External market forces across the nation are causing health care costs to rise – for example, provider rate increases, rising supply costs, workforce shortages, health care worker burnout, hospital consolidations, and continued advancements with certain medications all drive up cost for employers and employees.

No, the cost of health care across the country has been steadily rising, and both employers and employees are needing to pay more each year.

All employees can estimate their monthly premium for each plan type and coverage tier by downloading Penn State Human Resources’ health care payroll contribution calculator. A chart of the plan design, including deductibles, coinsurance and out-of-pocket costs is available for review.

Monthly payroll contribution increases for an employee earning $75,000 annually:

• Lion Traditional
  • Individual: From 1.54% to 1.74% of annual base salary, or $12.50 more per month
  • Family: From 4.79% to 5.42% of annual base salary, or $39.38 more per month
• Lion Advantage HSA
  • Individual: From 0.80% to 0.91% of annual base salary, or $6.88 more per month
  • Family: From 2.46% to 2.79% of annual base salary, or $20.63 more per month

Yes. While it isn’t possible to predict exact numbers for 2026 and beyond, Penn State does anticipate annual growth in health care expenses for the foreseeable future. The reality is that health care costs continue to rise across the country, a trend that also impacts our University. In 2025 we project total health care costs will rise by about $32 million. We remain committed to providing our faculty, staff and their families with competitive, affordable, high-quality health care, and University leaders will maintain the current 75/25 cost share with employees

Penn State is working closely with Highmark and other partners to continue providing its employees with affordable, high-quality care. The University is self-insured, which helps to keep costs in check compared to other employers who pay significantly more through a private insurer.

Employees who are enrolled in the Lion Traditional plan and have been diagnosed with certain chronic conditions can control their costs by continuing to enroll in the Condition Care Program in 2025. This program encourages individuals to manage their health conditions by keeping their out-of-pocket expenses low. With this program, all office visits, and lab work, and medical supplies related to these conditions are covered at 100% with no copays or coinsurance.

Highmark’s Well360 Virtual Health Telemedicine benefit is a $0 copay for Lion Traditional plan members and $0 coinsurance after deductible for Lion Advantage HSA and Flex members. When warranted, using telemedicine versus the emergency room is a cost-effective decision for employees.

Likewise, using a Quest or Labcorp facility versus any hospital-based laboratory results in significant savings to our employees and their families. Preventive Care is covered at 100% as outlined in the Highmark Preventive Schedule and employees are encouraged to engage with their physician to get the needed preventive care to detect health concerns before they become significant.

The University encourages employees and their families to be smart consumers of health care. For instance, the Highmark Cost Care Estimator is accessible through your personal Highmark portal. Also, employees are encouraged to seek out medication copay assistance programs that may help to lessen your spend on high-cost medications. Employees should choose the health care plan that best fits their circumstances, and Penn State is offering webinars and other tools like the Benefits Mentor to help employees make decisions that are right for them.

The Lion Advantage HSA plan was formerly called “Lion Advantage” and remains the same lower-contribution, higher-deductible health plan option for employees with a Health Savings Account (HSA). The name was updated to clarify the difference between the existing plan and the new Lion Advantage Flex plan.

The Lion Advantage Flex plan has the same contributions and coverage as the Lion Advantage HSA plan, except that it is not paired with a health savings account (HSA). This plan is intended for individuals who prefer a higher deductible/lower contribution health care plan but are covered by another medical plan such as Medicare. Participants have the option of enrolling in a health care flexible spending account, or FSA, to set aside pre-tax funds to pay for eligible medical expenses. Learn more about the Lion Advantage Flex plan.

Penn State is offering a third medical plan option in 2025 through Highmark, the Lion Advantage Flex plan. This plan has the same contributions and coverage as the Lion Advantage HSA plan; however, it is not paired with a Health Savings Account (HSA). Lion Advantage Flex is an alternative to those who want to enroll in a high-deductible, lower premium health plan, but are not eligible for an HSA. This includes those who are Medicare-eligible or are covered under their spouse’s plan. Participants do have the option of enrolling in a Flexible Spending Account (FSA) to set aside pre-tax funds to pay for eligible medical expenses. Technical service employees are not eligible for this plan. 

In response to employee requests, this year Penn State will offer additional optional benefits for faculty and staff, including pet insurance, legal insurance and identity theft protection. Additional details about each of these new options can be found below. Employees can elect to enroll in the pet insurance at any point during the year. Technical service employees are not eligible for these new optional benefits.

Legal Insurance: Administered by MetLife, legal insurance provides coverage on the costs of a wide range of common legal issues. Participants will have access to experienced attorneys to help with estate planning, home sales, tax audits and more.

Pet insurance: Administered by MetLife, the optional pet insurance is open to all employees via direct enrollment and payment options through the MetLife pet insurance portal. This means employees will not enroll through Workday. The plans are customizable based on the employee’s pet’s needs, breed and age of the pet.

Identity Protection Insurance: Administered by ID Watchdog, identity protection insurance provides greater peace of mind, with either employee-only coverage or family coverage available.