Amy Rice has introduced a sensible bill. No, I’m not talking about the proposal to reduce corporate income tax. I am talking about the proposal forcing Rhode Island legislators all pay 10% of their health insurance and not receive a payment if they waive the health insurance benefit.

Hallelujah!

Last May, the Projo (link lost) ran a story on legislators voluntarily paying 10 percent of their health insurance premiums which cost upwards of $16,233 a year ($5,810 for an individual plan). Of 113 legislators only 26 voluntarily did so! Others either enjoyed the free healthcare or received a payment for waiving their state funded health care. In these difficult economic times we need to hold our legislators accountable to do what most of us do, pay a portion of our health insurance!

I’ve run a few numbers and here’s the potential cost savings to the state. If every legislator took advantage of the 16k+/year family health plan, it would cost the state a little more than 1.8 million per year. If the Assembly passed this act, it would represent a potential cost savings of $183k if every legislator had a family plan. Further if more waived their participation in the health plan, the state would save the entire cost of the plan be it individual or a family plan without having to pay the legislator for waiving their participation.

Practically speaking, it’s likely that no more than 100 to 200k can be expected by passing this legislation. However, if the General Assembly does pass this bill they will be standing along you and me as we tighten our belts and prepare ourselves for an economic rough season.