By Charles Wolfe
The Associated Press

FRANKFORT, Ky. - Many of the new health insurance premiums announced this week for state employees and teachers have been reduced.

Revised totals of what workers and retirees would pay for coverage in 2005 were posted on the Kentucky Personnel Cabinet's Web site Friday morning.

Personnel Secretary Robert Ramsey said changes were made after the governor's budget office took "one final stab" at projections on Thursday.

"We were right on target for what the total program cost was going to be," Ramsey said in a telephone interview. But when the budget office "walked back through the numbers," it was decided that some premium levels for employees were too high.

Cost figures released by Gov. Ernie Fletcher on Tuesday showed most public employees would pay more through higher deductibles and, in many cases, higher premiums.

Reaction was swift. The Jefferson County Teachers Association called for a statewide teacher strike. Opposition Democrats in the Kentucky House positioned themselves to use health insurance as an issue in legislative elections in November.

Premiums were reduced in two of the plans - the lowest-priced "commonwealth essential" and the benchmark "commonwealth preferred" - taking effect in January for school district and state government employees, retirees and dependents.

Reductions range from $6 per month for lowest-paid workers to $47 per month for those in the highest of 10 salary brackets under the "preferred" plan. Cuts in "essential" premiums ranged from $5 to $25 in the top five salary brackets.

"I still don't think it's going to be enough" to change anyone's opinion about striking, said Frances Steenbergen, president of the Kentucky Education Association, of which the Jefferson County teachers are a part.

Reductions were restricted to coverage for couples, families and single parents with children. Single coverage was not affected. Nor was the highest-priced plan, "commonwealth premium."

The state health plan covers 229,000 workers, retirees and dependents.

With reductions, a worker making the state government average salary of just more than $36,000 - the fifth of 10 salary bands - would pay $521 per month for family coverage under the benchmark "preferred" plan. The original premium was $543.

A worker in the top salary band - over $76,000 - would pay $546 for the same coverage, down from $593.

"We appreciate the additional money toward the rates," said Charles Wells, executive director of the Kentucky Association of State Employees. "Unfortunately, the increasing contribution does not cover the cost" of added deductibles and co-insurance fees.

Steenbergen agreed. "Our stance is still that many people are going to be paying increased premiums in 2005 even if they never see a doctor, visit a medical facility or purchase a drug," she said.

Wayne Young, executive director of the Kentucky Association of School Administrators, told Fletcher in a letter that health insurance costs were making it nearly impossible for superintendents and principals to find and keep good teachers and staffers. The new insurance plan "provides one more reason not to become an educator," the letter said.

---

On the Net: http://personnel.ky.gov