Panel hears auditors and insurer reps on Montana Reinsurance Program statutory change

Representative Ken Walsh opened on House Bill 281, a measure from the state auditor's office to make changes to the Montana Reinsurance Program's statutory appropriation so the program can operate more flexibly and pay carriers on time. Walsh described a shortfall in FY24 that required a fiscal transfer and a supplemental request and said statutory appropriation would allow the auditor to request additional authority through the budget change document process when funds exist in the special revenue account.

Amber Thorvaldson, chief financial officer for the State Auditor's Office, testified that the program has meaningfully lowered individual market premiums (she cited 9–10%) and that funding comes from a federal reinsurance grant combined with a 1.2% state assessment on premiums. Thorvaldson said the program uses actuarial work and a board to set reimbursement levels each year and noted qualifying claims generally have attachment points (for example, individual claims above about $40,000 may qualify for reimbursement under program rules).

Committee members asked about the fiscal‑note chart and statutory appropriation guidelines under 17‑1‑1508(2). Staff explained the chart’s yes/no markers reflect whether a statutory appropriation is appropriate under criteria such as continuing reliable revenue, predictability of expenditure, and whether the legislature wants to review the appropriation each biennium. Representative Walsh closed and asked for a green vote; the committee later set executive action on HB281 for follow‑up (the hearing was left open for a senator’s additional questions).