On July 29, the State Health Benefits Commission is set to act on Plan Year 2025 rate recommendations, which includes a 17.2% increase for local governments in the State Health Benefits Plan.
As we reported last week, the SHBC met on July 10 and heard a presentation from AON regarding 2025 rate setting. The proposed rate increase for Plan Year 2025 for the State Employee Group is 11% and the Local Education School Education Health Program is 14.9%.
The recommended rate increase for Local Government Active is 16.3%, including a 14.5% increase for medical and a 28.4% increase for prescription drug premium rates. The recommended rate increase for Local Government Early Retirees is 17.9%, including a 15.1% increase for medical and a 33.1% increase for prescription drug premium rates. The recommended Medicare Retiree increase is 22.8%, including a 7% increase for medical and a 32.4% increase for prescription drug rates.
We encourage you to review the report and, given the 7% increase in Plan Year 2024 and the 22% increase in Plan Year 2023, encourage you to review your municipal health benefits plan and consider your options.
Contact: Paul Penna, Senior Legislative Analyst, ppenna@njlm.org, 609-695-3481, x110.