State Board of Finance approves employee qualifications, names compliance officer and adopts drug formulary changes

The State Board of Finance voted to approve minimum employee qualifications for positions that handle state treasury funds, appointed Michael Harry as chief compliance officer and adopted updates to pharmacy and medical drug formularies during a brief meeting that also approved a three‑year contract with Catalyze Health.

Treasurer Larry Walther introduced the qualifications slate for fiscal year 2025, saying the listed positions “handle treasury funds or participate in decisions concerning the deposit of investments of state treasury funds” and that the list had been vetted by the Department of Finance and Administration and the treasurer’s office. He noted highlighted names on the list are employees for Treasurer‑elect John Thurston and that Kathy Williams remains the current fiscal division director.

Board members clarified timing for the standards. A board member proposed making the qualifications effective immediately for the remainder of calendar year 2024 and continuing through calendar year 2025 to ensure coverage as the office brings on a compliance officer; the board approved the qualifications by voice vote.

Walther recommended appointing Michael Harry as chief compliance officer for the State Board of Finance. Campbell McLaurin, speaking as the member standing in for Susanna Marshall, moved to accept the recommendation; the motion was seconded and carried.

Grant Wallace of the Employee Benefits Division presented multiple employee benefits items. On pharmacy formulary changes, Wallace said, “We are re tiering and adding some quantity limits to the top 4 drugs,” and described placing one new product on the specialty tier with prior authorization and step therapy while excluding several other new drugs pending additional clinical efficacy data. The board approved the pharmacy formulary recommendations by voice vote.

Wallace then reviewed medical (clinic‑administered) drug recommendations for December, describing coverage decisions and prior authorization requirements for certain new‑to‑market therapies. He said two products were being removed because they were discontinued. The board adopted the medical drug recommendations.

Wallace presented a services contract with Catalyze Health, the awardee for the spousal incentive health reimbursement account RFP. He told the board the initial contract term is three years and that “the 1st year is coming in at 137,861” (an estimate based on anticipated utilization), and that the contract documentation includes a seven‑year calculation of roughly $1,900,000. The program would focus on covering monthly premium differences when an employee moves from the state plan to a spouse’s employer plan. A board member asked whether incentive amounts conform to section 125 rules; Wallace confirmed they do. The board approved the contract by voice vote.

The chair asked whether any other business needed to come before the board, heard none and adjourned the meeting with holiday greetings.

Actions at a glance - Adopted minutes from the Nov. 6, 2024 meeting (voice vote). - Approved minimum employee qualifications for positions handling treasury funds; clarified effective date to continue through calendar year 2025 (voice vote). - Appointed Michael Harry as chief compliance officer (motion, voice vote). - Adopted pharmacy formulary recommendations, including re‑tiering and quantity limits, a specialty‑tier placement with prior authorization and exclusions pending further efficacy data (voice vote). - Adopted medical drug recommendations for December, including prior authorization for select new drugs and removal of discontinued products (voice vote). - Approved a three‑year services contract with Catalyze Health for the spousal incentive health reimbursement account RFP; first‑year cost estimated at $137,861 (voice vote).

Next steps The appointment and the adopted qualifications take effect as approved by the board; staff will proceed with implementation of formulary changes and finalize the Catalyze Health services contract according to state contracting procedures.