State workers, retirees to see higher health insurance premiums

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

Dec. 1 -- State tax collections expected to take 9.1 percent hit
Nov. 6 -- State workers will have to pay part of insurance

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 cy@lasvegassun.com.

Discussion: 7 comments so far…

By annienonymouse

12/3/08 at 7:58 p.m.

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I have a novel idea, who needs health insurance, we're all gonna die anyway
By olygene

12/4/08 at 7:05 a.m.

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You think these rates are high. I am a retiree from WA state and I pay $450 (my share) a month for health insurance--my wife and I pay a total of $900 a month for health insurance; NV retirees are paying only $180 a month. You still have a long ways to go.
By joncmac

12/4/08 at 9:19 a.m.

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By Sunvisitor

12/4/08 at 2:52 p.m.

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I love this one: "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." So maybe he can move to Washington and pay $900 instead of the current $143 and the addition $7 that he'll pay with a 5% increase. Believe me as someone who has hired people into the NV system, the health ins rates are remarkably low. And Mr. Smith is forgetting about the 10.5% match he's getting for his 403B. He's not going to find that anywhere else.
By KDR81

12/4/08 at 4:47 p.m.

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I pay 3 times as much a month as a government employee...I wonder what their co-pays are.
By Sunvisitor

12/4/08 at 6:11 p.m.

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Not sure what co pay is on the HMO option but I think lower than the PPO option. Currently on PPO it is $20 copay, $30 for urgent care and higher for emergency room but not having been I don't remember. The deductible is $500 but you can reduce it to $250 by filing out a heath assessment questionaire in the beginning of the year.
By sandy0511

12/5/08 at 8:12 a.m.

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It's tough growing old!!! The GOLDEN YEARS ARE A 'BIT TARNISHED'. There are so many retirees in Nevada who are having a hard time, and I believe they should be granted a bit more help and not having benefits cut, and paying higher costs.