Kent Ervin urges support for AB188 to enhance Medicare retiree health benefits
May 22, 2025 | Public Employees Benefits Program Board Meeting, Executive Agencies, Organizations, Executive, Nevada
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During the recent Public Employees' Benefits Program (PEBP) Board Meeting held on May 22, 2025, significant discussions centered around proposed legislative changes that could impact retiree health benefits for state employees in Nevada. Kent Ervin, representing the Nevada Faculty Alliance, urged the board to support Assembly Bill 188, which aims to restore health benefits for retirees hired after 2011. This bill is particularly crucial for both Medicare and non-Medicare retirees, as it addresses longstanding disparities in health reimbursement arrangements (HRAs) that have not kept pace with rising healthcare costs.
Ervin highlighted that while employer contributions for non-Medicare retirees have remained stable at approximately 65% of total premiums, the HRA contributions for Medicare retirees have stagnated at just $13 per month per year of service. This situation has created an inequity, as the costs associated with Medicare Part D and supplemental insurance continue to rise. He emphasized that supporting AB 188 would require only a minimal increase in the fringe rate, making it a feasible solution to address these disparities.
In contrast, the board expressed opposition to Senate Bill 494, which proposes replacing PEBP with a new Nevada Health Authority. While acknowledging the potential benefits of the new authority, Ervin cautioned that the bill must be amended to ensure that the PEBP Board retains its independence and fiduciary responsibilities. He pointed out that the state ranks fifth in the number of employees relying on Medicaid, and changes in employee income have shifted some back to PEBP, highlighting the need for improved healthcare access and quality.
Ervin also raised concerns about the current healthcare network, specifically the absence of Carson Tahoe Hospital from the PEBP network. He questioned the board's plans to reintegrate this key facility and criticized the cancellation of a request for proposals (RFP) for a secondary network without public explanation. He suggested that if UMR, the current administrator, cannot provide adequate access to essential healthcare services, it may be time to reconsider their contract and explore new options for statewide or regional networks.
The discussions at this meeting underscore the ongoing challenges faced by Nevada's public employees and retirees regarding healthcare access and affordability. As the board considers its position on these legislative matters, the outcomes could significantly influence the quality of benefits available to state employees and their families in the future.
Ervin highlighted that while employer contributions for non-Medicare retirees have remained stable at approximately 65% of total premiums, the HRA contributions for Medicare retirees have stagnated at just $13 per month per year of service. This situation has created an inequity, as the costs associated with Medicare Part D and supplemental insurance continue to rise. He emphasized that supporting AB 188 would require only a minimal increase in the fringe rate, making it a feasible solution to address these disparities.
In contrast, the board expressed opposition to Senate Bill 494, which proposes replacing PEBP with a new Nevada Health Authority. While acknowledging the potential benefits of the new authority, Ervin cautioned that the bill must be amended to ensure that the PEBP Board retains its independence and fiduciary responsibilities. He pointed out that the state ranks fifth in the number of employees relying on Medicaid, and changes in employee income have shifted some back to PEBP, highlighting the need for improved healthcare access and quality.
Ervin also raised concerns about the current healthcare network, specifically the absence of Carson Tahoe Hospital from the PEBP network. He questioned the board's plans to reintegrate this key facility and criticized the cancellation of a request for proposals (RFP) for a secondary network without public explanation. He suggested that if UMR, the current administrator, cannot provide adequate access to essential healthcare services, it may be time to reconsider their contract and explore new options for statewide or regional networks.
The discussions at this meeting underscore the ongoing challenges faced by Nevada's public employees and retirees regarding healthcare access and affordability. As the board considers its position on these legislative matters, the outcomes could significantly influence the quality of benefits available to state employees and their families in the future.
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