2026 State Plan Rates
HCBD works with an independent actuary each year to set rates for the State of Montana Benefit Plan, which is self-funded. To make sure there is enough money available to cover plan costs, HCBD projects claims expenses, administrative fees, and other costs for the upcoming plan year. Based on these estimates, HCBD determines the amount of contributions needed to cover costs while maintaining an adequate reserve. Since the State Plan is self-funded, third-party administrators, like BlueCross BlueShield of Montana and Navitus Health Solutions, assume no financial risk related to claims expenses. This allows the State to set rates based on historical plan costs.
Montana's 69th legislative session passing of HB13, along with union negotiations that wrapped up in the fall of 2024, secured important financial changes starting January 1, 2026 to the State Plan to help maintain its long-term financial stability.
These changes go into effect January 1, 2026:
- Employer Contributions increase to $1,080 for first time since 2017
- Employee/Legislator medical benefit contributions increase for first time since 2016
- Live Life Well Incentive increases to $60 per month
- Tobacco Surcharge increases to $60 per month
The State Plan is currently negotiating with Montana facilities (hospitals) to ensure the contributions collected from the State of Montana (employer contribution/state share) and employees, legislators, and retirees are used to maintain equitable and sustainable benefits, as well as cover the cost of health care services for all State Plan members.
If some facilities choose not to negotiate fair rates, the State may need to make adjustments to the medical benefit (deductibles, coinsurance, copayments for office or urgent care visits, or the maximum out-of-pocket amount) to help keep the plan affordable and sustainable without adjusting contributions (the bi-weekly amount you pay for benefits from your paycheck).
If your medical benefit will change in 2026 you will receive a 60 day notice from HCBD and you will be afforded the opportunity to adjust your Medical FSA contribution.
2026 State Employee Monthly Contribution Cost
Due to increasing medical trends and increased costs, employee medical plan rates will be increasing for the first time since 2016. Medical benefits include Medical, Prescription Drug, Basic Vision, and Basic Life Insurance.
| Plans | Medical Benefits |
Dental |
Vision Hardware | Potential Live Life Well Incentive |
| Employee Only | $60.00 | $0.00 | +$7.64 | up to $60 off |
| Employee & Spouse | $318.00 | +$21.40 | +$14.42 | up to $120 off |
| Employee & Child(ren) | $134.00 | +$19.90 | +$15.18 | up to $60 off |
| Employee & Family | $397.00 | +$28.90 | +$22.26 | up to $120 off |
| Joint Core | $60.00 Per Employee (Includes Family Dental) | $0.00 |
+$22.26 |
up to $60 off |
Other 2026 Employee Benefit Costs
2026 Non-Medicare Retiree Medical Plan Rates
Non-Medicare medical plan rates increased 4% from Plan Year 2025 to 2026. Medical benefits include Medical, Prescription Drug, Basic Vision, and Basic Life Insurance.
| Plans |
Monthly Rate |
Potential
|
|
Non-Medicare Retiree Only |
$1,529.00 | up to $60 off |
|
Non-Medicare Retiree & Non-Medicare Spouse |
$2,451.00 | up to $120 off |
| Non-Medicare Retiree & Medicare Spouse | $1,807.00 | up to $120 off |
|
Non-Medicare Retiree & Child(ren) |
$1,963.00 | up to $60 off |
|
Non-Medicare Retiree, Non-Medicare Spouse & Child(ren) |
$2,717.00 | up to $120 off |
|
Non-Medicare Retiree, Medicare Spouse & Child(ren) |
$2,281.00 | up to $60 off |
Non-Medicare Retirees must also pay $0.63 per month for Basic Life Insurance coverage.
2026 Medicare Retiree Medical Plan Rates
Medicare medical plan rates increased 4% from Plan Year 2025 to 2026. Medical benefits include Medical, Prescription Drug, and Basic Vision.
| Plans |
Monthly Rate |
Potential
|
|
Medicare Retiree Only |
$575.00 | up to $60 off |
|
Medicare Retiree & Non-Medicare Spouse |
$1,533.00 | up to $120 off |
| Medicare Retiree & Medicare Spouse | $1,031.00 | up to $120 off |
|
Medicare Retiree & Child(ren) |
$940.00 | up to $60 off |
|
Medicare Retiree, Non-Medicare Spouse, and Child(ren) |
$1,760.00 | up to $120 off |
|
Medicare Retiree, Medicare Spouse & Child(ren) |
$1,198.00 | up to $120 off |
2026 Retiree Dental Rates
No increase in Dental plan rates from Plan Year 2025 to 2026.
|
Plans |
Monthly Rate |
|
Retiree Only |
$42.37 |
|
Retiree & Spouse |
$63.77 |
|
Retiree & Children |
$62.27 |
|
Retiree & Family |
$71.27 |
2026 Retiree Vision Hardware Rates
No increase in Vision Hardware plan rates from Plan Year 2025 to 2026. If you elect Vision Hardware coverage, it will be for everyone who's covered on your medical plan.
| Plans | Monthly Rate |
| Member Only | $7.64 |
| Member & Spouse | $14.42 |
| Member & Children | $15.18 |
| Member & Family | $22.26 |