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Lawyer will file new discrimination claim

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BY CLARENCE MABIN / Lincoln Journal Star

Wednesday, Jul 23, 2008 - 12:13:19 am CDT

An attorney for an Omaha woman suing the state of Nebraska for allegedly discriminating against black employees said Tuesday he will amend the lawsuit in the wake of a judge’s unfavorable order last week.

Vince Powers of Lincoln said he would file an amended lawsuit to address the judge’s determination that the individual defendants had sovereign immunity against the allegations.

Lancaster County District Judge Paul Merritt Jr. said in the order he agreed with the state that the defendants had not waived their sovereign immunity. The judge, in dismissing the lawsuit Thursday, gave the plaintiff 20 days to file an amended complaint.

Story Photo

Powers said the new complaint would argue that officials knew, or should have known, the policy was discriminatory.

“You don’t get immunity if you knew, or should have known,” he said.

Powers and Kathleen Neary, an attorney in his firm, are representing Sandra Cartwright, a state worker who says officials are discriminating against black employees by offering them an inferior health insurance plan.

According to the lawsuit, beginning in January 2007, government employees who live in ZIP codes beginning 680, 681 or 685 were offered one coverage exclusively through Mutual of Omaha.

The ZIP codes include Lincoln and Omaha but also include some 96 percent of  all black state employees, according to the lawsuit.

Cartwright, who is black, said in the lawsuit that the policy was discriminatory because employees outside the three ZIP codes were offered superior coverage through Blue Cross and Blue Shield.

According to the suit, Cart-wright could purchase Blue Cross and Blue Shield — but at a “significantly higher” premium.

Mike McCrory, director of the state personnel division, told the Journal Star in 2006 that the state began to consider offering health insurance plans by ZIP codes as a way to save money.

Cartwright is not claiming officials intended to discriminate against black employees. But courts have held that policies can be illegal, regardless of intent, if the outcome is discriminatory.

Reach Clarence Mabin at 473-7234 or cmabin@journalstar.com.


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Jan wrote on July 23, 2008 2:04 am:
" I really don't care whether or not racial discrimination is involved. I don't understand why "offering health insurance plans by ZIP codes as a way to save money" could even be a tenable option. Shouldn't the same health insurance benefits be offered for the same price throughout the state? It makes no sense to me why ZIP codes should even enter the equation. "

 ctn wrote on July 23, 2008 2:45 am:
" move "

 Zip wrote on July 23, 2008 6:04 am:
" Hey Cart-wright...take it from a state empolyee living in the 68801 zip code...my health insurance ain't nothing special. If you want MY policy I'll give it to ya...give me a break!!!! "

 What A Minute Let Me Understand This wrote on July 23, 2008 7:03 am:
" Insurance rates are higher for state employees who live in Lincoln and Omaha, and this discriminates against blacks? 90% percent or more of the employees affected by this are white. "

 But what about the rest wrote on July 23, 2008 7:11 am:
" Most of the state's employees are in Lincoln and Omaha...regardless or face, gender, creed, religion, etc etc etc....so how is this discriminatory? "

 Voice of Reason wrote on July 23, 2008 7:30 am:
" GIVE ME A BREAK! "

 enough wrote on July 23, 2008 7:32 am:
" I live in the 685 zip area and white along with many more. I havent seen any lawsuits filed other than this one person,maybe their is.Is this realy discrimination or just another person and lawer trying to get rich off the state. Seems to me the more you yell discrimination the more it actually triggers more of it.By the way,does anyone have the zip to GOD as he only made me 5 foot 1, I think I may have a lawsuit also. "

 JMK wrote on July 23, 2008 7:50 am:
" Give me a break already...the BCBS is higher priced for everyone, not just blacks. Better insurance = higher price. Everyone gets the same insuance offerings. Can you imagine how difficult it would be to try to keep track of different plans for every race? This woman and her attorney need to wisen up a bit. "

 It is not just... wrote on July 23, 2008 8:14 am:
" This is a big issue for all state employees. It was discriminatory not just on race but on the overall concept of providing the option of different coverage to those outside of Lincoln and Omaha. If you lived in Seward, for instance, you had many more options and selection between the Mutual of Omaha and BCBS plan. It was patently unfair and essentially gave outstate employees a better benefit package than those within the affected zip codes. That, to me, is where the lawsuit should focus. "

 against all wrote on July 23, 2008 8:28 am:
" this is not discrimnation against any one race, it is against all state employees, this is just one more example of that state government not wanting to support or keep good employees by benefits or salaries, it remains one of the lowest paying government jobs and poorest benefits in the US "

 I agree with Jan wrote on July 23, 2008 8:51 am:
" Distributing health insurance policies by the way of which zip code an employee lives seems to be a bit odd. I have a family member who works for DHHS and he lives in the western 'suburbia' of Omaha, so why should he be given a different health insurance policy than Mrs. Cartwright? I would understand if different policies were distributed by different departments of state government (DHHS, NE Roads, etc) but to nit-pick within a single department seems to be somewhat assinine. "

 me wrote on July 23, 2008 9:14 am:
" dont insurance companies rate your plan on your lifestyle and where you live and what the probability of you getting sick or in an accident is? like comparing someone who lives in compton ca compared to oh, say denton ne. kind of like car insurance, you live in a high crime area you are going to be charged a heck of alot more than someone who lives in a non crime area behind gates. its not discriminatory, the insurance companies have just gotten wise to what causes them to pay out. thats what they higher their actuaries for. to figure out who is more capable of getting in accidents or more prone to health issues. get over it, you know you can go on the internet and find a bazillion different health insurance programs that you can buy on your own and not even have to deal with your employers health insurance. but i guess you find it easier and healthier to sue over it. jeez people. nothing is free anymore. "

 Lola wrote on July 23, 2008 9:18 am:
" I'm a state employee who is in the same situation and it makes me mad too... Oh by the way - I'm white. How is this discrimination against black people?? "

 wrote on July 23, 2008 9:41 am:
" If this was such a huge issue, and so many people are affected, why isn't this a class action suit rather than a suit by an individual?

Insurance is the biggest scam in the United States. They don't care if your white, black, or purple. "

 BicycleMike wrote on July 23, 2008 9:53 am:
" I know a fair amount about this suit, The best chance for this lawsuit to succeed and for everyone be it black or white to have the same insurance was to file it this way. Do you honestly feel that two people working side by side should have totally different insurance based on where they live? By the way the difference between the two policies is huge. The insurance for people living outside the metro areas is outstanding while the other is is bottom of the barrel. Keep this in mind, the poor insurance... it is not even as good insurance as people who don't have a job and are on Medicade get. These are State workers, they are your neighbors and friends, stand up for them and give them some support. If they win the lawsuit it will finally bring the insurance equal for EVERYONE, not just people who are black. Again, Powers filed the suit this way because it had the most chance to succeed so that all would have good coverage, it's called the bigger picture. "

 Info wrote on July 23, 2008 10:06 am:
" FYI-

The BlueSelect and BlueChoice-which are the plans offered as an alternative to The Mutual of Omaha plans for people outside of those zipcodes have exactly the same terms. I think the only difference is that BCBS had more covered providers in the outlying areas at the time. The 'significantly greater cost" is about $9 per month for a single employee for the BCBS plans. "

 THEN IT MUST BE RACISM wrote on July 23, 2008 11:36 am:
" got to be discrimination - no other explanation makes sense - Pay Her "

 do they hate the state government wrote on July 23, 2008 12:01 pm:
" Aren't these the two lawyers who were suing the Attorney General about housing? "

 BicycleMike wrote on July 23, 2008 12:02 pm:
" In regard to your comment Info... your incorrect. The difference between the two is huge. My girlfriend has the less desirable insurance while a co-worker has the better... there is a big difference. The co-worker is covered nationwide no penalty while my girlfriend's insurance only pays 40% if West of G.I. That is just one of the differences. "

 JT Hutt wrote on July 23, 2008 12:35 pm:
" CA auto insurance companies can no longer do rates based on zip codes. This is class discrimination, not about race. Insurance companies will use every trick they can to nickel and dime consumers (regardless of race) while blaming "frivelous lawsuits" and hospitals. Everyone's insurance doesn't cover everything. Pensions, 100% health coverage, and other "perks" are long gone. It stinks, but deal with it. "

 state worker too wrote on July 23, 2008 12:56 pm:
" The state needs to give each employee the SAME amount as an insurance benefit to EVERY employee. The employee could then use their benefit as they see fit. Some employees' insurance benefit is over $1100 per month, while someone working RIGHT NEXT TO THEM DOING EXACTLY THE SAME JOB recieves a benefit of about $325 per month. How is this fair? "

 seriously wrote on July 23, 2008 1:08 pm:
" So if the only way you can sue is to cry discrimination, it's ok to go ahead and do that even when race has nothing to do with the insurance rate/plan determinations? That stinks. "

 unfair wrote on July 23, 2008 6:04 pm:
" I´ve taught in the public schools for 30 years. I received "single" medical BC/BS coverage as part of my benefits while married teachers (working next to me) got "family" medical which was almost twice as expensive. I guess I should sue for the discrimination against single employees getting less benefits. By the way BC/BS has so fine print, deductible, not covered etc. Insurance is a generaly a hugh rip off. So live with it lady. "

 Carol wrote on July 23, 2008 6:44 pm:
" The result of this lawsuit will be that everyone will receive the lowest benefits package offered. You pay less for the lesser benefits, but your contribution is probably lower. Save the difference, and you'll have money to make up the difference. "

 nemo wrote on July 23, 2008 11:01 pm:
" This does sound weird but nothing about insurance sounds right to me Also "the state" should not "give" their employees anything, pay for your insurance just like the rest of us. "

 Neo wrote on July 24, 2008 7:03 am:
" Everybody is looking for ways to reduce healthcare costs. One way is to identify the highest cost segments of a group and either lower their benefits or raise their premium costs. I would assume that the employees living in the identified zip codes had a higher claim history and that is why they were singled out.

Whether you agree with that or not, it has nothing to do with the color of people's skin. When it comes to health insurance, the only color that matters is the color of money. "

 Mrs. Jeter wrote on July 24, 2008 9:22 am:
" I'm a state employee too that is in the same situation... only thing is... I'm white. How is this discrimination against black people? Why do you have to put a color on it. The options that were given state employees for insurance were for all state employees not just the black ones. Put your race card away! "

 Its Easy wrote on July 24, 2008 12:00 pm:
" Varying insurance coverage plans within a company using ANY discriminator (in this case ZIP codes) is unethical, discriminatory, and illegal. As Mr. Powers stated, immunity would not have been obtained if nothing wrong was being done.
If 96% of black state employees are affected by this policy, this suit will be settled easily.
Perhaps those who have not been victims of overt, state sanctioned discrimination can't (or choose not to) see discrimination when it exists. "

 T wrote on July 24, 2008 2:16 pm:
" Point well taken. The counterpoint of course is to offer the same coverage to ALL employees. BC/BS, Mutual of Omaha, and the state of Nebraska should not attempt to save money at the risk of breaking the law. Few insurance companies are cash strapped either.
The best way to cut health care costs is for people to stop smoking, stop drinking, stop overeating, exercise more...
Sometimes when companies try to "save money" they get caught (potentially) breaking the law. "

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