Committee hears debate on moving state employee health plan from ‘grandfathered’ status; third‑plan option proposed

The House Industry, Business and Labor Committee reopened the hearing on Senate Bill 2,160, concerning changes to the PERS state employee health plan and whether the plan should remain grandfathered under the Affordable Care Act or move to a non‑grandfathered (ACA‑compliant) design.

Rebecca Frikey, executive director of the Public Employees Retirement System, told the committee that PERS currently administers two plan options for active permanent state employees: a grandfathered PPO basic plan and a high‑deductible, non‑grandfathered plan paired with a health savings account. Frikey said the bill as introduced would move the entire state plan to a non‑grandfathered design and that doing so would have fiscal and operational implications. She described the high‑deductible plan as an existing non‑grandfathered option employees can elect and said the state has historically chosen to keep the grandfathered plan to avoid some ACA‑mandated coverage costs.

Committee members asked…