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Committee approves bill to restore competitive bidding for employee benefit plans
Summary
The committee passed House Bill 1160 to establish a rulemaking process for bidding state employee benefit plans, aiming to seek more competitive rates for members; the Employee Benefits Division and sponsor said the change would increase transparency and competitive procurement.
Representative Jeff Wardlaw (District 94) and Grant Wallace, director of the Employee Benefits Division (EBD), presented House Bill 1160, which would create a rulemaking framework for regular competitive bidding of benefit plans administered for state employees. Wardlaw said prior bidding was last done in 2011 or 2013 and that returning to regular solicitations should produce more competitive rates for members.
Grant Wallace described the department's role and the proposed rule process, which would come to the EBD subcommittee and the rules committee for legislative oversight. A committee member who spoke in support thanked Wardlaw and the RCBA for collaborating with EBD and said the bill should improve transparency in bids, rates and plan design.
After discussion, Senator Ervin moved to pass the bill, seconded by Senator Johnson; the committee approved the motion by voice vote and the chair announced the bill was passed out of committee. Sponsors said they expect the rules to be subject to legislative oversight when adopted.
What happens next: The bill passed committee and will proceed to the Senate floor; implementing regulations created under the bill will be subject to review by the legislature.
