CARSON CITY -- Retired state worker Ellen Nelson says she was shocked when she received notice that her insurance premiums would rise from $78 a month to $470 starting in July.
"I was kind of upset," said Nelson, who worked for the state for 20 years before retiring in 1993. Her policy covers her husband.
Her comments are echoed by scores of other retired state workers who are getting hit with big increases.
Assemblywoman Bonnie Parnell, D-Carson City, said she has stacks of protests from the retirees who have Medicare and a policy under the state insurance.
"We can't let this happen," she said.
Assemblywoman Kathy McClain, D-Las Vegas, chairwoman of a legislative budget committee, said it to be changed.
"I don't see how we can close the budget with this in it," she said.
Her committee is scheduled to take up the issue Friday.
Forrest "Woody" Thorne, executive director of the Public Employees Benefit Program, said the rate increase is based on the current claims and health status of this group of people. He said there are an estimated 2,700 Medicare eligible retirees and 687 of them with spouses who will experience the biggest increase.
Thorne said he was following the directions of the Legislature that he must co-mingle this group of Medicare retirees with other members in the system.
Those affected are covered by Medicare and then use the state insurance as a backup.
Thorne said a Medicare eligible retired couple will pay $275 more a month, after all the adjustments are made.
Nelson insists her premium is rising more than the $275.
Martin Bibb, executive director of the Retired Employees of Nevada, said the group was "up in arms." And he said there are other setbacks for these retired workers.
For example, he said a person may get a $1,000 bill from a hospital. Medicare may pay $800 and in the past the state insurance would pick up 80 percent of the $200 remaining. Now on July 1, Bibb said the state retiree would have to pay the $200.
Bibb said some of these retirees are getting hit with a $350 increase out of their pockets a month.
Nelson said the state retirement system isn't going to raise its benefits to cover the big increase.
Thorne notes the system is increasing benefits starting July 1. The dental benefit rises from $1,500 to $2,000 and increases the number of covered visits to the dentist from two to four. The new system will reduce the deductible. And it restored benefits for vision coverage to pay for some of the cost of prescription glasses.
In addition it increased the wellness benefit from $600 to $2,500. This allows those covered to get additional tests toward keeping them healthy.
There are an estimated 30,000 state workers and retirees in the system.
Thorne said the retirees this fiscal year received a reduction in premiums from 2004 and now they are going up again.
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