Consulting firm: State workers’ insurance will rise in 2020
LITTLE ROCK, Ark. — A consulting firm says Arkansas state employee health insurance costs are set to rise dramatically in 2020 unless the state steps in to offset the increase.
An actuary for a financial consulting firm told the State and Public School Life and Health Insurance Board Tuesday that health care funding for about 26,000 state workers will fall around $27 million short.
The Arkansas Democrat-Gazette reports the firm told the board employees’ contributions will need to increase by 27% next year, the benefits will need to change or the state will need to pay more to subsidize.
The firm said the state’s 46,000 school employees will not need to see large rate increases until 2021, though that will deplete reserve funds. Plans would then need to increase by 24% in 2021.