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Wednesday, May 24, 2006

Ind. Gov't. - More on: House Republicans vow to end health care perk, permanently

Niki Kelly of the Fort Wayne Journal Gazette has a story today headed "Political foes vow to scrap job perk: Would eliminate their subsidized health plan." She writes:

INDIANAPOLIS – Republican incumbents and challengers seeking to retain control of the Indiana House pledged Tuesday to permanently end a taxpayer-subsidized health care perk should they be elected this fall.

House Speaker Brian Bosma already this year announced administrative changes to the system so that legislators elected this fall would no longer be eligible for the perk. Those retiring or defeated, however, can still enroll.

Under the benefit, lawmakers who retire with six years and one day of service can lock in for life the current employee percentage of contribution for monthly health insurance premiums, with the state picking up the rest. Depending on what plan lawmakers elect, their premiums can range from very little to up to 25 percent of the cost.

Under Bosma’s policy change, future House retirees can continue to participate in the state’s group health program, but all premiums would be the retiree’s sole responsibility. And if House members are eligible for Medicare, the federal program must be the primary provider.

This is the same as other state employees who pay the full premiums upon retirement.

The only problem is that if Bosma doesn’t retain his position as speaker, the new House leader could put the old program back in place with the stroke of a pen.

That is why Bosma and those seeking to come back or join the House next year all signed a pledge Tuesday to support legislation to permanently dismantle the program. * * *

Bosma also said the entire House benefits package is under review – including the lucrative pension match in which the state puts in $4 for every $1 legislators invest.

He said he sees that differently because it was done in the open with full debate – as opposed to the secretive health care plan that was cobbled together over several sessions in multiple bills.

Bosma noted the pension plan essentially equates to between a $2,500 and $7,000 increase in legislative pay for part-time members whose annual salary is $11,600 a year.

“A 4-1 match is unheard of,” said Rep. Marlin Stutzman, R-Howe, who understands it was a way to give legislators a salary increase that has been unpopular. But that doesn’t make it right.

“We should say ‘this is what a legislator makes’ without all the back-door benefits,” Stutzman said. “This is our way to take the issue to the public and say we are committed to reform.”

House Democratic Leader Rep. Pat Bauer, of South Bend, said after the news conference that he would not reinstate the program if the Democrats gain control and he is speaker next year.

He also would examine whether the perk should be taken away from already-retired members. * * *

The Indiana Democratic Party attacked Bosma’s pledge as disingenuous because bills to legislatively end the perk were introduced by Republican members in both the 2005 and 2006 sessions but Bosma sent them to a procedural committee to die.

Then again, the perk was put in place by then-Democratic House Speaker John Gregg and then-Republican Senate President Pro Tem Robert Garton.

The GOP pledge would not affect the Senate, where they downgraded the perk this year but refused to end it – a decision that likely cost Garton his seat in the primary election. Some senators interested in his leadership post are including an end to the program in their platform. [emphasis added]

A May 14, 2005 Indianapolis Star story by Kevin Cocoran is no longer freely available, but is quoted in this January 23, 2006 ILB entry. This story ends with a list of the then 22 former legislators receiving taxpayer-subsidized health insurance (presumably there are more now), with their ages and current occupations. The majority of the former Representatives listed as receiving the benefit are in their 40s and 50s, including former Representatives Mark Kruzan (mayor of Bloomington), John Gregg (attorney), Michael Smith (casino lobbyist).

Mary Beth Schneider of the Indianapolis Star has a story today headed "GOP: Ax health benefit," expanding on her posting yesterday to the online Star. Some quotes:

Tuesday, Bosma said that ban needed to be put into law.

Later, House Minority Leader B. Patrick Bauer, D-South Bend, agreed, saying the benefit would not return if Democrats regain the majority. "It's dead and will remain dead," Bauer said.

Republicans, though, hope that being out front on this issue -- and other pledges they say they will roll out before the Nov. 7 general election -- could help them keep a slim 52-48 majority in the House. Eliminating the benefit is the first in a five-month-long series of pledges aimed at convincing a restless electorate that Republicans can remain in charge -- and still initiate change.

From Lesley Stedman Weidenbener's report in the Louisville Courier Journal:
In 2004 several Republican legislative challengers -- including Rep. Billy Bright of North Vernon -- campaigned against the perk, criticizing incumbents for voting for it.

Republicans took control of the House that year after Bright and others won their races. And earlier this year Bosma acted to end the program for all House members elected in this year's general election and beyond. House members who lost or retired this year will still get the benefit. * * *

Bright, who also talked about the pension benefit during his 2004 campaign, said he believes the General Assembly ought to do away with such perks and instead establish an easy-to-understand salary structure that is transparent to voters.

"That pension benefit was just a way for legislators to get a pay increase without voting for a pay raise," Bright said.

Currently, Hoosier lawmakers earn base pay of $11,600. But they also receive mileage and year-round payments meant to reimburse them for lodging, meals and other expenses.

Posted by Marcia Oddi on May 24, 2006 06:49 AM
Posted to Indiana Government | Indiana Law | Legislative Benefits