First, state employees saw their pay frozen. Now they face a 7.5 percent increase in the cost of their health benefits.

The financial double whammy was completed Thursday when the Department of Community Health approved premium increases for the health plan covering state employees.

The 7.5 percent increase for 2009 benefits is an average. Some employees will see even higher premium boosts, while others, especially those in high-deductible plans, will have a smaller increase.

The state’s growing cost of providing benefits tracks the experience of employers across the nation.

The State Health Benefit Plan covers 690,000 state employees, schoolteachers, dependents and retirees.

As employers’ insurance costs have soared over the years — at higher rates than inflation and wage growth — many workers, in turn, have been forced to pay more in premiums, co-pays and deductibles.

State employees have been socked with a series of premium increases, said Jeff Hubbard, president of the Georgia Association of Educators.

The insurance increases especially hurt lower-paid employees such as custodians and bus drivers, many of whom “work for the benefits,” Hubbard said.

Georgia teachers and state employees were scheduled to receive a 2.5 percent pay raise in July. But because of the state’s fiscal crisis, Gov. Sonny Perdue recently froze the pay of the state’s 110,000 workers. Teachers and school personnel will receive raises.

Hubbard also noted that employees will have fewer choices of health insurers. Blue Cross and Blue Shield of Georgia will not be offered to employees this coming year. Blue Cross has appealed the state’s 2009 contract award to UnitedHealthcare and Cigna, which will cover the majority of employees.

Kaiser Permanente’s HMO option for state employees will be phased out after 2009. Kaiser also is appealing the contract award. In addition, the state is terminating the old-style, fee-for-service benefit option.

By choosing a high-deductible option, workers in other health plans can reduce their premiums, state officials said. The state is controlling health costs by encouraging use of generic drugs, fully covering preventive care, and helping to manage chronic disease, Community Health officials said.

Open enrollment for state employees to choose a health plan begins Oct. 10 and concludes Nov. 10.

Staff writer James Salzer contributed to this article.