I am writing to provide some information about the projected premium increases for the School Employees’ Health Benefits Program (SEHBP) for 2023. This information is only for those districts and retirees covered by the SEHBP.
While the premium rates for the plan year beginning January 1, 2023, have not been finalized, The consulting firm, Aon, presented a report to the SEHBP Commission on July 13th indicating that those increases could be as much as 15.6%.
Increases to the SEHBP would largely be paid by boards of education; however, employees who are enrolled in either NJ Direct 10 or 15, will see the percentage increase in their cost share since your cost share is a percentage of the insurance premium. Those employees who are enrolled in the NJEHP or GSHP Plans, pay a percentage of their salary (under Ch. 44).
These increases will also impact the cost share for retirees who are 65+ and paying a cost share for your medical supplemental insurance with Medicare.
The link below will provide answers (FAQ) to the Rate Renewal Process as well as the components that are included in the proposed rate increase. The date that the final rate approval will be voted on by the SEHBP Commission has not been set. We will keep you informed as this process moves forward.