State employees’ claims exceed premiums paid
Posted: Monday, September 6, 2010 8:43 am
By: The Associated Press
The Messenger 09.06.10
CHATTANOOGA (AP) — Thousands of state employees and educators are facing changes in their health insurance plans.
Tennessee Department of Finance and Administration benefits spokesman Joe Burchfield said the state last year paid about $10 million more in medical claims than the state collected in premiums.
Burchfield told The Chattanooga Times Free Press that state officials are hoping the program changes will allow the state to better control rising costs and keep growth in benefits spending to a 3 percent increase that was budgeted for this year.
In some areas, employees who go outside their network for health care will face expensive out-of-network costs.
The state’s insurance contracts are set to expire this year and officials are seeking more affordable benefits options while calling for new contract proposals, the newspaper reported.