2010-09-01
State’s Benefits Costs Won’t Increase for 2011
OKLAHOMA CITY – Today the state’s benefits office, the Employees Benefits Council (EBC), approved revised rates for HMO health insurance plans available to state employees and their families. The revisions came after the Oklahoma Supreme Court, on August 24, ruled unconstitutional legislation passed earlier this year creating a one-percent fee on insurance claims paid by providers. The revised rates will replace the rates announced August 20.
EBC’s contract negotiations, combined with the exit of one HMO carrier, resulted in an overall employer contribution (called the benefit allowance) that is slightly lower than it was in 2010. State law mandates that EBC calculate the benefit allowance based on the average of the highest-cost HMO and PPO health plans. The calculation also includes an average of the dental plans’ costs, plus the basic life insurance and disability premiums and 75 percent of dependents’ health costs. The “employee only” benefit allowance in 2011 for active state employees will be $603.29 per month. The overall benefit allowance will be 0.81 percent ($3.42 million) lower than the current plan year.
For Plan Year 2011, state employees and their families can choose health coverage from three different HMOs: CommunityCare, GlobalHealth, and PacifiCare. Employees can also choose HealthChoice, the state-run, self-insured indemnity plan that operates like a PPO. Overall, HMO rates went up an average of 6.7 percent, which is below the national average increase for HMOs of 10 percent projected by Segal Consulting.
As a new added benefit required by the recent federal healthcare legislation, employees who choose an HMO in 2011 will also receive a variety of preventive care services at no cost. No-charge services will include:
- Blood pressure, diabetes, and cholesterol tests
- Many cancer screenings, including mammograms, colonoscopies and prostate tests
- Counseling from your health care provider on such topics as quitting smoking, losing weight, eating better, treating depression, and reducing alcohol use
- Routine vaccines for diseases such as measles, polio, or meningitis
- Flu and pneumonia shots
- Counseling, screening and vaccines for healthy pregnancies
- Regular well-baby and well-child visits, from birth to age 21
Because the benefit allowance stayed almost flat, state agencies struggling with budget cuts will not face significantly higher costs in 2011. Agencies are required to fund the benefit allowance for all active employees but don’t get extra appropriations to fulfill that obligation. The lack of an increase in employer benefit costs in 2011 should help protect jobs and reduce the need for furloughs and other cuts.
“Throughout our thorough and intense contract negotiations, the Council carefully considers how the decisions we make affect agencies’ budgets,” said Oscar B. Jackson, Jr., EBC Council member, Administrator of the Office of Personnel Management and Cabinet Secretary for Human Resources and Administration. “However, we also maintain a high priority on offering a competitive benefits program and balancing the costs between the state and its employees. I’m proud to say that in 2011, an estimated 93 percent of employees will continue to have 100 percent of their benefits paid by the state.”
“This is a positive outcome in several ways,” EBC Executive Director Philip K. Kraft said. “Employees and their families are getting enhanced health plan benefits for 2011. Those who choose an HMO will get preventive health care services at no charge, plus no limits on mental health and substance abuse treatment. This is extremely important for us as the state’s largest employer group. Oklahoma has one of the highest heart disease rates in the nation. Our adult obesity rate just climbed above 30 percent for the first time ever and is the sixth-highest obesity rate in the country. Offering preventive services at no charge to state employees and their families is just the right thing to do and complements our OKHealth Wellness Program. Prevention truly is cheaper than a cure.”
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