Legislation

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February 27, 2023

Strengthening the State Employee Health Plan


We’re encouraged that Governor Mills’ proposed State Budget includes an initiative reducing the state employee share of individual health insurance premiums by establishing new premium tiers; starting July 1, 2023, the State would pay:

  • 95% for those earning $50,000 or less
  • 90% for those earning over $50,000 but less than $100,000
  • 85% for those earning $100,000 or more

The proposed budget also adjusts the current health premium credit program to reflect the above premium tiers.

For comparison, the State currently pays as follows toward individual health insurance premiums:

  • 95% for those earning $30,000 or less
  • 90% for those earning over $30,000 but less than $80,000
  • 85% for those earning $80,000 or more

Given current premium rates, employees earning between $30,000 and $50,000 would have the opportunity with the 5% health premium credit to save almost $647 per year. That amount is greater than the current individual deductible of $600 per calendar year, and that savings will only increase as health care premiums continue to rise.

 


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