State workers face health costs

Thursday, April 17, 2003 | 9:47 a.m.

CARSON CITY -- Under a plan approved by a Senate-Assembly budget subcommittee Wednesday, some state employees could soon start paying part of their health insurance premiums for the first time.

The subcommittee voted to follow the recommendation of Gov. Kenny Guinn to allocate $495 a month per employee for the health insurance coverage next fiscal year and $558 a month the following year.

The state currently pays $465 per employee and of that premium, 60 percent goes to the cost of financing dependent coverage. The employee contributes the remaining 40 percent of the dependent premium.

The board of directors of the Public Employees Benefit Program last month approved a change in the coverage starting July 1. Benefits for the coming two years will be reduced to keep the system in the black.

The current annual deductible for each employee is $250. Under the new plan, the employee will choose a deductible of $500, $1,000 or $2,500. If the worker selects the lower $500 deductible, he would have to chip in $14 a month of his salary. There would not be a personal contribution if the worker chose the two higher deductibles.

Sen. Bob Coffin, D-Las Vegas, voted against the budget proposal. He said state workers are not getting an increase in pay for the coming two years so this plan will mean some employees' take-home pay will be reduced.

The budget for the health care plan totals $458 million for the coming two years. The system has run into financial troubles in the past. The Legislature had to allocate $26 million in 1999 to bail it out and then pumped in an additional $18 million in 2002.

Bob Atkinson, fiscal analyst for the Legislature, said the board of directors is taking steps to increase employees' out-of-pocket medical expenses to try to avoid another taxpayer bailout of the system. The recommendation by the subcommittee will be presented to the Senate Finance Committee and the Assembly Ways and Means Committee for final approval.

The subcommittee delayed action on funding the health care insurance system for state retirees. Subcommittee members asked for more information.

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