StarBulletin.com

3 measures would return workers' health costs to state


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POSTED: Saturday, February 13, 2010

The state would pay for some of the increases in state workers' health insurance plan under a series of bills moving in the state Senate.

Senate Bills 2393, 2881 and 2884 would restore the previous labor agreements in which the state paid 60 percent of its workers' medical insurance costs.

The arrangements were canceled last year by Gov. Linda Lingle, who said the state could not afford to pay more. State worker unions agreed to that for the 2009 fiscal year but added that it would take its case to the Legislature for the rest of the biennial period.

The bills are now before the Senate Ways and Means Committee.

Georgina Kawamura, state budget director, warned that paying more of the cost of workers' health insurance charges will cost an extra $26 million a year.

Dayton Nakanelua, United Public Workers executive director, submitted testimony to the Senate Labor Committee saying, “;The state's action caused the monthly cost for health benefits for state employees to increase by 60.4 percent to 62.2 percent.”;

State Sen. Dwight Takamine (D, Hilo-Honokaa), Labor Committee chairman, did not return calls about the bills, but his committee's report on the measure said the increased medical costs have been carried only by workers.

“;Health care options ... have become more costly and employees are contributing a greater share than the employers,”; the committee report stated.

State Sen. Sam Slom (R, Hawaii Kai-Diamond Head) said increased health care charges are happening to everyone.

“;In the private sector, health care premiums go up every month; here, any time there is an additional cost, the unions want us to pick it up,”; Slom said.

Nora Nomura, deputy executive director of the Hawaii Government Employees Association, urged passage of the bills in testimony: “;The state lacked awareness about limits on employees' ability to absorb radical cost increases in years without pay increases.”;

The agreement signed between the state and the HGEA calls for the Legislature “;to decide the amount of contributions and the parties shall abide by their determination.”;