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Session: State Capitol, Room 24 Juneau, AK 99801-1182 Toll Free: (800) 773-4968 Phone: (907) 465-4968 Fax: (907) 465-2040 Send E-Mail Interim: 716 W 4th, Suite 640 Anchorage, AK 99501-2133 Phone: (907) 269-0117 Fax: (907) 269-0119 |
Bill Would Increase Coverage and Lower Employee Costs
For Immediate Release: Feburary 7, 2000
Contact: Representative Norman Rokeberg at (907) 465-4968.
Juneau -- Representative Norman Rokeberg Monday introduced legislation to require the State of Alaska to make payments to the Alaska Comprehensive Health Insurance Association (ACHIA). HB 345 would also require that, as contracts expire, all State employees be placed under one health plan.
ACHIA is the entity that provides access to health insurance for all Alaska residents who are denied adequate health insurance or who are considered uninsurable. At the end of December 1998, 342 Alaskans were insured under the ACHIA plan, the health insurance of last resort.
"Before moving to the current self-insured plan, the State of Alaska's insurance carrier (then Aetna) paid ACHIA some $400,000 per year," Rokeberg said. "Moving to the self-insured plan caused the loss of this funding to ACHIA, thereby shifting a greater share of costs to private individuals and business."
HB 345 would also require all State employees, both members of bargaining units and exempt employees, to be covered under one plan. Currently, three bargaining units have their own health trusts. The policy of the current Administration has been to move bargaining units into a health trust arrangement and out of the State's self-insurance pool.
"There is strength in numbers, while breaking-off different employee groups decreases the opportunities for keeping premium levels at a stable and more affordable level," Rokeberg said. "Additionally there are over 2,000 State employees who are not part of a bargaining unit and their options would be limited. Keeping all State employees in one state health insurance plan should enable the State to offer a good policy with lower premiums thus saving money for the employer and the employee.
Having the State oversee any such plan, as any private employer would, means there would be checks and balances to protect the employer, the employee, and the health care practitioners," Rokeberg said. "The ultimate goal is improved coverage and lower costs for all employees."
HB 345 was referred to the House Labor and Commerce Committee.
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