What’s coming for state employees’ insurance in the coming year? Here are the details.

July 11, 2026 - 03:00

State employees in North Carolina will see higher health insurance premiums in the coming year, but plan leaders say the increases come with a twist: workers who engage with new wellness and cost-saving programs could end up paying less overall.

The State Health Plan, which covers more than 750,000 teachers, state workers, and retirees, announced that monthly premiums will go up by an average of 3.5 percent starting in July. For a single employee on the traditional 70/30 plan, that means roughly an extra $6 per month. Family coverage will see a slightly larger jump.

But officials are pushing a new strategy to offset those costs. The plan is rolling out a "Healthy Outcomes" incentive program that rewards members for completing preventive screenings, managing chronic conditions, and using lower-cost providers. Employees who meet the benchmarks can earn up to $600 in premium credits or reduced deductibles over the year.

"We are not just raising rates," said a spokesperson for the plan. "We are giving people a clear path to lower their own costs by making smarter health choices."

Critics, however, worry that the incentives could penalize workers with serious illnesses or those in rural areas with limited access to specialists. The plan has responded by offering alternative ways to qualify, including phone-based health coaching.

The changes come as the state faces rising medical costs and a tight budget. For now, employees are being urged to review their options during open enrollment, which begins next month.