The State Employee Group Insurance Program (SEGIP) will conduct a health insurance premium holiday in March 2022. This means that both employees and agencies will not be charged for the medical premium for both pay periods in March. SEGIP will still collect premiums and administration fees for all other insurance coverages in March 2022 (including dental, life, vision, disability and pretax).

The health insurance premium holiday will apply to: 

• State agency employees actively employed and on payroll who receive insurance (either a full or partial employer contribution or pay the full health insurance premium)
• Under age 65 retirees with an employer contribution for health insurance  
• Any employee on billing or payroll including COBRA who pay their premium directly to MMB
• Under age 65 retirees who are direct billed from the plan administrator (BCBS, HP or P1). HP will hold the premium holiday for under age retirees who participate in the self-funded plan with SEGIP in March and BCBS and PreferredOne will hold their holiday in April 2022. The Plan Administrators sent notice to those direct billed regarding the Premium Holiday with the monthly respective invoice.
  

This holiday does not apply to over age 65 retirees who participate in the plan administrators fully-funded Senior Plans.

Why are we doing this? 

A one-month health insurance premium holiday is the most efficient way to reduce the SEGIP medical reserve to recommended levels. Due to the COVID-19 pandemic, in 2020 many individuals opted to seek less medical care while providers reduced their offerings of in-person visits and procedures. These changes in utilization resulted in a large drop in medical spending and a higher SEGIP medical claim reserve. The premium holiday brings it more into line with what the state typically maintains for anticipated medical costs.

What will happen to premiums for 2022? 

SEGIP increased the 2022 medical premium by 3%. This rate anticipates an increase in medical spending in 2022 and helps keep premiums smooth and avoids large rate increases in future years. The increased premium combined with the health insurance premium holiday means the annual employee charge for health insurance premiums for 2022 will be less overall, compared to 2021. 

More questions?

Head over to the FAQ's for more information