Panel proposes state workers pay more for health insurance

By Cy Ryan (contact)

Friday, Oct. 24, 2008 | 5:23 p.m.

CARSON CITY – A proposal is being batted around by a government efficiency committee to require state workers to pay for more their health insurance.

“Employees need to pay a fair share” of the costs of the plan, says Robert Feldman, a member of the Spending and Government Efficiency Commission (SAGE), which met in Reno Friday.

The state presently picks 95 to 100 percent of the cost for the 17,000 active state workers and provides an 85 percent subsidy for dependents for the base health plan.

Retirees with 15 years or more of service get a 73 percent subsidy and their dependents get state help of 51 percent in paying the premium.

Feldman is suggesting that the employee pay 25 percent of the premium which he said is more in line with the benefits provided in private industry. That would be phased in over two years. And he recommends the $5 co-pay on drugs be raised to $10.

Those and other cost cutting measures would save the state $323.8 million over five years.

The base subsidy for an active employee is $502 a month for the high deductible health plan. And for the low deductible plan, the state pays 95 percent or $532 with the worker chipping in $28.

The system also covers workers from some local governments.

The Public Employees Benefit Program already is getting ready to cut health benefits. Gov. Jim Gibbons has told the system it will not receive any more subsidy money in the next two fiscal years than it already received.

Leslie Johnstone, executive officer of the program, told members of SAGE it is already have to make $55 million in cuts over the next two fiscal years. She said these will come in higher premiums and in lower benefits.

The board that manages the system meets Nov. 6 to make some recommendation on how to save money.

SAGE did not take any action and will look further into possible changes.

If there is move to make the employees pay more, said Perry Comeaux, retired state budget director and now deputy director of SAGE, higher paid state employees would pay a higher premium and lower paid workers should be charged less.

The state plan “is conservative and not overly rich” in benefits, Feldman said, calling it a “well managed operation.”

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