State government health plan faces big cost raises i

HELENA — The Bullock administration has approved rate increases of 15 percent to 27 percent and lower benefits for the 2015 state employee health plan, which covers 16,000 state employees and retirees.

The rate increases, while largely opposed by an advisory committee of employees, had been recommended last month by state health plan managers.

“These adjustments are necessary to respond to increasing health care costs and serve to remind us that we need to be at the cutting edge of health care innovation,” said David Parker, spokesman for the governor.

Plan managers said a variety of factors have led to higher costs, including an “open enrollment” period last fall that allowed employees to add family members to the plan and expensive referrals from the state’s new employee health clinics.

Quinton Nyman, executive director of the Montana Public Employees Association, which represents 3,500 state workers, said Wednesday he understands the need for the changes, but hopes the state will take a harder look at plan management to control costs.

“I just think (the changes) are the same old, tired, low-hanging fruit that the administration or whoever is running the plan goes after to solve the problem,” he said.

Nyman noted that the plan now has only one manager, Cigna, which won the contract in 2014. Before, it had competing products from different managing companies.

Parker said the state is “redoubling our efforts” to contain costs for employees and reviewing some new ideas.

While rates will increase, employees who cover only themselves on the plan won’t have to pay more for health coverage next year.

The state is increasing the amount it pays to cover employees’ health plan costs next year, from $806 to $887 a month. That amount will cover medical and dental premiums for a single person.

Monthly premiums for a single person are going up 18 percent, from $717 to $845, and 15.5 percent for couples, from $926 to $1,070. Annual deductibles will increase from $500 to $750 for a single person and $1,000 to $1,500 for a family, and co-payments for doctor visits from $15 to $20.

Retirees covered by the plan will see a 27 percent increase in premiums, from $734 a month to $931 a month for a single person. Those buying into the plan as a supplement to Medicare will see similar increases.

Employees and retirees have from Sept. 15 to Oct. 22 to decide whether to be covered by the plan.

However, retirees who want to check out private policies sold on the online federal health insurance marketplace in Montana can sign up for the state plan and then later withdraw if they choose a marketplace plan, said Sheila Hogan, director of the state Department of Administration.

The marketplace plans won’t be available until Nov. 15.

She also said if a retiree chooses a private plan, they have two years to decide whether they want to return to the state plan.

 Distributed by MCT Information Services