State Health Plan Announces Rate Increases
UPDATED September 13, 2007 -- RALEIGH, N.C. — State Health Plan members statewide are receiving special fall enrollment booklets in the mail, explaining rate increases, benefit changes and critical time-frames for completing enrollment forms.
George C. Stokes, executive administrator for the North Carolina State Health Plan, commented: “The results of the legislative session will enable us to continue to meet our commitment to offering our members affordable health care choices and quality programs. As we explain the changes to our members, it is especially important to provide perspective on the rate increases.”
Stokes explained: “The State Health Plan’s rate increase is 11.2 percent for two years, 2007-2009. Nationally, according to the recently released Kaiser Family Foundation Employer Health Benefits 2007 Annual Survey, average premium rate increases are approximately 7.7 percent and 6.1 percent per year, yielding a 14.3 percent compounded increase for the same two-year period. Clearly, the State Health Plan is managing taxpayer dollars and member premium increases responsibly and at a level well below the marketplace.”
State Health Plan increases also reflect improved benefits – unlike the national trend of reduced benefits, combined with increased rates and continuous cost-shifting to employees
According to the National Coalition on Health Care, the annual premium for an employer health plan, covering a family of four, averaged close to $11,500. The annual premium for single coverage averaged more than $4,200. In comparison, the State Health Plan annual premiums for 2007 through 2009 are projected to be $10,030 for a family of four, and $4,157 for single coverage – with the state paying the full $4,157 for single coverage. North Carolina is one of only a small number of states providing full employee premium coverage.
Stokes underscored the impact of the State Health Plan’s cost savings initiatives: “On behalf of our members and taxpayers, and in an era of dramatically increasing health care costs, I asked the General Assembly for less money in the recently approved two-year budget than was in the previous two-year budget. Going forward, the State Health Plan will continue this sharp focus on affordability and cost savings.”In North Carolina, the recent salary increases have a greater impact than premium increases for dependent coverage. A state employee making $39,000 will see a 4% salary increase this year, totaling $1,560 more for the year. If this same employee pays for family coverage on the PPO Standard Plan, the monthly premium will increase $49.30 per month, costing $591.60 more per year for dependent premiums. Also, health care premiums for dependent coverage are paid for with pre-tax dollars.
According to the Kaiser Family Foundation and the Health Research and Educational Trust, premiums for employer-sponsored health insurance in the United States have been rising four times faster, on average, than workers’ earnings since 2000.
Stokes concluded: “I’m proud to say that State Health Plan members receive excellent health care coverage at affordable prices, and we will continue to build on that commitment.”
