| The Budget and Control Board approved,
at its July 13, 2004 meeting, an average increase of $34.55 a month
per employee for insurance premiums. The reason for the increase
is to offset the continued rise in health care costs. The increase
in premiums is effective January 1, 2005.
According to the Board, results of surveys of state employees have
indicated that given a choice, employees would rather pay higher
premiums than changes be made to benefits.
The Board also voted to end the state’s Economy Plan, which
covers about 5 percent of all state employees. The plan will be
replaced with the Savings Plan. The Savings Plan offers substantially
lower premiums, but requires much higher deductibles.
The State’s Employee Insurance Program will be releasing
more information about the new premiums and Plan in August. The
Department of Human Resources Management will update this site and
distribute information, as it becomes available.
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