Alabama teachers' $2 health premiums may rise

MONTGOMERY, Ala. -- The $2 per month that Alabama's public school employees have paid for their health insurance since 1983 soon could go up, but the price would still be a bargain.

The board of the Public Education Employees Health Insurance Plan heard proposals Thursday for raising the monthly premiums and copayments to cope with a $255 million budget shortfall.

On May 6, the board will decide how to adjust charges for the state's new fiscal year beginning Oct. 1.

The board's actions will have widespread impact because the health insurance plan covers nearly 292,000 active and retired employees.

The program began in 1983 with a $2 monthly charge for individuals, and that never has changed. The family premium of $134 a month hasn't been raised in many years.

The insurance plan's staff recommended increasing individual costs to $22 per month and family costs to $194. It also suggested raising the copay for doctor visits from $20 to $30. Those would be similar to the charges for state employees' insurance plan.

The recommendations also include higher charges for retirees and their families.

The board also is looking at changes to comply with the new federal health insurance plan, including covering dependents to age 26 instead of 25 and removing a $1 million lifetime limit on benefits.

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