BOISE - Idaho state government retirees would be moved to private insurance plans under a measure that cleared a House committee Wednesday.
The Department of Administration made several changes to the bill, including boosting a premium subsidy for early retirees to $155 a month from $100.
There was just a single no vote, from Rep. Phylis King, D-Boise. The bill now moves to the House floor.
Rep. Elaine Smith, D-Pocatello, said seeing compromise on the bill played a significant role in her vote to support the legislation.
"All the stakeholders were at the table, and it was a compromise bill," Smith said. "It wasn't perfect, but I think it was a good compromise for this day and age."
The bill would end state retiree insurance benefits for new employees. Medicare-eligible retirees 65 and over would be shifted to private supplemental insurance plans.
Idaho officials are trying to move retired employees from the state's health care insurance because it's facing a growing unfunded liability. They say comparable private plans are largely more affordable and just as good as what the state offers now.
After the bill's changes, opponents to the shift said they had a change of heart.
"I'm now in full support of this motion," said Rep. Anne Pasley-Stuart, D-Boise, who was among lawmakers who met with state employee union representatives earlier to address their concerns.
Idaho has about 3,155 retirees and about 1,300 dependents who get state insurance, down about 226 from last year. About 850 retirees are under 65. Under the bill, many state retirees could save $38 to $179 in monthly premiums by switching to private plans.
Department of Administration officials met with the Idaho Public Employees Association and other interested groups to try to resolve conflicts. Donna Yule, executive director of the Public Employees Association, said the bill was improved from a measure that failed in the Legislature last year, but still not good enough.
Yule said she fears about 200 of 2,200 state retirees who are eligible for Medicare but have high prescription drug costs will face substantially higher out-of-pocket expenses. Some insurance plans have a coverage gap, or "doughnut," where retirees must pay annual drug costs between $2,510 and about $6,500.
Yule said that while most retirees would get better and less expensive insurance, the people most likely to face the drug coverage gap are the oldest and sickest.
The Department of Administration has offered $2,000 in assistance for the next two years for those affected. Yule said she appreciates that offer, but noted the money would soon run out.
"The landing on the concrete will be just as hard in two years," Yule said.



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