Gibbons’ plan to cut health care subsidy introduced

By Cy Ryan

Monday, April 20, 2009 | 4:22 p.m.

Gov. Jim Gibbons’ proposal to cut the subsidies that help state workers and retired employees pay for their health insurance has appeared in the Senate.

SB 415 would reduce the monthly subsidy for a state worker from $626 to $549, or a 12.3 percent cut starting next fiscal year.

The proposal is part of Gibbons' efforts to reduce spending, including his plan to cut the pay of employees by 6 percent.

For retired state workers, the state now provides a $410 a month. Gibbons would reduce that to $383, or a 6.6 percent reduction, and then to $307 in fiscal year 2011, down 19.7 percent.

Sen. Bernice Mathews, D-Reno, the chairman of the Finance Committee that introduced the bill, said it may not emerge from committee the way Gibbons introduced it.