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Health insurance increase, reserve levels and contractual risk debated; no action taken
Summary
Lawmakers debated two competing proposals to set the state's FY2026 health-insurance base rate per eligible FTE'the governor's $14,300 or the CEC's $13,960'and how each would affect the plan's contingency reserve; administrators warned falling below the 10% contractual reserve could trigger a risk charge.
Committee members debated whether to set the state's health insurance base per eligible full-time position at the governor's recommended $14,300 or the Economic Outlook and Revenue Assessment Committee's (CEC) $13,960. The choice determines the size of the plan's contingency reserve and how much additional general fund support is needed in fiscal 2026.
Keith Bybee presented both figures and the fiscal effects. The CEC recommendation would increase costs by $29,996,000 from the general fund, $7,179,000 from dedicated funds and $3,086,200 from federal funds (total $40,261,200). The governor's recommendation would…
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