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State plans cuts to employee health benefits as rising costs strain budget

State employees will see big changes to their health care coverage next year. That includes increases to monthly premiums, deductibles and what workers pay per visit to the doctor’s office.

The state needs to come up with roughly $70 million to cover state workers’ health care through next year.

What the state spends on care like doctor’s visits, surgeries and medications shot up roughly 50% between 2020 and 2025.

State health plan manager Amy Jenks says new treatments are contributing to that sharp increase.

“A cancer treatment for skin cancer is $2 million for one medication,” she says.

Jenks said new medications like weight loss drugs are also adding to the cost of the state health plan.

The state expects to spend an additional $8 million, and to make up another $12 million with cost-savings measures. Changes to state workers’ benefits will cover the majority of the shortfall.

The state and the Montana Federation of Public Employees have started negotiating a state pay and benefits plan ahead of the 2027 legislative session. MFPE in a press release says the state’s plan puts too much of the burden on workers.

It said it would “work with lawmakers during the session to secure a State Pay Plan that protects both competitive wages and affordable health care.”

Editor's note: MTPR news staff are part of the state employee union.

Aaron is Montana Public Radio's Flathead reporter.
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