Part B being the costliest," Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek. "The current law is a 10 percent penalty for each 12-month period of non-enrollment, and that penalty continues to be assessed each you carry Part B—quite possibly the rest of your life." A previous version of the bill introduced in 2024 garnered bipartisan support, with 12 Democrats signing onto it and two Republicans. Representative Kim Young, a Republican from California, supported the bill in 2024 and is also a co-sponsor of the current legislation along with Representative Nikema Williams, a Democrat from Georgia. This bill arrives alongside broader Congressional debates over Medicare reform, including proposals in the One Big Beautiful Bill Act that would reshape eligibility, hospital support, and funding mechanisms. What People Are Saying Representative Kim Young, a Republican from California, said in a statement: "Seniors shouldn't be punished for working later in life. Unfortunately, Americans can face higher fees for delaying Medicare enrollment. The Medicare Economic Security Solutions Act will cap these unnecessary, burdensome fees hurting seniors already struggling on fixed income." Representative Nikema Williams, a Democrat from Georgia, said in a statement: "Seniors in Georgia's Fighting Fifth and across the country are finding themselves hit with surprise fees simply because they didn't know all the rules about signing up for Medicare. It doesn't have to be this way. The Medicare Economic Security Solutions Act makes sure seniors who continued to work are not unnecessarily punished for missing confusing deadlines. This bill is about protecting our seniors and helping them get the care they've earned." Drew Powers, the founder of Illinois-based Powers Financial Group, told Newsweek: "Most late enrollees miss the deadline because of confusion around still-working exceptions and the Special Enrollment Period once employment and group health coverage ends. It is typically an honest mistake that results in egregious penalties. This bill is a step in the right direction for our senior citizens, and with bipartisan sponsorship it has a good chance to pass." Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "It would be welcome news to any recipients who find themselves in one of these situations and, with many concerned about potential cuts to Medicare and Medicaid, it would be a positive development to share." What Happens Next The Medicare Economic Security Solutions Act awaits action in Congress, where it must pass committees and secure majorities in both chambers before becoming law. "Fears of growing deficits could through cold water on the proposal, as while no one wants to pay penalties, those dollars are ones the federal government can't afford to discard at this time," Beene said. If enacted, its provisions would take effect after a 90-day transition period, delivering prompt changes to Medicare penalty rules for eligible seniors.
