Idaho state government eyes 10 percent increase in health care costs next year

After a 9.3 percent increase this year, next year’s set-asides for Idaho state employee health insurance costs are forecast to increase about 10 percent as medical and prescription costs continue to rise, a state legislative committee heard Wednesday.

The increase is more or less in line with those other large public employers are seeing, insurance plan administrators and other state officials told members of the group insurance and benefits committee. The panel was created last session to study the total state employee compensation package and recommend changes.

The state’s outside health cost consultant projects that combined treatment costs are expected to rise eight percent overall, reflecting a 6.5 percent increase in medical expenses and a 13 percent increase in prescriptions, committee members heard.

“What obviously stands out is the cost of the health care delivery system itself. That is going to wind up being where we’re going to concentrate our efforts,” said Rep. Fred Wood, R-Burley, a committee co-chair. “Without monkeying with the benefit package, how do we address the cost drivers in the current system?”

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