27 September 2005

Sebelius: Commitment to health care leads to savings for employees
Governor announces state employees to pay less for family health coverage

Making the state health plan more efficient has led to significant savings for employees and their families, Governor Kathleen Sebelius announced today. This means employees will pay less for family health coverage, more children will receive health care, and for the first time employees can choose to establish a Health Savings Account.

“We’re dedicated to promoting good health in Kansas, and that starts with the people who work for us. Healthy workers are more productive, and can do a better job of serving Kansans. Plus, a healthy workforce today will result in lower health care costs down the road,” Governor Sebelius said.

Under the 2006 health plan, the state’s contribution for dependents will increase from 35% to an average of 45%. This will mean a savings of up to $90 a month for state employees who have coverage for family members.

In addition, the premium most employees pay, even those with single coverage, will be lower, thanks to the state’s negotiating power and efficient operation of the plan.

“Every Kansas business tries to reduce the cost of health insurance. We’re working hard on ways to reduce administrative costs, which eat up nearly one-third of every health care dollar. Money needs to go to patient care, not paper work,” Governor Sebelius said.

Kansas will also implement a pilot project to help cover health insurance costs for those children of state employees who would otherwise be eligible for HealthWave. Sebelius has pushed for just such a project since serving as Kansas Insurance Commissioner.

“It only makes sense to help kids grow up healthy. Healthy children do better in school and in life. They go on to live more productive lives, and that helps Kansas to grow and prosper,” said Governor Sebelius.

For the first time, employees can opt to start a Health Savings Account, which allows them more control over their health care decisions. These accounts are linked to a high deductible health plan and encourage pre-tax savings for future health expenses.

“Health Savings Accounts can help individuals control their health care spending. They’re a useful addition to existing health coverage options,” Sebelius said.