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JFAC approves $14,130 per‑FTE health insurance funding level
Summary
The Joint Finance-Appropriations Committee voted to increase the health insurance appropriation to $14,130 per eligible full‑time position for FY2026, approving budget increases across general, dedicated and federal funds.
The Joint Finance-Appropriations Committee voted Friday to raise the statewide health insurance appropriation for eligible full‑time positions to $14,130 for fiscal year 2026.
The measure, moved by Senator Woodward and seconded by Representative Tanner, set the per‑employee funding level and adjusted agency budgets for related employer costs such as workers’ compensation and Social Security. Committee members recorded a total of 17 ayes, 0 nays and 3 absent or excused, and the motion was given a due‑pass recommendation.
Why it matters: The committee framed the decision as the primary driver of personnel benefit cost increases in the FY2026 budget. Committee analysts presented three alternative funding levels — the CEC committee recommendation at $13,960, the governor’s recommendation at $14,300, and the compromise midpoint at $14,130 — and the panel voted for the midpoint.
Analyst presentation and debate: Mr. Bybee, the committee analyst, explained the three options on the screen and in the meeting packet and noted that the most significant adjustment was the health insurance per‑employee amount, with smaller employer‑paid adjustments by agency. Senator Ward Engelking argued against using reserves to “buy down” premiums because that can exaggerate year‑to‑year jumps if reserves are used repeatedly. Representative Furness and other members questioned actuarial projections and reserve balances presented by Milliman and asked whether prior changes in plan design had already reduced costs.
Vote and fiscal effect: Senator Woodward’s motion to set the amount at $14,130 carried. The motion text specified increases of $36,043,900 from the general fund, $8,599,500 from dedicated funds and $3,753,800 from federal funds, totaling $48,397,200. The committee recorded 17 ayes, 0 nays and 3 absent/excused across both chambers.
What’s next: The committee chair said the motion would “carry a due‑pass recommendation.” The Legislature will incorporate the approved funding level into subsequent budget deliberations and bill language as the session proceeds.
