State employees' share of health insurance costs rising State employees' share of health insurance costs rising

RICHMOND - Most state employees will see an increase in what they pay for their health insurance next year, the Department of Human Resource Management says.

With the premiums that insurers charge the state for coverage rising an average of 4.1% next year, the state will ask some employees to kick in between $1 and $11 a month more as their share of the cost.

That translates to increases ranging from 0.6% to 3.7%, depending on the plan and on how many dependents are covered.

There will be no change for employees covering only themselves through the COVA HealthAware plan, and no employee contribution will be required, as in the past, for the high deductible health plan.

The overall 4.1% average increase, when the cost to the state is factored in, is lower than the national trend of a 7% average premium increase, the department said.

State employees' share of their health insurance was unchanged last year and the year before.

The department said there will be only minimal changes to health plans, all of which are aimed at enhancing benefits.

Those include changes to the formulary drug program - that is, the medications that insurers prefer, and give price breaks on - as well as a diabetes prevention program, in-home addiction treatment and an online dermatology benefit for both its COVA care and high deductible plans. Its HealthAware plan will also see enhancements for the formulary drug program and the dermatology benefit, as well as its minute clinic program.

There will be no changes for plans that mainly cover state employees in Northern Virginia and Hampton Roads, or in the voluntary supplement program for employees eligible for the federal government's TRICARE coverage.

The limit on flexible spending accounts will increase to $3,050 from $2,850, reflecting limits set by the IRS. The dependent care limit remains at $5,000.

Virginia has 154,000 state employees, according to the latest U.S. Bureau of Labor Statistics reports.

The state's biggest health care bill, for Medicaid services to low-income Virginians and those with disabilities, is forecast to rise by 10.8% next year from the level originally forecast for this fiscal year, state budget documents show.

The federal share of the jointly funded program will grow faster, as overall Medicaid spending on medical services is forecast to rise 17.2% to $13.1 billion.

The largest portion of the 1.95 million Virginians covered by Medicaid are children - some 680,000 - while an additional 307,000 are aged, blind or disabled adults with low incomes, groups that tend to need more medical services than working adults.