State-subsidized House insurance changes coming
By Lesley Stedman Weidenbener
The Courier-Journal
INDIANAPOLIS — House Speaker Brian Bosma said yesterday that, starting next year, he is ending state-subsidized, lifetime health insurance for any House members who leave the body.
The change won't affect the 25 former lawmakers and spouses already taking advantage of the benefit. They get health insurance at the same price — or in some cases an even lower one — than current state employees pay, even if they are eligible for Medicare.
And it will allow members of the House with more than six years of service to retire after their current term and still take advantage of the benefit.
But those elected in November and thereafter — even if they're now serving — will have to pay the full cost with no state subsidy to remain part of the state health-insurance plan when they retire, and then only until they are eligible for Medicare.
That's expected to cause some members to rethink whether to run for re-election in November or retire now to take the insurance.
Rep. Dave Crooks, D-Washington, said there might be a "mass exodus" of lawmakers who decide the retirement deal is too good to pass up.
"If you do the math, it adds up," Crooks said. "It's probably more valuable than any income that legislator may have made in their years of service."
Bosma acknowledged that could happen. But he said he believes members are not serving for the pay or benefits.
"They're here to serve the public, and I do not believe that putting this benefit back where it should be will change that dedication," he said.
Bosma said he has been "uncomfortable" for some time with the insurance program, which was authorized by a series of provisions slipped quietly into bills in 2001 and 2002 and then instituted by former House Speaker John Gregg, D-Sandborn, and Senate President Pro Tem Robert Garton, R-Columbus.
But he didn't want to revoke it for members serving now.
"While I disagree with the current benefit, it was in place when each of us ran for our office in 2004, and is part of the contract between the voter and their elected officials, whether the voter realized it or not," Bosma wrote in a letter distributed to members yesterday.
The program allowed any member retiring with at least six years and one day of service to lock in relatively modest health-insurance rates for the rest of their lives.
Essentially, they would continue to pay the same percentage of the total health-care premium that they did when they were lawmakers. The state would pick up the remaining costs.
This year lawmakers — just like state employees — can choose among health-insurance plans that have a total cost of between $3,826 and $14,511 annually, depending on the amount of coverage they choose and the number of family members covered.
The recipient's share of that total premium can be no higher than 24percent, depending on the plan, with the state picking up at least 76percent, according to the Legislative Services Agency. One plan requires no payment from a lawmaker or employee.
Retired lawmakers (or their surviving spouses) have simply continued to pay the same percentage of the total state premium as when they were actively serving.
The state's share of the current retired lawmakers' insurance premiums costs about $300,000 annually.
Senate President Pro Tem Robert Garton, R-Columbus, also has been looking into the issue. But he hasn't announced any changes for current or former members of his chamber.
Bosma voted for the bills that authorized the speaker and president pro tem to put the subsidized health insurance in place. So did the vast majority of lawmakers.
But in 2004 several Republican candidates for the House used the issue against the Democratic incumbents they were trying to unseat.
Rep. Billy Bright, R-North Vernon, who that year defeated Democrat Markt Lytle of Madison, was one of them.
Yesterday he called Bosma's decision "courageous."
"It was the right thing to do," Bright said.
Rep. Troy Woodruff, R-Vincennes, introduced legislation this year to do away with the health-insurance program, even for the former retirees now using it. Woodruff used the insurance issue in his campaign in 2004 when he defeated Democratic incumbent John Frenz.
Yesterday Bosma said that the legislation probably is not necessary now. However, a future speaker could decide to change Bosma's policy.
Several members said the change will cause them to think about quitting.
Crooks, who owns radio stations in Daviess County, said he will have to evaluate it.
"You'd be foolish not to take a close look at it because of the cost of insurance and the availability of it, and I still have two very young children," Crooks said. "It would be irresponsible not to consider it."
Rep. Bill Cochran, D-New Albany, said he believes the decision will affect the re-election decisions of some lawmakers. But he added that he won't be among them.
"That wouldn't be the reason I'd decide not to run," he said.
House Minority Whip Dennie Oxley, D-English, also said the change won't affect his decision to run again. He said he doubted it would affect many other members.
"A mass exodus?" Oxley said. "I haven't heard of anything like that."
The Courier-Journal
INDIANAPOLIS — House Speaker Brian Bosma said yesterday that, starting next year, he is ending state-subsidized, lifetime health insurance for any House members who leave the body.
The change won't affect the 25 former lawmakers and spouses already taking advantage of the benefit. They get health insurance at the same price — or in some cases an even lower one — than current state employees pay, even if they are eligible for Medicare.
And it will allow members of the House with more than six years of service to retire after their current term and still take advantage of the benefit.
But those elected in November and thereafter — even if they're now serving — will have to pay the full cost with no state subsidy to remain part of the state health-insurance plan when they retire, and then only until they are eligible for Medicare.
That's expected to cause some members to rethink whether to run for re-election in November or retire now to take the insurance.
Rep. Dave Crooks, D-Washington, said there might be a "mass exodus" of lawmakers who decide the retirement deal is too good to pass up.
"If you do the math, it adds up," Crooks said. "It's probably more valuable than any income that legislator may have made in their years of service."
Bosma acknowledged that could happen. But he said he believes members are not serving for the pay or benefits.
"They're here to serve the public, and I do not believe that putting this benefit back where it should be will change that dedication," he said.
Bosma said he has been "uncomfortable" for some time with the insurance program, which was authorized by a series of provisions slipped quietly into bills in 2001 and 2002 and then instituted by former House Speaker John Gregg, D-Sandborn, and Senate President Pro Tem Robert Garton, R-Columbus.
But he didn't want to revoke it for members serving now.
"While I disagree with the current benefit, it was in place when each of us ran for our office in 2004, and is part of the contract between the voter and their elected officials, whether the voter realized it or not," Bosma wrote in a letter distributed to members yesterday.
The program allowed any member retiring with at least six years and one day of service to lock in relatively modest health-insurance rates for the rest of their lives.
Essentially, they would continue to pay the same percentage of the total health-care premium that they did when they were lawmakers. The state would pick up the remaining costs.
This year lawmakers — just like state employees — can choose among health-insurance plans that have a total cost of between $3,826 and $14,511 annually, depending on the amount of coverage they choose and the number of family members covered.
The recipient's share of that total premium can be no higher than 24percent, depending on the plan, with the state picking up at least 76percent, according to the Legislative Services Agency. One plan requires no payment from a lawmaker or employee.
Retired lawmakers (or their surviving spouses) have simply continued to pay the same percentage of the total state premium as when they were actively serving.
The state's share of the current retired lawmakers' insurance premiums costs about $300,000 annually.
Senate President Pro Tem Robert Garton, R-Columbus, also has been looking into the issue. But he hasn't announced any changes for current or former members of his chamber.
Bosma voted for the bills that authorized the speaker and president pro tem to put the subsidized health insurance in place. So did the vast majority of lawmakers.
But in 2004 several Republican candidates for the House used the issue against the Democratic incumbents they were trying to unseat.
Rep. Billy Bright, R-North Vernon, who that year defeated Democrat Markt Lytle of Madison, was one of them.
Yesterday he called Bosma's decision "courageous."
"It was the right thing to do," Bright said.
Rep. Troy Woodruff, R-Vincennes, introduced legislation this year to do away with the health-insurance program, even for the former retirees now using it. Woodruff used the insurance issue in his campaign in 2004 when he defeated Democratic incumbent John Frenz.
Yesterday Bosma said that the legislation probably is not necessary now. However, a future speaker could decide to change Bosma's policy.
Several members said the change will cause them to think about quitting.
Crooks, who owns radio stations in Daviess County, said he will have to evaluate it.
"You'd be foolish not to take a close look at it because of the cost of insurance and the availability of it, and I still have two very young children," Crooks said. "It would be irresponsible not to consider it."
Rep. Bill Cochran, D-New Albany, said he believes the decision will affect the re-election decisions of some lawmakers. But he added that he won't be among them.
"That wouldn't be the reason I'd decide not to run," he said.
House Minority Whip Dennie Oxley, D-English, also said the change won't affect his decision to run again. He said he doubted it would affect many other members.
"A mass exodus?" Oxley said. "I haven't heard of anything like that."
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To have your questions or comments addressed send them to insureqa@aol.com
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