Many state workers want out of health plan

Thursday, Nov. 30, 2000 | 11:42 a.m.

CARSON CITY -- A health insurance program that covers 28,000 state workers, their dependents and retirees was approved by a state board Wednesday, despite complaints that the offered benefits are not up to par.

Union officials representing state workers said the premiums covering dependents are too high and the cost of prescription drugs is going up. They unsuccessfully urged the state Public Employees Benefits Program Board to change the regulations to make it easier for groups to withdraw from the state plan and get other insurance coverage.

Laurie England, chairwoman of the benefits board, told an overflow crowd in the meeting in Carson City that the insurance plan is "not going to make everyone happy."

"We have worked to provide the best program," England said. "This is an emotional thing. It will not find favor with everybody involved."

England said the law requires the system to be financially solvent and at the same time provide the best benefits within the cost limits.

Stewart Handte of the Nevada Highway Patrol Association called the state's insurance plan a "sinking ship" and said people should have the opportunity to leave. He said employees can't afford to insure their families.

He and others said the regulations are too restrictive in allowing groups of 300 and more to leave the system.

Gary D. Mauger of Teamsters Local 14 in Las Vegas, which represents about 2,000 state employees, threatened to sue if the regulations went into effect on Jan. 1. The union would like to get the state employee members to sign up with their insurance plan.

The state board, Mauger said, is overstepping its authority when it requires that a group that wants to leave the state system must have comparable benefits in the competing insurance package. He said there is nothing in the law requiring the group to post a bond -- which is in the regulations.

The law says a group of 300 or more can leave the system if it will not financially impair the state plan. And several of the more than 70 people at the meeting wore "I want out" buttons, signifying they want to join another insurance program.

The state plan has 28,000 enrolled, of which 6,000 are retired. The regulation says that any group that wants to go to another outside insurance plan must include a similar percentage of retired members. This is to prevent the active members of the system leaving only the older people who account for the most expenses in the insurance plan.

Mauger said there is nothing in the law that allows the board to require this ratio of pensioners to be in any group that leaves the state plan.

England told Mauger that "I have a great comfort level in defending the regulations."