JFAC approves $14,130 per‑FTE health insurance funding increase for FY2026

The Joint Finance‑Appropriations Committee voted Friday to increase the appropriation for state employee health insurance to $14,130 per eligible full‑time equivalent for fiscal year 2026, a motion that committee members said balances insurer cost trends and reserve projections.

Representative Harmon, chair of the joint committee, presided over the roll calls and proceedings. Mr. Bybee, the committee analyst, described three competing proposals: the CEC committee recommendation at $13,960 per FTE, the governor’s recommendation at $14,300 per FTE, and a midpoint “Goldilocks” proposal at $14,130 per FTE. "The Goldilocks motion here ... is exactly the midpoint between the two at 14,130 per full time equivalent positions," Mr. Bybee said.

Senator Woodward moved the $14,130 proposal for FY2026. He specified the increase and associated agency adjustments would result in an increase of $36,043,900 from the general fund, $8,599,500 from dedicated funds and $3,753,800 from federal funds, for a total increase of $48,397,200. Representative Tanner seconded the motion, and the committee approved it by recorded roll call: Senate 8 aye, 0 nay, 2 absent and excused; House 9 aye, 0 nay, 1 absent and excused; total 17 ayes, 0 nays, 3 absent and excused. The chair announced the motion "has passed and without objection will carry a due pass recommendation."

Discussion before the vote focused on how the change would affect the Office of Group Insurance reserve and near‑term premiums. Mr. Bybee reported projected ending reserve balances for the three proposals: $51,600,000 under the $13,960 option, $61,400,000 under the $14,300 option and an implied midpoint for the $14,130 option. Senator Ward Engelking urged the committee to "reflect the actual cost of insurance," saying buying down premiums with reserves can distort year‑to‑year comparisons. Representative Furness criticized actuarial projections used in planning, saying the vendor Milliman's estimates "have consistently been too conservative."

Committee members also confirmed the mechanics for counting votes under the committee’s joint voting letter; staff explained the ballot is programmed to require a majority of the quorum present from each chamber (effectively five members from each chamber at the quorum size in the room) for a motion to pass when that convention is applied.

The committee’s action covers only the appropriation amount and agency variable rate adjustments described on the record; the Office of Group Insurance will implement premium and plan administration changes consistent with statute and appropriations. No change to the benefit package was adopted in this vote.