Section 16-25A-4

Relationship between benefits and expenses; reasonable controls on utilization and for stability.

The health insurance plan provided for in this chapter shall be designed by the board to provide a reasonable relationship between the hospital, surgical, and medical benefits to be included and the expected hospital, surgical, and medical expenses to be incurred by the affected employee and dependents and to include reasonable controls, which may include deductible and coinsurance provisions applicable to some or all of the benefits; to prevent unnecessary utilization of the various hospital, surgical, and medical services available and to provide reasonable assurance of stability in future years for the plan.

(Acts 1983, No. 83-455, p. 640, §4.)