Employers in the State Educators Health Benefit Plan (SEHBP) saved $462.7 million over three years from changes resulting from a law designed to produce healthcare savings, state officials announced recently.
This total surpasses the $300 million in net savings required under Chapter 44, the law that instituted changes to the state’s health benefits plan for employees and retirees of school districts and county colleges that participate in the state plan.
AON, the state’s actuary for its health benefits plans, issued a report last week, but noted the “data provided for this analysis was limited, requiring numerous assumptions and projects in several areas to estimate savings.”
State Treasurer Elizabeth Maher Muoio said the actuary’s findings show the law is “working as intended” to deliver savings.
Signed in July 2020, the Chapter 44 law impacted active employees and retirees not yet eligible for Medicare and included changes to plan designs offered through the SEHBP, two additional plans that must be offered by all school districts, and changes to participant contributions for individuals who enroll in certain plan design options.
Had the three-year net savings estimate fallen below the $300 million threshold called for under the law, further plan design changes would have been required.