Well the first month of the fiscal year has now finished and the grand total for state spending is over $2.799 billion dollars, in one month.

Where did it go?

$1.38 billion to “Grants and Benefits”

• $430 million in Medicaid payments to doctors and other service providers
• $344 million to local school systems
• $108 million to Blue Cross & Blue Shield of Alabama (insurance premiums for school employees, state and local government employees)
• $114 million in payments to the public welfare trust fund
• $64 million in grants to public service providers

$694 million to “Debt Service”

$213 million to “Personnel Costs” (this is really more than one month’s worth of payouts because of the way the pay periods are structured, most employees have now received three of the 24 checks they will get this year)

$147 million to “Miscellaneous” (mostly fund transfers between accounts)

$133 million to “Capital Outlay”

• $104 million through the DOT to construction firms for roads, bridges and tunnels

$79 million for “Services”

• $15 million to Blue Cross Blue Shield of Alabama for SCHIP

$71 million for “Employee Benefit”

It is interesting that it appears the single greatest receiver of Alabama state government payments, as we’re going through this debate about healthcare reform, is Blue Cross/Blue Shield of Alabama.  Should someone be asking the candidates for Governor what they are going to do to put more pressure on BCBS to give us a better deal on premiums?  They received at least $123 million in premium payments for government employees and children on the State Children’s Health Insurance Plan.

The state of Alabama pays $775  per month per person who receives individual health insurance coverage (with the employee paying nothing - though that has changed since this report, single employees now pay $15).  What does the average state pay?  $438 (with the employee picking up an additional $47 )

The state of Alabama pays $775 per month per person (with $180 paid in addition by the employee) in premiums for family coverage.  What does the average state pay?  $880 (with the employee picking up an additional $192)

So, it looks like we have agreed to pay the same per person regardless of whether it’s an individual or family plan…and so we pay radically more than other states for individuals and a little less for families.  That can’t possibly be saving us money…can it?

I will do a little more digging and see if I can determine how many individuals receive health coverage through the state versus how many families and what would happen if we paid less for individuals and more for families, but it certainly seems like a practice that should be questioned.  If you find more information, please pass it along.

As always, your comments are welcome below.

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