State Negotiations
2026 Health Insurance Premium Changes
Oct 29, 2025 - Our state employee union members told us loud and clear throughout contract negotiations that protecting health care was your #1 priority so we can hold the line on this critical benefit we fought for. Your union negotiations team heard you — and we delivered not only on insurance, but we also secured pay raises, expansions of existing benefits, BRAND NEW benefits for you, and more.
Without a union, the employer would have been able to push nearly $300 million in massive, extra plan design change costs onto you with no recourse. But we have the power of a union and collective bargaining on our side because we fought for decades to build our power. But it takes every generation to keep making it stronger!
There is critical information contained below, and we encourage you to take a very close look at the information below.
We Fought to Protect Your Health Care — and We Won
Throughout negotiations, the State attempted to shift nearly $300 million in health plan costs onto workers. Your AFSCME bargaining team stood united and stopped those cost increases. This would have resulted in a DRAMATIC cut for every worker, but we fought them back.
Because of your union’s fight and standing strong:
➡️ No increases to co-pays or deductibles.
➡️ No plan design changes.
➡️ Full access maintained for your prescriptions.
That is real money kept in your pocket — and real protection for your family’s health care — at a time when many workers in both public and private sectors are facing major benefit cuts. Without this win on plan design and standing strong, we'd be seeing thousands of extra costs per year. Your union membership and participation stopped this.
Understanding 2026 Insurance Premiums
There are upcoming changes to premiums, and we want to be clear and transparent about what drives premium changes. Every state unit chair, your insurance coalition representatives, and your master negotiations team knew the state was going to increase premiums, but that exact number depended on what would happen in negotiations.
Your member-elected State Negotiations table team heard you and held the line on your #1 priority to not allow any insurance plan design changes. After more than 200 hours and 22 bargaining sessions, when it came time to vote as a bargaining team on whether to approve the tentative agreement, every single State Table team member voted YES to recommend an accept vote and then the unanimously recommended Tentative Agreement was put to the membership to vote and it ultimately passed by our members.
Premiums are set by the State’s insurance providers and are driven by national health-care market trends, including rising prescription drug and medical costs.
What your team did negotiate ensured that our benefits, co-pays, access to prescriptions, and deductibles remain the same, stable, and affordable.
There were a few main reasons why this priority of our members was the best option:
- Any changes in plan design (copays, deductibles, etc.) would be NEARLY IMPOSSIBLE to ever get back from the state, meaning it would almost certainly be a permanent benefit loss that the employer may never relent on in future negotiations. We couldn't agree to that. And,
- Premium increase fluctuate every year, meaning some premium increases will be higher and some will be lower. This allows us greater leverage in future negotiations.
For 2026, the State’s insurance carriers announced the following premium changes:
- Single insurance coverage: +$7 per month
- Family insurance coverage: +$48 per month
- With NO changes to plan design and holding costs down.
To put this into perspective:
- A worker earning $60,000 per year with family coverage will see roughly a $1,050 annual pay increase in 2026 under the new contract.
- A worker with family coverage will see about a $576 annual increase in their premium.
- A worker with single coverage will see roughly an $84 annual premium increase.
While premiums are rising all across the nation, your AFSCME bargaining team ensured there were no increases to plan design costs — meaning your co-pays, deductibles, and prescription coverage stay exactly the same. This is nearly UNHEARD OF in negotiations across our state and country.
Why Premiums Are Rising Everywhere— and How We Fight Back
Premium increases are hitting workers everywhere because of prescription drug prices and rising costs for medical procedures — not because of decisions made at our bargaining table, but because of corporate greed in the health care system that needs to be taken on directly.
AFSCME Council 5 and AFSCME International have been organizing to hold lawmakers, insurance companies, and pharmaceutical companies accountable:
➡️ Pushing legislation at the State Capitol and in Congress to curb drug costs and insurance profiteering.
➡️ Demanding immediate reforms that redirect insurance and pharmaceutical profits back to workers.
➡️ Mobilizing our union members to demand affordable, accessible health care for all working people.
When we fight together, we win — and that fight doesn’t stop at the bargaining table.
BRAND NEW Health Insurance Benefits Added for 2026
Your new contract also includes additional improvements that expand options and save members money:
➡️ NEW optional, very low-cost legal services — covering wills and estate planning, home purchases or sales, tax audits, adoption, traffic tickets, and more.
➡️ Vision network expansion: Employees with fewer than two in-network vision providers within 30 miles of their home ZIP code can now receive in-network benefits for frames and contacts.
➡️ Low-vision enhancement benefit: Up to $1,000 every two years to help cover extra testing and vision aids.
Important Updates: Clinic Cost Level Changes for 2026
Cost levels at various clinics affect what you pay when you visit a clinic. They are determined by negotiations between health plans and clinics - not by your union. But we are here to help!
Here’s what’s changing for 2026 and what you can do during open enrollment. We have also provided recommendations on how you can potentially save money as a result of changing providers DURING OPEN ENROLLMENT. This change can only be made during open enrollment. Check with your HR.
Essentia St. Mary’s
HealthPartners: Cost Level 2
Blue Cross: Cost Level 3
➡️ If you see a doctor at Essentia St. Mary’s, you can keep your doctor and save money by switching to HealthPartners.
M Health Fairview Clinics
Last year: Blue Cross = Level 2 | HealthPartners = Level 3
Now: HealthPartners = Level 2 | Blue Cross = Level 4
➡️ Members using M Health Fairview can switch to HealthPartners to keep costs down.
Allina Clinics
2025: Both carriers = Level 2
2026: HealthPartners = Level 3 | Blue Cross = Level 2
➡️ Members who use Allina clinics may want to switch to Blue Cross if they haven’t already so they can save money.
Madelia Health Clinics
Last year: Both = Level 2
2026: HealthPartners = Level 3
Glencoe Clinics
Last year: Both = Level 2
2026: HealthPartners = Level 3
Appleton Area Health
Last year: Both = Level 2
2026: HealthPartners = Level 3
What to Do Next:
➡️ Review your clinic and insurance provider. Check which cost level your provider is at.
➡️ Review our union's recommendations on how you may be able to save money in 2026 and closely review your options during open enrollment to see if you are impacted.
➡️ Compare plans during open enrollment. Switching to the plan with the lowest cost level for your clinic can save you and the overall insurance plan money.
Need help? Contact SEGIP or HR if you have questions or need support making changes during open enrollment.
AFSCME Council 5 is your union at work and will always defend your right to affordable, accessible health care and a fair day's pay for your work. That fight is ongoing.
We fought off nearly $300 million in plan design increases that would have otherwise been forced onto workers that we fought back — and we’re organizing to make sure working people never shoulder the costs of corporate greed in the health-care industry again. Unlike in non-union workplaces, we have the solidarity and collective bargaining power to stand strong, stand up, and fight back.
The next round of contract negotiations will be around the corner before we know it, and we are ALREADY planning, organizing, and educating. And we need your participation!
When we fight, we win — and this fight continues every day. Together, we are union strong.
In solidarity,
Crystal Kreklow
State Field Director
AFSCME Council 5
Joel Hoffman
President
AFSCME Council 5 State Employee Policy Committee
State Negotiations Voting Results
State Field Director Crystal Kreklow, State Employee Policy Committee (SEPC) President Joel Hoffman, and your member-led and elected multi-unit master negotiations team have made the following announcement:
AFSCME Council 5 state multi-unit members have voted to ratify the Tentative Agreement with the State of Minnesota by a vote of 53.7-46.3%. This vote is a strong signal that the State of Minnesota must treat state workers better in the next round of bargaining, or we have other pathways at our union's disposal to fight to ensure workers are treated with the dignity and respect they have earned.
This is a member-led union, and every voice matters. We know this Tentative Agreement was not everything we wanted — your elected master negotiations team knows it, and we all know it. But we also know that the State’s negotiators came to the table with relentless attempts to gut our health care, push nearly $300 million in additional costs onto workers' back, freeze our step increases forever, and strip away our hard-fought rights. We listened to our members and the priorities they told us throughout this round of bargaining, while understanding the state budget's limitations: Protect our health insurance and fight for the best possible raises we could get in negotiations.
The frustration we all feel is real, and it must be acknowledged. But the answer is not to turn away or divide ourselves. The answer is to fight like hell right now — together. Stepping back or giving up is not an option if we want to build the power needed to win more gains. The next round of negotiations will be here before we know it, and we will begin preparing NOW to secure the wages, benefits, and respect our workers deserve.
While we have implemented brand new strategies and tactics this bargaining year to engage and include more members than ever before, increase our visibility and put more pressure on the employer, we will be debriefing this round of negotiations and listening to our members as to what will inspire more activism and participation across our workplaces.
Our MAPE union siblings have also voted to ratify their Tentative Agreement. We are deeply committed to strengthing our partnership and solidarity with MAPE and our other state employee labor partners. Together, workers across Minnesota are showing our collective power and we are laying a unified foundation for the battles to come.
Our fight for the future begins today. There is a seat at the table here for you to join us in this fight.
Thank you!