State Adjustment Proves Costly to Iowa Retirees

By: Associated Press Email
By: Associated Press Email

Some former workers for the state of Iowa are facing big jumps in their supplemental insurance for health care.

For some, the increases are more than $400 a month. But the state says nearly two-thirds of the retirees received premium increases of less than $100 per month.

The state says the retirees have been taken out of a pool that includes current state workers.

State Administrative Services Department spokesman Caleb Hunter
says the retirees' health plan is supposed to be covered by their premiums.

But the state had been subsidizing it, to the tune of $9.5 million last fiscal year.

He says that by adjusting the premiums and making other changes,
the state expects to save about $12 million next year.

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