East Bay

01:00 AM EST on Wednesday, March 30, 2005

Paying my share for health insurance is the right thing to do

[Rep. John J. Loughlin II, R-Tiverton, held a news conference Monday to support Governor Carcieri's plan to have all state workers pay part of their health insurance costs. The following is an edited version of Loughlin"s remarks. Loughlin was joined by Rep. William J. McManus, R-Lincoln.-- ed.]

The purpose of the news conference is to draw attention to the need we taxpayers in Rhode Island have for all of our state and municipal workers to step up to the plate and [pay their share] for the cost of health insurance -- like most Rhode Islanders in the private sector already do.

Second, we want to provide leadership by voluntarily [paying] the state of Rhode Island 10 percent of the cost of my health plan.

I do want to point out that many municipal employees in Rhode Island already [pay for a portion of] their medical insurance plans -- I applaud them and congratulate them for making the payments.

Health-care costs for state employees have grown from $95.5 million in fiscal year 1999-2000 to an estimated $164.6 million in 2004-05 -- a 72.4 percent increase in five years.

At the same time, more and more Rhode Islanders have found private companies asking them to share more and more of the ever-escalating costs.

Simply put, state employees must share more of the costs of their benefit package. The governor proposes that state employees pay a portion (7 percent) of the premium for their health-insurance coverage in the current fiscal year. This will save the state $10.6 million.

A family coverage plan for state employees will cost the state $11,750 in this fiscal year, while an individual plan will cost $4,200. A 7 percent contribution for a family plan equates to $823 annually or $32 from each biweekly paycheck. For an individual plan, $293 annually or $11 biweekly.

To lessen the financial impact, the governor's budget includes enough funds to provide raises to unionized employees as well, although the administration is currently engaged in negotiations with several unions.

How does Rhode Island stack up compared to other states?

Based upon 2000-01 data from the National Association of State Budget Officers, Rhode Island is one of only four states that do not require state employees to share health-care premiums. The average share paid by state employees nationally was 16.4 percent.

Massachusetts state employees pay 15 percent for both medical and dental coverage. A 2003 survey conducted by Hewitt Associates indicates that Connecticut state employees contribute between 15 and 24 percent of their premiums, depending upon the plan option selected.

The Hewitt Associates report also finds that private sector employees pay on average approximately 17 percent of their health-care premiums.

Although we truly value the dedicated service of our talented state employees, we can no longer afford to pay for all of the costs for our Cadillac health plans.

Fully state-paid health plans are out of step with the private sector. They are out of step with Massachusetts and Connecticut. They are out of step with what federal employees are asked to do.

Currently, General Assembly compensation, including health benefits, is mandated in the Rhode Island Constitution. Article 6 Section 3 states that "Senators and representatives shall receive the same health insurance benefits as full-time state employees."

So why shouldn't these same senators and representatives be called upon to lead the way regarding [sharing] of insurance premiums?

How can any legislator or senator in Rhode Island ask any state employee to step up and negotiate [paying a share of] health insurance if that same legislator or senator has not done the same?

We are called upon to be leaders here in Rhode Island -- so let us lead.

It is time for elected officials to stop making promises and start making payments. Today, I am sending a check to the Rhode Island State Treasury for 10 percent of the cost of my health coverage.

I encourage all of my colleagues to do the same. Rhode Island needs [these shares] now, Rhode Island needs leadership now, we in the General Assembly are the elected leaders -- we need to provide leadership.

We have clear choices to make about our future. We must be smarter in the way we fund government so we can invest in education, job development and the environment.