Md. health insurance changes would cost employees as much as $1k

ANNAPOLIS – Maryland officials are considering health insurance changes that could cost state employees an additional $720 to $1,175 annually. “There is a consensus that we need to change health benefits,” said Maryland Treasurer Nancy Kopp, who serves on the state’s commission studying pension reform. “Ours are more generous than other states.”

The proposals
Action	Savings	Annual impact on average enrollee
Plan A
State subsidy reduced to 75 percent for all plans	4.5%	$522
Institute an in-network deductible of $250/$500	2.4%	$273
Out-of-network deductible to $500/$1,000	0.5%	$59
Plan B
Coinsurance to 90 percent in-network and 70 percent out-of-network with an out-of-pocket maximum to $2,000/$4,000	3.9%	$447
Spouses eligible under own employer must enroll in employer plan	5.9%	Varies
Office visit copays to $20/$30	0.4%	$51
Plan C
State subsidy reduced to 75 percent for preferred provider organization	1.9%	$522
State subsidy for all retiree plans reduced to 75 percent for retiree and 50 percent for dependents	1.8%	$273
Coinsurance increased to 90 percent in-network and 70 percent out-of-network with an out-of-pocket maximum to $2,000/$4,000	3.9%	$447

Maryland offers its employees a generous package of health benefits that will cost the state roughly $1 billion in fiscal 2011. And the expenses are expected to continue growing by roughly $100 million annually — at a rate much higher than the state’s estimated revenue can afford.