Wed., April 25, 2012 1:18pm (EDT)

State Fixing Insurance Plan Gap
By Associated Press
Updated: 2 years ago

ATLANTA  —  
State officials are trying to close a shortfall of about $63 million for the health insurance plan that serves state workers and retirees. A big change will require the state's public school districts to contribute hundreds of dollars more every month for each noncertificated employee, such as custodians. (Photo Courtesy of forwardcom via stock.xchng.)
State officials are trying to close a shortfall of about $63 million for the health insurance plan that serves state workers and retirees. A big change will require the state's public school districts to contribute hundreds of dollars more every month for each noncertificated employee, such as custodians. (Photo Courtesy of forwardcom via stock.xchng.)
State officials are trying to close a shortfall of about $63 million for the health insurance plan that serves state workers and retirees.

The amount is a big improvement over a multi-year deficit of more than $800 million the plan originally faced. That prompted double-digit premium hikes and other changes this year.

Now, one of the biggest changes aimed at closing the existing gap is a three-year plan requiring the state's public school districts to contribute hundreds of dollars more every month for each noncertificated employee, such as custodians. The move is expected to raise more than $150 million in fiscal 2013 alone.

The $3 billion health plan, which serves more than 675,000 people, has seen its reserves dwindle in recent years.