State board votes to trim public employee benefits, costs
CARSON CITY -- A state panel voted Thursday to slash benefits for tens of thousands of Nevada public employees, retirees and their dependents, including eliminating some benefits and drastically reducing others.
The Public Employees' Benefit Program Board's actions cut $80.7 million in subsidized services for 70,000 participants. That's about two-thirds of a $111 million shortfall faced by the program for the two-year budget cycle that begins July 1.
The remaining $30 million will be made up in higher premiums paid by workers and retirees. The board will tackle those options when it meets next month.
"Our decisions here today are going to be significant and have a long-term impact," Randall Kirner, board chairman, said near the end of the eight-hour meeting.
James Wells, program executive officer, said without program cuts, premiums for active workers alone would skyrocket as much as 500 percent, from $40 to about $200 monthly.
Perhaps the largest change is doing away with an existing preferred-provider system in favor of a high-deductible program.
Deductibles for individuals will jump from $800 annually to $2,000, and up to $4,000 for family coverage. Co-payments that currently limit out-of-pocket costs for prescriptions and doctor visits will be eliminated and replaced by a 75 percent participant-paid mandate of total cost, capped at $3,900 for individuals and $7,800 for families.
The board also voted to end supplemental coverage for retirees on Medicare, and move them to a "market exchange" system in which they'd choose from various private plans and providers for Medigap and prescription drug coverage.
To offset the burden to workers and retirees, the board agreed to help set up health savings accounts and health reimbursement accounts that could be used for out-of-pocket costs or non-covered expenses.
Other measures approved Thursday:
Eliminate insurance for spouses or domestic partners of employee or retirees who have other health coverage available through an employer.
Reduce basic life insurance payouts by half, to $10,000 for active workers and $5,000 for retirees.
Eliminate dental benefits except for preventive procedures like cleanings, an annual exam and X-rays. More costly procedures, like filling cavities, crowns or root canals, would not be covered.
Reduce the long-term disability benefit from 60 percent to 40 percent of employee base pay, with a worker option to purchase the extra 20 percent.
