Ready or not here they come: 20,000 college employees expected to join state health insurance plan

Concept of national healthcare system - Florida

As many as 20,000 employees at Florida colleges are expected to switch to the state group health insurance program, which will likely drive up costs for a program that has needed cash infusions from legislators to stay in the black.

State economists gathered to draw new forecasts for the number of individuals and families participating in the program that provides health insurance coverage to state and retired state workers.

Gov. Ron DeSantis signed legislation this year (HB 5101) allowing state college staff to enroll in the health insurance plan. But DeSantis vetoed the $80 million lawmakers agreed to put in the state budget to offset the increased costs associated with potential new enrollment. The health plan has about 171,000 subscribers and provides coverage to about 350,000 people overall.

Still, Department of Management Services (DMS) officials told economists that all 28 colleges are planning to go ahead and make the shift. The colleges are expected to hold open enrollment later this year, and those employees will become part of the state group health insurance program in January.

Stephen Russell, DMS chief of financial management services, told economists this week that the state’s insurance coverage is expected to be fairly attractive to college faculty and staff.

“(The division) is offering much more robust coverage,” said Russell, who added that it is “much more affordable” to college employees.

State workers — including the Governor, Cabinet members, legislators, legislative staff and employees at state agencies — have access to the state group health insurance plan. So do state staff in the state university system.

It’s a benefit that most lawmakers take advantage of, according to data obtained by Florida Politics.

Ninety-seven members of the House are enrolled in the state group health insurance plan, according to Jenna Box Sarkissian, the Director of Open Government and Special Projects for House Speaker Paul Renner.

Thirty-four Senators tap into the state group health insurance plan, according to Katherine Betta, a spokesperson for Senate President Kathleen Passidomo.

It was Senate Republicans who pushed this Session to let colleges join the state group health insurance program, even though economists projected that the trust fund that pays for the benefits is in danger of running into a deficit in Fiscal Year 2024-25.

To help erase the projected deficit, budget negotiators agreed to add $550 million to the trust fund. The proposed budget includes $350 million of general revenue and $200 million in federal money that has been redirected from previous expenditures.

This is the third year that the Legislature agreed to infuse hundreds of millions into the state employee health insurance trust fund to keep it solvent. Despite the deficits, the Legislature has not increased the monthly health insurance premiums they and other state workers covered by the plan pay for the benefit.

Economists are meeting over the Summer to analyze the state’s spending requirements across all areas in the state budget for the current fiscal year as well as future years.