Legislature Approves Gov. Riley's Health Insurance Plan

From the AP:

MONTGOMERY, Ala. (AP) — Gov. Bob Riley's plan to curb the rising costs for public employees' health insurance won overwhelming approval from the Legislature Tuesday, putting Alabama at the forefront of states mandating higher premiums for smokers.

The Senate and House gave final approval to Riley's five-bill legislative package, with each bill passing either unanimously or by lopsided votes. That wrapped up the special session that Riley called Nov. 8 to focus solely on health insurance costs, which are approaching $1 billion annually for public employees and retirees.

"It's the first fundamental reform of health care benefits in the history of the state," Riley said. But he added that more steps will be needed to control costs, possibly as early as next year.Riley's legislation, which he plans to sign into law Wednesday, will affect 340,000 state workers, education employees, retirees and family members — or nearly 8 percent of Alabama's population — covered by the state's two health insurance programs.

Alabama's health insurance costs have risen from $363 million in fiscal 1998 to $996 million this fiscal year. Riley estimates his plan will slow the rate of growth by $50 million in the next fiscal year and $300 million over five years.