Senator wants workers to pay bigger cut of health care

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By JoANNE YOUNG / Lincoln Journal Star

Taxpayers might love it, but government workers would likely give the thumbs down to a bill that would reduce the amount the state, cities, counties, school districts and others would contribute to health insurance.

Lexington Sen. John Wightman brought his bill (LB477) to the Government, Military and Veterans Affairs Committee on Wednesday. No supporters showed up to testify, but opponents lined up.

No one could argue with the impetus of the bill.

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The state cannot sustain the 7- to 10-percent yearly growth in spending on health insurance for employees and also fund other goals and programs, Wightman said.

The senator sits on the Legislature’s Appropriation Committee and has heard the report that the state is in an $11.7 million hole in health care spending, and the debt will likely get worse. Gov. Dave Heineman has proposed borrowing $12 million from the state’s cash reserve to get back to level ground.

Private employers are cutting back their health plans, and more spouses and family members of state employees are moving over to state health plans, Wightman said.

“Government cannot pick up the tab,” he said.

His bill would require public employees to pay a greater percentage of the cost of their health plans. Now, the state pays 79 percent and employees pay 21 percent. The bills would reduce the state’s share to 75 percent by 2011.

Last year, Nebraska state employees paid about $303 a month for family coverage while the state paid about $1,142, according to the National Conference of State Legislatures Health Program. The national average was $194 contribution by state employees and $819 for states’ contributions.

The bill would also reduce the amount of state aid to political subdivisions that contribute to employee health plans at a greater amount than the state contributes, unless they also reduce the portion of the premium that is taxpayer funded.

Many political subdivisions provide better coverage shares than the state, Wightman said. “There is no encouragement for personal responsibility in health care,” he said.

“I’m approaching this from the standpoint of a taxpayer,” he said. “Taxpayers are demanding we put a lid on these budget increases.”

Mike Marvin, executive director of the Nebraska Association of Public Employees-AFSCME, who opposed the bill, said LB477 does not address rising health care costs, it merely shifts the costs to employees.

Ken Babcock said Lincoln Public Schools pays 78 percent of health premiums for single workers and 37 percent for families, which the district is working on raising in order to recruit more teachers to the district.

But some school districts in LPS comparability studies pay 100 percent, and he worries how the Commission on Industrial Relations might react to that.

Brian Mikkelsen, representing the Nebraska State Teachers Association, said employees are concerned about controlling costs as well, but Nebraska teacher pay already ranks in the bottom of states.

Jack Cheloha, representing the City of Omaha, said the bill would interfere with employee contracts.

At the very least, Wightman said, the state needs an interim study of the issue.

“If not,” he said, “cost containment is going to be impossible.”

Reach JoAnne Young at 473-7228 or jyoung@journalstar.com.