By Joe Rogalsky,
Delaware State News
DOVER - In a few months, state workers will be able to purchase certain insurance policies at discounted rates as part of a benefits program officials hope to launch in May.
The initiative would use the state's large buying power to get policies at rates lower than what workers would receive if they went out and purchased the policies individually.
Governments and larger corporations can attract lower premium prices from insurance companies than small groups because the large amount of workers allows insurance companies to spread their risk out among more people.
State workers already receive health insurance as a benefit of employment, with the government picking up the tab.
Under the supplemental benefits program, workers could purchase automobile liability insurance, homeowners insurance, a prepaid legal plan, long-term care insurance, an eye care plan and veterinary pet insurance.
The state selects the companies that offer the plans in a competitive bidding process, with the insurance companies offering the lowest premiums winning.
"It's nice to be able to offer something like this to our employees," said Dana Jefferson, acting director of the state personnel office.
"It's strictly voluntary, but we think a lot of state employees will take advantage of it."
The state's computerized payroll system must be modified to accommodate the benefits initiative. Employees can have the policy costs deducted directly from their paycheck.
Ms. Jefferson said she wants to be able to offer the policies to employees in May so workers can sign up for the benefits the same time they select their health care insurance.
"That will make it easy," she said.
"Employees will already be thinking about their health insurance."
The State Employee Benefits Committee, a group of elected and Cabinet-level officials that oversee state workers' benefits packages, approved the program in October. State law gives the panel authority to make such decisions without approval from the legislature.
"We'll certainly notify General Assembly members, but we have been talking to them about supplemental benefits for a long time," said state budget director Jennifer W. Davis, who sits on the panel.
"This is something they have wanted us to do."
Unlike employee health insurance, which costs the state millions of dollars every year, workers will pay all the premiums in the supplemental benefits program.
"That's the beauty of this," said Mrs. Davis, who each year wades through spending requests from state agencies that add up to billions of dollars.
"It allows us to offer benefits to the employees without any cost to the state."
Mrs. Davis said employee groups such as the Correctional Officers Association of Delaware and the American Federation of State, County and Municipal Employees suggested the benefits package to the committee.
"Any time we have the ability to use our purchasing power to go out and get lower rates, it's good for state employees," said Michael A. Begatto, who heads AFSCME Council 81, which represents about 6,000 state workers.
"With 25,000 state employees, we have a large pool that will get a much better price than if you tried to go out and purchase insurance as one person."
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Staff writer Joe Rogalsky can be reached at 741-8226 or jrogalsky@newszap.com
Reprinted with permission from newszap.com
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