Idaho panel raises state employee health premium rate; companion pay proposals stall

The Joint Finance-Appropriations Committee on Jan. 31 approved an increase in state health insurance funding per eligible full‑time equivalent position for fiscal 2026, while several competing proposals to set change‑in‑employee‑compensation (CEC) levels failed to win the committee's approval.

The committee voted to set health insurance funding at $14,130 per eligible full‑time equivalent (FTP) for FY2026. Senator Woodward moved the $14,130 figure and Representative Tanner seconded the motion; the committee recorded a combined 17 ayes, 0 nays and 3 absent/excused, and the motion carried with a due‑pass recommendation.

The health insurance funding vote was the most definitive action of the morning; the committee spent several hours debating four alternative CEC packages — flat dollar increases, flat dollar with a guaranteed minimum percentage, merit‑based percentages and the governor's proposed 5% merit distribution — but none of those CEC motions passed before the committee recessed and agreed to revisit the issue.

Committee staff analyst Mr. Bybee walked members through the health insurance options on the packet and the projected reserve fund balances associated with each option. He told the committee that the projected FY2026 ending reserve balances would be about $51.6 million at the $13,960 level, $61.4 million at the $14,300 level, and an intermediate balance for the $14,130 midpoint (staff did not provide a…