STATE'S PEIA INSURANCE INCREASING COSTS TO SUBSCRIBERS - Reducing $40 Million In Costs

(11/21/2014)

Decisions will be made in December on how health benefits will be changed for those covered through the Public Employees Insurance Agency, the insurance program for state workers, to reduce costs by $40 million. "We've proposed about three pages worth of changes for people to consider — everything from co-pays, deductibles, family out-of-pocket maximums, co-insurance changes potentially, the gamut," said Ted Cheatham, PEIA director. Cheatham said higher co-pays for prescription drugs has been getting a good amount of pushback during public hearings. Critics have called on PEIA to leave benefits intact and, instead, spend down surplus funds to cover rising health care costs. That's been happening for several years. For Plan Year 2016, which begins next July, Cheatham said there will no longer be any surplus. By state law, reserve fund cannot go below the 15 percent mark or $105 million. Without benefit cuts, that level would be exceeded.

Hur Herald ®from Sunny Cal The information on these pages, to the extent the law allows, remains the exclusive property of Bob Weaver and Dianne Weaver The Hur Herald. All information may be freely used but must not be sold or used in any type of commercial endeavor, or used on any web site without the express permission of the owners ©Bob and Dianne Weaver, The Hur Herald, 1999, 2000, 2001