2011 SEBAC Agreement: All about taxes and funding the uninsured plan??? Ever heard of ERRP???

Ct. state employees— is opening the 2017 Agreement to make changes to our health and pension plan  all about taxes??? Does this also explain the $100 surcharge you’d be asked to pay to keep your current plan instead of changing over to the  mysterious,  and so far undefinable HEP plan?

http://cpaprotectplus.com/blog/2011/01/what-you-need-to-know-about-the-health-care-reform-cadillac-tax-part-1-of-2/

Did you know about the ERRP program/fund??? It was new news to me…

http://blog.heritage.org/2011/03/08/obamacare-subsidizes-health-benefits-for-state-and-local-government-retirees/

http://blogs.courant.com/connecticut_insurance/2011/03/connecticut-received-191-milli.html

http://www.errp.gov/

it was supposed to last until 2014 and is almost out of money after operating for only little over a year  

http://biggovernment.com/vmariano/2011/05/04/under-obama-running-out-of-money-is-a-success/

http://www.hfma.org/templates/blogpost.aspx?id=25895

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“Equal” Shared Sacrifice

My logic might be a bit fuzzy here… but…a thought on Connecticut Governor Malloy’s budget proposals…. If the
Ct. State budget deficit is approximately $3.5 billion and there are +/- 3.3 million residents…that comes to approximately $1060 per person per year ….that would be a truly “shared sacrifice”!
Governor Malloy is asking for 1.5 billion per year from all State residents….which amounts to $454 per individual($908 for 2 years). He is asking for 1 billion per year from 45,000 Ct State Employees which amounts to $22,222 from each employee This means that State employees (as a group) are being asked to pay $303 for every individual in Ct….plus $454 ($908 for 2 years) each for being a resident!

Staying with this concept… it is asking each State employee to additionally cover the deficit for 73 Ct. State residents!…(see “more math” below) and makes as much sense as having only those with children in the school system paying for the Education budget. I don’t hear anyone screaming they shouldn’t have to pay for that, yet many seem to be on a bandwagon that they should receive State services for little or nothing.
So “it’s not fair” to “hit up” the very young….or the elderly…the poor can’t afford it…the rich will leave the state if they have to pay more…can’t put it “directly” on the private sector as “they” continue to experience the effects of a bad economy….so does that make it “fair” to charge a disproportionate percentage of the deficit to public employees for getting up daily, going to work. and doing their jobs?

More math…

CT.Budget Deficit = $3,500,000,000
$1,500,000,000/3,300,000 = $ 454 per Ct. resident
$ 1,000,000,000/ 45,000 State Employees = $22,222 per State Employee
therefore….
$1,000,000,000 / 3,300,000 residents = $303 amount of the deficit all State employees,as a group, are being asked to cover for all state residenst per year
$22222 / $303 = 73 State Residents each Ct. State employee is being asked to cover for

Will we see SustiNet in Ct. sooner than later? State employees take notice of this!

Will we see SustiNet in Ct. sooner than later? State employees take notice of this!
Is this the reason Governor Malloy is asking Unions to open the 2017 agreement now? Is this what he is referring to in his recent budget address of moving State Employees to a plan similar to that that covers Federal employees?

Click the links for info on Sustinet

http://www.ct.gov/sustinet/lib/sustinet/sn.final_report.appendix.cga.010711.pdf

http://www.cga.ct.gov/2011/PHdata/Tmy/2011HB-06305-R000214-Office%20of%20Policy%20and%20Management-TMY.PDF

http://www.cga.ct.gov/2011/TOB/H/2011HB-06305-R00-HB.htm

http://www.cga.ct.gov/2009/FN/2009HB-06600-R000615-FN.htmState

Employee & Retiree Health Plan

This bill may require conversion of the state health plans to self-funded SustiNet Plan coverage beginning on or after July 1, 2011. For this change to occur, consent would be required from the State Employees’ Bargaining Agent Coalition (SEBAC) to amend a collectively bargained agreement in effect until 2017. As a self-insured health care delivery plan, the SustiNet Plan would pay directly for participant claims on an incurred-and-reported basis. When the state health plans move from fully-insured plans to a self-insured mechanism, the premiums paid to private contracted health insurers cease and claims begin to be paid directly from a self-insured pool. In the event that SEBAC decides not to offer only one plan through SustiNet, there is no requirement that the remaining state employee health care coverage be moved to a self-insured plan. Therefore, the savings accrued from a delay in claims payments would be diminished.