The State Health Plan is considering a major overhaul of its pricing structure, likely leading to premium increases for most state employees by 2026.
Posted
State Health Plan could increase $20-$50 per month based on salary
Shaun Gallagher, WRAL reporter
The governing board of the State Health Plan detailed plans Friday that would allow Treasurer Brad Briner the go-ahead to overhaul pricing for state workers.
It includes multi-million dollar savings through adjustments to Medicare options and prescription drug changes. However, the focus Friday was on employee premiums.
“I don’t relish that,” Briner said. “No, at the same time, I don’t think it’s a reasonable expectation that your medical costs never go up into perpetuity.”
Briner, who is the chairman of the board that oversees the plan, has advocated for adjusting premiums based on employee pay, making them more affordable for state employees who earn less, while those who make more would pay more.
The State Health Plan will attempt to deal with a shortfall due in part to rising health care costs.
Briner previously said it’s likely premiums will go up for most of the plan’s 740,000 members come 2026.
Members who insure only themselves can pay as little as $25 a month for health care. Changing the type of coverage or adding a spouse or children to the plan can raise costs. There are many options, reaching as high as $780 a month.
Briner said state employees making more than $65,000 per year would see increases between $35-$50 per month. Employees making less than $65,000 per year would have an increase between $20-$25.
Briner is a Republican who won the 2024 election to replace former Treasurer Dale Folwell, a fellow Republican. Folwell, who lost in the Republican primary for governor, spent years asking the Republican-led state legislature, unsuccessfully, to put more money into the State Health Plan as costs rise due to people living longer and requiring more medical care.
Later this year, the board is expected to vote on actual premiums or changes to coverage.
“Any increase in premium is detrimental to their fiscal well-being,” said Tamika Walker Kelly, the president of the North Carolina Association of Educators.
Kelly said an increase like the one under consideration would take about $200 – $300 per year out of teachers’ pockets. She said it hits harder than people might think.
“Do I go to the doctor’s office or do I want to make sure that my lights stay on in my house or do I save money to feed my child?” Kelly said.
On Friday, some of the board members had positive reactions to the idea of a tiered premium increase. However, nothing is set in stone yet.
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