Guinn administration discusses health plan changes

CARSON CITY - Nevada Gov. Kenny Guinn's chief of staff wants a rush job on shoring up state employees' struggling health insurance plan, and promises the workers won't get shortchanged.

"Nevada has its best and brightest on this issue," Pete Ernaut added at a meeting Tuesday of a task force formed as Guinn got legislative approval to take control of the plan from the state Committee on Benefits.

Ernaut said Guinn's goal is to improve the benefits plan for about 19,000 government employees, and it's "absolute hogwash" to suggest otherwise.

"We're not going to make an effort to create morale problems within our own workforce," he added.

Sen. Jon Porter, R-Henderson, insisted that Guinn promptly name a benefits plan "czar" with expertise on such benefit programs, and Ernaut said that's in the works.

Attorney General Frankie Sue Del Papa presented a draft that would ensure more accountability and professionalism in a government-run plan, and Ernaut said that's one of the options.

But Ernaut also said private options are a possibility, and administrators of companies that handle group insurance systems should be at another task force meeting next Tuesday.

"It's not going to be a lean, mean solution from an administrative standpoint," he added in discussing the high cost of preserving the system no matter what option is eventually approved.

Lawmakers already have kicked in $10 million so that benefit payments can be made in coming weeks, but the task force was told that will soon be used up and millions more will be needed before lawmakers adjourn May 31.

One private-industry solution that's being discussed as a way to get the additional funds is a debt restructuring by a company that operates throughout the country.

Public Financial Management offers programs that include bond issues to investors. Part of the premium paid by employees for their policies would be used to retire the bond debt over time.

But Ernaut insisted no commitments have been made yet.

The health plan has a troubled history. In 1997, L & H Administrators, hired to pay claims of doctors, hospitals and other medical providers, fell behind far in its work and was fired. And one key employee was caught embezzling funds.

Recent changes include a more than 20 percent jump in monthly premiums, a $100 increase in the deductible for a single member and $200 more for a family. In addition, employees must now pay 20 percent of hospital surgery costs, up from 10 percent.

archive