Organizing against Health Care Cuts

from April 2010 TSEU UPDATE:
The Legislature says: cut state employees’ health care

. . . The problem started during the last legislative session. ERS asked for enough money! They knew health care costs would be going up, so when they made their funding request in 2009 ERS asked for increased health plan funding: 8.37% for each year of the biennium. The Legislature cut the increase to 6.5% in FY 2010 and 6.8% in FY 2011. The result is that the ERS health plan faces a shortfall of about $154 million by 2011. There are two possibilities: 1. Get increased state funding, 2. Increase employee out-of-pocket costs. This decision will probably have to made by May, and what ever changes are made would probably go into effect in September. So far legislative leaders have refused to discuss additional funds for ERS.
. . . The most likely changes are increases in co-pays (specialist doctor visits have been mentioned) and deductible, and increases in some pharmacy costs.
Increases in out-of-pocket costs, in a year when both active employees and retirees are squeezed by stagnant pay and pensions and by the recession, would produce serious hardships. The blow would fall hardest on employees at the low end of the salary scale, and on retirees from low-paid state jobs. ERS retirees have not had a pension increase since 2001, and active employees’ pay is now over 20% behind increases in the cost of living since 1988. Many thousands of university employees (all except the UT and A&M systems) also get ERS health care: they are even further behind because they have been cut off from statewide pay raises since 2003.
ERS should ask for the money
. . . While ERS officials have probably been warned not to embarrass state leaders by asking for the money, they should ask anyway. The Texas Legislature – especially its leadership – created this problem. They should not try to pass the buck and make ERS look like the bad guy. Let’s ask for the money and let the folks who control the money say “no” in public where everyone can hear it.

TSEU says: find the money
. . . With ROC caucus members leading the way, TSEU members have launched a campaign to push for state funding to cover the gap. The Legislative Budget Board must approve any state funding changes between sessions of the Texas Legislature. Since funding has to be approved by next Summer, it is up to the LBB. Members are calling our legislators – representatives and senators – and asking them to contact the LBB and push them to approve the needed state funding.
More cuts in 2011?
. . . Even while leaders in the Legislature force health plan cuts this year by withholding funding, rumors are swirling that some legislators will push for more plans when the Legislature meets in 2011.


	Organizing & mobilizing against health care cuts TSEU Organizer contact: Mike Gross

Back to Health Care page STORIES AND INFORMATION	from April 2010 TSEU UPDATE: The Legislature says: cut state employees’ health care . . . The problem started during the last legislative session. ERS asked for enough money! They knew health care costs would be going up, so when they made their funding request in 2009 ERS asked for increased health plan funding: 8.37% for each year of the biennium. The Legislature cut the increase to 6.5% in FY 2010 and 6.8% in FY 2011. The result is that the ERS health plan faces a shortfall of about $154 million by 2011. There are two possibilities: 1. Get increased state funding, 2. Increase employee out-of-pocket costs. This decision will probably have to made by May, and what ever changes are made would probably go into effect in September. So far legislative leaders have refused to discuss additional funds for ERS. . . . The most likely changes are increases in co-pays (specialist doctor visits have been mentioned) and deductible, and increases in some pharmacy costs. Increases in out-of-pocket costs, in a year when both active employees and retirees are squeezed by stagnant pay and pensions and by the recession, would produce serious hardships. The blow would fall hardest on employees at the low end of the salary scale, and on retirees from low-paid state jobs. ERS retirees have not had a pension increase since 2001, and active employees’ pay is now over 20% behind increases in the cost of living since 1988. Many thousands of university employees (all except the UT and A&M systems) also get ERS health care: they are even further behind because they have been cut off from statewide pay raises since 2003. ERS should ask for the money . . . While ERS officials have probably been warned not to embarrass state leaders by asking for the money, they should ask anyway. The Texas Legislature – especially its leadership – created this problem. They should not try to pass the buck and make ERS look like the bad guy. Let’s ask for the money and let the folks who control the money say “no” in public where everyone can hear it. TSEU says: find the money . . . With ROC caucus members leading the way, TSEU members have launched a campaign to push for state funding to cover the gap. The Legislative Budget Board must approve any state funding changes between sessions of the Texas Legislature. Since funding has to be approved by next Summer, it is up to the LBB. Members are calling our legislators – representatives and senators – and asking them to contact the LBB and push them to approve the needed state funding. More cuts in 2011? . . . Even while leaders in the Legislature force health plan cuts this year by withholding funding, rumors are swirling that some legislators will push for more plans when the Legislature meets in 2011.