Insurance director tells JFAC PBM enforcement, high‑risk pool and wildfire pressure shape agency budget requests

The Joint Finance Appropriations Committee on Jan. 21 reviewed the Idaho Department of Insurance budget and heard Director Dean Cameron describe a set of requested enhancements to staffing and equipment, a law implementation update and concerns about the insurance market amid rising wildfire losses.

Noah Peterson, budget analyst for the Legislative Services Office, outlined the department’s structure: 75.5 approved full‑time personnel (63.5 in insurance regulation, 12 in the State Fire Marshal Division). The agency requested four enhancement items for FY2026, including funding for a staff actuary ($201,900 ongoing and $3,000 one‑time equipment), compensation increases for the state fire marshal and deputies ($48,100 ongoing from the Arson Fire and Fraud Prevention Fund), and $162,200 one‑time capital outlay for protective gear, cameras and two medium‑duty pickup trucks.

Peterson also reviewed fund flows for premium tax collections and noted the department received trailer appropriations to implement House Bill 596, which amended section 41,349 of Idaho Code to create PBM reporting requirements and resulted in one additional FTE and $132,400 in appropriation for implementation.

Director Cameron described progress on pharmacy benefit manager oversight and complaints under the new law. "Most have complied and have submitted their data," Cameron said, but he added that some PBMs have not yet submitted required information and the department is working with them. He said the department’s newly funded staff member is receiving numerous complaints and that the caseload is broad, including dispensing fees, contract issues and responsiveness problems.

Cameron credited legislative support and a waiver program he referenced as the "13.32 waiver" for reducing individual exchange premiums: "Last year, we reduced premiums for individuals by 20%. Our premiums today for individuals buying on the exchange are lower than they were 5 years ago for the same age," he said, and noted the number of carriers on the exchange has doubled since earlier years.

On wildfire and property insurance, Cameron said national catastrophic events and inflationary pressures have tightened reinsurance and property markets, producing higher rates and nonrenewals in some areas. Idaho experienced nearly 1,000,000 acres burned in the last year and "we lost over 140 structures and about 40 of them were residences," Cameron told the committee. He described a proposed legislative pool to support mitigation (home hardening) and to spread risk in the market, similar in concept to health‑insurance reinsurance pools.

Cameron also discussed the growth of the surplus lines market (non‑admitted carriers) as agents seek coverage for homeowners, noting that surplus lines policies do not carry the same consumer protections as admitted market policies.

Committee members thanked the director and sought more details on PBM complaint counts, high‑risk pool performance, and wildfire mitigation proposals. Representative Furness asked for a brief explanation of the high‑risk pool and Cameron explained it operates as a reinsurance mechanism to spread costly claims for specified conditions and has helped reduce rates in the individual market.

Director Cameron introduced senior staff present at the hearing, including Deputy Director Wes Trexler, State Services director Newt Sandahl, Public Information Officer Julie Robinson and fiscal officer Lisa McIntosh. Cameron said the department is largely staffed and praised team performance during a recent period when he performed double duty.

No formal votes were taken during the session. Committee members asked the department to deliver updated complaint counts, PBM data and additional details on the proposed homeowner mitigation pool and related legislation.