9,000 retired public employees in for insurance change

By Cy Ryan

Thursday, Dec. 16, 2010 | 4:28 a.m.

CARSON CITY — About 9,000 retired public employees who are covered both by the state health insurance system and Medicare are in for a change.

Their coverage will be shifted away from the Nevada Public Employees’ Benefits Program to private insurance carriers that provide Medicare supplemental plans.

The state Board of Examiners on Tuesday approved a contract from the public employees’ board to hire Extend Health to work with these retirees to determine which of 12 companies licensed in Nevada would be best for them and what would be the best supplemental policy.

A meeting by Extend Health will be held in January with the employees, and the switch-over takes effect in July.

Jim Wells, executive officer of the state system, said the change would save the plan money. “By purchasing individual plans on a health insurance exchange, retirees will have more choice and control over their health care coverage and the opportunity to select plans that are right for them,” he said.

The change is expected to save the state $8 million. The retirees will pay the premium to the private companies and then be reimbursed by the state system on their years of service and the type of policy that is selected.