April 9, 2009

ARE YOU BEING PAID CORRECTLY?  Is your position classified correctly?  Compare your position description to state classification specifications at: http://www.mmb.state.mn.us/staff-hr/class-specs

If you believe your classification is not correct, start the process to review it yourself.  Begin by writing down modifications to your position description that you believe reflect the work you do that is not on your current position description.  Talk to your supervisor about updating your position description.  Then ask you supervisor to request a job reallocation to have your classification upgraded to the correct classification.  Good luck!

The SEGIP Report – Check out relevant articles in the SEGIP report on-line:
 http://www.mmb.state.mn.us/doc/ins/newsletter/04-09-segipreport.pdf

State Insurance Proposals Seek Unjustified Increases from Employees – With annual costs going up an average of 8.45%, the State proposed to increase their annual premium contribution an average of just 6.1%, while increasing employee annual costs by a range of 7% to 31.5%.

The State Employee Group Insurance Plan is (SEGIP) is a self-insured plan.  Patient claims are 100% paid by a combination of the following revenue sources: premiums (paid by the employer and employees), interest earned on reserves and by employees (deductibles, copays and coinsurance).  The plan has met all of its financial responsibilities since the creation of SEGIP.  Any excess funds are used to offset costs.  This has been done in a few ways: 1) the $250 Health Reimbursement Account each employee received 1/1/2009 to offset out-of-pocket medical costs, 2) the premium holiday a couple years ago, and 3) to offset future premium increases.  As costs go up, revenues must increase or reserves must be spent to offset cost increases.  Multiple projections on services received by those insured by SEGIP suggest cost increases 8.4% in 2010 and 8.5% in 2011.  Yet the State has asked for employee cost increases ranging from 14% to 63%.

Despite SEGIP having successfully been self-sufficient and having kept costs to lower-than-industry average increases, the State’s recent proposals increase costs for employees more than is needed.  A few examples (all based on Level 2 pricing) are as follows:

Item

Current Level 2 Benefit

Proposed Benefit for 2011

Increased cost to employee

Deductible for all services except drugs and preventative care

$140/$280

$175/$350

25%

Office visit copay/urgent care

$22

$25

14%

Copay for three-tier prescription drug plan (Tier 1)

$12

$14

17%

Maximum drug out-of-pocket limit (S/F)

$800/$1,600

$1,300/$2,600

63%

Maximum non-drug out-of-pocket limit

$1,100/$2,200

$1,300/$2,600

18%

Contract Bargaining - Coalition insurance bargaining with all the bargaining units continues next week.  During these difficult economic times, MGEC will continue to seek responsible proposals that cover employees' medical needs, incent improved health, and keep costs down.  MGEC continues to hold worksite meetings with members to discuss key issues faced by state employees: inflation, workload, furlough, layoff, wage freeze, steps and so much more.  Bargaining of other contract terms between MGEC and the State is likely to begin in May.