By Charles Wolfe
The Associated Press

FRANKFORT - Democratic legislators and candidates Thursday savaged the administration's new health insurance plan as a slap at teachers, state employees and retirees.

In a run-up to legislative elections in November, and with a teachers union talking of a strike, leaders of the House's Democratic majority said their version of a budget bill would have subsidized more of the cost of health insurance.

Gov. Ernie Fletcher, a Republican, has disputed that assertion. In any event, no budget bill was passed because the House and Republican-controlled Senate failed to agree on a tax plan Fletcher proposed. The state has been without a budget since June 30.

House Speaker Jody Richards, backed by about 30 House incumbents and candidates in the Capitol, promised that Democrats would propose more state money for health insurance when the General Assembly next convenes.

Richards said he would push to make an increase retroactive if Fletcher did not call the General Assembly back before its next scheduled meeting in 2005.

"We're here today to say that House Democrats ... are doing everything we can to make sure that our teachers and state employees receive the compensation they deserve for their hard work," Richards said.

State Republican Party Chairman John McCarthy said Democrats had "sunk to an all-new low." McCarthy said Democrats wanted to use health insurance as an issue in November. The GOP has designs on taking control of the House, though it now is in a 64-35 minority with one vacancy.

Fletcher's budget director, Brad Cowgill, who observed the Democrats' news conference, called it "demagoguery."

"The enormous cost Jody Richards is now talking about - that cost is going to be borne by taxpayers and by cutting other programs," Cowgill said.

Fletcher on Tuesday released details about premiums and out-of-pocket expenses facing employees and retirees in 2005. The state health plan covers about 229,000 people, including dependents.

Premiums would be on a sliding scale according to income. Highest salaried employees - those making over $76,000 a year - would pay the highest premiums: at least $454 and as much as $684 per month for family coverage.

Fletcher said Tuesday costs would have been even higher had he not been able, thanks to new, improved state revenue estimates, to apply $29 million more toward premiums and employee raises.