Nevada Public Employees’ Benefits Program Raises Premiums Amid $40 Million Deficit

The Nevada Public Employees’ Benefits Program (PEBP) board approved significant health insurance premium increases for state workers, retirees, and their dependents. The hikes, effective July 2026, will affect approximately 70,000 enrollees.

Officials attributed the premium increases to a projected $40 million budget shortfall in the program, caused by rising health care costs, years of under-setting premiums, misallocated reserves, and budgeting errors. Longer life expectancies among retirees have also contributed to sustained pressure on program costs over time.

Premium increases reach as high as $380 per month, while out-of-pocket maximums and deductibles will rise by as much as $1,000.

Representatives of Nevada’s state labor unions criticized the decision. Paul Lunkwitz, president of the union representing state correctional officers, said the hikes will harm the state’s ability to recruit and retain workers. Dan Gordon, president of the Nevada Police Union, warned that the increases would greatly impact take-home pay for officers and could lead to more members leaving state service or public safety roles.

Unions are calling on lawmakers to increase state subsidies for PEBP and to spread any future premium increases over more years. The debate is expected to influence workforce retention and overall state personnel costs. Lawmakers may also introduce bills aimed at governance reforms, stronger audits, or changes to how benefits are funded. Meanwhile, the Nevada Health Authority is reviewing the program’s long-term viability.

The issue is likely to feature in budget negotiations and could influence discussions on public employee compensation during the 2027 session.