Reforms Result in $4.2 Billion Saved in Health Benefits

The amount taxpayers must pay in coming years for the health benefits of retired teachers and state employees has dropped by more than $4.2 billion, Governor Riley said today.


That steep decline is due in large part to reforms passed during two previous special sessions, the Governor said.


"This shows that when you take sound business principles and apply them to government, you can get outstanding results. You can save billions of dollars. That's exactly what the people want us to do," said Governor Riley. "The reforms we passed during those two special sessions were based on good business practices and make perfect sense. Now we're seeing the positive results."


Actuaries are reporting to the State Employees' Health Insurance Plan Board today that the unfunded liability for current retirees and future retired state employees dropped from $5.3 billion to $3.1 billion. The actuaries also report the unfunded liability for current retirees and future retired education workers dropped from $14.6 billion down to $12.5 billion.




In 2004, Governor Riley called legislators in to a special session to deal with reforms to save money in both the health insurance plans for state employees and public education employees. Those reforms passed with strong bipartisan support in a special session that lasted only five days.




In 2007, Governor Riley again called legislators in to a special session to create irrevocable trusts to help Alabama pay the billions of dollars it owes in health care costs for retired state workers and education employees.




To read summaries of the reform bills passed in the 2004 special session dealing with health insurance, visit http://governorpress.alabama.gov/pr/pr-2004-11-18-01-cost-saving.asp.




To read a summary of the bill passed in the 2007 special session creating the irrevocable trusts, visit http://governor.alabama.gov/special/special_session_07/index.aspx.

Category:

News & Politics

Tags:

• Governor
• Bob
• Riley
• Alabama
• health
• care
• gov