State workers, retirees to see higher health insurance premiums

By Cy Ryan

Wednesday, Dec. 3, 2008 | 4:43 p.m.

CARSON CITY – Active and retired state workers will see a 5 percent increase in the cost of their health insurance.

The state Public Employees Benefit Board decided Wednesday to save $23 million over the next fiscal year by reducing the state subsidy to health insurance premiums.

The state presently chips in $532 a month for an average employee with the worker paying $28 a month. For family coverage, the subsidy is $878 for which the employee pays $143.

For retirees without Medicare, the state provides $366 and the individual contributes $180. Those with Medicare coverage receive a $211 subsidy and pay $73 per month.

Board Chairman Randall Kirner said the board took the “least offensive” approach. “There is only so much money,” he said, adding that the cuts were “looked at with sensitivity.”

The increase coupled with earlier benefit cutbacks will save the state $50.8 million over the next two years.

At the insurance board meeting, Shannon Smith, who works at UNLV and is married with two children, told the board, “You are asking me to take a pay cut.” He said the move will force faculty to start looking for jobs elsewhere. He urged the board to find other alternatives.

The board will decide in March the rates to be charged in the upcoming two fiscal years based on claims, inflation and other factors.

While employees and retirees didn’t like the cutbacks in subsidies, they were more concerned about a government efficiency committee that is considering major reductions to the plan.

The Spending and Government Efficiency Commission, appointed by Gov. Gibbons, meets today in Las Vegas. The panel is considering recommending that employees pay 25 percent of health premiums instead of the present five percent. And the $5 co-pay on drugs would be raised to $10.

The move would result in $300 million in savings.

Jim Richardson of the University of Nevada Reno, said the suggestions being considered by SAGE are “draconian” and would “destroy a pretty good health plan.”

Cy Ryan may be reached at (775) 687 5032 or [email protected].