MONTGOMERY, Ala. (AP) -- Alabama's health insurance program for education employees is facing a $220 million funding shortfall for the next fiscal year.
The staff of the Public Education Employees Health Insurance Plan outlined the financial challenges for the program's board on Monday.
Most of the hard decisions, including rate increases, won't be made until May. The changes would take effect when the new fiscal year begins Oct. 1, 2014.
Chief Financial Officer Diane Scott says the gap is due to several factors, including implementing the federal health care law and the number of retirees and dependents growing while the number of active employees remains flat.
The board voted Monday to drop its highest cost pharmacy, Walgreens, from the program if it doesn't reduce its charges. The change would take effect in 90 days.
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