Assembly votes to transfer authority over state health fund

Brendan Riley

Thursday, Feb. 18, 1999 | 9:07 a.m.

CARSON CITY - The Nevada Assembly has voted to give Gov. Kenny Guinn temporary control over the hemorrhaging health insurance system for state workers.

Lawmakers decided to shift control from the five-member state Committee on Benefits and provide a $10 million emergency loan from the state general fund so the system doesn't go broke in the next few months.

The vote Wednesday to send AB176 to the Senate for final action was unanimous, although Assemblyman Bernie Anderson, D-Sparks, said he was concerned about giving the Republican governor control without building in some legislative oversight.

But Assembly Speaker Joe Dini said Guinn will have to return to the Legislature later in the session for the rest of the $26 million needed to keep the system going, so lawmakers will get their say during hearings "in as many committees as you want."

Bob Gagnier of the State of Nevada Employees Association also expressed concern, saying the change would give workers less influence over their own health plan.

Gagnier added that state employees might even lose their choice of health care providers if Guinn takes over and tries to cut the plan's expenses by turning it "into a giant HMO."

The committee that has overseen the health plan includes two SNEA representatives, two members appointed by the governor, and the director of the Department of Administration.

Perry Comeaux, who heads the Department of Administration, has endorsed the Guinn takeover proposal. And Marty Bibb of the Retired Public Employees of Nevada says the retirees will understand lawmakers "did what they had to do" in giving control of the plan to Guinn.

Dini said the best option is to have Guinn run the health plan for now - giving the Legislature more time to fix problems that have led to big rate increases and a deficit growing by an estimated $1 million a month.

Quick action also will head off other proposals that would give the governor less control. These alternatives would transfer oversight of the health plan to a consulting firm or to the plan's third-party administrator.

The speaker also noted that former Gov. Bob Miller was given direct control of the state's industrial insurance system when it was in bad shape several years ago, and "it worked out pretty well."