THE
State Employees Association of North Carolina, SEIU Local 2008 1621 Midtown Place, Raleigh, NC • www.seanc.org 800-222-2758 • 919-833-6436 • Circulation 55,000
December 2013
• Vol. 32, Issue 2
Cowell Protects Hospital Profits at Employees’ Expense Treasurer Denies SEANC Proposal to Have Hospitals Pay Their Fair Share to State Health Plan By Toni Davis SEANC Communications Director
State Treasurer Janet Cowell, who has the sole authority to determine what topics are heard before the State Health Plan Board of Trustees, denied SEANC the opportunity to propose numerous cost-savings measures during its Nov. 22 meeting on benefit changes. Prior to the meeting, SEANC Legislative Director Ardis Watkins submitted 13 items for the board’s consideration that could provide benefit enhancements and assist plan members along with proposals to pay for SEANC’s suggestions. After Cowell screened SEANC’s proposals in order to determine if they were “benefit changes,” SEANC was alloted 15 minutes to discuss five proposals. Eight other ideas on how to pay for benefit changes were deemed “policy changes” that could be discussed at a yet to be determined date. The biggest-ticket proposal that SEANC was prepared to offer would link hospital reimbursement rates to a percentage of Medicare rates, 110 percent. This would save $300 to $400 million annually, which could then be used to pay for benefit changes offered by the association. “It’s hard for a board to endorse benefit changes without knowing how they are going to pay for them. There was no good reason to deny our proposal that would make hospitals pay their fair share for the State Health Plan,” said Watkins. “Without cost-saving ideas, Cowell can
Benefit Changes Proposed by SEANC
Legislative Affairs Director Ardis Watkins proposed a number of benefit changes for members at the Nov. 22 State Health Plan Board of Trustees meeting, including: • Returning to a premium-free 80/20 PPO plan • Reducing generic co-pays on prescription drugs from $12 to $10 • Eliminating so-called wellness surcharges for failure to designate a primary care physician or complete a health assessment • Instituting positive cash incentives for designating a primary care physician and completing a health assessment • Covering applied behavioral therapy for children with autism • Establishing a combined medical and pharmaceutical maximum out-of-pocket limit not to exceed $5,000 annually per member • Providing or studying the option of a Medicare supplemental policy and/or cash benefit for Medicare retirees with automatic adjustments for health care inflation, age and adverse risk • Offering a PPO 80/20 option for retirees wishing to remain in traditional Medicare
simply listen to our proposals and then later tell the board and the General Assembly we don’t have any money for benefit enhancements.” Watkins noted in her remarks that the State Health Plan is currently operating at an $800 million surplus. “The plan is not a gift,” she said. “It is a benefit of employment,” and instead of working to benefit its plan members, the state is intent on shifting costs to state employees and keeping any changes that would involve private contractors, hospitals or vendors off the table. During the meeting the board discussed one item that was offered by the association — wellness surcharges which SEANC proposed to eliminate in favor of a premium-free 80/20 PPO plan. The North Carolina Association of Educators, who did not send a representative to the board meeting,
had teacher views expressed by trustee Kim Hargett, who surprised SEANC representatives when she noted that teachers liked wellness surcharges associated with activities, like a health care assessment, that if not completed cost employees money. This is in direct contrast to SEANC members’ experiences described to the board by SEANC Past President and board trustee Charles Johnson. “The average state employee views these wellness surcharges as a choice between eating and paying the rent,” he said. “That’s how the average member feels. They want to know why the State Health Plan is sitting on nearly a billion dollars and still hitting employees with surcharges. We want the plan to help the average state worker.”
tdavis@seanc.org