Lawmakers updated on major enrollment change in state health plan covering public employees and retirees

While lawmakers use the legislative interim to prepare for the next legislative session, we also use the time to monitor how state programs are serving Kentuckians. At the September meeting of the Public Pension Oversight Board, members received an update on an important enrollment change coming to the Kentucky Employees Health Plan (KEHP) that covers more than 300,000 Kentucky public employees, public retirees under age 65, and their dependents. Because of the change being made to KEHP enrollment requirements, I want to make sure those who could be affected have the information they need.

For several years now, both public employees and retirees under age 65 who did not make a health plan selection during KEHP open enrollment were defaulted into a traditional health plan—typically the health plan they had the year before. This upcoming year will be different. The Personnel Cabinet who manages the KEHP has determined that open enrollment will be mandatory and those who do not select a plan during the open enrollment period will have their current health plan coverage expire at the end of December. The default will be a waiver program that provides money in an account but no traditional health coverage. For this reason, it is critically important that our employees and retirees under age 65 be aware of this procedure change made by the Cabinet and the need to enroll in a plan to maintain health coverage.

This is a significant change, particularly for retirees who have spent years knowing that their coverage would continue if they did not take action during open enrollment. I understand the benefit of having a system that requires recipients to play an active role in their health insurance selection. At the same time, when the rules change, we have a responsibility to make sure people know about that change.

The Beshear administration and the Personnel Cabinet have the responsibility to make the individuals affected by this new requirement aware of it. That means clear, timely and direct communication, especially to retirees who may not routinely check state websites or electronic communications. Frankly, I am concerned that there may not be enough time to reach everyone and make sure they understand that doing nothing could mean losing their health insurance.

That is why legislators are urging the administration to consider a resolution that moves participants toward the new enrollment requirement while also providing a reasonable safeguard for people who may miss a notice, misunderstand the change or otherwise fail to enroll despite having every intention of maintaining their coverage.

If you are a state or school employee or a retiree under the age of 65 receiving a monthly benefit from one of the state retirement systems, please do not assume your current coverage will automatically continue. Check the requirements that apply to you and make sure you complete the necessary enrollment forms.

Information has and is being sent out to KEHP participants. State or school employees with questions can contact the Personnel Cabinet or discuss it with their agency health insurance coordinator. TRS and KPPA retirees should contact their respective retirement system for assistance.

The goal should be simple: Make sure people understand the new rule, give them a fair opportunity to comply, and have a reasonable safety net for those who may otherwise fall through the cracks as the state transitions to the new requirement.

As always, I can be reached anytime through the toll-free message line in Frankfort at 1-800-372-7181. You can also contact me via email at Tony.Hampton@kylegislature.gov and keep track through the Kentucky legislature's website at legislature.ky.gov.

Tony Hampton represents the 62nd House District which includes parts of Scott County.

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