Health insurance costs contained
-- HRD Office of Benefits Administration Services, July 2003

Despite rapidly rising health care costs nationwide, state spending on health care is projected to increase less than 1.5 percent for fiscal year 2004.

Prior to contract negotiations, DAS and the Joint Health Care Committee, a joint committee consisting of representatives from unions and management, explored ways to curtail health care cost increases for the state and its employees during a time of double-digit health care inflation.

As a result, the state was able to negotiate rates with the health plans that included changes to copays and coinsurance amounts so that monthly premiums remain relatively unchanged. To keep premiums stable, employees pay more for prescription drugs and covered services, such as office and hospital visits and lab work.



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This article was reprinted from the 2002-2003 DAS Biennial Report.