OPEA

In mid-March two bills that would seriously harm state employee health insurance benefit started to move through the House. OPEA members rallied their workplaces to contact their legislators and stop the bills. Both bills were authored by Rep. Lewis Moore.

HB 1737 would separate active state employees from one of the largest, most-powerful provider networks in the state, provided by the Oklahoma State and Education Group Insurance Board (OSEEGIB) through the HealthChoice plan. Because OSEEGIB provides health insurance to education, state, and other government jurisdictions; the plan has a strong network of providers statewide. In addition, OSEEGIB has considerable buying power to obtain the best possible rates from providers. HB 1737 weakens the network and buying power for all the state employee and education plans.

HB 1738 would have frozen the state employee benefit allowance for three years. Last year the benefit allowance fell because one of the high option HMOs left the state program.

“HB 1738 would have frozen the benefit allowance at a low point when state employee salaries are 16 percent below market and have remained the same since 2006,” said OPEA Executive Director Sterling Zearley. “State employees count on benefit dollars to help provide coverage for their families and fund co-pays and deductibles. The benefit allowance is a critical part of state employee total compensation and should not be changed until salary issues can be addressed.”

OPEA members’ calls to their legislators made a big difference because HB 1738 failed on the House floor in a tie vote 49-49.

Because of the pressure state employees were putting on legislators Rep. Moore struck the title on HB 1737, crippling the measure. The bill now must go to a conference committee and back through both chambers before it can move to the governor’s desk.

“If HB 1737 moves through the process, it will be significantly different, thanks OPEA members’ involvement,” said Zearley.

High Deductible/HSA Plan

The Government Modernization Committee in the House has been interested in the High Deductible/HSA plans that are used in the state employee program in Indiana. Before session started, representatives from Indiana made a presentation to the Employee Benefits Council about their high deductible health savings account plan.

In HD/HSA plans the employer pays the premium for a high deductible plan and then funds a health savings account for members to pay health care costs. The accounts usually cover at least the deductible and a little more. At the end of the year, the funds can carry over from one year to the next and are not taxed until the funds are withdrawn for non-related expenses, then the amount withdrawn is taxed. Preventive care is usually not subject to the deductible, but is funded at 100 percent. If an employee is healthy and rarely uses their medical insurance, funds accumulate in the account. If an individual needs to use their insurance more, care beyond the deductible is the traditional 80/20 co-pay. The plan also has an out-of-pocket maximum similar to most insurance plans.

Currently, the HealthChoice offers a high deductible health plan, called the HealthChoice S Account, but individuals must establish their own individual health savings accounts. Individuals choosing this plan can put $2400 aside in their account for medical expenses.

“While OPEA is interested in the concept of high deductible/health savings account plans for state employees, this issue was moving too quickly this session and several legislators wanted to make the HD/HSA plan the only option for state employees,” said Zearley. “There has not been enough time to educate state employees on the new concept and how it will affect their families in a time when salaries have remained stagnant.”

OPEA will be working throughout session to address the following concerns on HD/HSA implementation:

• The impact fragmenting the risk pool would have on the provider network and rates;
• How a HD/HSA plan would affect pre-Medicare retiree rates;
• The effect a HD/HSA would have on the dependent benefit allowance;
• Rural implementation; and
• How any savings from implementing the plan would be captured to address state employee compensation issues.

As session progresses, watch the website for more information on this issue.