Kentucky state employees and retirees are pushing back against a provision in the Kentucky General Assembly’s proposed state budget that would cap the state’s contribution to workers’ health insurance plans. They warn the move could sharply raise costs for more than 310,000 public employees, retirees, and their families.
The group launched what it calls the “Scrap the Cap” campaign, urging lawmakers to reject any state budget that shifts health insurance costs onto workers and retirees. The campaign also asks lawmakers to publicly commit to opposing any such proposal.
Kentucky’s Kentucky Personnel Cabinet has cautioned lawmakers that the proposed cap could drive employee premiums up by 78%.
Joel Wolford, president of the Kentucky Education Association, described what workers and retirees might face if lawmakers enact the cap.
“Higher premiums, higher deductibles, higher co-pays, gutted benefits, lost prescription drug coverage,” Wolford said.
The Kentucky Education Association estimates that a rank-three teacher in the state would lose $486 per month under the cap — nearly $5,800 annually.
“It would not only increase their premiums, which is money straight out of your pocket. But they might be forced to choose a plan with less benefits. There will be some drugs that are excluded,” Wolford said.
Organizations representing state retirees say the impact would hit especially hard for those living on fixed incomes.
“Recent retirees and people about to retire are saying ‘This is going to eat up most of what I get in retirement, just in premiums,’” Jim Carroll of Kentucky Government Retirees said.
Some lawmakers have already voiced concerns about the proposed cap in the budget. The Scrap the Cap campaign aims to formally put those lawmakers on the record.
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