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Department of Insurance outlines budget requests, PBM oversight work and wildfire insurance pressures
Summary
The Department of Insurance presented its FY2026 enhancement requests — including a staff actuary, a regulatory compliance specialist and compensation increases for fire marshal staff — and updated lawmakers on PBM data collection, the state'9s 1332 waiver and wildfire-related insurance market stress.
The Joint Finance‑Appropriations Committee received the Department of Insurance budget presentation Jan. 21 and heard updates on pharmacy benefit manager oversight, the state—s 1332 health‑insurance waiver and growing wildfire‑related pressure on the homeowners insurance market.
Director Dean Cameron told the committee the department requested four enhancement items for fiscal year 2026, including a staff actuary (one FTP, $201,900 request with $198,900 ongoing personnel costs listed in the agency write‑up), a regulatory compliance specialist serving as an internal legal resource (salary requested at 80% of policy), compensation increases for the state fire marshal and deputies ($48,100 ongoing from the Arson Fire and Fraud Prevention Fund) and $162,200 in one‑time capital outlay for fire turnouts, cameras and two medium‑duty pickup trucks.
Why it matters: Cameron emphasized the department’s enforcement role after the PBM reform law took effect Jan. 1 and described a broad set of consumer complaints and data collection efforts. Representative Furness asked for a description of the state’s 1332 waiver and the high‑risk reinsurance pool; Cameron said Idaho—s waiver and reinsurance arrangements have helped lower individual market rates, increased carrier participation on the exchange and spread the cost of expensive claims.
PBM oversight and complaints: Cameron said the department hired a staff member to work on pharmacy benefit manager (PBM) compliance but that “it’s a lot more work than what one person can do.” The department has required PBMs to submit data in a prescribed format; “most have complied and have submitted their data,” Cameron said, but a few have not and the department is working to obtain the missing reports. Complaints received so far range from dispensing fees and payment disputes to contract and responsiveness issues; Cameron said the department will provide a fuller report as data collection continues.
Wildfire insurance market pressures: Lawmakers pressed Cameron on the impact of out‑of‑state wildfire activity and inflation on homeowners insurance. Cameron said reinsurance availability and cost, carriers— exposures in high‑loss states such as California, and broader inflationary pressures have tightened the property insurance market and prompted some carriers to reduce writing business in fire‑prone areas. He reported a recent increase in surplus lines use for homeowners coverage — a sign the admitted market is constricting — and said the department will propose legislation creating a pool to help homeowners harden properties and to provide mechanisms that may help carriers remain in the state.
Other budget context: Peterson, the Legislative Services Office analyst, said the department has 75.5 approved FTPs and that fiscal‑year 2024 reversions totaled just under $2.2 million split between personnel and operating expenditures. Peterson also noted recent appropriations tied to implementation of House Bill 596, which amended Idaho Code section 41‑349 to revise definitions and reporting requirements for pharmacy benefit managers; the department received one FTP and $132,400 to carry out that law.
What the committee will do next: Committee members requested additional, detailed reports on PBM complaint counts, compliance status for PBM data submissions and actuarial analysis supporting the staff‑actuary enhancement. Director Cameron said the department will provide further details as PBM data and complaint tallies become available.
