The assumptions are changing.

Abstract

The gavel was pounding, there was a cacophony of sound throughout the room, the union representatives were standing and asking to be recognized by the chair. The administrator of the state agency that purchases health care for employees of the state had just announced a proposed benefits cut for all employees and teachers. Unfortunately, the State of Washington is not alone in running into a financial wall. For the first time in our history, rising health care costs are significantly affecting the state's ability to educate our children, preserve our environment and pay our employees. From a base of $640 million, the projections of what the state's health benefits costs would be were for a $293 million increase, to $932 million over the next two years. That's a 46 percent increase. Something had to give, and health benefits was that "something."