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Wednesday, October 6, 2004

Assembly takes on benefits tiff


Teachers mill outside Capitol

By Joe Biesk
The Associated Press

FRANKFORT - With a constant flow of teachers protesting vociferously outside, the General Assembly convened a special session Tuesday to deal with state employee health insurance benefits.

Most of Tuesday's work went on behind the scenes, with lawmakers attempting to sweeten next year's health insurance benefits for teachers, school district employees and state workers.

Outside, hundreds of teachers and state employees armed with picket signs and their voices patrolled the Capitol grounds for most of the day.

"It's important that we have adequate health coverage, it's important that we have choice in our health care provider," said Lana Slone, a Knott County teacher who marched at the Capitol. "I believe that's a lot of the reason we're here today, is because we didn't have a choice."

Last month, the governor announced an overhaul of next year's health benefits for 229,000 retired and active public school employees and state workers. Those covered say it will drastically increase deductibles, premiums and other medical expenses. State teachers say they'll go on strike less than a week before the November elections if current benefits aren't restored.

Gov. Ernie Fletcher called the General Assembly back into session Tuesday to deal with the issue, which has become a public relations problem for his administration. It's estimated to cost taxpayers about $55,000 per day while the legislature is in session.

But lawmakers weren't in their respective chambers long Tuesday. Both the House and Senate were in session for less than an hour, with lawmakers mostly introducing their guests.

Speaker Jody Richards, D-Bowling Green, said House leadership had consulted with the attorney general's office earlier Tuesday about the possibility of voiding the state's existing contracts with next year's health insurance providers.

However, it's still unknown exactly what financial risks the state would face by backing out of the contracts negotiated and signed by the administration with four health insurance providers, Richards said. It was also unknown how much Kentucky would have to pay to retain state workers' current benefits, Richards said.

"It appears that there might be an extraordinary penalty - a penalty that we've never had before in canceling contracts," Richards said.

An option, depending on the price of voiding the contracts, would be to extend the present benefits with the current providers for another year, he said. A "Plan B" would be to offer one of the more popular current plans again next year, Richards said.

Senate President David Williams, R-Burkesville, said both plans were "possibilities" that also had "pitfalls." There were, however, other alternatives being considered, Williams said, but he declined to offer specifics.

"Obviously, it would be easier for the House to say just continue the same plans, but they're going to have to determine what cost factors are going to be there," Williams said. "And we'll take a look at both of them."

Meanwhile, state Sen. Daniel Mongiardo, D-Hazard, said he was planning to file legislation that would direct the governor to ask the federal government for a waiver allowing Kentucky to import prescription drugs from Canada. A recent state audit found the state could save more than $100 million by doing that.

Richards said he was preparing similar legislation in the House.

Later, the governor's older brother, state Senate candidate Harold Fletcher, and his opponent, former Gov. Julian Carroll, spoke at a state workers' rally at the Capitol. Both opposed the administration's health insurance plan.

The governor also sent state workers a letter defending his administration's plan.

"I know the present circumstances are frustrating for you, they are for all of us," Fletcher wrote. "I look forward to the special session as we work together to provide a better health insurance product to you, our valuable teachers and state employees."




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