Tuesday, November 10, 2009

Federal Health Legislation Moves Forward

Legislation for a national health care plan moved forward last Saturday night
(11/7/09)when the US House passed their version of reform.

Why is DSEA closely watching the national health care debate? We are hoping for meaningful reform of health care because our health benefits are in a precarious situation. Last year, education employees' health care premium increased 50%. With health care inflation running close to 9% a year, the increase may not be the last one we will experience. Moreover, because of new federal regulation, states must now account for the projected health costs of their retirees in something called, Other Post-Employment Benefits (OPEB). Delaware's OPEB liability is now over $5 billion. If the state ever gets truly serious about funding OPEB, we could see less money for everything else, in an age when there is already less money for everything else.

This blog will give an analysis of the House health bill tomorrow.

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