VEBA

Sorry I took awhile to digest the VEBA letter from Marion Higa.
Her findings were that VEBA promotes adverse selection and increases premium costs, duplicates administrative costs and does not provide transparency.
It does promote adverse selection but that is because many retirees were afraid of the pilot nature of VEBA. I have talked to many retirees who have asked, “If the VEBA is made permanent will there be an enrollment period? By its nature the EUTF has increased premium costs. There cannot be competition if the amount of companies bidding is too few.
Duplicates administrative costs is true. Why it costs so much? I don’t know, but I believe it involves the bankruptcy that occurred.
VEBA is a trust under ERISA a federal program and as such the information is available for anyone to see. That the auditor was unable to obtain needed information must be explained to me.
There are a lot of questions but we should be allowed to respond. Also HSTA needs to act with a sense of urgency.