State employees to see reduced insurance benefits

Thursday, Aug. 7, 2008 | 3:20 p.m.

Sun archives

July 9 -- Next budget expected to be cut to the bone
June 29 -- Gibbons had chance to silence his critics
June 27 -- State workers rally for 4 percent pay hike

CARSON CITY -- The more than 41,000 public employees covered by Nevada’s health insurance plan are going to see reduced benefits and higher premiums starting in July 2009.

Nearly $58 million will be cut from the budget of the Public Employees Benefits Program because of the financial troubles plaguing the state’s economy.

“This is going to gore everybody’s ox,’’ says Jackie Ewing-Taylor, a member of the benefits board.

Officials said where those cuts will be made will be announced in September and November. The board lamented that half of the plan’s deficit will be come from reductions in the benefits and the other half in increased premiums.

The system covers state workers, their dependents, retirees and some local government employees.

The first casualty was expanding the program to include domestic partners coverage, including same-sex couples.

The board had twice previously voted to provide coverage for this group. But that would have cost the state $8.6 million over the next two years. And Gov. Jim Gibbons sent word he did not favor expansion of the system because of the state’s fiscal troubles.

Board Chairman Todd Rich said the governor would not include the $8.6 million needed to extend the program in his next budget to the Legislature in January.

Jim Richardson of the Nevada Faculty Alliance in the university system said including the domestic partners in the insurance program would help in recruitment. He said the Clark County Teachers Association covers this group in its insurance coverage.

Richardson suggested starting the program small by including only same-sex couples. That would cost about $3 million or one-third of the full cost.

But Julia Teska, a member of the board, said there’s been no evidence that it helps recruitment and this is an enhancement of a system that is facing cutbacks. Board member Randall Kirner said the state was in an “economic freeze” and the issue should be tabled until there is improvement.

The state coverage includes health, prescription, dental, vision, mental health, substance abuse, life, accidental death and dismemberment. Including the premiums and the state contribution, the cost is about $1 billion a year.

The state currently contributes $626 a month for each state employee and $410 per month for each retired state employees. There is also a subsidy to help cover part of the cost of dependents

Jon Hager, budget officer for the insurance plan, told the board the suggested reductions will keep the system operating. It is estimating that medical and prescription claims will increase by 9.5 percent next fiscal year and 9 percent in fiscal 2011.

Inflation is expected to be 10 percent per year on medical items.

Gov. Gibbons has ordered all state agencies to produce 14 percent cuts in their budgets for the coming two years. And programs in other agencies are going to suffer similar fates.

Discussion: 8 comments so far…

By wondering

8/7/08 at 3:48 p.m.

Suggest removal

So 18.5% increase in medical and prescription claims. hmm, 4% increase in pay. Does that mean that state workers start 14.5% in the hole? Is gibbons and co giving up anything? oh, i forgot, he gets his back from saving money on the taxes on his land...
By Envirodoc007

8/7/08 at 6:13 p.m.

Suggest removal

Sure... stick it to the state employees..we should boot all of them morons out of office!.. what a bunch of losers!
By neiman1

8/7/08 at 10:47 p.m.

Suggest removal

This is just the start. Wait while gaming and room taxes fall with occupancy. Wait until sales taxes fall from reduce sales at everything except gas pumps. We need to drill now and drill here. We need nuclear power. We need oil shale. And Harry Reid is on vacation in Asia, and your paying for it, contact harry

email link
http://reid.senate.gov/contact/index.cfm...

Las Vegas
Lloyd D. George Building
333 Las Vegas Boulevard South, Suite 8016
Las Vegas, NV 89101
Phone: 702-388-5020 / Fax: 702-388-5030
By KDR81

8/8/08 at 8:34 a.m.

Suggest removal

I wonder if the sun will report what the state employee co-pay was. I bet it was $5 (I think that is what they have in Arizona anyway).

State employees recieve more than generous benefits on the taxpayers dime and state-funded health insurance with really cheap co-pays keeps leading to more and more costs for taxpayers.

Eliminate health-insurance for state employees and replace it with a health savings account.
By KDR81

8/8/08 at 8:36 a.m.

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Wow that is $7,500 per state employee for health insurance.
By neiman1

8/8/08 at 8:54 a.m.

Suggest removal

When the government promises too much and then under funds Medicare and Medicaid the cost shift to the private patients is so high the state cannot even afford it. Where do you think that leaves the private employer. And these idiots want to take over all of our health care. Wait until their budget is short then and rationing according to your value to society is decided by committee to see if you get the surgery. They already do it with transplants. NO thanks, stay out of my health care, take care of the ones you already promised the world to.
By ksand99

8/8/08 at 10:01 a.m.

Suggest removal

KDR81, you think state employees pay $5 a month for health care?

Wrong!

My brother pays 35 times that a month, as a single man. When he worked at a local casino, he was paying $45.00 a paycheck.

I think most peoples ideas of state employment versus our other large industries, gambling in particular, are completely overblown and out-of-touch. KDR81 just proved it.
By Gordon

8/8/08 at 11:59 p.m.

Suggest removal

"The more than 41,000 public employees covered by Nevada’s health insurance plan" and "Including the premiums and the state contribution, the cost is about $1 billion a year."

1 Billion divided by 41,000 = $24,390 each per year. I hope this isn't correct.