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Changes Coming to State Employee Health Plan

Noem delivering Dec 8th's state budget address.

State employees can expect new health insurance options in the next enrollment period. Governor Noem mentioned the adjustments during her budget address for fiscal year 2022.

Employees will choose from four plans instead of two. Each new plan is named after one of the presidents featured on Mount Rushmore. The Washington Plan has the highest deductible at $5,500 for a single employee and $11,000 for family coverage. It’s the only option that remains premium-free for employees. The other options include high and low deductibles with varying levels of monthly premiums.

Governor Noem says these changes keep the state health plan sustainable while also being competitive with other area employers.

“This plan will also create $12 million in healthcare savings. We will reinvest those funds directly into employee pay, especially for positions where the state’s base pay hasn’t offered competitive wages.”

A topic brief on the Bureau for Finance and Management website says the savings could also supplement dental insurance and add eye exams to all state health plans. The state health plan covers 27,000 employees and their families.

The governor’s proposed budget also includes a 2.4% salary increase for state employees.

-Contact SDPB reporter Jackie Hendry by email.

Jackie is based out of SDPB's Sioux Falls Studio.