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Commission directs staff to use OIC proviso funds to test 12% primary-care spending hypothesis with administrative-structure analysis
Summary
The commission voted to pursue analysis option 2 (test whether raising primary care spending to 12% reduces downstream costs) with elements of option 1 (administrative structure modeling) using $250,000 in OIC proviso funds; staff will contract under an interagency agreement and FTAAC will oversee the work.
Commissioners on June 18 directed staff to use Office of the Insurance Commissioner (OIC) proviso funds for an analytic project focused primarily on whether increasing primary care spending to 12% of total health care spending would yield savings elsewhere in the system, and to include cost-effective elements of administrative-structure modeling to inform implementation.
Jen Scott explained the proviso is $250,000 from OIC’s regulatory account to support economic, actuarial or other modeling for universal system design; staff noted the funds must be spent by June 30, 2027. The staff presented three candidate studies: (1) modeling costs of alternative administrative structures; (2) testing the hypothesis that spending 12% on primary care would reduce overall system costs and quantify savings; and (3) developing a strategic plan/timeline for transition to a full universal system.
After discussion of feasibility, alignment with the legislature’s 12% primary-care spending directive and limited funding, Commissioner Nicole Gomez moved "to move for number 2 with a side of 1 with the flexibility for FTAAC to figure out which parts of 1 they would like to include." Representative Rick Parsley seconded the motion. Chair Vicky Lowe called for ayes and the commission approved the direction by voice vote. Staff said they will pursue contracting via an interagency agreement (HCA with OIC) and that FTAAC will serve as the contractor oversight workgroup.
Staff cautioned that $250,000 is a limited sum for actuarial work and that the analysis will need a tightly scoped question and efficient contracting; the timeline allows work to be completed by the June 30, 2027 spending deadline if staff moves quickly. The commission asked staff to return with contractor selection, a scope of work and periodic updates to maintain transparency.
Outcome: direction approved to pursue option 2 with elements of 1; staff to begin contracting and return with updates. The commission did not authorize a detailed implementation plan at this meeting.
