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JFAC debates FY2026 health insurance increase and reserves; no change adopted

2953511 · January 16, 2025
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Summary

Committee members debated two health insurance funding proposals—CEC's recommendation setting per-eligible FTE at $13,960 and the governor's $14,300 recommendation—citing reserve levels and contractual minimums; neither motion secured the required dual-chamber majorities and the item was left unresolved.

The committee considered two competing proposals for the FY2026 health insurance base per eligible full-time position and related variable benefit charges.

Keith Bybee presented the choices: the Economic Outlook / Change in Employee Compensation (CEC) committee recommendation set the base at $13,960 per eligible FTE (a $960 increase over the prior base) with an estimated general-fund impact of $29,996,000 and a total fund impact of $40,261,200. The governor's recommendation increased the base to $14,300 per eligible FTE (a $1,300 increase) with a general-fund…

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