The plan, which lawmakers approved on a 95-0 vote just after 10 p.m., would lower premiums, deductibles and out-of-pocket expenses for active and retired teachers and state workers.

The plan lowers the expenses participants would pay for doctor visits and prescription drugs. Participants would be paying set co-pays rather than percentages on those expenses.

The plan now heads to the Senate for consideration.

"We believe this is what our state employees and our educators want and this is what they deserve," said House Appropriations Committee Chairman Harry Moberly.

Earlier Thursday, Senate Republicans signaled that a final agreement between the two chambers based on the House plan was not a foregone conclusion.

Senate President David Williams, R-Burkesville, said the House proposal is based on estimates and not a guaranteed cost to the state. And, renewed interest from one of the current state health insurance carriers, Humana, "could complicate things," Williams said.

"There is a possibility - and I see the possibility looming out there - that we could have a disagreement between the House and the Senate," Williams said on the Senate floor.

Gov. Ernie Fletcher called the General Assembly into a special session last week, hoping it could improve upon the administration's 2005 health insurance plan. The plan has been met with a huge public outcry and a threatened teachers' strike later this month if current benefits aren't restored.

The state's health insurance plan covers 229,000 retired and active public school and state employees. Participants have argued the governor caught them by surprise with expensive changes including higher premiums and higher out-of-pocket costs.

Teachers have threatened to strike Oct. 27 - less than a week before the November elections - if the current benefits aren't restored.