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Committee deadlocks on health-insurance premium increase after debate over reserve risk and employer costs
Summary
The committee debated whether to set the state health-insurance base at $14,300 per eligible position (governor's recommendation) or $13,960 (CEC recommendation). Both the substitute and original motions failed to secure a majority in both chambers; analysts warned of reserve and contractual risk if the contingency falls below 10%.
Lawmakers debated and then failed to reach agreement on a statewide adjustment to the base amount for employee health insurance for FY2026, with both proposed motions falling short of the committee’s bicameral-majority rule.
Keith Bybee, the budget analyst, explained two competing options: the CEC (Change in Employee Compensation) committee recommended increasing the base to $13,960 per eligible full‑time position, which analysts projected would require $29,996,000 from the general fund (and additional dedicated and federal dollars) for a total increase of about $40,261,200; the governor’s recommendation raised the base to $14,300, producing a larger net cost (Bybee cited a total increase of approximately $56,315,200 across funds).
Analysts and administrators discussed the contingency reserve…
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