2020 Special Session I

Budget Amendments - HB5005 (Conference Report)

View Budget Item
View Budget Item amendments

Actuarial Review of the State Employee Health Plan (language only)

Item 84 #1c

Item 84 #1c

Administration of Health Insurance


Page 16, after line 3, insert:

"The Department of Human Resource Management (DHRM) shall work with the Joint Legislative Audit and Review Commission (JLARC) to enable the private actuarial firm that contracts with JLARC, to perform a peer review of the actuarial calculations used for the State Health Insurance Program. The review shall (1) review the reasonableness of actuarial methods, and accuracy of reports produced by the actuary; (2) assess the data and methods used to establish rates; (3) review and comment on actuarial models used to estimate the impact of plan changes, develop rates and budget projections, and monitor claims experience; and (4) provide recommendations concerning the appropriate target level of cash balances for the fund.  DHRM shall reimburse JLARC for expenses incurred in the review from the balances in the health insurance fund. JLARC shall report the findings by September 30, 2021."


(This amendment directs DHRM to work with JLARC and their actuary to perform a peer review of the assumptions used to set rates for the State Employee Health Insurance Plan and balances maintained in the Health Insurance Fund (HIF).)