State employees’ health care system showing improvement

Wednesday, Feb. 2, 2000 | 12:17 p.m.

Jan Marie Reed, executive officer for the Public Employees' Benefits Program, told a legislative committee that the program expects a $500,000 profit this fiscal year.

The 1999 Legislature had to pump $26 million into the system to keep it afloat, and Mikel Gray, actuary for the system, said he hopes to see a cushion of $3 million to $4 million by July 1, 2001.

Reed told the Legislative Committee on Interim Retirement and Benefits on Tuesday that 85 percent of the claims are being paid in 30 days. She said 1,600 claims were paid within 90 days, but those were cases where more information was needed. And no claim is being held longer than 90 days.

That's in contrast to the prior problems in the system when claims went for a year without being paid.

Benefits were sliced and premiums were raised to help save the system. The Legislature still will have to allocate the extra money.

The system pays out about 30,000 claims a month to doctors, hospitals and other medical personnel.

"The financial picture is turning around," said Reed, hired last year to head the system that was restructured by the Legislature at the suggestion of Gov. Kenny Guinn. "But it's a large ship to turn."

Senate Majority Leader Bill Raggio, R-Reno, complimented the agency saying, "Since we left (the 1999 Legislature), you've come a long way."