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House adopts PEHP resolution directing premium adjustments and use of reserves
Summary
House adopts HJR46 directing the Public Employees Health Plan (PEHP) to adjust cost-sharing and use reserve funds to mitigate future premium increases; sponsor cited an approximate $20 million reserve and described a shift toward a 90/10 cost split, while members asked for clarification on family-plan cost impacts. The resolution passed 68-6.
The Utah House adopted House Joint Resolution 46 on March 10, 2011, directing the Public Employees Health Plans (PEHP) to take specific steps on premiums and plan design. The motion passed the House with 68 yes votes and 6 no votes.
Representative D, sponsor of HJR46, told the chamber that PEHP holds approximately a $20 million surplus and that the resolution seeks a measured approach: directing PEHP not to raise dental premiums, reducing the combined premium for employers and employees by 2 percent, and directing that reserves be used to help mitigate future premium increases. The sponsor described a change in the employer/employee split as a "ninety-ten" adjustment and said adjustments to how revenues are reflected should occur before July 2012.
Members asked clarifying questions about the net effect on a typical family plan. Representative D replied that family-plan impacts vary by plan option but estimated that the ninety/ten adjustment would increase an average family plan by about $22 while avoiding a larger inflationary increase; he framed the change as a mitigation strategy that buys time to address long-term structural issues.
Representative Dunnigan and others asked whether dental cost sharing would change; the sponsor said the dental split was not being increased and the resolution directed PEHP against dental inflation for the coming period.
The House adopted HJR46 and will transmit the resolution to the Senate. Sponsors said the approach is intended to avoid a "knee-jerk" response and to use reserves to smooth premium trends while a committee examines options for longer-term changes.
The transcript records the sponsor's budget figures and members' clarifying questions; final policy implementation will depend on PEHP actions and any regulatory steps that follow the resolution.
