Information Regarding Your Health Insurance Premium Increase
Recently, The VSEA Benefits Advisory Committee met with the Shumlin Administration to discuss the current claims experience for the Vermont State Employees Health Care Plan. The Administration informed your union that the plan would require a significant premium increase; close to 18% in calendar year 2015.
Recently, The VSEA Benefits Advisory Committee met with the Shumlin Administration to discuss the current claims experience for the Vermont State Employees Health Care Plan. The Administration informed your union that the plan would require a significant premium increase; close to 18% in calendar year 2015.
The root cause of this increase is increased utilization of the plan particularly by participants with high cost claims such as cancer and heart disease.
This rate increase was greatly exacerbated as a result of a decision by the State to issue numerous premium holidays. Your union has long advocated against premium holidays out of concern for the fiscal health of the plan and the need to protect our members from dramatic premium increases such as this one.
While the state employees plan has generally been very cost effective, this rate increase will have a significant economic impact on our members. This demonstrates the need for health care cost containment in the discussion that will occur about our health care system in the upcoming legislative session.