State Health Plan premiums could rise again, and some might pay more to keep their doctors

July 10, 2026 - 07:48

The State Health Plan is set to vote on Friday on a new preferred provider program, along with a potential premium increase for many of its 750,000 members. The proposed changes could mean higher out-of-pocket costs for those who want to continue seeing their current doctors.

Under the plan being considered, members would face a tiered system. Those who choose to stay with doctors and hospitals that are not part of the new preferred network would pay a higher premium. The goal is to steer more people toward a narrower, cost-effective network of providers, which officials say would help control rising healthcare expenses.

The vote comes as the plan continues to struggle with financial pressures. Rising drug costs and increased use of medical services have put a strain on the system. If approved, the premium hike would be the latest in a series of increases over the past few years.

Critics argue that the changes could hurt state employees and retirees, especially those in rural areas where access to preferred providers may be limited. Supporters say the move is necessary to keep the plan solvent and avoid even larger cuts down the road.

The board is expected to make a final decision after Friday's meeting. If passed, the new rates and network options would take effect next year.