ASEBP Premium Rates for 2023-24
Earlier this year, the ASEBP Trustees approved premium rate changes for 2023-24 for both the group plan and the MyRetiree Plan. While individual premium notifications will be sent to covered members responsible for paying their own premiums in mid-August, we wanted to provide notice of this change to all members.
The new rates will take effect on September 1, 2023, and will be in place until at least August 31, 2024.
ASEBP Group Plan
A base premium rate increase of 10.3% has been approved for the 2023-24 plan year; however, this does not mean that individual ASEBP premiums will change by this amount. Personal monthly premiums are also impacted by:
- Changes in benefit coverage,
- Outstanding premium payments owed to ASEBP,
- Monies owed to you by ASEBP, and/or
- The employer group you are attached to being in a surcharge or discount position with ASEBP.
The first premium rate change for the MyRetiree Plan since its introduction in 2021 has also been approved. While changes will vary depending on the benefits you’re enrolled in, overall, the increase equates to roughly 10%.
You can read more about the rate changes for the various plan options in this news article.
Increasing premiums is never something ASEBP wants to do. As a not-for-profit organization, rate increases are not done to increase profits for shareholders, because we don’t have any. If we do happen to end our fiscal year with excess funds, they are reinvested into the Plan to make it better for those we serve—your employer, you, and your family. For example, this year, excess funds gained through investment returns were used to provide a premium subsidy in order to limit the rate increase to 10.3%, rather than the 12.2% increase that would have been needed to breakeven between premiums collected and actual claim costs.
The ASEBP Trustees are committed to working towards balancing premiums collected with actual claim costs. This balance was to be achieved over a three-year period, which began in 2021; however, given additional pressures, such as the impact of COVID-19 and inflation, this has not yet occurred. ASEBP will continue to implement strategies to ensure the long-term sustainability of the Plan and its affordability for employers and covered members.
As mentioned, if you are responsible for paying your own ASEBP benefit premiums, you will receive a personal premium notice for the 2023-24 plan year. Notices will be available in mid-August via My ASEBP by clicking on the Documents menu and then selecting Benefit Premiums. If you don’t have a My ASEBP account, you will receive your notice in the mail. If you haven’t received your notice by September 1, 2023, please contact us.
If you would like to discuss your benefit plan options in light of these changes, please contact an ASEBP benefit specialist for a benefit review.