Health insurance plan criticized

Friday, March 30, 2001 | 11:01 a.m.

CARSON CITY -- The managers of the program for health insurance for state workers this morning were sharply criticized by legislators who projected that the proposed rate structure would lead to a $5 million shortfall.

Sen. Bill O'Donnell, R-Las Vegas, chairman of a Senate-Assembly budget subcommittee, told program officials, "This has got to be one of the worst, unprepared, unorganized presentations I have ever chaired."

O'Donnell told Doug Perry, operations officer of the Public Employees Benefits Program: "You can't keep hiding this anymore." He was referring to an alleged shortfall of $5 million over the next two years.

Perry suggested that there was enough cash to cover that shortfall. But O'Donnell said rates for the 15,000 state employees may have to be raised by $11 a month.

Assemblywoman Chris Giunchigliani, D-Las Vegas, suggested that the system, which was near bankruptcy two years ago, should be privatized. "I don't see we have the experience...we don't have a trained board," she said.

The state currently pays $368 for the premium for its employees. But that would decrease to $357 next fiscal year and rise to $384 in fiscal 2003. O'Donnell wondered how the premiums could be reduced in this time of rising health insurance costs.