FOR IMMEDIATE RELEASE
Tuesday, August 25th
Contact: Sam Telling | [email protected]
‘Deductibles triple, out-of-pocket costs double,’ MFPE Responds to Skyrocketing State Health Insurance Plan
(HELENA, Mont.) — The Montana Department of Administration announced significant increases to out-of -pocket health care costs for state employees and their families beginning January 1, 2027. These changes include higher monthly premiums, a tripling of individual medical deductibles, and a doubling of medical out-of-pocket maximums.
MFPE members will address these planned changes and make the affordability of health care a priority in pre-budget negotiations with Governor Greg Gianforte’s administration ahead of the 2027 Legislature.
For employees working 30 or more hours per week, the planned monthly contributions will increase by $60 for employee-only coverage and $100 for employees covering a spouse, children, or family. At the same time, the individual medical deductible will triple from $1,000 to $3,000. Medical out-of-pocket maximums will double from $4,000 to $8,000 for individuals and from $8,000 to $16,000 for families. Specialist and urgent-care copays will rise from $35 to $60.
“The State Plan changes announced by DOA today preempt MFPE members’ pre-budget negotiations with the governor, weaken employee morale, and set the State back on a path to high turnover and poor recruitment,” said MFPE President Melissa Romano. “Between more money coming out of every paycheck and thousands of dollars more out of pocket when care is needed, these changes will hit MFPE members and other state employees twice.”
Over the past two bienniums, MFPE members have worked with Governor Gianforte and the Montana Legislature to address significant recruitment and retention challenges across state government. The last two State Pay Plans, bargained with the governor and passed through HB 13, protected employee health benefits while providing wage increases during a period of high inflation.
The newly announced health plan changes threaten to erode those gains.
“For a family that actually needs to use its health insurance, these changes could amount to thousands of dollars out of a family’s budget,” said Michelle Wheat, a Montana Department of Transportation employee and local union president. “State employees are reeling from this news, we’re worried, and we’re ready to make this right.”
MFPE members will bargain state employee wages and benefits with the Gianforte Administration in advance of the 2027 legislative session. An initial pre-budget bargaining session is scheduled for September 3rd, and MFPE members are determined to address these untenable State Plan cost increases. Members will work with lawmakers during the session to secure a State Pay Plan that protects both competitive wages and affordable health care.
MFPE, the Montana Federation of Public Employees, is a labor union of teachers, school employees, higher education faculty and staff, law enforcement officers, and city, county, and state employees. Our mission is to promote and protect workers’ rights and voices for a better Montana. Together, MFPE members fight for fair wages, benefits, and working conditions.
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