Panel votes to transfer authority over state health fund

Wednesday, Feb. 17, 1999 | 10:04 a.m.

AB176, which would also provide a $10 million emergency loan to the health fund to keep it from going broke, would temporarily transfer the authority over the plan to Gov. Kenny Guinn.

The Assembly Ways and Means Committee voted the measure out after a brief hearing Tuesday, and Speaker Joe Dini, D-Yerington, vowed to move the bill as quickly as possible to the Senate.

Other proposals would eliminate the state Risk Management Division from oversight of the plan, and instead transfer those duties to a consulting firm and to the plan's third-party administrator.

But Dini said he and other lawmakers have concerns about such a move and would prefer to see Guinn run the plan until the Legislature can fix the problems that have led to the need for big rate increases and resulted in a deficit that is growing by an estimated $1 million a month.

The committee that has overseen the administration of the state health plan is made up of two representatives of the State of Nevada Employees Association picked by the employee group, two members appointed by the governor, and the director of the Department of Administration.

Perry Comeaux, who heads the Administration Department and serves on the benefits committee, said he would strongly favor the recommendation that Guinn be given temporary authority to run the health plan.

The $10 million in funding should keep the plan solvent through May 31, the date by which the Legislature must adjourn.