Idaho Insurance Department briefs JFAC on PBM enforcement, high‑risk pool, wildfire insurance pressure and requests for staff and equipment

The Idaho Department of Insurance told the Joint Finance‑Appropriations Committee on Jan. 21 that it is enforcing new pharmacy benefit manager (PBM) reporting requirements, continuing a state high‑risk reinsurance pool and monitoring wildfire‑related stress in the homeowners insurance market while seeking targeted staff and capital purchases.

The presentation and requests Noah Peterson, legislative budget analyst, summarized the Department of Insurance budget and enhancement requests. The agency seeks one full‑time staff actuary (primarily for rate and product actuarial review), a regulatory compliance specialist to serve as an internal non‑conflicted legal resource and public policy advisor, compensation increases for the state fire marshal team, and one‑time capital outlay for state fire marshal equipment including turnout gear, cameras and two medium‑duty pickup trucks. Peterson also noted a trailer appropriation that implemented House Bill 596 and a prior addition of 1 FTP and $132,400 to handle PBM reporting responsibilities.

PBM compliance and complaints Dean Cameron, director of the Department of Insurance, told the committee the agency hired an analyst to manage PBM reform work and that the office is collecting required data submissions from PBMs. “She’s receiving numerous complaints. I can’t tell you the exact number right now,” Cameron said, adding that the complaints range from claims about dispensing fees to contractual and responsiveness disputes. Cameron said most PBMs have complied with the required format for data submissions; a few have not and the agency is working with them to obtain data.

High‑risk pool and the 1332 waiver Cameron described the state’s high‑risk reinsurance pool as an existing vehicle the state uses to reinsure specific expensive claims and to help hold individual market premiums lower. Cameron said Idaho secured a Section 1332 waiver with the federal government that helped expand market participation and reduce rates compared with five years prior. “We instituted that 3 years ago… we have doubled the number of carriers participating on the health insurance exchange,” Cameron said, describing the waiver and the pool’s structure as reinsurance that shares claims costs to stabilize premiums.

Wildfire risk, market tightening and proposed responses The director told JFAC the department has tracked a tightening property insurance market driven by catastrophic wildfire losses across the West, inflationary pressures and higher reinsurance costs. Cameron said some carriers have reduced writing in parts of Idaho or nonrenewed policies in areas they consider higher risk, and that surplus‑lines (non‑admitted) market volume has increased, which he described as a sign of a stressed market. “We had to deal with 3 insolvencies in this last year,” Cameron said, adding that solvency concerns and higher reinsurance costs have increased pressure on carriers.

Cameron said the department plans to propose legislation creating a pool to both help homeowners harden properties against wildfire and provide a mechanism to help carriers remain in the market. The mitigation component would fund measures such as clearing combustible vegetation, replacing vulnerable eave materials and other home‑hardening steps. Cameron told members the state will seek to spread risk and work with carriers and agents to preserve a viable admitted market.

State fire marshal requests and operational notes Peterson outlined specific state fire marshal enhancement requests: compensation increases totaling $48,100 (ongoing) for the fire marshal chief deputy and deputies, and $162,200 in one‑time capital outlay for personal protective equipment, cameras and two medium‑duty trucks. Cameron described recent wildfire response work and increased demand on the fire marshal division; he said Idaho burned just under one million acres during the prior year and the division is focused on mitigation and consumer outreach.

Staffing and agency capacity Cameron introduced senior staff accompanying him and said the department has filled nearly all positions. He noted the agency is contracting actuarial work now and expects savings by bringing an actuary in‑house. The director described broad workloads tied to PBM oversight, market monitoring, consumer complaints, wildfire response and insurer solvency oversight.

Ending Cameron thanked the committee for prior support and said the Department of Insurance stands ready to provide more detailed data and reports as the committee requests them. “Insurance is absolutely critical in the economic well‑being of the state,” he said.