Tuesday, June 17, 2003 | 9:52 a.m.
CARSON CITY -- After a six-hour closed personnel session spread over two days, the directors of the Nevada Public Employees Benefits Program agreed Monday not to discipline its executive director, Forrest "Woody" Thorne, for undisclosed alleged transgressions.
The board for the 50,000-member state health insurance system instead directed Thorne to write a letter of apology to his staff and to develop a code of conduct for dealing with vendors, providers and consultants.
Specific allegations against Thorne were not released. Bill Anderson, a member of the board of directors, said there were "deficiencies in the office work environment" and in "external relationships" with those the state contracts with.
Thorne declined to comment on the allegations after the hearing, saying it was a personnel matter. But he said he would complete a policy and procedures manual that he said has been on the "back burner" because of the financial problems of the system.
The state is appropriating $458 million over the next two years to pay for insurance for state workers and to provide a subsidy to those who have retired from state government.
The board, when it opened its meeting to the public, spoke in generalities. Board member Myla Florence said Thorne's professional competence was not an issue. Any allegations about him were not substantiated, she said.
Gov. Kenny Guinn's office confirmed Monday it received a complaint about Thorne last winter and asked the state Division of Investigations to conduct a probe. Guinn's chief of staff, Marybel Batjer, said the investigation had been completed but said it was a personnel matter. She said no criminal activity was uncovered.
Thorne, who earns an estimated $102,000 a year, took over the ailing insurance system about 18 months ago and has tried to nurse it back to financial health. As part of the plan, he has had to slice benefits for state workers and their dependents and retirees.
Batjer said Thorne has been in a "difficult position" with the health insurance program in Nevada experiencing rising costs.
Randall Kirner, a member of the benefits board, said the evidence presented at the hearing was "inconclusive."
State Labor Commissioner Terry Johnson, chairman of the benefits board, dissented from the board's motion that directed Thorne to write the letter. He indicated he thought stiffer action should be taken.
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