SHP won't increase insurance premiums State Health Plan board votes not to raise employees' monthly premium rates

State employees covered by the State Health Plan will not face an increase in their insurance premiums during 2024, while some employer contributions will increase by double digits.

The SHP's board of trustees approved the 2024 premium rates at Thursday's quarterly meeting. The rates go into effect Jan. 1.

The SHP is North Carolina's largest purchaser of medical and pharmaceutical services, and is self-funded.

It covers nearly 740,000 teachers, state employees, legislators, retirees and their dependents. The state treasurer's office oversees SHP.

Treasurer Dale Folwell has emphasized during his two terms in office that "health care is among the valuable benefits that draw people into government service."

"I'm delighted that we're able to maintain active member premiums, especially family premiums, with no increase for the next benefit year," Folwell said. "Our members continue to work tirelessly as teachers, state employees and public servants, and they deserve stability in what they pay for this valuable benefit."

The board also voted to freeze premiums for Medicare-eligible members on the Humana Group Medicare Advantage plans.

The unchanged rates apply to both the enhanced and base Preferred Provider Organization (PPO) plans.

The enhanced plan provides an 80% health-care provider, 20% employee co-pay coverage once an out-of-pocket limit is reached, while the base plan - which has a lower premium cost - carries a 70%-30% co-pay coverage.

The enhanced monthly premium rate remains at: $50 for employee/retiree only; $305 for employee/retiree and child(ren); $700 for employee/retiree and spouse; and $720 for employee/retiree and family.

The base monthly premium rate remains at: $25 for employee only; $218 for employee and child(ren); $590 for employee and spouse; and $598 for employee and family.

A $60 per month tobacco attestation wellness surcharge remains unchanged.

The SHP has not raised the employee-family and employee-child(ren) rates since 2018.

The SHP's high-deductible health plan's monthly premium rate remains flat for employees at: $96 employee only; $284 for employee and child(ren); $513 for employee and spouse; and $617 for employee and family.

Meanwhile, employers' premium rate goes up 15.3%, or from $159.88 to $184.36 per month.

Premium rates also remain unchanged from Medicare Advantage's base and enhanced plans.

When it comes to employer and retirement system contributions, the board approved 15.3% increases from employers and a 4.9% decrease for permanent employees and retirees "to be consistent with House Bill 259," the state's 2023-24 budget legislation.

The executive director of the SHP has the authority "to adjust employer and retiree premium rates" if the Republican-controlled legislature opts to pass "mini budget bills" to implement the 2024 changes.

Republican House and Senate leaders and budget writers have said their compromise negotiations on SB259 will carry over into August.

If the 2023-24 state budget bill does not become law by Jan. 1, the premium rates would remain at 2023 levels.

[email protected]@rcraverWSJ