Costs higher in new health care deal

By Adam Wilson | The Olympian • Published July 14, 2008

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Although overall costs will go up, state workers will pick up the same share of their health insurance costs under an agreement reached by unions last week.

A coalition of state employee unions settled on keeping the 12 percent-88 percent split between worker and employer costs in a single day of talks with Gov. Chris Gregoire's negotiation team.

The total cost of health insurance for workers covered by the Public Employees Benefits Board is expected to go up 8 percent, or $123 million, next year.

Monthly premiums for the average worker's 12 percent share will go up by $12 to $91, according to the board.

That percentage share has been in place during the two most recent two-year contracts with the governor. And it has been expanded to all state workers.

"That's never a given," said Tim Welch, a spokesman for the Washington Federation of State Employees.

In addition to keeping the split, the unions agreed to a contract clause that requires any unexpected savings in health care costs to be funneled back into wellness programs for employees.

"We really hope that creates a kind of cycle. Costs are down, and the money goes toward things that keep costs down," Welch said. "This is one way of benefiting state employees, rewarding them, for smart health and wellness decisions."

The speed of the talks on health care were not a surprise because negotiations have been going well, said Diane Leigh, head of the governor's team.

"It is a truly professional and cordial atmosphere at both our higher education and general government," said Lou Baker, director of contract administration for the Washington Public Employees Association.

Talks are going faster this year than the last round of bargaining in 2006 because of the even tone on both sides, he said.

With health care down and many of the workplace condition talks completed, some unions will move on to talk about pay raises this week.

Things might be tougher on that front than they were in the most recent contract talks, when unions won both cost-of-living adjustments and catch-up pay for many professionals whose private-sector counterparts are paid better.

A budget deficit is projected for 2009, and forecasts repeatedly have trimmed expectations for tax income.

"We understand that the economic forecast is certainly not rosy," WPEA President Greg Parker said. "At the same time, we're certainly not going to go the table and ask for nothing."

Each union must reach an agreement and present a ratified contract to the Governor's Office by Oct. 1 so it can be included in next year's budget proposal to the state Legislature.