State Health Plan premiums likely to increase for most workers by 2026

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.