State employees in North Dakota may face increased healthcare costs as the legislature considers moving from a grandfathered health plan to a non-grandfathered one. During the House Appropriations meeting on April 14, 2025, concerns were raised about the potential impact on employees, particularly regarding the increase in maximum out-of-pocket expenses from $3,500 to $6,500.

The discussion highlighted that while 93% of employees currently pay less than $3,500, the shift to a non-grandfathered plan would introduce expanded benefits, which could lead to higher costs for employees. The total cost of the healthcare plan would remain unchanged, but the burden of payment could shift from the state to the employees, raising concerns about affordability and employee satisfaction.

Representatives expressed worries that these changes could negatively affect recruitment and retention of younger employees, who may be deterred by higher out-of-pocket expenses. The committee acknowledged that while the state offers two health plan options, including a high deductible plan, the increased financial risk associated with the non-grandfathered plan could be a significant factor for potential hires.

The committee's discussions underscored the need for further analysis on how these changes might affect employee morale and the state's ability to attract and retain talent. As the legislature moves forward, the implications of these healthcare adjustments will be closely monitored, particularly in light of the ongoing challenges in state employment.