Alabama Legislature looks into controlling health insurance costs.

2004 NOV 27 - (NewsRx.com & NewsRx.net) -- Alabama Governor Bob Riley summoned the legislature into special session November 1, 2004, to consider a plan he says is the first step, but not the final fix, for controlling rapidly rising health insurance costs for public employees.

Lobbying groups for public employees are hopeful that their support of Riley's health insurance plan will be followed by a cost-of-living increase, their first in more than 2 years.

Alabama's costs for providing health insurance coverage to state workers and education employees have risen from $320 million to $970 million in 6 years. Riley first tried to address the issue in the spring regular session of the legislature, but no legislation was passed because he was at odds with the Alabama Education Association and the Alabama State Employees Association.

During the summer and early fall, he worked with both groups and several business leaders to develop a package of five bills.

"The governor has done a good job of reaching out and working with folks," said Representative Terry Spicer, D-Elba, who heads a house subcommittee that has been studying healthcare costs.

The special session will impact citizens in every county because 340,000 public employees, retirees and family members, or nearly 8% of Alabama's population, are covered by the state's health insurance programs.

The governor's five bills would not immediately affect the pocketbooks of most active and retired public employees, but smokers and some future retirees would pay more. Also, the two boards that oversee the health insurance programs for public employees would have the authority to raise rates for all participants.