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Committee moves bill to shift state employee plan out of ACA ‘grandfathered’ status; delays effective date and uses reserve fund

2381291 · February 24, 2025
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Summary

Appropriations Committee amended Senate Bill 2160 to delay full implementation until Jan. 1, 2027, approved partial funding from the health-insurance reserve and forwarded the bill to the floor; sponsors said the change will expand preventive benefits under the Affordable Care Act for state employees while allowing time for competitive bidding.

The Appropriations Committee approved an amendment to Senate Bill 2160 that changes the state employee health plan from a grandfathered status under the Affordable Care Act (ACA) to a non-grandfathered plan, delays the effective date to Jan. 1, 2027, and partially funds the initial cost from the health-insurance reserve fund.

Sponsor Senator Davison told the committee the change would allow the state to add preventive and maternal-child benefits — such as preventive colonoscopies, well-child visits, lactation counseling and coverage for breast pumps — and to align co-pay and out-of-pocket rules with non-grandfathered plans. “We need some tools in order to be able to … fight against that medical inflation,” Davison said, describing the motivation…

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