DATELINE AUGUST 5, 2003
PREMIUMS HIKED, BENEFITS CUT BY BOARD
Effective January 1, 2004, state employees will pay higher premiums for far less coverage under the State Health Plan, thanks to the Budget and Control Board. Governor Mark Sanford, Sen. Hugh Leatherman, Rep. Bobby Harrell and Treasurer Grady Patterson voted this morning to pass higher health costs on to Plan participants, as recommended by the Plan's staff members.
State employees will pay an average $21 more per month, after deep cuts were made to the benefits plan.
Only Comptroller General Richard Eckstrom opposed the final package, because a proposed reduction in a chiropractic care benefits was deleted at Leatherman's request.
Reminding the board that his is a new administration and he is still not versed in the details of state employees' health insurance, Sanford appeared genuinely puzzled by the proposal to hike premiums and cut benefits. He questioned Plan representatives, who explained that the combination of more claims and higher health costs led to a 12 percent increase in overall costs to the Plan.
Included in the mix is a 24 percent jump in visits to chiropractors over last year; a 20.7 percent increase in the volume of prescription drug claims, and a 9.1 percent increase in physician visits overall.
"As fewer people come into state employment, the average age of employees increases," explained Rob Tester, an assistant director in the Office of Insurance Services. As that population ages, those workers take advantage of health benefits more, and more often, he said.
Leatherman advised Sanford that through the 1990s, costs associated with the State Health Plan increased annually but that the legislature absorbed the increases. But now, he offered, "The state doesn't have the money to pick up the cost of the increase." Neither Leatherman, the Senate Finance chairman, nor House Ways and Means Chairman Harrell proposed that the legislature -- which has the constitutional power and authority to raise funds for the state's essential services and institutions -- should invest more funds in the State Health Plan. Harrell corrected the governor's notion, however, that the Plan's reserve account had been raided or "borrowed from" to cover other expenditures. In fact, the legislature simply zeroed-out the reserve fund, or didn't appropriate funds for it, he said.
In the private sector, insurance programs are required to keep a reserve account equivalent to 45 days' worth of claims, enough to continue paying such claims in case that program became insolvent. The same reserve account was required of the State Health Plan -- and funded by the legislature -- until recently, when lawmakers chose to cut the 45-day requirement in half for the state plan, then deleted it altogether to avoid the expenditure.
The result of the Board's vote is that state employees will be given the largest burden for their own health insurance in the Plan's history. Last year, the State Health Plan covered 81 percent of medical and prescription drug costs, with participants paying the remaining 19 percent. In 2003, the state cut its burden to 76 percent of costs, raising participants' share to 24 percent. When the new changes become effective in January, the state cut will total 72 percent in aggregate, and participants will foot 28 percent of the bill.
Tester acknowledged that his recommendations passed two-thirds of the additional costs onto participants, and the significance wasn't lost on Sanford. "This has enormous political consequences," he said.
To view the recommendations adopted by the Board, click on this link to the Budget and Control Board's website [http://bcb.ogs.state.sc.us/BCB/BCB-agendas.phtm], then view the "Green #1" document. The document is posted in a pdf format and users will need Acrobat Reader to view the file.
The Board's membership includes Governor Mark Sanford, 803-734-2100 or governor@govoepp.state.sc.us; Sen. Hugh Leatherman, 843-667-1152 or sfi@scsenate.org; Rep. Bobby Harrell, 843-556-9075 or hwm@scstatehouse.net; Treasurer Grady Patterson, 803-734-2101; and Comptroller General Richard Eckstrom, 803-732-5600 or cgoffice@cg.state.sc.us.
DATELINE AUGUST 27, 2003
THE SCEA WILL RELEASE LEGISLATIVE REPORT CARDS THURSDAY
The SCEA President Jan McCarthy will release the association's 2003 legislative report cards in a press conference tomorrow at 10:30 a.m., in the First Floor Lobby of the State House. Copies of the report card are being mailed to education leaders and legislators statewide, in addition to the association's membership.
Votes on twenty bills, amendments or motions in the S.C. Senate and twenty-two in the S.C. House are reflected in the report card. While several entries reflect votes on state education and employment policies, the majority of votes were taken from the budget debates in both chambers.
Among the high-scoring lawmakers are Rep. James E. Smith of Columbia and Sen. Tommy Moore of Aiken, who led efforts in their respective bodies to raise funding for, or fully fund, the state’s base student cost under the Education Finance Act. Smith and Moore – alongside fifteen other House members and eleven other Senators – earned scores of 100 percent.
At the other end of the scale, forty-four members of the legislature earned single-digit scores.
McCarthy acknowledges that while some lawmakers may be pleased to have their efforts validated, those earning low scores may find little to praise.
“Those lawmakers will criticize our report cards,” she says. “But the scores reflect the votes they cast on school funding, the most important responsibility of state government. Anyone in the world can go to the legislature’s website and read the names, the voting records, the vote counts of these lawmakers.”
McCarthy will describe the association's process for including votes in the report card, the association's positions on a variety of recorded votes, and the role these report cards play in defining the association's political action planning in 2004.
DATELINE AUGUST 28, 2003
THE SCEA RELEASES LEGISLATIVE REPORT CARDS
The South Carolina Education Association released its report card on the 2003 legislative session today, which its leader called “the worst legislative session in our professional careers”.
Jan McCarthy, president of the largest association of education professionals and public school employees in the state, said the record shows lawmakers “chose to turn the state’s economic recession into an education recession”.
McCarthy, a teacher on leave from Irmo High School, teaches American government.
The report card, and McCarthy's remarks on its release, may be viewed online at www.thescea.org. Acrobat Reader is necessary to view the report card.
Votes on twenty bills, amendments or motions in the S.C. Senate and twenty-two in the S.C. House are reflected in the report card. While several entries reflect votes on state education and employment policies, the majority of votes were taken from the budget debates in both chambers.
Among the high-scoring lawmakers are Rep. James E. Smith of Columbia and Sen. Tommy Moore of Aiken, who led efforts in their respective bodies to raise funding for, or fully fund, the state’s base student cost under the Education Finance Act. Smith and Moore – alongside fifteen other House members and eleven other Senators – earned scores of 100 percent.
Earning single-digit scores were Senate Education Committee Chairman Warren Giese (5%), and House Education Committee Chairman Ronny Townsend (6%). House Ways and Means Chairman Bobby Harrell earned a score of 23 percent, while Senate Finance Chairman Hugh Leatherman earned a zero-percent score. In all, forty-four members of the legislature earned single-digit scores.
McCarthy acknowledged that while some lawmakers may be pleased to have their efforts validated, those earning low scores may find little to praise.
“Those lawmakers will criticize our report cards,” she said. “But anyone in the world can go to the legislature’s website and read the names, the voting records, the vote counts of these lawmakers.”
“Educators were advised that accountability is paramount in improving the quality of education. Accountability also matters in the committee room, and on the floors of the House and Senate. Our report card is designed to bring a measure of accountability to Columbia,” she explained.
Report cards are being mailed to lawmakers, education leaders and administrators statewide, in addition to the association’s own members. Its data will be posted also on the association’s website, www.thescea.org, McCarthy said.
