Committee: Raise insurance premiums for state workers, retirees

Thursday, Dec. 18, 2008 | 12:22 p.m.

Dec. 3 -- State workers, retirees to see higher health insurance premiums
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 – An efficiency committee created by Gov. Jim Gibbons is recommending the more than 30,000 state workers and retirees pay a lot more for their health insurance coverage.

The Spending and Government Efficiency Committee estimates with higher payments the state can save more than $43 million the first year and more than $475 million over the next five years beginning next July 1.

But representatives of university and state retirees said the studies and conclusions reached by the committee were flawed. Jim Richardson, representing the Nevada Faculty Alliance, called the recommendations “draconian” and said it would hurt the efforts to attract and keep good faculty in the university system.

Marty Bibb, representing the retired employees of the state, called the suggestions by the committee “ludicrous.”

The state presently chips in $532 a month for an average employee and the employee pays $28 a month. The subsidy is $874 for families, which pay $143 a month for coverage.

The committee suggested state workers pay about the same premium as employees in private industry. In the case of one casino with more than 100 employees, the worker pays $104 to $323 for the same insurance, according to the committee.

It recommends a survey of companies with 100 or more employees to determine what the premium for state workers would be. The state subsidies would be brought to within 5 percent of the average within the next two years.

The proposal from SAGE would be a hard hit to state retirees. For a retiree, without Medicare, the state provides $366 per month and the individual must contribute $180. Those with Medicare coverage receive a $211 subsidy and pay $73 a month.

The committee voted to eliminate subsidies for anyone who retires after July 1. It suggested reducing the existing subsidies for currently retired state workers by 25 percent next July and another 25 percent in July 2010. And it called for the elimination of all state subsidies for all state retirees who are eligible for Medicare.

Gov. Gibbons has said he would consider the recommendation of SAGE. He has already said there won’t be any pay raises for state workers in the next two years.

The state Public Employees Benefit Board has already voted to lower the subsidies to employees and their dependents by 5 percent to save an estimated $23 million over the next two years.

The board, that governs the state insurance system, has also reduced benefits.

Bruce James, chairman of SAGE, said the recommendation to eliminate all insurance subsidies to anyone who retires after July 1 will slim down the state work force. And that will bring down the state’s payroll, a goal of the governor, James said.

Bibb said a study commissioned by the Las Vegas Chamber of Commerce indicates Nevada has fewer public employees per 1,000 residents than any state in the country.

“If the goal is to get folks to leave the public work force, it is already smaller than anybody’s,” Bibb said.

Former Assemblyman David Goldwater and former Las Vegas Mayor Jan Jones voted against all three proposals.

Goldwater said this was not a program in abstract but affected real people. He added he did not have a problem hitting all new employees with the higher premiums.

Jones said many faculty members in the university system were “in mid-stream” and would be hit with these increases in health insurance premiums.

James said those who retire and have Medicare can get additional coverage for up to $100 a month. But that doesn’t provide dental and vision coverage, as the state policy does.

James also stressed this does not cut the benefits in the present policy. But it does require everybody enrolled to pay more.

More than 26,000 active state workers and their dependents are under the state’s health care insurance. And more than 7,800 retirees are covered.

Cy Ryan may be reached at (775) 687 5032 or cy@lasvegassun.com.

Discussion: 13 comments so far…

By diamondhorseshoes

12/18/08 at 1:24 p.m.

Suggest removal

The SAGE commission appointed by
Gibbons is making recommendations now about how to make state employees further pick up the slack in the State budget which they did not create. Since the State is fast becoming a lousy employer I for one will be looking elsewhere for more reliable employment and I will be taking my PERS with me. Oh and FYI -state employees are also taxpayors and here's the kicker, they have the right to vote.
By jfnance32

12/18/08 at 1:48 p.m.

Suggest removal

Yes, I am tired of hearing about the new entitlement class which are government workers and UAW members.

They want it all.

They want us to be their slaves.
By olygene

12/18/08 at 2:37 p.m.

Suggest removal

I am a retired WA civil service employee. I retired 3 years ago and have been paying $464.28 a MONTH for medical insurance just for myself. If I include my wife, the amount would be $928.26 a month. I think that NV retirees have come to expect state assistance on their medical coverage because that was what was promised. Unfortunately, the facts are that the state is suffering from a budget crises and the state can no longer offer a subsidy. BTW, I qualify for medicare next month (age 65) and my medical insurance coverage costs will drop to $798.71 a MONTH (a savings of $130 a month) for myself and my wife (who is not Medicare eligible). Medicare is not a cure all costwise for all retired workers. I just want to provide cost comparisons with a retiree from another state to show how NV state retirees stand.
By LasVegas2009

12/18/08 at 2:45 p.m.

Suggest removal

Obama is going to take care of us all. He promised!
By gmag39

12/18/08 at 3:02 p.m.

Suggest removal

NANCE... No, you want THEM to be YOUR slave.
By jfnance32

12/18/08 at 3:19 p.m.

Suggest removal

If they are the slave then why do the slaves get private health insuranc coverage in retirement, get to retire on 70% of their salary after only 25 years of service, more paid days off and hardly any pressure to perform (i.e. it takes a miracle to fire a state worker).

Hardly anybody in the non-public sector gets any
of that.
By johnevegas

12/18/08 at 3:30 p.m.

Suggest removal

"Obama is going to take care of us all. He promised!"

Let's assume for the moment that you are not just a cynical sore loser with a chip on your shoulder. Where is the quote from Obama where he promised to take care of us all?
By johnevegas

12/18/08 at 3:36 p.m.

Suggest removal

"Hardly anybody in the non-public sector gets any
of that."

I have to side with nance on this one. He has essentially reiterated the experience of govt. workers that I know. I'm sure it's not true across the board, but by and large, that's the culture, and it's nothing like the private sector.

He only leaves out the part where you have to sell your soul. So, that's a down side. For some.
By LasVegas2009

12/18/08 at 4:41 p.m.

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I voted for Obama because he said he was going to fix Health Care and reform government so that all of us get the perks that the State employees get.
By jfnance32

12/18/08 at 4:48 p.m.

Suggest removal

Are you being funny, LasVegas2009?
By joncmac

12/18/08 at 5:19 p.m.

Suggest removal

Just what is needed with a slowing economy, right? More money for medical bills. However, there are many ways for people to get help and save on medical bills and prescriptions. Consumers need to be sure the medical provider is billing them correctly, they can negotiate down bills (Consumer Reports says 90% success rate), medical advocates can save money, and compare prices. I found this site had some ways that I saved on my medical bills.
http://www.needhelppayingbills.com/html/...
By NoNevJim

12/18/08 at 11:36 p.m.

Suggest removal

SAGE now stands for "Screw All Government Employees". Who are these screwballs anyway? Yeah, I worked 30 years with a decent retirement putting my life in law enforcement at risk for all of Nevada's whining citizens and putting up with all their crap. And I signed on knowing what my retirement benefit would be. So SAGE wants to take it away? Let me at 'em. They need a good thumping upside the head.
By truthfromreason

12/19/08 at 5:07 p.m.

Suggest removal

Nance,

As usual your comments elicit plenty of anger, but do little to contribute to a much needed dialogue about the real problems we face. You have managed to offend just about everyone with the exception of a few on the far right fringe. We understand political and social rhetoric, and know what you are trying to accomplish, but your viewpoints are becoming irrelevant and your ideology is shriveling up and dying like a worm after a long rain.

Keep it up though, maybe you will read enough responses to your extremist viewpoints so that you can begin to join us in the adult world where problems require multiple solutions. Until then, you will just be a shriveled voice crying out from an increasingly isolated wilderness.