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Lawsuit: State discriminated against blacks with insurance choice

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By JOSH FUNK / The Associated Press

Monday, Nov 05, 2007 - 10:52:45 am CST

OMAHA — The state of Nebraska discriminated against its black employees because state workers who live in Lincoln and Omaha were offered inferior health insurance than their counterparts in other parts of the state, according to a lawsuit.

The lawsuit, filed Monday in Lancaster County District Court, alleges that state employees outside certain zip codes had the option of a “significantly better health insurance plan” from Blue Cross & Blue Shield that had a more extensive network of doctors and better coverage.

State employees living in zip code areas that begin with either 680, 681 or 685 — where some 96 percent of the state’s black employees reside — were given a choice between two Mutual of Omaha plans and two Blue Cross & Blue Shield plans which offer inferior coverage, according to the lawsuit.

“Black citizens should get the same benefits as white citizens,” said Vince Powers, one of the plaintiff’s attorneys. “I can’t believe I’m saying that in 2007.”

The better Blue Cross & Blue Shield plan considers many national hospitals, such as the Mayo Clinic in Minnesota, an “in-network facility,” meaning the plan pays more of the bill.

By comparison, one of the Mutual of Omaha plans requires employees to pay 40 percent of the cost at facilities like Mayo.

The state changed its health insurance offerings for 2007 and restricted the choices employees had based upon where they lived.

The Nebraska Association of Public Employees filed a grievance when the different health insurance plans were presented to state workers.

“We didn’t believe they were equal,” said Mike Marvin, the union’s executive director.

The union grievance did not result in any changes to the plans.

State personnel officials defended the plans offered to employees statewide as equivalent plans.

“We believe that the plan design is the same,” said Laura Peterson, general counsel for the Department of Administrative Services.

Nebraska Attorney General spokeswoman Holley Hatt declined to comment.

The lawsuit is based on several U.S. Supreme Court rulings and the 1964 Civil Rights Act that prohibits employment discrimination.

The high court has held that company policies and practices that have a discriminatory effect are illegal even if an employer never intended to discriminate against employees.

“Good intent or absence of discriminatory intent does not redeem employment procedures or testing mechanisms that operate as ’built-in headwinds’ for minority groups and are unrelated to measuring job capability,” the supreme court said in the 1971 Griggs v. Duke Power Co. case.

The lawsuit is being filed by Powers and another attorney, Kathleen Neary, on behalf of Sandra Cartwright, who works for state Health and Human Services System in Omaha.

Powers and Neary plan to ask a judge to certify the lawsuit as a class action covering all the state employees who were discriminated against.

The lawsuit seeks better health insurance for state employees in Lincoln and Omaha. It also asks for compensation for employees who paid higher premiums or received large medical bills for services that would have been covered under the better insurance plans.

Peterson said every state employee has four choices in health insurance plans, and that each of the four levels of plans carry the same copays and deductibles.

Peterson said she didn’t know how the networks of doctors Mutual of Omaha offered compared to the Blue Cross & Blue Shield plans, and the state employees who know the health insurance plans better than Peterson weren’t available to comment Friday.

During 2007, Mutual of Omaha sold its health insurance business to Coventry Health Care, which continued providing similar benefits to state workers.

Powers said the 2008 health insurance options state employees are currently signing up for are similar to the 2007 system.

———

On the Net:

State of Nebraska: www.nebraska.gov

Nebraska Association of Public Employees: http://www.napeafscme.org


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Discrimination - How? wrote on November 5, 2007 7:22 am:
" How can one possibly play "the race card" on this issue. There are many, many more "white people" in the zip codes in question that also were prevented access to providers on a preferred basis. This is another example of some "get rich quick class action lawyers" attempt to hit a home run for himself - at the taxpayers expense. The question is are the plans comparable for the price charged. I don't know. "

 Bob wrote on November 5, 2007 8:11 am:
" What the great State of Nebraska discriminated against someone other than our Veterans. Shame, shame on your State of Nebraska. Maybe after this court battle the true light of the how the State of Nebraska treats people who are not in the loop of those people who run the State government. This along with the State of Nebraska hiring summer help who were the children of high management employees of the State of Nebraska something will be investigated by tthe Federal Government. Besides did our great Governor bury the issue about the summer help hoping that we will forget about it. Lincoln Journal Star whay not take a little time to report on the investigation into this issue about the summer help issue. Bet nothing has been done and bet nothing will be done. It will be busines as normal. Take care of your friends and family first and forget about the experience, education and training as these are not important in the great State of Nebraska anymore. Bet the Lincoln Journal Star will do nothing either in the way of a followup story on the investigation into the summer jobs issue!!!!! "

 Give us a break wrote on November 5, 2007 9:01 am:
" The plans were offered to all the employees in those zip codes regardless of race. Stop trying to get a quick payout! "

 What a CROCK! wrote on November 5, 2007 9:02 am:
" State employees are all offered the same health plan options. To say that there is ethnic discrimination related to the plans based on geography is ridiculous! The white employees living in the same geographic area receive the very same health plan options that these people are complaining about. So is that discrimination against the State's white employees too? Why must people use race/ethnicity in lawsuits to grab skewed headlines? "

 Marvin wrote on November 5, 2007 9:08 am:
" The next union contract health insurance should be dropped. As a taxpayer I feel no requirement that I subsidize or pay for state employees insurance. Let them join the free market and buy their own. "

 It shouldn't be a race thing wrote on November 5, 2007 9:17 am:
" Race is a red herring in this matter. The plans were different especially if you considered the networks involved. It simply isn't fair that an employee in lives in Seward had the opportunity to get a better plan than somebody who lived in Lancaster County. Arguably, the Seward County employee received a better benefit package than somebody in Lincoln. Not fair no matter what color you are. "

 huh? wrote on November 5, 2007 9:53 am:
" how is insurance choices that are the same for all employess of any race discriminatory? I'm a white state employee in Lincoln - I evaluated the four options available and chose the one that best met my families needs. I'm not crazy about the premium increase, but I know it's because there are coworkers with expensive medical needs. The State self insures. If you don't like the options available find a job in the private sector... "

 single white female state employee wrote on November 5, 2007 11:46 am:
" This is a gross disparity in the insurance plans provided based on zip code. It discriminates, not solely on membership in a protected class, but on geographical location, which is a violation of state employee's constitutional right to equal protection. Good luck on the law suit, and where can I sign up? "

 Don't look at the race card in this one wrote on November 5, 2007 1:37 pm:
" The insurance choices are not the same! If you live within a certain zip code, you cannot recieve the same insurance as if you lived in another zip code out in greater Nebraska. It would be like telling people who worked for a company you have two insurance choices, however, we won't offer you the better plan because you live in Lincoln. Had you lived in Grand Island, we would offer you the plan. Simply take race out of the equation in this matter. The benefit packages that they are offering employees are different. You could be a secretary in the very same agency, but if you live in York, you can opt for any of the insurance plans. If you live in Lincoln, you can only opt for a certain amount. It is discriminatory but not in a racial way. "

 how is this about race?????? wrote on November 5, 2007 1:42 pm:
" question - what percentage of non-black state employees work in those area codes? the majority, right? why isn't that in the article? "

 Douglas wrote on November 5, 2007 1:42 pm:
" Apparently the only "equal" soluition is no coverage at all. Any insurance salesman will tell you that inusrance coverage is more expensive in the Omaha and Lincoln Zip Codes so I guess a ZERO expense for the state would be the the correct way to level the playing field. Vince Powers wants to legislate equality through the court system. It's not going to happen, he knows it, and he is just keeping his name in the Newspaper until he decides the time is right to run for an elected office. He needs the Omaha and Lincoln votes to win anything and this is a campaign ploy. HE doesn't carea bout black people but he does need their votes some day. "

 huh? wrote on November 5, 2007 1:58 pm:
" As a state employee in one of those zip codes, I'm nauseated over this whole lawsuit. How dare they!? "

 F wrote on November 5, 2007 2:27 pm:
" What they really need to do is look at how many state employees now have PO Boxes for their "address" now that the good plans are not offered in Lincoln and Omaha. At least 5 in my previous office "moved" once this came about. And to Marvin, get a clue. If state workers had to use the free market, there would be nothing left from their pay to live off of. They already get paid a third of what the "real world" makes. When there is no one left to do the work, who will you complain about? "

 Randy wrote on November 5, 2007 4:12 pm:
" Make 1/3 of what the real-world makes? I guess you haven't looked for a real job lately because the gap in civil service pay vs. the "real-world" has shrunk to non-existent. And the "real-world" employees don't get the extra 10 or so holidays that the civil-servie workers get. On the health plan, it should be ala-carte as my company has, where for a family plan, I have to pay in excess of $500 a month for my coverage. It is a little better than an individual policy, but not by much! Quit whining! "

 Nina wrote on November 5, 2007 5:28 pm:
" Hey, Lincoln and Omaha aren't the only locations starting with these zip codes. Look at the directory to see how many. If blacks are discriminated against, so are Hispanics and Orientals, because there are more of them in Lincoln and Omaha than elsewhere, too. And hey, don't forget the older worker (particularly older females' insurance rates are high - my group rate is 4x that of a male co-worker in his 20s), those with risk factors - smoker, overweight, being a farmer, etc. Farmers are told by some insurance companies that any farm injury cannot be covered on a group policy, because work comp should cover that - but farmers can't get work comp. Yes, discrimination is rampant - but not only for blacks. "

 Not sure wrote on November 5, 2007 5:31 pm:
" I am not really sure how the race card is played in this one...didn't everyone, white, black, red, pink, purple, green....you get my point, get the shaft in this decision? "

 whatever wrote on November 5, 2007 5:35 pm:
" This suit is going nowhere. The government nor private industry is obligated to provide health insurance to employees. And as far as insurance rates go, it doesn't get anymore boring or black and white. Insurance policies and rates are based on risk and historical costs of treatments and events. It's about as non discriminatory as it gets. "

 No Wonder wrote on November 5, 2007 9:07 pm:
" No wonder there in 2007 the separation of black and whites still exists...the blacks are still playing the race card trying to make an easy buck crying racial discrimination. This article indicates that the discrimination was not a racial rather geographical. "

 state employee from Omaha wrote on November 5, 2007 10:02 pm:
" The statement made by Ms. Peterson that every employee has 4 choices in health insurance plans is incorrect. I only had three choices in health insurance plans because I was excluded from the 4th choice since I live in the 681 zip code area. She also stated that all four levels of plans had the same copays and deductibles. The two BC/BS PPO plans that I could choose from had either a $400 deductible with a $15 copay for office visits or a $1000 deductible with a $25 copay for office visits. So where are the health plan levels mentioned that have the same copays and deductibles? There are federal and/or state laws which do not allow discrimination when it comes to group health insurance, whether it is a fully insured or a self insured plan. It is my understanding that a group plan that is offered to employees must be offered to "all" employees and not just a chosen few as is the case with the BC/BS plan that I was excluded from considering as my health insurance plan. I think the state needs to review the laws that are out there and rethink its position and/or provide the employees the supported facts that allows them to discriminate against and exclude employees from health insurance plans based on zip codes. "

 and just how is... wrote on November 5, 2007 11:15 pm:
" and how is race involved? and how has the State specifically discriminated against Blacks and/or non-whites....? It sounds like a union issue, or "stateworkers" issue... not a race issue. "

 response to "Marvin" wrote on November 6, 2007 5:46 am:
" You say that the State (and, therefore, the taxpayers) shouldn't subsidize the employees' health insurance. You tell those employees to buy their insurance in the free, open market like everyone else. I'd be willing to bet that the vast majority of Americans with health insurance get it through their employer or their spouse's employer. Very, very few people can afford to buy this insurance on their own. Do you have health insurance? Is any part of it subsidized by your employer or the government (ie. medicare, medicaid, etc....)? "

 Jen wrote on November 6, 2007 6:43 am:
" Seems to me this is more race-card pulling. Am I the only one that noticed the zip codes? 680 (Fremont), 681 (Omaha) and 685 (Lincoln) would seem like three of the biggest cities in this state, meaning the majority of employees live there, not just black employees. Normally, I'm on the side of the minority, but I think they're stretching just a bit here. Why must everything be taken to the level of race? You want equality, and to move past racism, start it yourself. As long as you continue to throw your race around everytime something doesn't go your way, there will be racism and intolerance. My intolerance isn't based on skin color, it's based on your frivolousness. "

 Shadow wrote on November 6, 2007 7:17 am:
" to those that are suggesting that the state drop offering insurance to its employees... it is a law that when you employ so many people, you have to offer benefits (i.e. insurance, 401k and so on) you should try opening a business the size of the state and get away with not offering these benefits cause i will bet top dollar that we would be reading about you on this paper. (this is not an attempt to defend this because i find it to be appauling) "

 state employee wrote on November 6, 2007 8:55 am:
" I am a "white" person and I didn't get the choice of insurance either. I live in the wrong zip. The plans are similar if they(blacks) think this is a new thing , to dicriminate them ,they are wrong. This changed last year. Why don't you move to an area(zip) that has the one you want. America is so sue happy ,it makes me sick. "

 TRT wrote on November 6, 2007 9:02 am:
" Nebraskans get hosed on health insurance for state employees. I pay $80/month for the BCBS High Deductible PPO plan in the open market. If could get the EXACT SAME PLAN from the state for about $68...and then the state would kick in about $256 for a grand total of $324. This must be the case for others too. Why should the state pay $324 to buy me something I can get for $80 on my own? The State could pay me half the cost of that insurance ($164) and I could go buy my own plan, I would get a pay raise, and the state would save money. Employer-provided health insurance is NOT A GOOD VALUE FOR ANYONE. "

 jazzy wrote on November 6, 2007 9:06 am:
" The insurnce with the zip codes is not a union issue. It was decided by the insurance companies "

 Jen wrote on November 6, 2007 9:19 am:
" Also, it's not discrimination for insurance companies to offer different coverages to insureds based on their geographic location. I work for an insurance company, and I can tell you that where you live does have a factual basis for determining your insurance rates. Just like some people pay higher premiums for living in flood zones, your health insurance premiums are determined by geography, in addition to numerous other factors (they're called actuarial tables). It's a fact of life, but what can you do? You have to have insurance. "

 DHHS employee wrote on November 6, 2007 9:23 am:
" I am a caucasian employee and I was excluded from a plan as well because I do not live in a certain zip code! You people need to quit your whining. The better plans that you are excluded from are also the most expensive. I wanted the HMO that was the cheapest and I can't get that becuase of where I live. Get used to the fact that we are going to get the shaft no matter what around here. DEAL WITH IT! "

 Equality Before the Law wrote on November 6, 2007 10:20 am:
" All state employees should have the same benefits. Why do some have different options to others? By the way, my insurance at a local hospital is far less expensive than the state plan I used to have. State employees don't have the best health benefits these days. "

 GoodNews wrote on November 6, 2007 11:14 am:
" Vince gets paid whether he is right or not. Hillary will fix all our insurance issues as certain as Newt. "

 Lies wrote on November 6, 2007 11:40 am:
" I live in West Omaha, zip code 68135(notice the 681). 99% white out here. Media trying to get attention, people trying to get $$$ for no good reason, that's all it is. "

 Give me a break! wrote on November 6, 2007 1:32 pm:
" I'm a hispanic state employee in Lincoln and I have never felt discriminated against. I can hardly believe this article. In no way is this a racist health plan, it applies to all state employees who are citizens of lincoln no matter your race. This lawsuit is an attempt to make some money. Something needs to be done about all the racist complaining going on. Heres an idea, get over it, its all in your head!! "

 Bubba wrote on November 6, 2007 1:37 pm:
" How in the world can this possibly be considered race discrimination? "

 Nancy M. Koos-Bennett wrote on November 6, 2007 1:51 pm:
" At one time there was a higher urban pay rate due to the cost of urban living as compaired rural living. Maybe now is the time for the state to equal pay by giving urban a pay increase to compensate for increase benefits cost. Some employers do this to compensate for the cost of living in different states and countries. Is the state looking into fraud for the state employees who are using PO Box for thier finanical gain? Who is doing this? management? "

 what wrote on November 6, 2007 2:40 pm:
" the tax payers nebraska do not pay for the insurance. state employees are self-insured. they pay for their own claims. "

 BOB wrote on November 6, 2007 3:05 pm:
" YOU PEOPLE DON'T GET IT. We finally have a real use for the race card. The insurance companies are offering certain options to people based on where they live. That is wrong. If it takes the race card to get this changed, I'm all for it. "

 Usually with the minority, but wrote on November 6, 2007 4:25 pm:
" Health insurance is a privelage, not a right. Please remember that. "

 Hjalmer wrote on November 6, 2007 6:18 pm:
" Actually, if you're anywhere in the Western world except the United States, HEALTH INSURANCE IS A RIGHT. We are the only developed nation on this earth that does not assure its citizens access to affordable health care. Though the most common reason for bankruptcy in this country is uninsured medical costs, this circumstance is simply unknown everywhere else. This State insurance disparity is but one example of the folly of our medical financing system. All this slicing and dicing of the insurance market translates into the most expensive health care in the world with some of the poorest results. It's time for Americans to "park" their ideologies, dump our financing system and copy another sytem that is providing better results at lower cost. "

 whatever wrote on November 7, 2007 5:28 am:
" Most enlightened, educated and moral societies provide health insurance for it's citizens. The United States is the backwater of the industrialized world when it comes to providing one of the most basic of human rights to it's citizens. And from an economic standpoint, private health insurance is FAR MORE COSTLY and inefficient than government run programs such as Medicare/Medicaid. Don't talk to me about "freedom of choice", just look at your private health insurance plan and determine if you really can "afford" the right to go outside of your policy's network of hospitals and doctors. "

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