State Officials Approve Increase in Health Plan Premiums: What It Means for You

WILMINGTON, N.C. — Rising costs are hitting many areas, and soon, North Carolinians will see higher health plan premiums. For months, there’s been chatter about this increase, and last Friday, leaders decided how much more the 750,000 members, including teachers and state employees, will have to pay.

State Treasurer Brad Briner highlighted the need for the changes. “We must ensure that cost growth doesn’t exceed revenue growth,” he said. These premium hikes are crucial for addressing a staggering half-billion-dollar deficit in the state’s health plan.

“The scale of this deficit is enormous,” Briner noted. “It made it clear that everyone would need to contribute.”

The State Health Board approved the new premiums, effective January:

• Members earning under $50,000: monthly increases as low as $10.
• Members earning over $90,000: monthly hikes as high as $110.

Briner believes this still keeps the plan affordable. At $35 per member per month, it remains competitive compared to corporate plans that average around $180.

Interestingly, while overall premiums are rising, families with children will see their costs decrease. This change could attract more families and help stabilize future premium costs.

Despite the adjustments, Briner emphasized that the state health plan is still a strong benefit for public employees.

However, reactions from groups like the North Carolina Association of Educators have been strong. They expressed concern, stating, “This premium increase is effectively a pay cut.” They pointed out the lack of a budget, raises, or cost-of-living adjustments, making the financial strain even harder on public workers.

The discussion around these premium hikes comes at a time when many are questioning the value and sustainability of public services. A recent survey from the National Education Association revealed that 62% of educators feel underpaid and overworked, which only adds to the ongoing debate about funding for public education and employee compensation.

Governor Josh Stein recently signed HB125, directing an additional $100 million to the health plan. Advocates hope this will help ease the burden on public workers and improve overall conditions in the state.

In conclusion, the upcoming changes aim to sustain the state health plan, but they also highlight the larger conversation about the treatment of public employees and the funding of essential services in North Carolina.

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