The state’s Central Management Services says they are working on cost-saving measures for the health plans offered to state employees. Some of the measures outlined in a memo to employees last week says CMS is working to identify and remove individuals who are defrauding the system and to get away from “one-size-fits-all” approach.
In the memo CMS also says there will be a cap at 10 percent on any increases to employee premiums for 2018 and 2019, even if the state incurs greater costs. The memo says while the state would like to continue to offer luxury health plans at below-budget prices, they believe that approach is unsustainable and will be taxed after the beginning of fiscal year 2017. The state says they will continue to pay the majority of employee health insurance costs and 100 percent of retiree health insurance premiums. A report from the Commission on Government Forecasting and Accountability in March says in fiscal year 2015 the net state cost for the group insurance of retirees and their dependents was over $717 million.