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Wednesday, January 18, 2006

Ind. Law - State-subsidized House insurance changes coming

"State-subsidized House insurance changes coming" is the headline to a lengthy story by Lesley Stedman Weidenbener in today's Louisville Courier Journal. It begins:

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.

Some other quotes from the story:
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." * * *

"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. [my emphasis] * * *

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.

The Evansville Courier& Press' Jennifer Whitson, who had this story last week with a lot of new information, has this new story today. A quote:
"At a time when corporate America is considering restructuring health-care benefits for retirees, it seems very appropriate for the Legislature to do the same," Bosma said.

Currently, the Speaker can set benefits for House members and Senate President Pro Tem Robert Garton, R-Columbus, can set them for Senate members. The benefit also applies to lawmakers' spouses and a few legislative staffers. * * *

Only three House members representing districts in Southwestern Indiana are eligible for the benefit.

Rep. Dennis Avery, D-Evansville, who works for the University of Southern Indiana, said he was OK with the benefit change. "That's not why I serve in the Legislature," Avery said.

Rep. Russ Stilwell, D-Boonville, a mining union official, agreed, saying the change wouldn't affect his decision to seek re-election.

But Rep. Dave Crooks, D-Washington, said the change is significant for him. Crooks owns and runs a radio station.

"If I get my calculator out, it probably should affect my decision (on whether to run again in 2006)," Crooks said. "But I'm probably going to run. If you take a small, independent businessman like myself, it's a considerable benefit." [my emphasis]

For earlier related ILB entries, select "Legislative Benefits" from the list of categories in the right column.

Posted by Marcia Oddi on January 18, 2006 08:31 AM
Posted to Indiana Government | Indiana Law | Legislative Benefits