Understanding your 2027 premiums
Premiums for ERS health, dental and vision insurance are increasing in Plan Year 2027. Rates for retirees not eligible for Medicare increased Sept. 1. Starting Jan. 1, 2027, premiums will increase for Medicare-eligible retirees. The State of Texas will continue to pay 100% of the health insurance premiums for eligible retirees. Because of that, many retirees won’t feel the increase in health plan premiums.
Who will have to pay more for health coverage?
Participants who don’t get a 100% premium contribution from the state will pay more in Plan Year 2027. This includes:
- retirees who don’t get a 100% state contribution for their premiums, because they didn’t meet the service requirements or because they retired from part-time employment;
- retirees who cover dependents in the plans;
- survivors of employees and retirees; and
- others who don’t get a state contribution toward their premiums.
How much will the increase be each month?
The dollar amount will depend on your coverage and how much the state contributes to your monthly premium. The table below shows the potential costs for one type of retiree household.
|
HealthSelectSM Medicare Advantage |
HealthSelect of Texas® |
|||
|---|---|---|---|---|
| Percent increase |
18% |
8% |
||
| Monthly premium for retiree with 100% state contribution and spouse coverage |
Plan Year 2026 |
Plan Year 2027 |
Plan Year 2026 |
Plan Year 2027 |
|
$121.46 |
$143.22 |
$386.64 |
$417.56 |
|
The State will continue to pay a portion of dependent premiums. You can see rate sheets for non-Medicare retirees online (pdf). New premium rates for Medicare-enrolled retirees will be available on the ERS Fall Enrollment page in October. If you are a Medicare-enrolled retiree, you can see your premiums in your Personal Benefits Enrollment Statement, which you will receive before the start of Fall Enrollment.
Why are they increasing?
ERS works every day to provide competitive health benefits at a reasonable cost. The State of Texas spends billions of dollars each year to help employees, retirees and their families get the health care they need without putting their financial security at risk. At the same time, the cost of health care and prescription drugs continues to rise across the country. To make sure each plan continues to provide the level of benefits members expect, ERS has had to increase premiums. The State of Texas also is increasing its contributions for retiree and employee life insurance, by the same percentages as members.
| Change in Member Premiums Plan Years 2016-2025 | |
|---|---|
| Plan | Approximate change in member premiums |
| Other employer plans - U.S. average | +49% |
| HealthSelect Medicare Advantage | -24.4% |
| HealthSelect of Texas | +8.4 |
Premium changes in dental and vision insurance
State of Texas Dental Choice PlanSM premiums will increase by 12.5% for all participants. The increase will help expand the plan’s network of providers and give members more options when choosing where to get care. Expanding the network reflects ongoing feedback from members and our commitment to improving access to quality, in-network health care.
State of Texas VisionSM premiums will increase by 7.5% to account for both greater use of plan benefits and rising costs for vision care services and products. These changes will help support the plan’s ability to continue offering valuable vision coverage and services to members.
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