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Thursday, November 16, 2006

Ind. Gov't. - Senate's health care perks to change somewhat

There are a number of stories today on new Senate Pro Tem David Long's announcement re the Senate's life time health care plan.

Niki Kelly of the Fort Wayne Journal Gazette writes:

INDIANAPOLIS – The first policy shift under the leadership of Senate President Pro Tem-elect David Long, R-Fort Wayne, came Wednesday with the end of state-subsidized health care for retired senators and employees of that chamber.

Long announced he will sign an order terminating the generous perk on Tuesday – Organization Day – after he is officially voted in by the chamber as its new president.

“The fact of the matter is we feel right now it’s important to send a message that we don’t feel a plan like that should be different from what any other state employee receives, and so from that standpoint, we’re sending a message that we’re going to change,” he said.

The move came after a lengthy caucus of the Senate Republican members Wednesday and provides a quick end to a lingering controversy.

The lifetime health care benefit began in 2002 when then-Democrat House Speaker John Gregg and then-Republican Senate President Pro Tem Robert Garton used administrative means to create the program.

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

It also was available to lawmakers’ families and legislative employees.

Other state employees must pay 100 percent of all health care costs after they leave state government to stay in the insurance pool.

Then-House Speaker Brian Bosma last year administratively revoked the perk for House members not re-elected Nov. 7. But Garton and Long defended the program in a testy Statehouse news conference. Instead of ending it, the caucus modified the plan to reduce – but not eliminate – the level of lifetime state support.

Just a few months later, Garton was defeated in a shocking May primary in which his opponent used the issue against him. * * *

Under Long’s order, the modified plan terminates July 31, 2007. This gives current senators and employees who might be eligible – depending on age and years of service – about eight months to decide whether to retire and keep the benefit.

Long’s action is not retroactive and does not affect the estimated 10 retirees who are currently enrolled in the program – including Garton, who signed up for the modified plan after his defeat.

“Whatever the original intent of the plan was, we don’t think it ended up as we intended,” Long said. “Certainly the original plan was in my opinion too generous. We didn’t really formulate as a group what that was. We created the ability of the leadership to create a plan. I don’t think anybody really knew how generous the original plan was.”

Kelly ends her report by pointing out that neither Long nor House Speaker-elect Pat Bauer have "promised to enact legislation that would eliminate the administrative ability of the leadership to put the perk back in place in the future." In other words, neither has promised to repeal the existing authorizing legislation. And neither has provided figures showing how much the House and Senate are currently, and will continue to, pay out for the life-time health benefits of now retired (voluntarily or not) legislators, their families and staff, and how much this amount could/will rise under the promised "modified" plans.

The AP's Deanna Martin writes:

"We don't feel like a plan such as this should be different than that any other state employee receives or has access to," Long said after Senate Republicans met in caucus yesterday to discuss the issue. Republicans control the chamber, 33-17.

Long said members would not be able to sign up for the benefits after July 31, 2007, a date he said gives retirement-age senators and Senate employees about eight months to decide whether they want to become part of the plan.

"We felt it was only fair to give people some time," said Long, R-Fort Wayne.

Sen. Luke Kenley, a Republican from Noblesville, estimated less than 10 people are on the plan now and would be allowed to keep the benefits.

One person already on the plan, Long said, is outgoing Senate President Pro Tem Robert Garton.

Garton had led the Senate a state record 26 consecutive years until being ousted from office in a primary upset. Some criticized Garton for not ending the health benefits earlier.

Indiana House Minority Leader Patrick Bauer, D-South Bend, said that he stands behind his statement in May that he would end the benefits package for retired House members if he regained the speaker's gavel.

Martin adds: "Besides special health insurance packages, lawmakers have for several years been entitled to the more generous public pension package." Indeed, legislators receive a 4 to 1 match from the taxpayers for every dollar they contribute. And legislation has been passed prohibiting public access to any part of the retirement benefits records of legislators.

Mary Beth Schneider of the Indianapolis Star reports:

A controversial legislative health-care plan that outraged the public and led to the defeat of the state Senate leader is being canceled.

Incoming Senate President Pro Tempore David C. Long, R-Fort Wayne, said he will sign an administrative order Tuesday, after he is officially elected Senate leader, ending the program for senators effective July 31. He said that will let legislators and staff decide whether they want to retire before then, in order to be eligible for the plan.

One who will receive the benefit is former Senate President Pro Tempore Robert D. Garton, R-Columbus. Public indignation over the plan led to Garton's defeat in May's primary.

The House, under then-Speaker Brian C. Bosma, R-Indianapolis, canceled the plan in January. Democrat B. Patrick Bauer of South Bend, the next speaker, said it won't be revived.

But the Senate, under Garton's leadership, had so far only tweaked the plan, created in 2001 and 2002.

The plan covers 75 percent to 100 percent of health-care costs for legislators, some staff, their spouses -- even ex-spouses -- and dependent children. * * *

Legislators, Long said, will now be able to get coverage under a plan that treats them the same as other state employees. Retired state employees can continue to receive insurance coverage only if they pay the full cost of the premiums.

Eighteen former House members have signed up for medical, dental or vision coverage on the plan for themselves and family members. Sen. Luke Kenley, R-Noblesville, said fewer than 10 retired senators and staff have done so.

Senate Democrats announced earlier this year that they would not accept the coverage.

For comprehensive ILB coverage of this issue, click "legislative benefits" below, or in the right column.

Posted by Marcia Oddi on November 16, 2006 09:43 AM
Posted to Indiana Government | Indiana Law | Legislative Benefits