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House passes pilot requiring some mandates to apply first to state-funded PEHP for one year
Summary
House Bill 105 would apply any legislative health-insurance mandate first to the state-funded PEHP plan as a one-year pilot so the legislature can see fiscal and utilization effects before applying mandates statewide; the House passed the bill 48–26 and referred it to the Senate after floor amendments and extended questioning about scope and competitive effects.
Representative Rebecca Lockhart introduced House Bill 105 as a procedural safeguard: if the Legislature enacts an insurance mandate, it would apply to the state-funded Public Employee Health Program (PEHP) for one year before applying to the broader market so the body can measure actual fiscal impacts. Lockhart summarized the bill’s aim: "It says that if we are going to pass a mandate as a legislature, it apply to PEHP for 1 year before it applies to any other carrier in the state."
Lawmakers pressed the sponsor in extended floor questioning about the interaction of ERISA/self-funded plans, which historically made PEHP exempt from many state mandates, and whether the pilot would apply to all PEHP plans or only the state-employee plan. Lockhart explained the Legislature can require the state-funded plan to carry mandates it funds and that the amendment added on the floor would require PEHP to provide cost and claims information before a mandate is applied more broadly.
Opponents raised concerns about competitive disadvantage for PEHP, how representative the state pool would be (the sponsor and colleagues noted roughly 55% of PEHP’s insured members are state employees), and the open-ended nature of the pilot mechanism if mandates continue year-to-year. Supporters argued the pilot forces the Legislature to confront real fiscal consequences before shifting costs to small-group and individual markets.
After a floor amendment to require PEHP reporting and debate on scope and duration, the House recorded a final tally of 48 yes and 26 no; the Clerk announced HB105 passes the House and will be referred to the Senate.
