May 22, 2024

by Michael R. Wickline | Arkansas Democrat-Gazette

Most current employees in the state’s health insurance plan for state employees will pay less than they currently do, and most retirees will pay slightly more, under proposed changes for calendar year 2025 that won the endorsement of the state Board of Finance on Wednesday.

Current employees and retirees in the state’s health insurance plan for public school employees would pay the same amount in calendar year 2025 that they currently pay under the plan that cleared the board on Wednesday.

Grant Wallace, director of the state’s Employee Benefits Division, said division officials want to seek $15 million in one-time state funding from the state Department of Education for the health insurance plan for public school employees because last year the minimum contribution from school districts was not increased from $234.50 to $300 per member per month.

The $15 million in state funding would help the state’s health insurance plan for public school employees to get on a better financial path, he said.

Jim Hudson, chairman of the state Board of Finance, noted, “we are not making any commitments on our end.”

The request for $15 million in state funding will be a discussion between officials of the state’s Employee Benefits Division and state Department of Education, said Hudson, who is also secretary of the state Department of Finance and Administration.

The next hurdle for the Board of Finance’s proposed changes is the Legislative Council’s Employee Benefits Division Oversight Subcommittee, which is scheduled to meet next Wednesday.

The state’s health insurance plans offer premium, classic and basic plans to state and public school employees and non-Medicare-eligible retirees. They also offer Health Advantage coverage and United Healthcare’s Medicare Advantage with prescription drug coverage for Medicare-eligible retirees.

The enrollment period for the state’s health insurance plans for working public school and state employees is in October, and the enrollment period for the state’s health insurance plans for public school and state government retirees is in November, Wallace said.

STATE EMPLOYEE PLAN

In the state employee plan, 11,162 state employees with employee-only coverage in the state’s premium plan would contribute $151.80 a month in 2025 — a drop from their $162.14 a month contribution in 2024 — and 4,080 employees with employee and children coverage in the state’s premium plan would contribute $310.56 a month in 2025 — a slight decline from their contribution of $311.02 a month in 2024 — under the rates endorsed by the state Board of Finance on Wednesday.

In the state employee plan, the 1,644 employees with employee-only coverage in the state’s classic plan would contribute $72.42 a month in 2025 — a decline from their contribution of $85.52 a month in 2024 — and the 1,868 employees with employee-only coverage in the basic plan would contribute nothing in 2025 as they currently do in 2024 under the proposal that cleared the state Board of Finance on Wednesday.

In the state employee plan, the 1,295 non-Medicare-eligible retirees with retiree-only coverage in the premium plan would contribute $337.86 a month in 2025 — a increase from their contribution of $331.06 a month in 2024 — under the plan backed by the finance board.

In the state employee plan, the 3,185 Medicare-eligible retirees with retiree-only coverage through Health Advantage would contribute $256.34 a month in 2025 — an increase from their contribution of $233.04 a month in 2024 — and the 5,397 Medicare eligible-retirees with retiree-only coverage through United Healthcare’s Medicare Advantage with a prescription drug coverage plan would contribute $17.72 a month — up from their contribution of $17.03 a month in 2024 — under the proposal.

The state employee health insurance plan is projected to have a surplus of about $51.3 million in 2024, according to the Milliman actuarial firm.

PUBLIC SCHOOL EMPLOYEE PLAN

In the public school employee plan, the 11,052 employees with employee-only coverage in the premium plan would continue to pay the $201.96 a month in 2025 that they pay in 2024, and the 2,325 employees with employee and children’s coverage in the premium plan would continue to pay $457.28 a month in 2025 like they do in 2024 under the plan endorsed by the state Board of Finance.

The 14,665 employees with employee-only coverage in the classic plan would continue to pay the 2024 rate of $88.38 a month in 2025, and the 6,632 employees with employee and children’s coverage in the classic plan would still pay the 2024 rate of $209.30 a month in 2025 under this plan.

In the public school employee plan, the 4,895 employees with employee-only coverage in the basic plan would pay the 2024 contribution rate of $43.24 a month in 2025.

The 2,069 non-Medicare-eligible retirees with retiree-only coverage in the classic plan would continue to pay their 2024 rate of $252.18 a month in 2025 under this plan.

In the public school employee plan, the 8,712 Medicare-eligible retirees with retiree-only coverage in the Health Advantage plan would pay $121.98 a month in 2025 — the same rate as in 2024 — and the 6,130 retirees with retiree-only coverage through United Healthcare’s Medicare Advantage with a prescription drug coverage plan would pay $9.03 a month in 2025 — the same level as in 2024 — under the proposal.

The public school employee plan has a projected surplus of $4.6 million in 2024, according to Milliman.

The state’s Employee Benefits Division started offering group Medicare Advantage with prescription drug coverage through United Healthcare during calendar year 2023. The group Medicare Advantage plan offers significant savings to retirees and the state, and the group Medicare Advantage plan is different from individual Medicare Advantage plans, state officials contend.

In a move aimed at bolstering the lagging enrollment of retired teachers in the Medicare Advantage with prescription drug coverage plan, the Board of Finance on Wednesday approved a proposed three-month contract for $49,500 with a firm called Retiree First.

Under this pilot program, Retiree First would act as a concierge service for the Employee Benefit Division’s teacher retiree population, providing education on the United Health Medicare Advantage with prescription drug coverage plan and assist with obtaining Medicare eligibility and addressing any other enrollment issues that arise with this population, according to the Employee Benefits Division.

The firm is doing similar work in Florida, according to Wallace.

Read full article HERE.