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PEBP rates bill advances after hearing as retirees press for higher Medicare HRA
Summary
Fiscal staff presented AB 583, the public employees benefits program (PEBP) rates bill, setting employer contributions for the 2025‑27 biennium. Retiree groups and public employee representatives supported maintenance of benefits but urged increases in the Medicare retiree health reimbursement arrangement (HRA), which has not risen since 2019.
The Assembly Ways and Means Committee heard the departmental and public testimony on AB 583, the biennial PEBP rates bill setting the state's monthly contributions for active employees and retirees for the 2025–27 biennium.
Alex Hart of the Fiscal Analysis Division summarized the bill. For active employees, the state's monthly contribution was presented as $909.91 in fiscal year 2026 and $943 in fiscal year 2027. For retirees not yet Medicare‑eligible, the state contribution is $650 in FY26 and $700 in FY27. For retirees in the Medicare exchange, the bill continues the existing formula that provides $13 per month per year of service (capped by service) rather than an across‑the‑board HRA increase.
Witnesses from public employee organizations told the committee they appreciated the maintenance of current benefits but urged additional assistance for Medicare‑age retirees who were moved to the Medicare exchange in 2011 and whose HRA has not increased since 2019. Kent Irvin of the Nevada Faculty Alliance said the association supports AB 583’s budget but asked the legislature to consider augmenting Medicare HRA amounts. “We must also note that state employee health benefits and employee premiums have not been fully restored to pre‑pandemic levels,” Irvin said.
Terry Laird of Retired Public Employees of Nevada (RPEN) and Tess Opperman with AFSCME Retirees urged a higher HRA. Opperman said Medicare‑age retirees have faced rising premiums for Medicare parts B and D and supplemental plans while the HRA grant has stayed the same since 2019. “Just because PEPB doesn't cover the cost of Medicare retirees does not mean their costs have not increased,” she said.
Committee members did not take a vote during the hearing. Staff reiterated that AB 583 implements previously approved budget decisions for PEBP and that changes to the formula would require additional fiscal consideration.
