An insurance strategy that critics say discriminated against black state employees by offering them inferior health plans will stop Jan. 1.

Health benefits administrator Roger Wilson said cost savings, not allegations of discrimination, made the state decide to offer the same health plans to all employees.

A lawsuit alleges that people living in zip code areas beginning with 680, 681 or 685 were given a choice between plans that offer inferior coverage. The state signed an agreement on Thursday with Blue Cross and Blue Shield to be the sole health insurance provider, essentially stopping the use of zip codes.

About 96 percent of the state's black employees reside in the zip code areas, compared with 63 percent of all state employees.