OPEA continues to be in contact with the leadership of the State Employees Health Insurance Review Working Group about changes that may be implemented this year in the state insurance plan.
“We are continuing to be involved in discussions with Senate and House leadership, as well other plan participant groups, to ensure any legislative changes are beneficial to state employees,” said OPEA Executive Director Sterling Zearley. “State employees need to have choice, affordable co-pays, as well as maintaining the current benefit allowance.”
A firm evaluating the state’s system of providing health insurance said the state doesn’t take advantage of cost savings that could come from a more competitive system. The report was the product of the State Employee Health Insurance Review Working Group which has been meeting since July ’09 in an effort to find efficiencies in the health insurance system.
The report concludes:
- The functions of OSEEGIB and EBC should be integrated to form a new organization focused not only on the payment of health and other insurance claims but also on the wellness of the covered individuals.
- With the merged agencies, one oversight board should be created that would include members from backgrounds including medical and employee benefits, as well as those from legal and fiscal backgrounds.
- A stronger wellness component should be included, not only within HealthChoice consumers, but the with HMO plans as well.
- The state employee benefit allowance, which is the average of all high-option plans, is artificially inflated by the more expensive HMO plans, which few state employees utilize.
- More choice is needed in rural areas of the state.
The report also recommends reforming the way state employees can select health care coverage. Currently, employees are given a benefit allowance and can choose their health care provider from 11 plans that have contracts with the state. Employees are allowed to keep money that isn’t used to pay for benefits.
Scott Barger, Deputy Director of the Oklahoma Employees Association, said the organization has been working with legislative leaders to avoid a dramatic change in the benefit allowance.
"Changing the way the state employee benefit allowance is calculated could have a dramatic effect on state employees,” Barger said. “Some state employees take the lowest priced options to try and put additional cash compensation in their pocket to make their budgets work.”
"When we talk about changing the benefit allowance, we’ve got to talk about changing state employee compensation,” Barger concluded. “We haven’t had a pay raise since 2006. For some workers, the benefit allowance is a way to offset the increased cost of living.”
Posted on
Tue, May 11, 2010
by Trish Frazier