Emergency bill to ease pressure on employee benefits program approved

Emergency legislation to ease the pressure on the Public Employee Benefits Program was pushed through the Nevada Legislature on Monday and sent to Gov. Kenny Guinn for his signature.

The legislation cuts the minimum time the program must give employees to review any cost or benefit changes each year from 60 days to 30 days.

That lifts the deadline pressure for approving next year's benefits plan and gives both Director Woody Thorne and the benefits board two weeks to a month to make sure the proposed plan provides state workers and other public employees the best possible options.

Board members were unable to agree on next year's plan because they didn't like either of the options Thorne initially presented. The first maintained existing benefits but increased costs by as much as 89 percent -- hitting hardest at non-state members of the plan who were looking at up to $18,000 a year to maintain benefits.

The second option kept costs low but provided only catastrophic illness and injury coverage, leaving most normal medical costs up to the employee. It offered an extended coverage option but that sharply increased costs -- including charging $80 to single state employees who now pay nothing.

Thorne and his staff generated a compromise they dubbed Option 3 which spread the rising costs of benefits across all categories of public employees -- hitting most of them with $14.36 more each month. It also raised co-pay and deductible rates but not as much as the first option.

Board members agreed they liked the compromise plan better but wanted the legislative change to give Thorne and his staff time to make sure there are no unforeseen problems in the plan.

Assemblywoman Chris Giunchigliani, D-Las Vegas, said the change from 60 to 30 days open enrollment also gives time for the Legislature to make other changes that could reduce the financial impact of those rising costs on all members -- especially non-state employees who retire into the state plan.

The board has a meeting planned for Friday to review Thorne's third option again and possibly take action. Board Chairman Terry Johnson went so far as to say he believes they "have an agreement in principle."