Gov's 60-40 Healthcare Split Moves Forward

Gov. Neil Abercrombie may not be too popular with government workers in light of last week's outcry over potential healthcare cuts for retirees. But he appears to be making good on one of his first big spending decisions since taking office: covering a bigger share of public employees' health benefits.

In one of his earliest proposals right before Christmas, Abercrombie signed off on an agreement [pdf] with the four labor unions covering state workers to increase the state's share of health premiums from a 50-50 split to 60-40. The move is expected to cost $18 million this year to cover the period from March 1-June 30, and another $54 million in both 2012 and 2013.

The Dec. 23 agreement went mostly unnoticed until it came to light at informational budget briefings, where the administration asked for the money via an emergency appropriation. Some lawmakers said it was the first time they had heard about the plan.

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