Committee introduces RS 32,037 to allow cities to join state health insurance pool, counties excluded

Representative Rick Cheatham, R‑District 28 (Power, Franklin and parts of Bannock County), asked the House State Affairs Committee to introduce RS 32,037, a change to the statute governing the state employee insurance pool that would allow cities to join the state plan on a voluntary, city‑funded basis.

Cheatham said the idea is to spread risk across a much larger pool and potentially reduce premium growth for municipalities. “With the tens of thousands [of] employees the state has and the ability of the city to join that pool, if it makes sense to them, it should help to lower those health insurance costs,” he said, adding that any city that chooses to join would pay actuarial and buy‑in costs so there would be no general‑fund cost to the state.

Committee members debated whether the bill should also allow counties to join. Representative Boyle asked to add counties; Cheatham said counties already have an alternative plan (the GEM plan) and called adding counties a “hostile” amendment. Representatives pressed the sponsor and suggested including counties would save future legislative work, and Representative Mickelson offered a substitute motion to insert counties on three lines of the draft.

The substitute motion to add counties failed on voice vote. The committee then returned to the original motion to introduce RS 32,037 and approved it by voice vote.

Cheatham told the committee members from the Department of Administration and the Office of Group Insurance would appear at a future hearing to answer process questions about actuarial analysis and implementation.

The RS will proceed to print and a hearing where agency staff will be expected to explain operational steps and the actuarial buy‑in process.