State Health Plan Shakeup: Premium Hikes and Lantern’s Plan

Following the State Health Plan Board of Trustees' decision last week to increase premiums for most state employees and retirees, SEANC members have reached out with many questions. State Health Plan Executive Administrator Thomas Friedman revisited The SEANC View Podcast this week to answer them. 

In an extended interview following up on his appearance last month, Friedman addressed everything from the fairness of the new tiered structure of the premiums based on salary to the new partnership with Lantern Care to cut the cost of some surgeries and procedures to the need to rein in overcharging by hospitals.

The increases will take effect on Jan. 1, 2026. The plan consists of a tiered structure for the increases, with higher-paid employees paying more monthly than lower-paid employees. For some, the increase will be as low as $15 per month, while those making over $90,000 could see their premiums triple.