On July 10, the School Employees Health Benefits Commission received a presentation on the recommended plan year 2025 rate increases for health benefits premiums under the School Employees Health Benefits Program. If adopted as proposed, the total premium increase for plans available to active employees covered by the SEHBP would equal 14%. The breakdown of the rate adjustments for active medical and prescription drug coverage for each of the plan options within the SEHBP are as follows:
- PPO10/15 = 21.9%.
- New Jersey Educators Health Plan = 8%.
- Garden State Health Plan = 8.3%.
According to the report from AON, the state’s health benefits program consultant, the proposed rate increases are driven primarily by “higher-than-expected claim cost trends, particularly for prescription drugs where there was significant utilization of high-cost GLP-1 drugs.” Premium increases for active employees also account for employers with favorable risks leaving the SEHBP, thereby leaving behind employers with higher average costs. They also reflect the “expected continued upward pressure of economy wide inflation on plan prices.” In addition, the premium rates include an increase to help replenish the claims stabilization reserve.
A summary of the rate setting recommendations can be found on the Division of Pension and Benefits website here. A more detailed analysis is also available here.
The presentation on the recommended rates at the July 10 meeting was for informational purposes and no vote was taken. The next meeting of the commission is scheduled for July 29 when it is expected to vote on the rates.
As always, boards of education, whether they participate in the SEHBP or not, are encouraged to continuously review all of their health insurance options.