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State employees get insurance break

MONTGOMERY (AP) — About 25,000 active and retired state employees will get to skip one month's payment on their health insurance, which will save them $4.67 million.

The State Employees' Insurance Board voted unanimously Wednesday to approve the one-month premium credit, which likely will take place in April. The savings will apply to active and retired state employees who buy family coverage.

The separate board that oversees health insurance for active and retired education employees is not considering a similar credit, spokesman Marc Rey-nolds said Thursday.

The savings will be:

  • $180 for an active state employee with family coverage.

  • $332 for a retiree younger than 65 with family coverage.

  • $152 for a retiree younger than 65 with single coverage.

  • $121 for a retiree 65 or older with family coverage.

    The roughly 19,800 state employees with single coverage, plus the roughly 8,400 retirees who are 65 or older with single coverage, won't save anything, since they pay no premiums unless they use tobacco.

    The board approved the one month's credit after their executive director, William Ashmore, reported that costs of operating the program in fiscal 2006 had risen much less than expected.

    Copyright 2005 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

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