It requires the state to offer HMO plans to state employees with the same actuarial value to the Preferred Provider plan with the highest level of benefits offered and removes the state’s risk adjustment factor for health plans.
OPEA members, both active employee and retiree, need to call or email the members of the Senate Insurance Committee and tell them to vote NO on Senate Bill 1551. The bill is scheduled to be heard by the committee Thursday, February 17th. If passed this bill could result in higher health insurance premiums for state employees and some retirees, especially those on HealthChoice.
It requires the state to offer HMO plans to state employees with the same actuarial value to the Preferred Provider plan with the highest level of benefits offered and removes the state’s risk adjustment factor for health plans.
Actuarial studies have shown that this change would have the following impact:
- This bill would greatly increase employees’ and some retirees’ out-of-pocket costs by mandating HMO plans with fewer benefits and higher patient cost-sharing.
- Employees with complex health care needs would select HealthChoice rather than a HMO because some specialized services may not be covered or may be difficult to obtain since lower priced, learner HMO plan designs would likely attract members with fewer health conditions. This raises HealthChoice costs to provide services.
- Lower priced HMO plans with fewer benefits will worsen the adverse selection to the state’s self-funded HealthChoice thus increasing health insurance rates and raising the benefit allowance for teachers since it is tied directly to the HealthChoice rate.
- The risk adjustment is designed to spread risk among all the health plans serving state employees. It helps even out payments to health plans. If it is removed, health plans may be reluctant to contract with the state to provide insurance and new ones may leave Risk adjusted payments are critical in order to discourage competing carriers from offering plans that are designed to attract younger, healthier members and avoid individuals with greater health care needs. Its removal would lead to few health care choices for state employees, retirees and teachers.
The Retirement Committee Members are:
Senator Bill Brown – Chair (405) 521-5602 brownb@oksenate.gov
Senator John Sparks – Vice Chair 405) 521-5553 sparks@oksenate.gov
Senator Randy Bass (405) 521-5567 bass@oksenate.gov
Senator Darcy Jech (405) 521-5545 jech@oksenate.gov
Senator Mike Mazzei (405) 521-5675 mazzei@oksenate.gov
Senator Marty Quinn (405) 521-5555 quinn@oksenate.gov
Senator Gary Stanislawski 405.521.5624 stanislawski@oksenate.gov
Call or Email Them Today and Tell Them to VOTE NO on Senate Bill 1551
