Panel adopts amendments to reinsurance Omnisalud proposal, advances bill 4–3 with guardrail commitments

The Senate Appropriations Committee advanced Senate Bill 178, a reinsurance and financing package tied to the Omni Salud program, after adopting two amendments and voting 4–3.

Sponsor Senator Judah described L14 as a technical fix and summarized L15 as a response to committee feedback that requires the Joint Budget Committee (JBC) to receive a presentation on cost‑savings mechanisms, including analysis of statewide reinsurance floors and tiered premium wrap structures. L15 also includes language delaying bond issuance until at least January 2027.

Senators pressed sponsors on substantive issues: Senator Bridges said he was concerned about waiting until January and questioned reliance on bonds for what he described as one‑time costs, calling the bonding approach “one of the craziest fiscal proposals I have heard in my 10 years in the legislature.” Sponsor Senator Mullica said premium language in the amendment directs the Division of Insurance to implement premiums for the program and that other cost‑saving amendments would be offered on second reading to reduce required reinsurance savings from 20% to 18%, with estimated annual savings of $10–15 million.

Committee members expressed a mixture of caution and conditional support. Several senators asked about callable bonds and dedicated revenue sources; sponsors said tax credits and existing bill language were intended to help service bond payments and that some details might require follow‑up. After adopting L14 and L15 without objection, the committee approved the amended bill 4–3.

The sponsor said additional cost‑savings amendments will be offered on second reading and committed to continue discussions about premium guardrails and bond mechanics.