More than 60 employees of Douglas County and Douglas County School District are retiring this year, many in order to save money on health insurance.
Because of a bill passed by the 2007 Legislature, Senate Bill 544, the subsidized state retirement healthcare program known as the Public Employment Benefits Program will no longer be available to nonstate public employees.
Those who work for a local government like Douglas County could see a substantial increase in their health insurance rates in November.
"Douglas County has had three employees retire since Jan. 1 and anticipates an additional 14 will retire by the end of August, which we directly attribute to SB544," said Douglas County Human Resources Manager Darcy Worms.
East Fork Fire & Paramedic Districts Deputy Fire Chief Bobby Wartgow, 44, has spent 25 years with the county and said he couldn't risk losing affordable health insurance.
"The main reason I'm leaving is to take advantage of the PEBP medical change," he said. "It will no longer be an option for me next year."
Wartgow estimated that by retiring early, his health coverage would cost him $50 a month.
"The other option is to purchase health insurance privately, but you're going to see major rate changes, and your medical history is going to come into play," he said. "It could end up costing hundreds of dollars a month. Professionally, I'm not ready to retire, but my family and I couldn't pass up the health benefit."
Worms said Douglas County has always provided employees with options, to remain on the county's medical insurance plan without a premium subsidy, or to enroll with program. The only way Douglas County could keep the latter option open is if it enrolled all active employees in the state program and dropped its own plan. The question is whether the state's is better than other plans.
"We have a healthy self-funded insurance plan, and to quit that and join PEBP and make it our plan, doesn't make a lot of sense," said Holly Luna, Chief Financial Officer for the Douglas County School District. "A health insurance plan must be balanced, and PEBP is not. Growing liability has shifted the balance of the pool."
The school district is facing a larger exodus than the county. Since Jan. 1, at least 46 of its 950 employees have decided to retire.
"My understanding from human resources is that only 10 to 15 of those leaving are actually associated with the SB544 initiative," said Luna.
Luna said the district will cope with filling those positions.
"Every district in the same position is grappling with this a little bit," she said. "Overall, we are a competitive district. The hard-to-fill positions would be challenging without SB544."
Douglas High School government teacher Randy Green, 56, has spent 31 years with the school district.
"I knew that it was coming to a close, even though I'm still enjoying what I'm doing," he said. "But when they passed the bill last year, I couldn't justify staying."
Green is retiring at the end of year to meet the deadline for state coverage. He said as long as he is working, the district covers his health insurance premium.
"The moment you leave the district, you pick up the premium totally," he said. "It would be $662 a month. Going with the state subsidy is about $47 a month. Having diabetes, I need a health care program. Part of retirement is taking care of your family."
