Benefits plan decision put off for a week

After reviewing a new, third option for public employee health benefits, the Public Employee Benefits Program Board decided Thursday to put off for another week a decision on next year's plan.

Board member David Smith argued the short delay will give staff time to carefully review the numbers they generated overnight Wednesday at the board's request and give time for the Legislature to pass an emergency bill giving them 30 days to work out details.

Benefits Director Woody Thorne originally presented the board with two options. The first would maintain the existing plan but increase costs for workers and their families as much as 89 percent. He said the increase is the only way to avoid a $20.5 million shortfall in the plan next year.

Option two he said provided a plan essentially covering nothing except catastrophic illness or injury, leaving all other costs to the employee and family. But it would allow those who want coverage similar to what they now have to buy an extended plan.

The board and employee representatives didn't like either option, so Thorne and his staff generated a third overnight.

The third option maintains most of the existing plan features but makes up the shortfall by charging every category of member $14.36 more each month and by raising co-pay amounts. The deductible wouldn't be as high as the $5,000 in option two, but it would rise from $250 to $500 per individual and $500 to $1,000 for a family in state service.

Employee groups agreed with board members they haven't had enough time to review the new option. But Thorne said he must have a plan almost immediately in order to meet state law requiring plan members have 60 days to review it before it takes effect. He said the process of doing everything needed to put the plan in effect requires almost immediate action.

Board members decided they could delay things for a week. Especially since the Legislature is to consider an emergency bill today which would cut the 60 day window to 30 days -- giving Thorne another month to work out the details.

Board members agreed to meet again March 14 to vote on the plan that provides health benefits for more than 31,000 state workers, their families and numerous local government employees.