Georgia ex-state employees to pay more for health insurance

All of Georgia's qualifying former state employees - including teachers - will see their health insurance premiums rise by 10% commencing Jan 1 2010 as Georgia battles to balance the State expenditure budget. In addition to the rate hike to basic health insurance premiums, for many there will be increased out-of-pocket charges for doctor visits, prescriptions and hospital stays.

"During these current financial times, we are faced with decisions that require us to balance our finances ... As a result, there will be a number of changes for active members as well as retirees," Rhonda Medows, commissioner of community health, said in a letter to retirees.

For retired ex-state employees over 65, the increases could be even more if they do not change their health insurance coverage to the Georgia State's "Medicare Advantage" medicare supplementary program. To force the change, the State will no longer fund 75% of the premium for health insurance coverage outside of the Medicare Advantage program.

For an explanation of the changes, please see this presentation by the Georgia State Retirees Association.