750,000+ North Carolinians to see premiums increase in 2026 under State Health Plan

RALEIGH, N.C. (WNCN) — Hundreds of thousands of people enrolled in the state health plan will see their premiums rise. That’s the call that was made in a leadership meeting Friday morning.

The approval marks the first increase to premiums under the North Carolina State Health Plan in seven years. This Board of Trustees vote will impact nearly 760,000 North Carolinians who are state employees, teachers, retirees and their dependents.

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class="wp-block-heading">How much is the increase?

The amount each person in the NC State Health Plan going forward differs based on salary and circumstance—and will not be in effect until 2026.

The majority of station employees makes $50,000-$60,000 a year. For those employees who are on a single plan, this will mean paying $50 a month for the plan—up from the current $25.

The plan, which is administered by Aetna with CVS as the pharmacy benefit manager, will also lower surgery costs and in some cases, will make them free-of-charge, according to the board.

Why was an increase needed?

The vote comes as a measure to guard against what State Treasurer Brad Briner, who chairs the board, said are huge deficits for 2026, amounting to $507 million.

According to Briner in a video message on Monday, while the health plan hasn’t increased in seven years—health care costs have by over 25% in that same timespan and the plan, as it had been, was spending more than it was bringing in.

“The plans that the Board of Trustees has worked hard to shield members from inflation, but that has meant, for years, we’ve been using cash to plug the hole,” said Briner. “But those reserves are now nearly exhausted, and we’ve reached a financial crossroads.”

In addition to the price increase, Briner said $100 million in tax dollars next year and decreasing prices from healthcare providers in NC will go towards offsetting some of the rising costs.

“Thank you to our state lawmakers who prioritized this funding in a tight budget this year” said Briner. “This three-pronged approach is the only way we are going to get on track.”

A statement from Briner after the meeting highlighted how difficult it was to vote for an increase.

“Today’s vote was not easy, but these increases were necessary to keep the Plan solvent and to keep this benefit in place for those that serve and have served the state of North Carolina,” said Briner. “ The goal now is to move forward and focus on ways to improve benefits through transparency and better partnerships and programs to keep our members healthy.”

Union responses

Prior to Briner’s video message about the State Health Plan premiums increasing, unions across NC have gathered, voicing their concerns that the plan is under attack. CBS 17 previously reported in May that state union workers demanded the state invest more into the health plan and give state employees a raise in wages to $25 an hour.

Union leaders voiced their concerns about the premium hike and the fact that the state has not increased state employee pay in their “mini budget.” The president of UE150, Robin Lee — who CBS 17 previously covered — said she was worried that she wouldn’t afford the health plan because of the increase.

Her statement said: “We can’t afford these insurance increases if we are making less than $20 per hour. We are paying money out of our check every two weeks, yet we can’t even afford to go to the doctor. I don’t even bring home $1,000 after taxes and deductions in my pay check monthly. For me to have certain procedures, I would have to literally contribute three months of my entire take home pay.”

The North Carolina Association of Educators, a state public school employee union, said it denounced the decision to raise State Health Plan premiums. In a statement sent to CBS 17, NCAE vice president Bryan Profitt essentially called the vote a pay cut to already underpaid teachers.

“The state shouldn’t be balancing the books on the backs of the insultingly underpaid public workers who serve our state’s students every day. Instead of prioritizing more tax breaks and handouts to corporations and our state’s wealthiest residents, state lawmakers should make working in public schools more enticing to recruit and retain the education workforce our students deserve.  It’s what’s good for our kids.  It’s what’s good for our communities.”

The premium increases take effect in 2026.