State Employees to See Health Insurance Rate Reduction
Aug. 20–Health insurance rates will decline slightly Jan. 1 for about 185,000 current and retired state, education and local government employees and their family members.
The Oklahoma State and Education Employees Group Insurance Board on Friday trimmed some premium rates for HealthChoice, the state’s health plan for current and pre-Medicare former employees and their dependents. The board also set rates for dental, life and disability insurance programs.
The board voted to cut individual health insurance rates 1.08 percent in 2006 while keeping dependent coverage rates unchanged. Current premiums range from $313 monthly for individual coverage to $1,014 for a family of four.
Board Chairman Richard Womack said the reduction was “a historic event,” that reflected lower claims and assumptions that medical and pharmacy costs would fall, as well as a premium subsidy taken from an unrestricted capital fund.
“While HealthChoice rate increase trends have traditionally been lower than national trends, a rate reduction is extremely rare,” Womack said in a statement.
Tim Nimmer, the board’s actuarial consultant, said the state plan’s costs for medical and prescription drugs are “several percentage points below national and regional levels.”
Oklahoma Education Association President Roy Bishop praised the board’s action, which affects about 48,000 teacher and dependent participants in HealthChoice.
“This will give teachers some much-needed relief from the steady climb in insurance costs,” Bishop said. “For the first time in many years, teacher raises will not be devoured by rising health insurance premiums.”
Since 2004, the state has paid educators’ individual health insurance premiums but pays nothing toward dependent coverage.
The board voted to raise rates for dental coverage. The premium for primary members, their spouses and one dependent child will each increase by just under $5 a month. The rate for two or more children will rise by about $12.50 per month.
Fee increases and costs associated with offering dental care to under-served areas prompted those rate hikes, the board said.
Premiums for the HealthChoice life insurance and disability plans will remain unchanged. The board delayed taking action on premiums for the HealthChoice Medicare Supplement Plans. Those premiums will be set at the panel’s Sept. 23 meeting.
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