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May 20, 2008

Update: House approves paying toward health insurance

PROVIDENCE -- The House today approved a bill requiring the part-time members of Rhode Island’s General Assembly to pay 10 percent of the cost of their state-provided health, dental and eye-care insurance.

The vote was 66-2, with six not voting, this afternoon. The measure next goes to the Senate. Without the Senate’s consent, the proposal will not become law.

But House Republicans, who are the minority in the Democrat-dominated House, were saying they thought the proposal will not go anywhere in the Democrat-dominated Senate.

House Minority Whip Nicholas Gorham, R-Coventry, challenged colleagues to sign a form today to voluntarily pay the 10 percent regardless of what happens to the legislation.

"You can vote green [yes] but you know as well as the rest of us that this is N.G.N. in the Senate. It's dead," said Gorham, who defined N.G.N. as "not going nowhere."

Gorham added: "So it's either going to be a publicity stunt today or it's going to be the real thing."

Voting no in the House were Rep. William San Bento, D-Pawtucket, and Rep. Timothy Williamson, D-West Warwick.

Rhode Island lawmakers meet three days a week, six months a year. They get paid $13,508 a year. And right now, they are eligible to get all of these benefits for free at a cost to taxpayers of $5,831 a year for single coverage, $16,293 for a family, according to newly revised cost figures from the General Assembly.

The proposal by Rep. Amy Rice, D-Portsmouth, would not only require they pay 10 percent of their premiums, it would also eliminate the $2,002 waiver payment currently given to lawmakers who forgo the free health-care even though they all still get free Delta Dental and eye-care insurance.

Being required to pay 10 percent for the full package would cost each lawmaker $48.59 monthly for an individual plan, $135 monthly for the lawmaker and his or her family.

The co-pays will not make a big dent in the $434 million potential deficit the state is facing in the year that begins July 1, and recent statements by Senate Majority Leader M. Teresa Paiva Weed, D-Newport, raised serious doubt the Senate will agree to go along. In a recent interview, she said, she believes “that it should be a voluntary decision. It certainly defeats whatever power of example that they are attempting to demonstrate by mandating it, rather than having it be voluntary.’’

-- Katherine Gregg of the Journal State House Bureau

A 2007 nation survey by the United Benefit Advisors -- an alliance of 142 employee-benefit companies across the country -- indicates the 10 percent is well below-average, even by Rhode Island standards.

While the full survey encompassed 16,485 health plans sponsored by 11,723 employers with 1.9 million employees between them, it included 170 Rhode Island companies with between 10 and 250 employees. Among the key findings: the average Rhode Island employee contributes 28.8 percent of the premium cost for individual coverage, which equates to $118 monthly, and 40.4 percent -- $397 monthly -- for a family plan.

Looked at from that perspective, Joseph E. Cardello, one of the principals in the UBA affiliate in Rhode Island -- the Cornerstone Group in West Warwick -- said the lawmakers’ gesture is modest.

“Believe me, they work very hard and hopefully, honorably at the State House,’’ he said. But, “to be honest with you, there not a lot of love for those elected officials,’’ he said, when their benefit costs are compared to “somebody who’s working 50 hours a week at a jewelry manufacturing facility …paying 30 percent of their health insurance, making $10 an hour…That’s a harsh reality. ‘’

As the vote neared, more and more legislators volunteered to pay 10 percent of the cost of their coverage.

In the House, 26 of the 57 lawmakers receiving health insurance are already paying 10 percent of the cost voluntarily, 15 are slated to receive waiver payments in December, though four have pledged to return 10 percent of the payments and two announced they would forgo the waiver payments. (The 75-member House has been one short since former Rep. Roger Picard, D-Woonsocket ran for an open Senate seat and won.)

In the Senate, 9 of the 32 senators with health coverage are paying 10 percent of the premiums, three are positioned to receive the waiver payments and three have announced they will forgo them.

Posted by Andrea Panciera at 5:10 PM | Permalink

Comments

Gentlemen:
I sure would like someone to pay me and give me and my family the best health and dental care for just a co-pay. Your all a joke! You talk about budget problems- our fore father never got paid- they governed not for the benifits- but for the people. You will cut from the poor- but not from yourself. Shame on all of you!

pugsly | May 20, 2008 6:21 PM link

At least, Woonsocket Rep. Jon Brien, a Democrat, is voluntarily paying 10% of his health care. I think he is doing so in an attempt to shame his fellow Dems to do likewise, good for him! Shame on the Senate if they don't pass this house bill!

nancy bouchard | May 21, 2008 5:46 AM link

May 20, 2008

Update: House approves paying toward health insurance

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