Committee advances bill to raise state employee premium cap to CPI plus 10 after 6‑4 vote

The State and Local Government Committee on Feb. 11, 2026, voted 6–4 to advance LD 2148, a department bill that would replace the current statutory limit on state employee health insurance premium increases (consumer price index plus three percentage points) with a new cap of CPI plus 10 percentage points for fiscal years ending after June 30, 2026.

Committee members and witnesses said the proposal is intended to give the State Employee Health Commission and plan designers flexibility when insurer renewal projections outpace the current cap. Margaret Eddy, legislative and policy analyst with the Bureau of Human Resources, told the committee the change aims to avoid steep benefit reductions for employees. “We’re trying to keep it more status quo,” she said, adding that premium increases could be smaller than alternative benefit‑cutting steps.

Why it matters: State health claims for the plan were projected in testimony to rise roughly 11–12 percent in recent projections, creating a gap under the CPI+3 cap that has forced plan designers to offset costs by raising deductibles, coinsurance and prescription copays. Proponents argued that allowing a higher premium cap gives the commission another tool so employees are not forced to absorb all increases through reduced benefits.

Opponents pressed on taxpayer exposure. Senator Martin and others asked whether raising the cap would shift more of the added cost onto the state and, therefore, taxpayers. Jonathan French, labor co‑chair of the State Employee Health Commission, explained that the plan is self‑insured: employee premium percentages are set in statute and the state and employees share the premium amount the plan sets. “If the premium goes up, both the employee portion and the state portion may go up,” he said.

Committee action and next steps: Representative Salisbury moved the committee recommendation that LD 2148 “ought to pass.” After a brief caucus, the motion carried 6–4 on a roll call: Gramlich, Salisbury, Balodacci, Copeland, Rollins and Farren voted in favor; Toole, Underwood, Palomino and Greenwood voted against. The bill’s fiscal note remained “not yet determined” by OFPR at the time of the work session. The committee authorized language review and further fiscal follow‑up; the bill will return to the committee for language and fiscal details before final floor action.

Key quote: “We’re limited to the CPI plus 3. That’s all we have for premium that’s available,” Jonathan French said, explaining why the commission seeks more flexibility.

The committee recorded minority reports: Representative Greenwood offered an alternative recommendation of CPI plus 6; Representative Underwood offered “ought not to pass.” The bill will proceed to language review and an updated fiscal estimate before additional committee consideration.