State contribute to worker's benefits

That's the total in AB370, which includes the state's share of the increases in benefit premiums necessitated by the financial collapse of the state self-insured benefits program last year.

The program's financial problems were made worse by the complete collapse of the contractor hired to pay medical claim bills for state workers.

When L&H Administrators was replaced, the new contractor found more than 100,000 claims that had not been processed. Contractors and auditors are still trying to sort out some of those claims.

The situation forced a 23 percent increase in premium rates effective in January and another 12 percent next year to rescue the system.

AB370 contains the money to cover the ongoing cost of premiums to provide health benefits to state workers and is in addition to the $26 million that Guinn and lawmakers were forced to put into the benefits plan to restore it to financial solvency.

The bill, which is already part of the governor's budget, sets state contribution rates for employees at $327.20 a month for this next fiscal year and $368.75 for each worker in 2001.

It sets the state contribution for retired workers at $183.59 this next year and $208.92 the following year.

It covers an estimated 15,000 state workers and about 5,000 more retired state workers.

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