Perdue Expected to Veto State Health Plan

We hear Governor Bev Perdue is strongly considering a veto of the revisions to the State Health Plan passed by the legislature. Teachers and retired state employees have been keeping phone lines and the Internet busy complaining about having to pay premiums for their own health insurance.

There are threats of a lawsuit claiming a breach in a longstanding compact between the state and its employees, especially retirees. For years the promise was that after five years of state service an employee would have his or her health insurance paid for life upon reaching age 65, a promise that resulted in a projected $30+ billion dollar unfunded liability for the plan. That was changed a few years back but there are many who are still under the old plan. Employees further claim that in exchange for not paying premiums on their own health insurance they were willing to accept lower pay than they might have received in the private sector.

The employees say they are willing to accept higher deductibles and co-pays in lieu of paying personal premiums. But this points to other problems in the plan. Employees now pay no premiums and a large number, we are told as much as 70 percent, opt to purchase insurance for their dependents from other companies because they can do so at cheaper prices, especially if their dependents are healthy. So the State Health Plan gets left with sicker and older members, those who will use more health care and are most costly to insure. Premium costs reflect this experience.

The issue has the Governor nervous for herself and for the Democratic Party since teachers and state employees are big supporters of both. The issue has the makings of a political landmine for Perdue in which she is damned if she vetoes the bill and damned if she doesn’t. Look for the voices of teachers, state employees and retirees to win her support and have her place the big red “No” stamp on the bill.

If she does, she now owns the current and future problems of the State Health Plan. 

 

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Comments

  • 4/5/2011 3:08 PM George T Riley wrote:
    Then it makes me wonder if there will ever be an approved Health Plan? Does Government really care anyway? But, the government will always have an affordable health plan, want they?
    Reply to this
  • 4/5/2011 3:55 PM Michael Thompson wrote:
    I don't know why a lot of reporters and media people think ALL state employees support Beverly Perdue. I work for the Department of Correction, and I voted for Pat McCrory in 2008 and will likely vote for him next year. I also voted against as many Democrats as I could in the legislature last year. I don't think Perdue has been that effective, and there are many other state workers I know who feel the same way. There are lots of us who are fed up with SEANC also, since their recent decision to get in bed with SEIU.

    As for the proposed overhaul of the state health plan, I have been expecting to start paying for my own insurance for the past 3 years....I'm really surprised it hasn't happened before now. And if a lot of teachers start crying the blues about losing money because of this, their whining will fall on deaf ears here.
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  • 4/5/2011 5:07 PM William Wooten wrote:
    Maybe state workers are right, but they need to examine what private companies are doing. I retired from a privide company with excellant medical benefits that changed as medical cost increased. So priviate companies have increased cost to employees and some have dropped medical coverage as a benefit due to rising costs. Likewise, I seriously doubt that there is any noticable different in salaries between state and the private sector. With the looming decifit, It's time for state workers to step up to the real world of paying a fair share. By the way, my wife is a retired school teacher.
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  • 4/5/2011 5:11 PM doug holmes wrote:
    State employees are bloodsuckers and parasites. They make more, have better healthcare and better retirement than the average taxpayer; and they are supposed to be our SERVANTS as Ross Perot used to say.
    Make more in the private sector? Ha, most couldn't survive in the private sector!
    Reply to this
    1. 4/6/2011 10:50 AM cw wrote:
      I don't know where you get your information from, but I came from the private sector and took a $10k pay cut to go from an unsecure banking job to a more "safe" State job. I was also fooled into believing that things are great here, but frankly since I have been here, benefits are decreasing and so is the pay. I have had no raise, been furloughed, pay a premium for parking (if you are lucky enough to get parking) and that price tag goes up every year. Mandatory Saturday's are also fun when your exempt and don't get paid for it. The only thing good so far is the security of having a job. Every time the State makes the news, something else goes. It stinks here and I am looking for the door out..it's getting to the point that is worth the risk of losing my job than to be taken advantage of....
      Reply to this
      1. 4/6/2011 2:38 PM Carol wrote:
        "The only thing good so far is the security of having a job."
        You can write state job security off as false as well. As an example, I was laid off last year from my 3rd state job because of budget crises...and that was my 3rd layoff to help balance a state budget. State govt. job security is a myth.
        Reply to this
    2. 4/6/2011 1:11 PM wendy wrote:
      Bloodsuckers? That is unfair and just plain rude! I bust my behind each 12 hour shift I work with not enough of us to go around, no break and constantly trying to balance the needs of my patients AND their families(some of which are extremely demanding and sometimes rude and condescending) while trying to keep management happy! We dont get the kind of raises that a lot do in the private sector and each year it cost me more and more just to work there (parking, increased deductibles etc) plus, being at a State hospital, some of the people we have to put up with are not exactly the nicest or most grateful that you are trying to help them and they dont care that you are away from your fmaily on Christmas or that it's hour 10 of your shift and you haven't has time to pee much less eat yet! But, go ahead, keep denying us pay raises, keep trying to balance the budget on our backs! We'll still be here helping your sorry ass out! And as for being a servant - maybe the facility I work for, maybe the government system, but as for the staff, NO, we are here to HELP and GUIDE not bow down at your feet!
      Reply to this
  • 4/6/2011 1:16 PM Sammy Rand wrote:
    My wife and I are both state workers and both believe to contributing to our own health care is a fine and acceptable idea. We've spent many years in the 'real world' and understand that we must pay our fair share.
    Reply to this
  • 4/6/2011 4:00 PM Mike wrote:
    What really sucks is to be a state employee who gets paid through grants from different agencies. I have submit proposals just to keep my job while managing projects that get approved. Then the state cuts my pay and benefits when they don't pay for any of it but can do so b/c I'm a 'state' employee.
    Reply to this
  • 4/7/2011 10:18 PM MIKE HOLLOMAN wrote:
    While I know our state employee retirement and benefits plan needs major reforms, we should not hold the employee's themselves' responsible for what they were promised. Instead, let's look to those who agreed to these unsustainable benefits, and ask why? Having posed this question, what should be done to keep the private sector taxpayer from paying for something that they themselves' will never get? It is time for reform.
    Reply to this
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