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Lawmakers debate health-insurance base and reserve risk; two competing increases fail to win bicameral majorities
Summary
JFAC debated two competing recommendations for the state employee health-insurance base ($13,960 recommended by CEC vs. $14,300 from the governor). Members raised concerns about reserve levels, contractual minimums and potential risk charges; neither motion cleared both delegations.
Committee analysts presented two competing recommendations for the health-insurance base used in agency budgets for FY2026. Keith Bybee described the options: the Economic Outlook and Revenue Assessment (CEC) committee recommendation of $13,960 per eligible full-time position (FTP) and the governor's recommendation of $14,300 per eligible FTP. Both were framed as changes to the health-insurance per-employee base and accompanied by variable benefit adjustments by agency.
Analysts and administrators warned of reserve implications. Bybee summarized the actuary's projections: "With the CEC recommendation of changing that to 13,960, it would pull the reserve balance down to, effectively, the statutory minimum of 10% of the total plan amount... That reserve balance would be at $51,600,000." He said the governor's $14,300 option would leave roughly $10,000,000 more cushion in the…
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