Representative Ken Walsh opened the Senate Finance and Claims hearing on House Bill 281, describing the bill as a technical change to allow the Montana Reinsurance Program to operate more efficiently by making the state special‑revenue matching portion a statutory appropriation.

Walsh said the reinsurance program, created after the federal waiver enacted in 2019, reimburses certain high‑cost claims in the individual health insurance market and has directly reduced premiums by about 9–10 percent. "Making this change to statutory appropriation allows the flexibility to request additional authority through the budget change document process," Walsh said.

Amber Thorvaldson, chief financial officer for the State Auditor's Office, testified in support. She told the committee that fluctuations in funding and expenses make it difficult to predict the spending authority needed in the biennial budget and that the statutory appropriation would allow the auditor to request additional authority when money exists in the special revenue account. "If we were able to have this as a statutory appropriation it would greatly assist us in being more flexible in getting these funds to the carriers," Thorvaldson said.

Committee members focused on the fiscal note and the statutory appropriation checklist in statute 17‑1‑508(2). Staff explained that the chart in the fiscal note and the statutory appropriation guidance reflect considerations such as predictability of revenues and legislative oversight. Thorvaldson explained the program is funded by a 1.2 percent assessment on premiums (state assessment) and federal grant funding; actuaries and the reinsurance board set reimbursement rules and attachment points (for example, claims above $40,000). She described carryover of federal and state funds as a source of volatility.

Outcome at adjournment: The chair said the committee would hold House Bill 281 for additional questions from Senator McGillivray; the bill was not finalized in executive action that day.

Ending: Staff circulated the statutory appropriation guidance sheet for members to review and the committee deferred final action pending follow‑up questions.