The General Assembly gave final approval lsat week to a bailout of the state employee health insurance plan that will keep the plan solvent for the next two years. The compromise was approved narrowly in the House and Senate and has been signed by Governor Perdue. The bill provides $250 million to keep the plan viable this year.  Roughly $660 million will come from the state’s General Fund to keep the bills paid and cover premium increases for plan participants through June 30, 2011. These appropriations should remove the immediate threat of payment delays for physician and other providers. 

State employees, teachers and retirees will see their benefits reduced through higher co-payments and deductibles. They will also have to pay higher premiums of 8.9 percent annually for their dependents. Those who smoke will be moved into the most expensive plan by July 1, 2010, while those who are seriously overweight will be moved into the most expensive plan by July 1, 2011. The legislation authorizes an audit of the plan as well as the creation of a blue-ribbon commission to solve various longer-term problems associated with the plan.