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Thursday, January 12, 2006

Ind. Law - "A free, lifetime perk that has to come to an end"

"A free, lifetime perk that has to come to an end" is the headline to an editorial today in the Lafayette Journal & Courier. Some quotes:

The consciences of lawmakers willing to push free health insurance through as a last-minute provision five years ago are finally starting to kick in.

The hemming and hawing by lawmakers over fresh concerns about how much free, lifetime health insurance will eventually cost the state should tell you all you need to know about a most generous benefit.

Lawmakers are embarrassed by the conversation because they know they're finally paying a public relations price -- not to mention a fiscal one -- on a perk that never should have seen the light of day.

In 2001, top budget negotiators in the Indiana House and Senate quietly plugged in the lifetime health benefit for lawmakers, their spouses and some staff members who had served at least six years. As the benefit was uncovered days after the session was done, outrage was met with what's-done-is-done indifference from those who engineered it.

Last year, an Indianapolis Star report estimated that the two dozen or so former lawmakers who had already tapped into the insurance plan were saving between $3,300 and $12,800 a year just on annual premiums when compared to the coverage offered rank-and-file state retirees.

No wonder lawmakers hesitate to give it up. Last year, a bill that would have eliminated the benefit died without a committee hearing at the Statehouse. Promises to scale it back never came true. And this year, as reports float around about how the benefit could leave the state budget tens of millions of dollars in the hole, lawmakers are promising to tweak it -- but not much.

"You have expectations and you live up to them," said Senate President Robert Garton, one of the 2001 budget architects, told the Evansville Courier & Press. "We don't intend to break trust. In fact, we won't break trust."

How about the trust with the public and its money, senator?

Those fat benefits need to be trimmed down to a portion Hoosiers can comprehend, let alone pay for.

For background, start with this ILB entry from Jan. 11, 2006.

Posted by Marcia Oddi on January 12, 2006 06:14 AM
Posted to Indiana Government | Indiana Law | Legislative Benefits