UPDATE: Feb. 25 at 5 p.m.
The Kentucky Education Association has announced that leaders in the Kentucky House have resolved language in the proposed state budget that "would have caused monthly health‑care premiums to rise by as much as $500 for educators, state employees, and retirees," a press release reports.
State employees and retirees pushed back on the provision on Monday through the "Scrap the Cap," campaign. If passed, the budget would have capped the state's contribution to workers' health insurance plans.
"KEA extends sincere thanks to its members, public school employees, parents, and supporters who contacted legislators and made their voices heard," the release said. "Your engagement and activism was critical in securing these positive changes."
The current version of House Bill 500 also includes funding increases for SEEK and student transportation compared to last biennium's budget.
Original Story:
Kentucky state employees and retirees are pushing back against a provision in the General Assembly's proposed state budget that would cap the state's contribution to workers' health insurance plans. It's a move they warn could dramatically increase costs for more than 310,000 public employees, retirees, and their families.
The group launched what they're calling the "Scrap the Cap" campaign, urging lawmakers to vote no on any state budget that shifts health insurance costs onto workers and retirees. The campaign also calls on lawmakers to go on record with a promise to oppose any such budget.
Kentucky's Personnel Cabinet has warned lawmakers that the proposed cap could increase employee premiums by 78%.
Joel Wolford, president of the Kentucky Education Association, outlined what workers and retirees could face if the cap is enacted.
"Higher premiums, higher deductibles, higher co-pays, gutted benefits, lost prescription drug coverage," Wolford said.
The Kentucky Education Association says a rank-three teacher in Kentucky would lose $486 a month under the cap — nearly $5,800 a year.
"It would not only increase their premiums, which is money straight out of your pocket. But they might be forced to choose a plan with less benefits. There will be some drugs that are excluded," Wolford said.
Groups representing state retirees say the impact would be especially severe for those living on a fixed income.
"Recent retirees and people about to retire are saying 'This is going to eat up most of what I get in retirement, just in premiums,'" Jim Carroll of Kentucky Government Retirees said.
Some lawmakers have already indicated concerns about the cap in the proposed budget. The Scrap the Cap campaign is designed to put those lawmakers formally on the record.
