State hikes health care costs for employees, expects big savings

(Harrisburg) — Health care for state employees and retirees will soon be more expensive.

The state is hiking monthly premiums from 2% to 2.5% of salary, adding a deductible for some services, and increasing medical and prescription copays.

Retirees are exempt from the higher premiums, but are subject to all the other changes.

The state estimates it will save about $214 million over the next three years because of the adjustments.

They go into effect in January and apply to nearly every state worker, except for legislators, who have a separate health plan.

The Wolf administration says the modifications are the first ones made to health care plans for state workers and retirees in more than a dozen years.