Gov. John Carney on Tuesday vetoed a bill that would put retirees on the State Employee Benefits Committee.
Gov. John Carney on Tuesday vetoed a bill to restructure the state committee that tried to move state retirees from a rich health plan to a Medicare Advantage one to save money.
House Bill 282, sponsored by Rep. Paul Baumbach, D-Newark, is one of several that grew out of a year’s worth of committee hearings.
It promised to revise the membership, structure and procedures of the State Employee Benefits Committee to increase transparency and accountability.
“I am disappointed that the governor has vetoed House Bill 282, a bill of such importance to our retirees and current employees, and a bill that unanimously passed in both chambers,” Baumbach said in a statement he issued Tuesday evening.
“I will be in communication with House leadership to determine next steps in the best interest of our state,” he said.
Benefits & retirees
The Benefits Committee moved in 2022 to switch retirees to Medicare Advantage to help stem the rising costs of healthcare.
That set off a huge revolt by retirees that led to the committee hearings who accused the state of making the move in secret, even though it did not and was known across state government.
One of the big concerns was that committee members didn’t always attend the meetings, but instead sent someone in their place so the information wasn’t getting to the right people.
Ultimately a court ruling said the state couldn’t push retirees into Medicare Advantage because it violated what the retirees had been promised.
HB 282 sought to thwart any future attempts to change retiree healthcare by requiring the Speaker of the House and the Senate Pro Tempore to appoint retirees to the committee.
“It’s important to understand that this veto will leave our state employees and retirees haunted by the fear of the next surprise cut to their retiree benefits,” Baumbach said.
The changes would address longstanding concerns, both from retirees and current employees, about the visibility and makeup of the committee, said Baumbach, who is not running for re-election.
“With several bills this year and last year, the legislature has collaborated with the governor to fully address the issues he raised in his opposition to the bill,” he said. “However, we must acknowledge that there is an underlying operational problem within the SEBC.”
