Proposed pay raise would not cover some employees increased healthcare costs

Despite a proposed $1,450 across-the-board pay raise, money will still be tight for state employees as a result of last fall's increased health care costs.

UA employees are complaining to human resources about receiving less than adequate health care, higher rates, more expensive prescriptions and higher co-pays.

"There is no way the pay raise can do anything but cancel out the health insurance increases," said A.J. Timothy Jull, senior research scientist. "Medical care is expensive now."

The increase in rates is the result of a statewide switch in health care providers last October.

State employees were previously able to choose between four different providers and several different plans - but must now use CIGNA health insurance and choose between three plans - said Marcia Chatalas, director of compensation and benefits for human resources.

Depending on where state employees live and the plans they choose, rates could stay the same or go up by as much as $175 a month, which would exceed the planned pay raise by more than $600.

Prescriptions also cost up to $35 more. Co-pays increased as did deductibles.

As of last fall, the lowest-cost HMO premium for individuals increased by $20, and the lowest-cost premium for families increased by $50.

"There have been complaints," said Nick Groesser, executive assistant of human resources. "But a lot of work went into choosing CIGNA as the provider for state employees."

For many employees, health insurance costs are more this year than most employees received in raises last year, Jull said.

Despite employee concern, University of Arizona administrators have not indicated that health care rates will increase next year, Chatalas said.

A state appointed committee, composed of employees from Arizona State University, Northern Arizona University, UA and other major state agencies, recommended the change to one health care provider last fall.

The committee chose CIGNA because it was the only provider at a reasonable cost for employees and families in the state - including rural areas.

No provider or combination of providers offered a cost-effective program that could be used for more than 150,000 employees in the state.

According to data from the Arizona Department of Administration and the Arizona Department of Insurance, CIGNA had the lowest complaint-to-employee ratio and the lowest number of appeals than the other four companies considered by the committee.

The human resources expects CIGNA to give the human resources department some indication of next year's rates in the near future, Chatalas said.

Gov. Jane Dee Hull is expected to sign the pay raise package into law by the end of this week.