The House Appropriations Committee on Wednesday voted to advance HB 02/2160 (listed in committee as 2160), which would change the state's health insurance plan from a grandfathered to a non-grandfathered status and adjust appropriations to align with updated fiscal analysis.

Committee members heard from staff and referenced PERS (Public Employees Retirement System) and consultant analysis by Deloitte. PERS submitted an updated fiscal note to match the latest analysis; staff told the committee that to align the bill with the Deloitte numbers, section 4 appropriation lines would be adjusted to $1,442,991 (General Fund) and $1,851,509 (other funds), with an additional legislative-intent direction for PERS to use $297,500 from health insurance reserve funds (combined totals rounding to $3,294,500 for the period discussed).

Members debated whether the change would merely shift costs to employees (higher deductibles and copays counting toward out-of-pocket maximums) or could produce savings through increased bidder interest and long-term cost controls. Several legislators—including Representatives Murphy, Lauser, Richter and Munson—voiced concerns about potential cost-shifting and employee retention impacts; others, including Representatives Bosch, Nelson and Steeman, argued the change could produce necessary long-term savings and align the state with market conditions. PERS Board members on the committee said the PERS board had not formally endorsed the legislative change; PERS staff said the board executes legislative directives rather than initiate such changes.

The committee adopted the amendment to update section 4 and section 5 appropriation numbers to match the current actuarial analysis (amendment adopted 22–0–1) and then voted to advance the bill. The final do-pass vote on the bill as amended carried 15–7–1; the committee returned the bill to the policy committee, with Representative Worry identified as the carrier.

Votes at a glance: amendment to align fiscal numbers adopted 22–0–1; committee do-pass on the bill as amended carried 15–7–1.