The PEB board is faced with providing programs within a 0% trend, or what’s known as flat line funding. At the June 24th meeting, the board reviewed recommendations of plans that meet the budget goal but also include changes to benefits and increases of out of pocket (OOP) costs to employees.
“Benefit changes are not unexpected, but the increases are depressing and will have far reaching impacts to state employees,” WFSE Executive Director Greg Devereux told the board members. “The recommended increases to out of pocket expenses are extremely high and may have a tremendous impact on utilization of services. We need to pay attention to what this does to the workforce. State employment has always been a trade off between wages and benefits, and now, we’re trading both.”
Under the recently ratified 2009-2011 contracts, the employee premium contribution remains at 12%. Depending on your plan selection, this could mean a reduction of monthly premiums.
The plans have not yet been adopted, but here’s a peek at the recommended monthly premium rates for state employees:
The real changes are in the design of the plans. The bulk of the cost increases to state employees will be felt at the point of service. All plans, with the exception of Kaiser Classic, will now have annual deductibles. Depending on the plan, deductibles will increase to a range from $250-$2000 for individuals and $750-$4000 for families. Out of pocket (OOP) maximums are also increasing, in some plans from $750 to $2000 for individuals.
“This is onerous on state employees,” commented Greg Devereux. “We do expect to make up ground in a better economic climate. State employees are already 13% - across the board – behind the private sector in wages and traditionally make this up in benefits. We plan to make this up in the future, when the recession recedes.”
In the meantime, employees can try to mitigate some of their out of pocket (OOP) costs by selecting the plan that best fits their health care needs when open enrollment begins in October. The charts below highlight the changes being recommended for each plan:
“This is onerous on state employees,” commented Greg Devereux. “We do expect to make up ground in a better economic climate. State employees are already 13% - across the board – behind the private sector in wages and traditionally make this up in benefits. We plan to make this up in the future, when the recession recedes.”
In the meantime, employees can try to mitigate some of their out of pocket (OOP) costs by selecting the plan that best fits their health care needs when open enrollment begins in October. The charts below highlight the changes being recommended for each plan:
New and increased deductibles and out of pocket costs for services make selecting the right plan more critical. You can learn more about strategies to selecting a health care plan that best fits your utilization of services in the PEBB enrollment guide.
The PEBB continues to work out the final details and is scheduled to meeting again on July 8, and again on July 15 to vote on approving the plans.
ADDITIONAL RESOURCES
- PEB Board Press Release
- PDF of PEB Charts as pictured above
- PEBB Enrollment Guide > Selecting the best medical plan for your family
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