Insurance Board to Vote on Rate Changes
The Oklahoma Employees Insurance and Benefits Board will vote tomorrow (Friday, August 16) on proposed health insurance premium increases.
The Employees Group Insurance Division (EGID, formerly OSEEGIB) released the proposed rates for 2014 earlier this week. Education employees and schools are expected to see a 4.5 percent increase in overall healthcare costs.
An EGID spokesperson said the actual increase in insurance costs was about eight percent, but they worked to decrease that percentage by allocating $28 million in reserve funding to lower the impact costs.
The proposal increases individual premiums by $20.88 a month for HealthChoice High plans. The State is required by law to pick up this increase. The rates for a spouse would go down $6.14 a month; however, the premium for one child would increase $10.60 a month or two or more kids would be $16.36 more a month. A family of four (two adults and two kids) would see their insurance premiums increase by $122.64 per year.
In addition to the premium increases, EGID is proposing to raise pharmacy co-pays by 5 percent on name-brand drugs only. Generic prescription drugs will not be impacted. About 80 percent of all prescriptions are filled with generic drugs.
The insurance board will also raise the out-of-pocket maximum by $500 for individuals. The impact of this change will be minimized because employees can now count their co-payments toward their out-of-pocket maximum where previously they could not. Employees will not see an increase in co-payments.
The Benefits Board meeting will be held at 10 a.m. tomorrow in the EGID Board Room at 3545 N.W. 58th Street in Oklahoma City.
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