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LINCOLN — Nebraska is one of 20 states suing the federal government to overturn the federal health care law.
But it’s also one of 16 states that have been approved to obtain part of a $5 billion pot, created as part of the overhaul, to reimburse the state and other employers for the costs of maintaining health insurance for early retirees.
A case of playing both sides of the health care issue?
Sure, but state leaders offered no apologies for that Tuesday.
Gov. Dave Heineman said he remains opposed to the federal health care law and believes an overwhelming majority of Nebraskans do, as well.
But it is the law of the land, and Heineman said that means weighing whether some of the 200 grant programs offered under the Affordable Care Act are worth seeking.
“Until the court deems this bill unconstitutional or a judge issues a temporary restraining order, states have an obligation to implement the federal law,” he said in a statement. “We will apply for the grants that make the most sense for Nebraska.”
A White House list released Tuesday includes more than a dozen employers, including the State of Nebraska and City of Omaha, that are among the first accepted in Nebraska for the health care law’s early retiree reinsurance program.
The program offers financial assistance to employers and unions to maintain coverage for early retirees, ages 55 and older, who are not eligible for Medicare until the health care overhaul is fully implemented in 2014.
A Metropolitan Utilities District analysis showed it could obtain up to $191,000 from the fund this year and $256,000 in 2011.
“Certainly that made it worth our while,” said John Hemschemeyer, MUD’s vice president of human resources, adding that it will save ratepayers money.
The State of Nebraska will obtain about $1 million in reimbursement for about 300 employees, and their families, who qualify, said Carlos Castillo, director of the Department of Administrative Services.
The state, like MUD, allows workers to retire as young as 55, but they must pay 100 percent of their health care premiums.
Castillo said the federal reinsurance program allows the state to recoup 80 percent of its costs on medical claims above $15,000 and below $90,000.
Since 1988, the share of large firms providing such retiree health care benefits dropped from 66 percent to 29 percent as costs have soared.
“This provision of the health care law will serve as a critical bridge to protect the health care of these Nebraskans until the new law is fully implemented,” said State Sen. Jeremy Nordquist of Omaha.
He said that although he was pleased the state sought the funds, it was “hypocritical” to seek repeal of the federal health law while taking advantage of its provisions.
Tuesday’s announcement came as the Nebraska Hospital Association staged a daylong conference on the impact of the health care overhaul on the state.
Generally, national and Nebraska officials concluded that it was too early to determine the effect of the law because hundreds of regulations that spell out the details have not been established, and funding for many of the grant programs involved remains to be approved.
“Frankly, there’s still not a lot that is known,” said Kerry Winterer, head of the Nebraska Health and Human Services Department.
One question among the 200 hospital administrators and health care officials at the conference was whether Heineman would apply for grants associated with the act. Heineman said decisions would be made case-by-case and those with “strings attached” or “unfunded mandates” would be rejected.
The state has applied for a $1 million grant to help review health insurance premiums but rejected help to administer a high-risk insurance pool, leaving that to the federal government.
Nationally, firms such as Levi Strauss, United Airlines, Kellogg Co. and Dow Chemical are taking advantage of the early retiree reimbursements. Those in Nebraska include Douglas County, Boys Town, Great Plains Communications, IBEW Local Union No. 22/NECA Health & Welfare Fund, Mutual of Omaha, NEBCO Inc. and the Nebraska Public Power District.
Contact the writer:
402-473-9584, paul.hammel@owh.com
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