Colorado State Employees Face 176% Increase in Health Insurance Costs Next Year; Kansas Also Sees Rise

Colorado's 27,000 state employees will face an average 176% increase in health insurance costs next year "on top of double-digit price increases" that they "swallowed" in 2001, the Denver Post reports. HMOs that contract with the state, citing increased health care costs, plan to boost their premiums for 2002, which will drive up costs for state employees. Although private companies can subsidize increased health insurance costs for employees, the Colorado Legislature has set "strict spending limits" for the state, "forcing employees to bear most of the cost." This year, Colorado employees paid an average of $361 per month for health insurance for a family of four. Employee advocacy groups have asked Gov. Bill Owens (R) for "emergency financial relief" to address the problem. According to the Post, Owens has criticized lawmakers in recent weeks for rejecting a 3.2% increase in the state's contribution to employee health insurance premiums. Lawmakers approved 80% of the proposed increase. Owens said that he will ask for a $5 million, or 8%, increase in next year's state employee health benefits budget. He said that to "fully address the rise in health insurance premiums for state employees," the state would have to spend an additional $18 million. The Post reports that state Sen. Bill Thiebaut (D) will likely introduce legislation that would allocate $3 million to subsidize health insurance costs for state employees before the state Legislature's special session ends Oct. 5 (Austin, Denver Post, 9/27).

Kansas Hikes
Meanwhile, in Kansas, state Rep. Annie Kuether (D) has criticized Gov. Bill Graves (R) for increases in health insurance costs that state employees will face next year. Under a plan that will take effect Jan. 1, state employees will pay an additional 25% for health care costs next year. The plan will "close a projected $43 million shortfall" in the state's health insurance program, Kansas Choice, while "avoiding an increase" in the state's contribution, the AP/Wichita Eagle reports. The plan will force state employees in Kansas Choice to pay a new $300 deductible -- $600 for families -- and increase the cap on out-of-pocket health care costs from $500 to $2,000 per year. "We are calling on the [Graves] administration to step up and assume some responsibility," Kuether said, adding, "All options should be explored before placing this unfair burden on state employees." Kansas Choice covers about 90,000 state employees and their family members (AP/Wichita Eagle, 9/28).