Minnesota State Senate Republicans Propose
Employee Healthcare Cuts/Pay Freeze
Last week a group of Republican senators proposed a plan to unilaterally, without any negotiations, impose a new health plan on state employees that would shift the employer costs for health insurance premiums 100% on to employees. Currently the employer contributes $5367 for single coverage, and $14,221 for family coverage. In addition, the plan would have required a $5000 deductible and $10,000 out-of-pocket limit. That plan was met with massive opposition—legislators received many hundreds of e-mails from faculty alone--so the sponsors of the legislation are starting to back off.
Last night, the Senate Committee on Innovation and Veterans heard the legislation as they assembled the Omnibus State Departments Appropriations Bill (SF 1047). They proposed and passed a second health plan that while not as bad as the first plan, still makes massive cuts to employee health care benefits.
The new #2 plan would have the employer pay only $1680 per year toward single coverage premiums (currently the employer pays $5367)—the employee would presumably pay the remainder of the premium. The #2 plan would have the employer pay only $4932 per year toward the premium for family coverage (currently the employer pays $14,221 per year) so a huge share of premium cost would be shifted off of the employer and on to the employee.
The Senate #2 plan would also raise the deductible under the plan. Currently, employees at cost level 2 clinics under the state health plan (the most common cost level) pay an annual deductible of $140 for single/$280 family; the new Senate #2 plan would raise the annual deductable to $2500 for single/$5000 family. Thereafter, under the senate #2 plan the employee would pay 20% the plan would pay 80% of the cost up to $3500 out-of-pocket for the employee and a $6500 out-of-pocket for the employer.
To offset some of the cost shift to the employee, the state would contribute $1500 per year to a Health Savings Account (HSA) for an employee with single coverage, and $2500 for an employee for family coverage.
The reason the Senate Republicans are supporting these health care cuts is because it saves the state $150,000,000 that they can use to help balance the budget without raising taxes.
This is a huge pay cut to employees—especially employees with families. It is terrible insurance coverage. In addition to the destruction this bill causes for the health plans, it would also freeze state employee salaries for two years. The legislation (SF 1047) passed out of the Senate Committee on Government Innovations and Veterans last night on straight party line vote—Republicans for/Democrats against. It should reach the Senate floor for a vote by late next week or early the following week. Flood your Senators with e-mails and phone calls urging them to vote no on SF 1047.
Please write your own SENATOR (this legislation is not moving in the House) now and make the following points (in your own words):
Please vote “no” on SF 1047, the Omnibus State Government Appropriations Bill. The state budget shortfall should not be balanced on the backs of state employees alone.
The bill would cut employer contributions for employee single coverage premiums by $3687 per year and for family coverage by $9290 per year. It would raise annual deductibles for a single person by $2360 per year and for a family by $4720 per year. The $1500 single/$2500 family contribution to a Health Savings Account doesn’t begin to offset the increased premiums, deductibles and out-of-pocket costs that would be paid by the employees---this bill is a rip-off of state employees!!
The legislature’s attempts to unilaterally impose a pay freeze and change health care provisions of employees without negotiations makes a mockery of our collective bargaining laws. Stop messing with employees’ right to bargain!
Previous e-mails have really worked to kill the 6% pay cut and the 3% pension cut—so please write.
Please join members of other unions in protesting this and other legislation at the "March for the Middle Class," at the MN state Capitol on Monday, April 4. Gather at 5 pm at Cathedral Park (the intersection of Marshall Avenue and John Ireland Boulevard).