We are entering the final days of a very difficult Legislative session.
House Joint Resolution 29, Legislative Direction to the Public Employees' Benefit and Insurance Program sponsored by Representative Brad Dee passed the House of Representatives late Wednesday afternoon with a 57 yes; 14 no; 4 absent vote. This resolution will change the employer/employee split on the health insurance premium from a 98/2 to a 95/5 split. The health insurance increase is $17.3 million with $6 million funded through PEHP reserves; $6 million funded by increasing the employer/employee split in premium; and the rest of the increase funded by adjusting the benefits within the plans.
UPEA had encouraged its members to contact their legislators about funding the entire health insurance increase. The legislature chose to adjust the employees’ share of premium in lieu of suspending the 1.5% contribution into employees’ 401(k) fund and did not mandate furloughs throughout state government. Several options were discussed regarding the PEHP increase including placing high deductibles and creating out of pocket minimum and maximum amounts on health insurance. Other alternatives that were discussed would have been a greater burden on the employee. While this is not the best-case scenario it is certainly a better outcome than was originally considered by the Legislature.
During the floor debate, Representative King asked the sponsor of the bill if he had communicated with UPEA regarding HJR29. Representative Dee indicated that House leadership had met with UPEA regarding the health insurance increase.
Senate Bill 195 - Senator Dan Liljenquist has indicated he will withdraw Senate Bill 195, Public Employee Defined Contribution Amendments, which would suspend the 1.5% state 401(k) match for all state employees for one year. However, the bill has been placed on the Senate second reading calendar and circled. UPEA will continue to watch this bill.
Thank you for your telephone calls and emails to legislators.
