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August 25, 2004

Insurance costs drop for state retirees

Unexpected success at controlling drug prices will lead to premium reductions for some 10,000 retired state workers. At the same time, the cost of providing state employee health insurance will increase by only about 5 percent in 2005, under action taken today by the Group Insurance Board. Earlier this year some experts had hinted at 9 to 13 percent increases.

In addition to the Medicare program premium reductions, the board increased the maximum lifetime coverage from $100,000 to $1 million.

The board seemed in shock at the actuary's recommendations for cutting premiums.

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Posted by Tom Troceen

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