Higher premiums, more costs for state of Kansas employees under new health plan

State employees will have to pay higher deductibles and premiums under next year’s health plan and they will also lose coverage for some prescription drugs.

The Kansas Organization of State Employees decried the changes as a backdoor pay cut for state workers, but the Kansas Department of Health and Environment says the higher premium rates are caused by regulations in the Affordable Care Act, also known as Obamacare.

Enrollment for 2016 health plans begins next month. State employees can choose between two healthcare providers, Aetna and Blue Cross Blue Shield, each of which offers two coverage plans – Plan A, which has a higher premium and lower deductible, and Plan C, which has a lower premium and higher deductible.

The premium rates for state workers on Plan A will go up slightly next year, but some state workers on Plan C will see their premiums nearly triple.

For example, a state employee using Aetna’s Plan C to cover her family paid a twice-monthly premium of $49.67 in 2015. That will jump to $132.25 twice a month in 2016.

Rebecca Proctor, executive director of the Kansas Organization of State Employees, the union which represents state workers, criticized the premium hikes, which will come out of state workers’ paychecks.

Proctor noted that state employees have not received an across-the-board raise since 2009 – before Gov. Sam Brownback took office – and that the health insurance changes coincide with increased pension contributions.

“Every year health insurance has gone up. Every year pension contributions have gone up. … So these employees are really getting pay cuts every single year,” she said.

State workers using Blue Cross’ Plan C to cover their families will go from paying $45.73 twice a month to $115.25 twice a month. Single workers on Plan C will see a more modest increase to their twice-monthly premium rates – going from $23.25 to $28.79 for Blue Cross and from $23.96 to $34.72 for Aetna.

House Speaker Ray Merrick blamed the increase on the passage of the Affordable Care Act.

“Since the passage of Obamacare, Americans across the country have seen their rates increase,” he said. “Sadly, this is the latest example of how Obamacare is hurting Kansans and why we must continue to fight expanding Obamacare in Kansas.”

Sara Belfry, spokeswoman for KDHE, the agency that administers the health plans, also blamed the health care act for the increases.

Despite paying higher premiums, state workers also will have to pay higher deductibles – their out-of-pocket expenses before the insurer pays. The annual deductible for a family on Plan C will increase from $5,200 to $5,500. A single worker on the same plan will see his or her deductible increase from $2,600 to $2,750.

Single state workers on Plan A will see their deductibles increase from $300 to $400 and those on family plans will see a jump of $600 to $800.

“Not only are you paying more for your coverage, but you’re paying more out of pocket before you even have that coverage,” Proctor said.

Sen. Laura Kelly, D-Topeka, accused the Brownback administration of pulling a bait and switch with state employees.

“Two years ago I switched to Plan C – as I’m sure many others did – because it was the best offered. It now feels like the Brownback administration is pulling a ‘bait and switch’ with state employees,” Kelly said. “They were enticed by the low, unsustainable premiums that are now doubling or nearly tripling. Most state employees haven’t had any pay increase since 2009, making this premium increase particularly cruel.”

State workers will also no longer be covered for certain prescription drugs, according to a PowerPoint on KDHE’s website, if there is a preferred alternative or generic equivalent available.

“After January 1, claims for these drugs will no longer process and the pharmacy will be sent a notice that the physician will need to do a prior authorization for medically necessary use of the non covered drug or product,” the slideshow presentation says.

This story was originally published September 29, 2015 at 2:02 PM with the headline "Higher premiums, more costs for state of Kansas employees under new health plan."