JACKSON - The administrator of the state's massive health insurance plan was asked during a meeting Tuesday whether higher-salaried employees could pay more in premiums than do lower-waged workers.

Like private companies across the country, the state is dealing with rising costs of health care. Come January, state employees will pay $20 per month more toward their health insurance premium.

The costs for family plans and for many retirees also will go up even more than $20 in some cases.

During a Tuesday hearing of the House Insurance Committee, Rep. John Hines, D-Greenville, said the $20 per month "could make a difference" whether someone earning $25,000 per year can "buy groceries."

Hines suggested that state employees earning higher wages pay more for health insurance premiums than those who earn less, such as $25,000 annually.

Teresa Planch, administrator of the plan, said the State and School Employees Health Insurance Management Board considered that option, but decided it was not feasible.

"We have so many employees at the lower pay," she said. "We were not able to price it to make up that amount of money."

The state health insurance plan covers 194,500 people, including active state employees and teachers, higher education employees, dependents and retirees.

Currently those employed by the state before January 2006 pay nothing for health insurance. Those employed after January 2006 pay $18 per month.

Starting in January, those employed before 2006 will pay $20 per month while those employed later will pay $38.

Planch said the board understands the hardship the premiums will put on some families. But she said the Legislature, facing massive budget problems, could not supplement the plan with state funds.

That left the board with choosing between the additional charge or cutting benefits. A survey, she said, indicated people would rather pay the $20.

The costs will go up more for family plans and some retiree plans. For instance, a family plan for an employee hired before January 2006 will go from $271 per month to $332.

The rise in insurance costs comes on top of an increase in the amount state employees, including teachers, pay for their pension plan. Earlier this year, the Legislature increased the employee contribution by 1.75 percent, to 9 percent of their salary.

Contact Bobby Harrison at (601) 353-3119 or bobby.harrison@djournal.com.