Raleigh, NC – State employees in North Carolina are set to experience higher health insurance premiums starting in 2025. The State Health Plan’s Board of Trustees has approved a 7.1% increase in employer contributions for the fiscal year 2024-2025, translating to a marginal rise in monthly premiums from $674.54 to $674.62 per employee.
Despite this adjustment, the State Health Plan is confronting a projected $507 million deficit, anticipated to escalate to $1.4 billion by 2027. To address this financial challenge, the Board is considering implementing salary-based premiums, which could result in higher-paid employees contributing more towards their health insurance.
State Treasurer Brad Briner has indicated that premium increases are likely necessary to sustain the plan’s financial health. This marks a shift from previous approaches that sought legislative solutions to manage the plan’s expenses.
The Board’s recent vote permits the plan to adjust premiums based on employees’ salaries, a move aimed at mitigating the looming fiscal shortfall. However, this proposal has elicited concerns among educators and state workers, who fear that higher premiums could exacerbate financial strains, especially for veteran employees.
As the State Health Plan continues to navigate these financial challenges, further details on premium adjustments and their implementation are expected to be released in the coming months.
