FOR IMMEDIATE RELEASE: March 30, 2011                                         download PDF
CONTACT: Jennifer Munt, 651-357-8544

HOUSE AND GOV. DAYTON SHOULD REJECT SENATE’S ILL-CONCEIVED PLAN TO REPLACE STATE EMPLOYEE HEALTH INSURANCE

Statement by Eliot Seide, director of AFSCME Council 5 and chief health-insurance negotiator for the coalition of state-employee unions representing 50,000 workers and 125,000 covered lives.

Today the Senate rolled SF805 into the Omnibus State Departments bill. Here’s why replacing the State Employee Group Insurance Plan (SEGIP) should be rejected by the House and vetoed by Gov. Dayton.

1. The plan cuts wages for state workers by shifting premiums and deductibles to the employees. It does nothing to control costs or improve health.
2. High-deductible plans discourage users from going to the doctor to manage chronic diseases. The result is sicker employees and higher costs.
3. The legislation unilaterally eliminates the right of workers to collectively bargain health insurance. That brings Wisconsin’s war on workers to Minnesota.
4. The legislation destroys the cooperative labor-management process that has successfully produced healthier outcomes at a lower cost. By holding down premiums, state agencies and Minnesota taxpayers have saved millions of dollars.
5. The loss of the SEGIP tiered plan will cause the loss of bargaining power with provider networks. It would also dis-incent employees from going to low-cost providers. 
6. As a result of #5 above, any alleged savings from the high-deductible plan would be lost. In fact, the switch would likely increase costs.
7. The SEGIP plan design and its innovative approaches to controlling health care costs have been major bragging points for former Gov. Pawlenty as he runs for President. This positive labor-management approach to healthier outcomes at lower costs would be lost if this ill-conceived legislation becomes law.

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