As we noted in last week’s Roundup, the State Health Benefits Commission (SHBC) postponed the July 29 Plan Year 2025 Rate Renewal Meeting that was expected to act on a proposed 17.2% rate increase for local governments in the State Health Benefits Plan.
It has not been announced whether a special meeting will be scheduled, or if they will act at the next regularly scheduled meeting on September 11. It is also unknown if the Centers of Excellence Pilot Program, passed by the Plan Design Committee last week, will affect the overall rate increase and provide immediate relief.
As we previously reported, the SHBC met on July 10 and heard a presentation from AON regarding the 2025 rate setting. The proposed rate increase for Plan Year 2025 for the State Employee Group is 11% and the Local Education School Education Health Program is 14.9%.
The recommended rate increase for Local Government Active is 16.3%, including a 14.5% increase for medical and a 28.4% increase for prescription drug premium rates. The recommended rate increase for Local Government Early Retirees is 17.9%, including a 15.1% increase for medical and a 33.1% increase for prescription drug premium rates. The recommended Medicare Retiree increase is 22.8%, including a 7% increase for medical and a 32.4% increase for prescription drug rates.
We will let you know when this meeting is rescheduled.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.