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Changes to State Health Plan Coming

Monday, March 25, 2013
The state health plan will see changes in FY 2014. FY 2014 begins July 1, 2013. The South Dakota Bureau of Human Resources proposed to the 2013 Legislature the following changes, all of which were accepted and approved as part of the budgeting process:
  • 5% dependent premium increase for all plans.
    • The FY 2013 rates for active employees in 2013 are here. Apply 5% to the applicable rate with a dependent to find the FY 2014 rate, which begins on July 1. Example: Employee and One Child - FY 2013 rate is $41.35 semimonthly; FY 2014 is $43.42 semimonthly; that's a 5% increase of $2.07 semimonthly.
  • 12% retiree premium increase.
    • The FY 2013 rates for retirees are here. Apply 12% to the applicable rate to find the FY 2014 rate.
  • 5% COBRA increase.
  • Co-pays removed on $500 and $1,000 deductible plans, except the ER co-pay, which remains.

The employee cost of these changes is $5.6 million; that's the amount of increase that users of the state health plan will pay over their cost in FY 2013. The $5.6 million comes from an additional $1.1 million in premiums, and $4.5 million in member cost sharing.

The state's costs are increasing as well. FY 2014 will see the state invest an additional $12.3 million in the health plan. The Legislature, in Appropriations, decided against a proposed wellness plan that would have cost an additional $8.1 million. That wellness plan would have alleviated the cost born by employees with the premium and cost-sharing changes because the bulk of the funds would have gone to employees who successfully completed quarterly wellness initiatives. There will be exploration and discussion of wellness initiatives over the summer.



Categories: Appropriations Committee, Benefits, Bureau of Human Resources, Health, Legislative, Lifetime Members, Member
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