Controlling Board approves one-year extension for state employee health plans amid funding concerns

Ohio Controlling Board, Aug. 25 — The Controlling Board voted to allow the state to extend its employee benefits contracts for one year with an optional second year, a move state officials said aims to stabilize the health-care fund after recent premium spikes. The board approved the request from the entity that manages the employee benefits funds (item 76) after department officials told members they sought the extension to contain rising claim costs and avoid additional premium shocks for employees. Why it matters: The health-care fund has experienced large claim payments that prompted significant premium increases in March and July. Agency officials said a short extension would allow the plans and the state to work on cost-stabilization measures and then rebid under less volatile conditions. Representative Jamie Stewart said the process raises procurement and competition concerns: the current contract began as a three-year agreement with two optional renewals and, if extended, could effectively lengthen to seven years. Stewart and others argued that open competition is the…