NorthwestJanuary 5, 2004

Associated Press

BOISE -- It could cost more than $15 million for state employees to keep the insurance coverage they have for the same price they pay now.

About half of that money would come out of the state's general fund, according to state officials. The other half would be drawn from other state-controlled accounts.

If lawmakers don't approve the increased spending, state employees could see sharp increases in their insurance premiums or their health insurance benefits would have to be cut dramatically.

Gov. Dirk Kempthorne's chief of staff, Brian Whitlock, said the issue will be covered in the governor's budget proposal Jan. 14.

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Last year, the Legislature designated about $16 million to cope with rising health insurance costs. About $8.9 million came from the state's general fund.

But the insurance costs exceeded what Legislature had set aside by about $5 million. Many state employees paid more for their health insurance coverage the same year lawmakers gave no new pay increases.

A state employee pays $24 a month for health insurance. Coverage for an employee and spouse costs $60, while coverage for an employee, spouse and children is $81.

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