Experts warn Oklahomans should expect health insurance costs to spike

OKLAHOMA CITY — As Oklahoma’s state employees face potential double-digit hikes in health insurance premiums, experts are warning that all Oklahomans should brace for a similar shock this year.

Amid rising healthcare costs, increased utilization and inflation, most Oklahomans, including those insured through private insurance and Obamacare, are also projected to see double-digit premium increases as well, according to analyses from KFF, a nonprofit health policy research, polling, and news organization.

Last week, about 180,000 Oklahoma state employees, retirees and their families were the latest group to learn that their premiums could increase from 15.8% to 19.5% depending on their preferred HealthChoice plan.

For some employees with a spouse on a basic plan, that would translate to an $125 premium increase next year if the proposed hikes are ultimately approved by the Oklahoma Health Care Authority and the director of the Office of Management and Enterprise Services.

“These recommended rate increases reflect a health care environment where medical costs continue to climb, utilization has increased, and the plan must collect the premiums necessary to pay future claims, preserve its financial strength, and remain a high-quality, competitive health benefit for Oklahoma’s public employees, retirees and their families,” said Rebecca Sheppard, a spokesperson for the Oklahoma Health Care Authority. 

Oklahomans enrolled in private plans are also expected to see their costs increase due to rising healthcare costs, expensive specialty drugs, coverage of GLP-1s for weight loss, increased use of behavioral health care and a changing risk pool, according to KFF. 

Insurance plans offered by employers with 50 or fewer employees face a median premium hike of 14%. 

In addition, the 179,600 Oklahomans who purchase their insurance through the federal Affordable Care Act portal should expect to see premium hikes ranging from 12.8% to 30.5% depending on the insurer.

KFF partially attributes this to rising healthcare costs, general inflation, labor shortages, increasingly severe claims and consolidation of providers. 

Nationwide, Affordable Care Act insurers are proposing a median increase in premiums of 15%, the second-highest requested rate change since 2018, according to the KFF analysis.

Oklahoma Insurance Commissioner Glen Mulready did not answer questions from Oklahoma Voice sent Friday about why he believed health care costs are rapidly rising in the state.

Rep. Trey Caldwell, R-Faxon, said costs have continued to rise because of inflation dating back to the COVID-19 pandemic.

Caldwell, who chairs the House budget committee, said federal policy is needed to address inflation as the state is limited in its role. 

He said he’s concerned about the rapid rise in costs for state employees.

“If we don’t keep up as a state with the compensation level and and have some you know adjustments for inflationary pressures, we’re going to start to lose good employees as a state,” he said. 

Lawmakers this past session approved teacher pay raises, increased longevity payments for state employees and signed off on cost of living adjustments for public retirees. 

Caldwell said he doesn’t think the premium increases, if approved, will totally offset the benefit increases lawmakers passed this year.