I’ve been going to Illinois Statehouse committee hearings longer than I care to remember - something like 27 years. Last week, however, was the first time I can ever recall having to fight back tears during a hearing.
The House Appropriations - General Services Committee heard testimony last week from Kenea Williams, a state employee who works at the Murray Developmental Center in Centralia. She has fifteen-month-old twins named Kobe and Kade. They were born premature and Kobe has something called broncho pulmonary displasia. His little lungs are scarred and he requires supplemental oxygen just to live.
Long story short, the company that supplied the oxygen tanks for Kobe dropped out of the state’s group health insurance system because the state isn’t paying its bills during our long governmental impasse and they wanted their equipment back. Ms. Williams testified last week that Reps. John Cavaletto (R-Salem) and Charles Meier (R-Okawville) helped convince the company to continue supplying oxygen equipment to Kobe until this July.
But for whatever reason, company execs changed their minds and they sent some employees to retrieve the equipment in January. When a frightened Williams refused to answer her door, the employees apparently called the local county sheriff. Two sheriff’s deputies arrived, listened to the desperate mom tearfully plead her case and thankfully decided not to intervene. Ms. Williams has since found a new supplier for a home oxygen system.
So, think about this for a second. The state is deducting health insurance premiums out of Ms. Williams’ paychecks twice a month without fail. But there is no state appropriation for group health insurance in this fiscal year’s horribly inadequate stopgap budget, so lots of state vendors aren’t getting paid. The bill payment cycle for some of these insurance plans is currently about two years, so providers, like the company which supplied the oxygen tanks for Kobe, are understandably dropping out.
I’m told that the Illinois Department of Central Management Services played a very big role in finding another oxygen tank supplier for that little baby, who was also at the hearing last week with an oxygen tank and a tube taped under his little nose. Many kudos to everyone who helped keep that child alive, including those sheriff’s deputies.
But, people, c’mon. This story, while it currently has a happy ending, is just so beyond the pale.
If a private sector company withheld insurance payments from workers and didn’t pay the money it owed to the insurance provider, the state would clamp down super hard on that employer. But Illinois doesn’t even bother paying its end, and, in fact, the state hasn’t fully funded that insurance program in years.
This is basically fraud.
Others testified at the committee last week that some dentists are demanding payment up front from state employees. So, the patients are paying for insurance, but they can’t get treatment unless they pay in advance and then, presumably sometime down the road, the insurance company will reimburse them once the companies get paid by the state. A lobbyist for the Illinois State Dental Society recently told legislators that the state owes 9,000 dentists a total of $174 million.
Let’s just hope heart and cancer surgeons don’t start making patients pay in advance.
Legislators are basically doing the same thing to the worker health insurance fund that they used to do to the pension funds. They promise good benefits at a very reasonable cost to the employee, but then don’t provide nearly enough state funding needed to make the payouts.
Only, with the healthcare fund, it’s worse. The pension funds have always had enough cushion in them to forestall an immediate meltdown. They could pay retirees without any money from the state for a while.
But the health insurance fund has a $3.5 billion negative balance. And that deficit will only continue to grow because the only money currently going into the fund is from state employee payroll deductions.
“I pay my premiums,” Ms. Williams told the House committee last week. “I do my part. Now I feel like the state needs to do their part. They need to pay their bills.”
So, how about the governor and the General Assembly get a real budget deal done before we, as a state, collectively kill a supposedly fully insured baby? Is that really all that much to ask?
- OurMagician - Monday, Mar 27, 17 @ 9:07 am:
I have no idea how a legislator on either side of the aisle could hear that and not realize it’s time to do your job rather than continually worry about protecting your own part time job for the next election.
- Captain Illini - Monday, Mar 27, 17 @ 9:10 am:
Gee Rich, what a novel idea…using collected premiums to actually pay for the services they were intended. Like the same should be done with, oh, I don’t know…pension funds that are automatically pulled from every employee’s paycheck, and supplemental insurance funds that some have taken out.
Looks like the only deadbeats in the room are those whom say they are governing. The old saying, “lead, follow or get out of the way”…well it looks like the entire legislature and Governor’s office are flat against the wall sort of like the parting of the Red Sea waiting for it to crash down on them…pathetic.
- CCP Hostage - Monday, Mar 27, 17 @ 9:11 am:
I’m going to do my best to refrain from hyperbole, but it’s hard. Three more providers for the Community Care Program, which provides care to prevent seniors from entering nursing homes, announced closures for the end of this month and for June. There’s no replacement provider for one of them for sure, so those folks are at risk. One of the programs is huge–the adult day program can’t be assumed by others and I’m hearing the majority of those people will enter nursing homes. I get accused of not assigning blame where it belong every time I post here. But, I am so far beyond blame at this point. If it’s Rauner’s job, make him own it. Send him a budget and make him veto it. If it’s the General Assembly’s job, send them a real budget and make them work on it. But end this mess before people other than providers get hurt. We providers have been financing this political argument for the sake of the people we serve for the duration and we’re literally out of money and resources. If anyone in state government wants to prevent more stories like the one above, now is the time. May 31 is too late.
- Anonymous - Monday, Mar 27, 17 @ 9:13 am:
“Change is hard” sayth the Governor.
- AnonymousOne - Monday, Mar 27, 17 @ 9:17 am:
Horrible story but probaby only one of many more out there.
The pay-up-front issue has been happening for a while. Friend in TRIP (Teachers Retirement Insurance Program) has not only had to pay up front (and thankfully can afford to do so) and wait for reimbursement but has been dropped because doctors don’t want to deal with non payment from the state. When you have a chronic serious disease, and you have to scramble for medical care, driving through the state, something is very sick about our values. Stating the obvious but it seems some of this information should be broadcast on a national level for others to see what is happening to the fine people of this state. Let our government be proud of their stance about serving their citizens.
- Henry Francis - Monday, Mar 27, 17 @ 9:19 am:
Are we competitive yet?
- Not Happy - Monday, Mar 27, 17 @ 9:22 am:
I’m a state employee….this could be called fraud as Rich writes in his headline. Or it could be called theft. The state is taking my money…and refusing to honor it’s end of the “contract.” I guess it could also be called “getting screwed.”
- Thoughts Matter - Monday, Mar 27, 17 @ 9:23 am:
I also remember the Governor making a comment about leveraging a crisis to create opportunity. I don’t remember his exact wording. I do know I have not seen one public statement from him to or about this employee and her situation.
It is fraud. It’s also unfathomabke.
- in absentia - Monday, Mar 27, 17 @ 9:27 am:
My 80-year old mother (annuitant) paid her dentist $3000 in advance of procedures that were done only to wait 2 years for partial insurance payment (minus deductible, etc.). Calling the state for payment updates upset her to tears on more than one occasion. It’s out of control.
- Gruntled University Employee - Monday, Mar 27, 17 @ 9:28 am:
Thoughts Matter, here is the quote.
“In Illinois there’s been a long-time history of what I would call social service, social justice, a bigger role for government in the safety net than in many other states,” Rauner said at a tax policy conference sponsored by the George W. Bush Institute. “I think we can drive a wedge issue in the Democratic Party on that topic and bring the folks who say, ‘You know what? For our tax dollars, I’d rather help the disadvantaged, the handicapped, the elderly, the children in poverty. I’d rather have my tax dollars going to that than the SEIU or Af-scammy, who are out there for their own interests.’”
- AnonymousOne - Monday, Mar 27, 17 @ 9:28 am:
Yes, so real people are suffering and getting hurt by our government. Fraud, theft. Is there some legal action to take about this?
- Flynn's mom - Monday, Mar 27, 17 @ 9:31 am:
It’s a disgrace and everyone involved should be ashamed of themselves. It’s a first class sham.
- blue dog dem - Monday, Mar 27, 17 @ 9:33 am:
I can’t believe MJM thinks that bad work comp rules are worth hanging on to for this kind of pain and suffering. I can’t believe that Rauner thinks getting rid of prevailing wage is worth hanging on to for this kind of pain and suffering. Grow up boys. You are each going to have to give up something.
- Illinois Mom - Monday, Mar 27, 17 @ 9:40 am:
Thank you Rich for helping bring this FRAUD to the forefront… this very situation concerning our state employee health insurance is my #1 fear about this whole budget mess… Why? Because I’ve lived it. This is real, folks, it CAN happen…
Years ago, my husband’s steel company in the Metro East went bankrupt, I heard it on the state radio network on my way to work one morning. We knew things were bad but didn’t realize HOW bad. My son had $20k ear surgery one month before, we were pre-certified by the HMO to proceed with it as we had no reason to believe we were no longer covered by my husband’s policy through his employer. However, a few weeks later, we were gifted with all the hospital/doctor bills as we discovered the company had not been paying the premiums and WE HAD NO COVERAGE. NONE. ZIP. NADA.
I tried to pursue every avenue I could; reached out to his union, legislators I knew from my years in state government, as well as members of Congress - all gave the same “gee, I really feel sorry for you people” response.
Ended up in bankruptcy court to save my house.
This stuff happens, people! We are being robbed by our own government with no end in sight. I guess I’m fortunate that my kids are raised and I only have myself to worry about now. I go to work, pay taxes AND my insurance premiums… I’m doing all I can but the Powers That Be are not!!
- University Employee - Monday, Mar 27, 17 @ 9:40 am:
We’ve already shelled out over 2K for a dentist. My wife has a growth on her body that needed to be looked it. However the doctors in the area, who are in the plan, all want payment up front. $150 for the visit, $300-$400 to remove it, and then the lab fees to get it tested for cancer. Woman on the phone said to be prepared to pay around $800 for the visit. So you know what she did about a week ago? She numbed it with ice and then took a razor blade and cut it off. We didn’t have $800 for the visit. I’m the only income within the family, not paid tons of money like people things state employees are, and haven’t received a raise in 6 years. Yet every month they take my health care out of my paycheck for my family of 4. This state is the worst. I only have 5 years left until I can retire, and I’ll never step foot in this state again.
- Quiet Sage - Monday, Mar 27, 17 @ 9:45 am:
The state’s failure to enact a budget is inexcusable but even given this, the company’s actions in calling the sheriff to disconnect a baby’s oxygen machine is disgusting and should be criminal. The company should have been required to immediately find an alternative supplier so that the baby could receive oxygen without interruption.
- Smitty Irving - Monday, Mar 27, 17 @ 9:52 am:
blue dog dem -
The “bad work comp rules” such as Indiana, limit permanent disability to 10 years. After that, regardless of age, you could end up on welfare.
- CCP Hostage - Monday, Mar 27, 17 @ 9:57 am:
Quiet Sage, we companies are running out of resources. I am not in the type of business where I will have to repossess life saving medical equipment, thank God and I don’t envy those that are. But I do have landlords, caterers, utility companies, tax burdens, insurance companies, vehicle payments, etc. that are not paid. They will be coming for my business soon and understandably–they never agreed to finance this impasse. But when they come, seniors will go hungry, will get sick, will go to the emergency room, and will enter nursing homes. And it’s not my vendors’ fault.
- blue dog dem - Monday, Mar 27, 17 @ 10:02 am:
Smitty. We don’t have to follow Indiana to have realistic WC.
- Earnest - Monday, Mar 27, 17 @ 10:05 am:
The column makes me feel not so much outraged as ashamed. I continue to believe a stable, balanced budget is the best thing we can do for our economic climate. I believe that paying our debts, including the skipped pension payments, is a moral obligation. I vote in accordance with those believes and I contact my legislators at least a couple of times a year to share my positions. It’s not enough. Even so, I’d like to blame others, particularly editorial boards for chasing the rabbit of legislator pay down the hole.
- wordslinger - Monday, Mar 27, 17 @ 10:06 am:
There’s a perfectly reasonable explanation for taking the lady’s money for insurance, not providing the coverage and putting her child’s life in danger.
Reform. Shake it up. Grow the economy. Job creators get excited. No social agenda.
There. Feel better?
- wordslinger - Monday, Mar 27, 17 @ 10:10 am:
Blue Dog, what does WC legislation have to do with stealing Ms. Williams money and putting her child’s life at risk? How are they connected?
They’re not. It’s a grift.
- Smitty Irving - Monday, Mar 27, 17 @ 10:12 am:
blue dog dem -
What is “unrealistic” about IL WC?
- illinoised - Monday, Mar 27, 17 @ 10:15 am:
My doctor office put me on notice that soon I have to pay upfront, likely starting April 1. I will be retiring soon and have no idea whether or not some day the annuity payments will cease. I’ve paid my insurance premiums and I’ve worked hard in my university career, with verifiable accomplishments. Shame on our governor and our legislators. Had I performed as poorly, I would have been fired by now.
- Chicago_Downstater - Monday, Mar 27, 17 @ 10:17 am:
I don’t have anything constructive to add. I just felt the need to say I’m so sorry for anyone going through this.
Rich is right. This is fraud. And it is unacceptable.
- blue dog dem - Monday, Mar 27, 17 @ 10:23 am:
Word. My angst is at Rauner and his Koch Bros agenda for not reaching a budget compromise. But, it looks like somethinngs gotta give by Dems, and since Illinois WC, in my experience as a manufacture, has flaws in its causation standards, think this is something Dems should give in on. I know its a stretch, but then maybe we can get this fiscsl conservative to start paying bills. State employees insurance being one of them. Capiche?
- Precinct Captain - Monday, Mar 27, 17 @ 10:23 am:
Bust Out Bruce knows all about perpetrating a fraud.
- il annoyed - Monday, Mar 27, 17 @ 10:26 am:
Thanks rich miller for writing this story. It doesn’t seem like tales of budget backlogs told in numbers move enough voters or legislators, but it’s harder to ignore the real pain people are feeling.
- Anonime - Monday, Mar 27, 17 @ 10:28 am:
One of the problems is that all state health insurance is really ’self insured’ rather than paying actual premiums to an insurance company. maybe that would have forced the state to pay the premiums rather than using the money withheld from the paychecks for other purposes.
- Liandro - Monday, Mar 27, 17 @ 10:35 am:
Dysfunction has real victims. People can fall through the cracks even when things are running normally; it’s impossible to imagine all that’s happening right now.
- Leave a Light on George - Monday, Mar 27, 17 @ 10:50 am:
Got an EOB in the mail last week for a visit I made to the dentist two years ago. He was just paid.
- Cubs in '16 - Monday, Mar 27, 17 @ 10:52 am:
@blue dog dem
Your argument assumes this Governor WANTS a budget. He doesn’t. When negotiating he continually moves the goalposts. He won’t agree to anything unless Dems capitulate to his union-busting demands, period.
- illini - Monday, Mar 27, 17 @ 10:57 am:
Third attempt to post -
Excellent column once again Rich. As was your post last week and the original post early in February.
I don’t care if you or your members of the GA are Democrats or Republicans these stories, heartbreaking and disturbing as they are, are going to be repeated and reported more and more. And this is unacceptable for so may reasons - many being and having been stated on this site.
Yet, I am equally dismayed that most of the media in this state have totally ignored this story that was originally reported by a St. Louis TV station. I do read, or at least check the leads of online newspapers in south and central Illinois and have not noticed this tragedy being reported.
Just a bit of unsolicited advice - rather than expressing your outrage and sending your story to those of us on this site, share all of this with your member of the GA and tell them “I’m mad as hell and I’m not taking this any more” ( apologies to the movie Network if I got the quote wrong ).
Hold all our elected state officials accountable and help make sure these horror stories are not repeated many more times and perhaps without the reasonably acceptable outcome that we have had in this incident. We deserve better.
- blue dog dem - Monday, Mar 27, 17 @ 10:57 am:
Cubbie. you will get no argument from me. I am just pretnding that good government best practices are in place.
- wordslinger - Monday, Mar 27, 17 @ 11:04 am:
Liandro, this isn’t dysfunction. It’s a transparent political strategy working predictably as planned.
The great victory to date for Rauner has been that some of the people, all of the time, apparently believe that it’s reasonable and legitimate for the governor to use his power to renege on contracts in pursuit of an unrelated political agenda.
And that’s just the public rationale that the governor cops to. But that really doesnt make sense, given the dreadful cost.
Personally, I believe squeeze the beast is the real objective in and of itself. Getting something for nothing, willful deadbeatism, that makes sense.
What’s the over/under on what those owed $13B and counting will ever see? 30%? 40%? And that’s assuming s heavy lift that’s not even forseeable at this point.
Some people do business that way. They’re called grifters.
- CCP Hostage - Monday, Mar 27, 17 @ 11:09 am:
We share our stories, call our legislators, meet with legislators, meet with Governor’s staff, meet with Aging and they all either express chagrin or deny that the current closures have anything to do with the impasse. I am not a mind reader, so I won’t say that no one cares and some indeed do say that they do. But I can unequivocally say that no one cares enough to actually pass a budget. We send out press releases and call the media. Little is published or disseminated. So I call all parties out publicly in this forum. This is the only one that will print my opinion, so thanks, Rich for that.
- Cassandra - Monday, Mar 27, 17 @ 11:32 am:
Our legislators care, but they care more about hanging onto their seats, unless they have other plans, which it seems few do. Putting one’s name on a hefty income tax increase, or even some cuts, is apparently seen by many if not most as just too risky. So they are waiting for Superman, in this case, a judge, a court, to order up this and that disbursement of funds and in effect make all the tough decisions so the legislators don’t have to.
- Anonymous - Monday, Mar 27, 17 @ 11:36 am:
“Illinois Department of Central Management Services played a very big role in finding another oxygen tank supplier for that little baby, w…”
Keep in Mind, CMS is now Doit, and they report to the Governor..
AND SINCE MENDOZA STARTED, her vehement dislike of the Governor, and HER FEELING for CMS’s invoices, vouched, appropriated or not, she IS NOT PAYING!
“But the health insurance fund has a $3.5 billion negative balance…”
Keep in mind, all private sector people, have had to make ENORMAS contribution increases to their health care costs, at the same time, public employees need to probably pay higher into theirs, along with, the years of budgeting moneys not contributed by the State:
“But the health insurance fund has a $3.5 billion negative balance. And that deficit will only continue to grow….”
Until the legislators go to work and bring a BILL TO THE FLOOR FOR A VOTE,
But they do not.
- Anonymous - Monday, Mar 27, 17 @ 11:38 am:
Vendors- al of them have for going into 3 years now executed products and services to the State based on when they might get paid, and nooooow,, MENDOZA is not paying vendors. Because of how she feels… Where there are actual APPROPRIATIONS TO DO SO.
MJM has everyone by the you know what for failure to bring a budget to the floor.
Not Rauner.
Rauner was elected to clean up the thievery.
- The Real Just Me - Monday, Mar 27, 17 @ 11:46 am:
Blue dog dem, please read SB 12, especially SA#3, part of the Grand Bargain, and tell me why that is not a significant “give” by dems regarding WC. And I know SB 12 is not Madigan’s bill, but the Governor has said that it is not enough any way because that is what the Manufacturers and the Chamber have told him to say. “Create more leverage, like endangering a poor baby’s health, and maybe we get more and better WC reform. More WC reform and you can have your oxygen tank, baby.” Disgusting.
- Anonymous - Monday, Mar 27, 17 @ 11:47 am:
Until the legislators VOTE not a thing will change,
It is not about how we all FEEL. As tragic as things are. It is about what IS and WHAT is NOT appropriated to PAY.
And what the LEGISLATORS have not APPROPRIATED this or that, it can not be paid.
- Dan Johnson - Monday, Mar 27, 17 @ 11:48 am:
If we don’t raise taxes back to where they were under Quinn (and then some to make up for all the interest), there is no budget.
- Illinois O'Malley - Monday, Mar 27, 17 @ 11:50 am:
@Rich and all, how does this surprise anyone? This is exactly what Rauner wants, break the masses until they agree to his demands. And @everybody- please drop the MJM fight and replace with Rags and Cullerton, or did we all forgot Bruce tubed the SENATE grand bargain.
- illini - Monday, Mar 27, 17 @ 11:51 am:
“Rauner was elected to clean up the thievery.”
“THIS IS A MENDOZA issue, not the GOVERNOR”
Oh, don’t you have to love some of our wise contemporaries!
Yet, a 15 month old child of a state employee is “Dying to Breathe”
- wordslinger - Monday, Mar 27, 17 @ 11:54 am:
Geez, anon, judging by your stream of loony, the governor is having a tough time finding competent trolls,
- blue dog dem - Monday, Mar 27, 17 @ 12:20 pm:
The real just me. It doesn’t look to me that S12-3A addresses Causation in a manner which takes employers off the hook enough to warrant meaningful WC cost savings. The whole SB12 looks more band aid like. A tourniquet is reqd.
- CampyH - Monday, Mar 27, 17 @ 12:25 pm:
==Geez, anon, judging by your stream of loony, the governor is having a tough time finding competent trolls, ==
No kiddin’ sling. The forgetful trolls *forget* GA passing and Rauner vetoing last year’s budget.
If you don’t want a budget, you don’t want a budget.
- Honeybear - Monday, Mar 27, 17 @ 12:26 pm:
It’s is as, I believe Word used to say, malignant callousness
- illini - Monday, Mar 27, 17 @ 12:43 pm:
@CCP - perhaps I should have not have appeared dismissive of those on this site in suggesting that they are not sharing their stories and passion when it comes to these issues.
Case in point, after the story originally appeared on this site on February 10, I composed a carefully worded, but pointed, email regarding the story.
I sent it to my 2 Republican members of the GA, as well as 8 other downstate Republicans and 2 Democrats.
I did get responses from the 2 Democrats. Yet, not a single Republican, had the courtesy to even acknowledge receipt of my email and give me the perfunctory “I understand but it’s not my fault” response. This silence tells me a lot.
- RNUG - Monday, Mar 27, 17 @ 1:21 pm:
== Legislators are basically doing the same thing to the worker health insurance fund that they used to do to the pension funds. … ==
At the risk of repeating other comments …
First, the State has been shorting their share of the health insurance as long as I can remember; the shortage percentage was just smaller years ago.
As Rich points out, the State is collecting the premiums from employees but can’t pay the companies or providers because no appropriation exists.
With the pensions, the State was at least honest / ethical / scrupulous enough that the employee contribution was always placed in the proper pension fund. They often shorted the State’s pension contribution, but even when it was the State paying, the employee portion went where it was supposed to. Wonder if that had anything to do with the facts the federal IRS would have been all over them if they didn’t?
Back to health insurance. I have one question: are the employee contributions bring, in effect, escrowed … or is that cash being diverted and used for other State needs? If that cash (yes, I know it is fungible) is not being at least escrowed, I would think some law is being broken and the State could be sued for it.
- RNUG - Monday, Mar 27, 17 @ 1:23 pm:
== One of the problems is that all state health insurance is really ’self insured’ rather than paying actual premiums to an insurance company. ==
I believe that “self insured” only applies to the CIGNA administered Quality Care program. The rest of the HMO / PPO / MA plans are true insurance plans where the State does pay premiums to those companies.
- Mama - Monday, Mar 27, 17 @ 1:25 pm:
Rauner has always planned to stop health insurance benefits for state employees.
What I want to know is, where is the insurance premiums the employees are paying? Where is that money being spent?
- Anon221 - Monday, Mar 27, 17 @ 1:48 pm:
Paging Comptroller Mendoza- both RNUG and Mama make good points. Perhaps your office could do some digging. Where are the employees’ share of the health insurance premium dollars being stashed? And, BTW, it would be nice if some media would ask this over and over and over again of Rauner at presser after presser after presser.
- AnonymousOne - Monday, Mar 27, 17 @ 2:13 pm:
Since, as workers, all we hear about it accountability, I have to wonder if anyone in our government is accountable to anyone for anything? They can dish it out but can’t take it apparently. Please don’t say vote them out. Four years of our governor’s term is plunging our state into the abyss and I have to wonder how it can ever be made right again. Why does everyone just have to put up with this carnage?
- The Real Just Me - Monday, Mar 27, 17 @ 3:02 pm:
Blue dog, SB12 contains real WC cost savings that have been “scored” by the official rating agency. As I understand it, that same rating agency is unable to “score” causation; in fact there is some argument that in the short-term , causation increases WC costs by encouraging litigation. The problem is no matter what the “score,” there is no evidence that should lead anyone to believe that the WC insurance companies will reduce premiums. They haven’t in 5 years as loss costs plummeted. And if premiums aren’t reduced, 99% of IL employers see no benefit from WC reform.
- Cubs in '16 - Monday, Mar 27, 17 @ 3:27 pm:
===Where are the employees’ share of the health insurance premium dollars being stashed? ===
Someone commented on a CF post last week that employee’s deductions are the only source of money being used to pay vendors. It’s a very small percentage of the overall costs which is the reason for the huge bill backlog.
- Anonymous - Monday, Mar 27, 17 @ 7:14 pm:
You know ‘blue dog dem’ is just another name for segregationist.
- Arthur Andersen - Monday, Mar 27, 17 @ 9:29 pm:
RNUG, following the passage of the 1994 pension law, famous for the Edgar Ramp, if the GA failed for any reason to pay the pensions the full certified contribution, all they had to do was voucher the difference and the Comptroller had no discretion-pay the bill.
Never an issue until Filan looked at pensions as his favorite piggy banks, changed the law to stiff $200m in FY06/07, extended the ramp to FY16, used $2.3 billion of bond proceeds to pay FY03/04 contributions, and other little tweaks to the program like that.
Since then, there have been some months where the State’s cash flow was not sufficient to make the entire monthly nut, but by agreement with the funds and Comptroller going back to Hynes, no action was taken as long as everything was “caught up” by the end of the fiscal year.
Going to be interesting to watch the next fiscal year.
- Living it daily - Monday, Mar 27, 17 @ 10:05 pm:
BVR has hired all the reporters to be in his superstar club, there is no one left to put it to print, or would dare put it to print.
- ejpp - Monday, Mar 27, 17 @ 11:31 pm:
Back to health insurance. I have one question: are the employee contributions bring, in effect, escrowed … or is that cash being diverted and used for other State needs? If that cash (yes, I know it is fungible) is not being at least escrowed, I would think some law is being broken and the State could be sued for it.
Also ATTENTION Lisa is this being looked into?
- blue dog dem - Tuesday, Mar 28, 17 @ 3:45 am:
Fiscal conservative, social issue neutral, gun lover. Buy America, buy union.,buy local. Protect enviroment,.
- Generic Drone - Tuesday, Mar 28, 17 @ 7:15 am:
I pay for additional life insurance thru the state. It states I have coverage as long as I am employed with the state. But I have to wonder since if the state is paying them, and if not, am I covered at all anymore?
- Anonymous - Tuesday, Mar 28, 17 @ 7:17 am:
This never happened until the election of Bruce Rauner.
Is this part of his plan to break the union, as well as, reduce the number of state employees?
Is this a way to cull state employees?
- Late to the Party - Tuesday, Mar 28, 17 @ 7:21 am:
Yes, the problem (late payments) is because Quality Care/CIGNA is elf-insured. *Real* insurance companies have a time limit in which to pay (90 days) but that does not apply to self-insured entities. Secondly, no matter what medical insurance one has the patient is ultimately responsible for payment.
- Rich Miller - Tuesday, Mar 28, 17 @ 8:42 am:
===This never happened until the election of Bruce Rauner===
Not true.
- Generic Drone - Tuesday, Mar 28, 17 @ 12:46 pm:
Plus they want to increase premiums on employees while never intending to pay the bill. They should not be allowed to raise any costs to employees until they show that they are paying the costs.