Near-bankrupt health insurance program soon to get new leader

CARSON CITY -- Gov. Kenny Guinn will name an "insurance czar" within the next two weeks to temporarily take over the near-bankrupt state employees group health insurance program with its 47,000 members.

Guinn's chief of staff, Peter Ernaut, said Tuesday this was the first step toward righting the plan that could close in May if extra money is not appropriated.

Ernaut's statement came at a meeting of a task force appointed by Guinn to find both a "short-term fix" and a long-term solution to the plan. All options are open to solving the crisis, including turning it over to a private company.

But Ernaut said it was "hogwash" that Guinn has agreed to turn it into an HMO or has signed a contract with a private firm to run the system.

Sen. Jon Porter, R-Boulder City, said somebody needs to take control immediately, either from the public or private sector, to hold down the runaway costs.

The Legislature last week passed an emergency bill stripping the Committee on Benefits of its authority to run the system and putting the governor in charge. It also allocated $10 million to keep the program going through May. Claims are being paid to doctors, hospitals and medical providers, despite the financial troubles.

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