Health insurance premiums for over 100,000 Idaho state employees are set to increase by 8% this year, the Idaho Department of Administration announced. The rise is attributed primarily to escalating healthcare and prescription drug expenses.
After a year of stable premiums, this increase stands out as significant. Steven Bailey, director of the Department of Administration, explained, “Health expenses are rising along with costs everywhere. It’s a complex issue with costs coming from every direction.”
A major driver behind the premium hike is the sharp surge in use of GLP-1 drugs—weight loss medications that come with high costs. “The usage of these medications has skyrocketed. They are very expensive, and we are covering them for our state employees,” Bailey said. “This unexpected pharmacy expense has contributed to our underfunding.”
The department, which provides medical, dental, and vision insurance coverage for state workers, had not anticipated the rapid growth in demand for these weight loss drugs when setting its healthcare budget.
Premium increases will vary depending on the insurance plan. Employees enrolled in the common PPO plan will see their monthly premiums rise by $16. Those on high-deductible plans face a $4 monthly increase, while participants in traditional plans will pay $50 more each month.
Despite the increase, the Department of Administration is committed to minimizing the financial impact on employees. Bailey emphasized, “We know how important healthcare is, and we are focused on keeping costs as low as possible.”
To address rising costs, the department is exploring more affordable insurance plan options and negotiating with healthcare providers to ensure reasonable pricing for essential services. “Every day, the Office of Group Insurance is working diligently to lower costs,” Bailey added.
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