Alabama Legislature in Special Session

The special session called by Gov. Riley began today. The purpose is to address the rising costs of providing health benefits to state employees. The package of reforms has broad support, due largely to the Governor's leadership in building a consensus among conerned parties, and is expected to pass. (One interesting note: a Special Session costs the state about $100,000 per week.)

Health insurance costs for education employees and state workers have risen from $320 million to $970 million in the past six years. That price tag is expected to hit $1 billion in the current budget year, which began Oct. 1.

"The day these reforms become law, we begin saving taxpayers' money," Riley said.

One proposal would require smokers and tobacco users to pay more toward their health insurance. Employees who retire before serving 25 years with the state also would have to pay more.

Another reform measure would give the state boards that oversee health insurance programs for public workers the authority to raise the premium rates by a two-thirds vote of the board.

Health insurance reforms would also provide for a penalty for employees who submit false or misleading information.

Penalties could include repayment of claims -- plus interest -- and the potential loss of the employer's contribution.