Florida taxpayers carry burden of high health insurance costs for state workers, retirees; state wants to reduce
This year, taxpayers contributed
The staggering increase in the cost of health care has routinely depleted reserves in the trust fund, and lawmakers regularly add extra taxpayer cash for a quick fix, but now they are looking for a long-term solution.
One remedy is sponsored by Rep.
"If you're 24 or 25, and you don't need a
Proponents of the bill say it could save state workers from facing increased premiums.
"Eventually that problem will be passed on to our members," said Puckett, who represents 4,000 state law enforcement officers.
Opponents say the state was luring people into plans that would limit access to health care. Jamie Court, president of insurance advocacy group Consumer Watchdog, said a high deductible plan that saves the state money may seem attractive on paper, but it may leave someone with few options when they get sick.
"Higher deductibles are usually a bad omen of things to come," Court said. "I think the higher deductibles are there to create a disincentive to not get medical attention, but what's worse is that the size of the network they give you."
Like the state, private employers paid more for health insurance over the past 10 years, but those increases were shared with employees. A report by the
The state of
Both plans also include largely the same co-payments and prescription plans. The vast majority of the 360,821 enrollees and family members covered by the state's group insurance plan are in the HMO and PPO plans.
There also are high deductible versions of the HMO and PPO plans, but only 700 people have applied for them as of this year. Premiums for those plans paid by employees are about half as much but the state pays the same price.
"Something tells me that there's something wrong if no one is applying for those high deductible plans," Brodeur said. "That tells me we need a change."
HB 7089 offers four levels of plans -- bronze, silver, gold and platinum -- that are defined by cost. Platinum plans would be similar to the state's current HMO and lower level plans will offer lower premiums for less coverage and higher deductible. Prices for the plans will be determined by an Independent Benefits Consultant also proposed in the bill.
Senate Appropriations Chair
"Health insurance continues to go up whether it's
Lee went on to say he has no interest in raising rates for state workers.
"While the cost of health care continues to go up, and there are some structural issues about the size of the burden. I think the idea is to make sure we don't raise the cost of the plans," Lee said. "There are other ways to address that type of problem."
"If you look at the lower unemployment rate, the job market has become more competitive and so have some of the benefits packages," Frenzel said. "If you're a public sector employer, you're at a strategic disadvantage in the labor market, so it may be a way to retain some advantage."
An analysis Frenzel published in June showed that since 2011, 53 percent of 336 state and local hiring managers across the country switched from legacy insurance plans similar to
This is Brodeur's third try at the bill, which failed last year because it did not have a
The bill passed its first hearing
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