State wellness program gets approval, despite reservations

By Cy Ryan

Thursday, April 29, 2010 | 3:03 p.m.

CARSON CITY – The state’s health insurance system that covers more than 73,000 government workers and their dependents is going to embark on a wellness program to keep people healthy.

But some state legislators aren’t sold on the idea.

Assemblywoman Debbie Smith, D-Sparks, said, “The concept makes sense but there has not been a good track record.”

Jon Hager, chief financial officer of the state Public Employees’ Benefits Program, told the Legislative Interim Finance Committee Thursday that wellness programs work. He said high risk persons who participated in other programs registered a 42 percent lowering of high blood pressure, a 31 percent drop in blood sugar level and a 22 decline in cholesterol.

The program has hired U.S. Preventative Medicine of Jacksonville, Fla., to start the program July 1.

Smith said, “Not a lot of promises that come true.” She added: “I’m worried about a lack of a track record.” Other lawmakers also expressed concern.

Hager predicted that in the next three years the premiums paid by those covered would drop by $6 million and the state would have to contribute $228,000 less because of the success of the program.

Before approving the program, legislators wanted assurances there would be reports measuring the outcome. Assemblyman Joe Hardy, R-Boulder City and a physician, said these programs keep people healthier longer.

“We will see how fiscally viable, not only physically viable” the program will be, Hardy said.

Assemblywoman Sheila Leslie, D-Reno, questioned if this was the time to be starting a new program when there will be cost containment efforts because of the shortage of state money.

“I’m not sure on the return on investment,” she said in casting a vote against allowing the program to go forward.

To finance the program next fiscal year, the system is dipping into $2.1 million in its reserves and has raised premiums to bring in an extra $1.1 million.

The health insurance system covers state workers, their dependents, state retirees and some local governments.