Over the past four years, state and local governments
have found it increasingly difficult to
finance their employee health plans while maintaining
the quality of health insurance. The steady rise in
the cost of health care, in conjunction with declining
revenues associated with the adverse economic environment,
has caused most public employers to consider
ways to amend the health insurance plans they offer
employees. The challenge confronting plan administrators
and public policy makers is how to continue
to provide adequate health insurance plans to their
employees at reasonable prices, while not unduly burdening
taxpayers.