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The State and some 800 local governments and school districts to pay $248 million less than expected for employee health insurance in 2009

The State and some 800 local governments and school districts to pay $248 million less than expected for employee health insurance in 2009
Source: Press Release, Office of the Governor

The State, together with local governments and school districts participating in the New York State Employees' Health Insurance Program (NYSHIP), will pay $248 million less than expected for employer contributions for health insurance because of historically low increases in 2009 health insurance premiums that were negotiated by the State.

2009 health insurance premiums for employers participating in NYSHIP will rise by 1.2 percent after experiencing an average increase of 10 percent over the last ten years. Prior to negotiations by the State, participating employers had been advised to expect a 6.6 percent increase in rates by the Empire Plan. By comparison, premiums for employees of the U.S. Government were expected to increase an average of 7 percent.

At present approximately 800 local governments and school districts provide health insurance coverage to their employees through NYSHIP?s Empire Plan. NYSHIP covers some 1.1 million active and retired public employees and their dependents.

The Department of Civil Service, which administers NYSHIP, negotiates with its contract insurance carriers to set premiums each year. The State itself is the largest participant in NYSHIP.

Full post as published by New York Public Personnel Law on December 06, 2008 (boomark / email).