OPEA

For Immediate Release:

Contact:  Mark Beutler                                                Online Resources:

Director of Communications                                          Web site: www.opea.org

405.524.6764                                                           Podcast: http://podcast.opea.org/

markb@opea.org                    

OPEA RESPONDS TO CLAIMS BROUGHT BY FRESHMAN LEGISLATOR

OKLAHOMA CITY (June 26, 2009) – The Oklahoma Public Employees Association is responding to claims from a freshman legislator that OPEA was misleading its members about HB 2108.  The legislation would have drastically changed the insurance plan of state, county, education and municipal employees. OPEA, which represents the interests of state employees, worked to cripple the legislation in the Senate, keeping it from becoming law this year. 

On procedural issues, OPEA requested the enacting clause be removed in the Senate, therefore burying it in conference committee.  OPEA agrees the bill was heard and did pass both chambers but in a preliminary procedural votes, not in a final version. 

The legislator states in his press release that a PPO could be significantly different from the HealthChoice PPO plan.  However, he is only speculating.  There is no certainty the proposed PPO would be offered statewide and would provide rural employees any additional choices.  EBC has not been able to persuade private insurance companies to offer their HMOs statewide.  Why would the PPO be any different?  The likely result would be a PPO competing in the urban areas with HealthChoice, which must operate statewide and serve the less efficient rural areas.

Certainly, for-profit insurance corporations and their lobbyists are clamoring to take the more profitable areas HealthChoice serves.  However, that is not in the best interest of the public servants who count on the plan or the taxpayers who ultimately are responsible for providing the resources.   

Insurance experts recommend employers with more than 5,000 participants increase efficiency and savings by self-funding their insurance plan.  According to Segal, an actuary and benefits consulting company, 98 percent of plans with more than 5,000 covered lives are self-funded.  HealthChoice covers 181,000 employees and dependents in Oklahoma.  Segal research indicates that a self-funded plan saves employers an average of 5.75 to 8.75 percent; specifically, one and three percent of premium costs in saved risk/profit charges, two to three percent in administration costs and between 2.25 and 2.75 percent in premium taxes.

As one of the largest plans in the state, HealthChoice stabilizes the health insurance market and serves as the funding foundation for many struggling rural hospitals.  Another PPO plan for state employees would most certainly weaken the HealthChoice network.

For nearly 35 years, OPEA has been a member-driven organization that has advocated in the best interests of state employees.  The benefits state employees currently receive are the result of OPEA’s efforts.  OPEA speaks for state employees and acts in the interest of state employees. 

OPEA looks forward to working with any legislator who stands with public employees in protecting the safety net while responsibly looking for better ways in which to offer choice to state employees.

Oklahoma Public Employees Association (www.opea.org) is a non-profit labor organization that has represented the interests of state employees at the capitol in Oklahoma since 1975.

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