Changes to Georgia Insurance Plan Expected to Close $800M Budget Gap

Georgia health officials have approved widespread changes to the state's employee insurance plan to close an $800 million budget shortfall over the next two years, according to an Atlanta Journal-Constitution report.

Employees who enroll in a new wellness program will see premiums increase by 11 percent next year, according to the report. Those who opt out of the program will face a 17 percent increase.

The plan was adopted Thursday by the state Department of Community Health board. The insurance program costs the state approximately $3 billion every year and has recently seen its reserves depleted as lawmakers channel the funds toward filling budget gaps.

Without the changes to the plan, the state would see a $280 million shortfall by the end of fiscal 2012. The gap comes in part because the number of employees is decreasing as the number of retirees increases. Rules established through healthcare reform, including the elimination of lifetime caps on insurance, account for approximately 6 percent of the increase to employee premiums.

Read the Atlanta Journal-Constitution report on Georgia health insurance.

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