Indiana Lawmakers May Lose Free Ride on Health Insurance

Indiana House representatives and their families could lose a lifetime of free health insurance if a policy released by the speaker of House is adopted. In 2002, a series of laws passed by the General Assemby gave representatives and their families free health insurance for life.

But in recent days, the free ride on health insurance became a key campaign issue for some lawmakers and was called an “unfunded liability for the state” by Indiana State Auditor Connie Nass.

Leadership complained that the plan had not been comfortable from the start. Thre House Speaker’s move would not change existing law, however, and future speakers would have the ability to reinstate the free insurance, according to an account by Star Tribune.

The Legislative Services Agency estimated that it costs the state between $3,826 and $5,174 a year to pay the premium of an individual lawmaker, or between $10,711 and $14,511 a year if the lawmaker chooses a family plan.

The plan is already expected to cost the state $306,000 a year by 2008, to pay the employee portion of the premiums of retired lawmakers, their families, surviving spouses and even divorced spouses according to Rep. Troy Woodruff (R-Vincennes). Woodruff added that the free insurance was an embarrassing centerpiece of his campaign for the House in 2003.

Some are speculating that many representatives would choose to retire if the plan is changed in order to preserve their elgiblity. Lawmakers have qualified for the benefit if they retired after six years and one day in office, which would include the start of a fourth term in the House or halfway through a second term in the Senate.

Nineteen retired House lawmakers area already receiving benefits paid for by the state. The speaker’s decision will only effect the House and since the proposed policy was released yesterday evening, there is no word whether the Senate would follow the House lead and also nix the free insurance for its retirees.

Topics Legislation