Nebraska state employees will pay 22.1 percent more for health insurance next year, after union representatives and administrators failed to reach a compromise.
The rising premiums will cost taxpayers about $21.4 million over the next year because the state, as the employer, pays 79 percent of the premium costs.
According to the Lincoln Journal Star, employees received a 3 percent pay increase in July, but for many, higher premiums will wipe out any take-home pay increase.
During discussions over the past few weeks, the union offered state administrators several alternatives, based primarily on the anticipation the actual cost increase would be less than the predicted 22.1 percent.
Because the plan is self-funded, the administration needs to make sure the dollars collected from premiums will cover the costs of claims.
The actuarial study indicates state employees used more health care than they had used in the past, and more than consultants predicted.
About 14,000 state employees purchase the health insurance. Employees will receive information on the increases during the health plan sign-up period Nov. 7 to Dec. 2.
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