Executive Council approves a $680,000 contract for consultants to take another look at the state's self-insurance program. Governor Benson says the findings could prompt the state to return to conventional insurance for its workers next year.
The Benson administration's experience with self-insuring heath benefits for state workers has been fraught with problems……At the governor's behest, state budget writers banked on the move saving a quick 25 million dollars. That money has not materialized -- and the self-insurance program is presently 18 million dollars in the red……..As recently as August……the Governor was standing behind the move as the right decision……But yesterday, Benson allowed he's now open to discarding one of his administration's signature initiatives.
"The insurance market, as you know, changes…….One year it's good to do x. One year it's good to do y. So I think it's important to keep up with the latest and greatest trends, so what ever it is that you're doing makes most sense for the time that you are in."
Self-insurance has been a politically changed matter for Benson for some time…And lately, democratic opponent John Lynch has taken to stressing the program's underperformance…...In self-insurance, Lynch has found an issue that joins fiscal mismanagement with illegal conduct on the part of Benson's hand-picked team.
"Let's consider why there is a deficit in the self insurance fund……Craig Benson appointed his Cabletron crony Linda Pepin to carry out the move along with personnel director Joe D'Alessandro and what did Benson's appointees do -- they illegally schemed to collect $187,000 at taxpayer expense…..The department of insurance said Linda Pepin's management of the change to self-insurance and her blatant violations of the law placed taxpayers at great financial risk."
When asked whether he would reverse course on the state's foray into self-insurance, John Lynch admits he's not sure……But regardless of who wins in November, the issue will loom large …..One hope for the initiative had been that it would prompt agreement on a new contract for state workers……But nearly a year later, union officials and the state remain at impasse over worker health care, and how to pay for it.
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