Interim CFO: GIC projects fiscal‑year deficit but supplemental appropriation covers claims through year‑end

Catherine Moore, the GIC’s interim chief financial officer, told the commission that the agency is projecting a fiscal‑year deficit driven largely by prescription drug spending and other medical plan variances but that a recently approved legislative supplemental will cover claims through fiscal year end.

Moore said the spending figures in the presentation exclude the supplemental appropriation and that with the "additional $240,000,000" the GIC "should have enough money to pay all of our claims, all of our FY25 claims through the end of the fiscal year." She reported a pocket of claims did not process in May because of technical issues after a brief payment pend, estimating about $25,000,000 of claims would post in June. Her cumulative deficit figures for May included a $185,000,000 deficit in one presentation slide and she noted the agency’s true position could be closer to $210,000,000, with a projection of a roughly $230,000,000 shortfall if prior months’ trends continue; the supplemental appropriations are intended to cover those amounts.

Commissioners asked for clarification; staff said the supplemental restored payments, allowed GIC to resume payments to carriers and that finance staff will continue to monitor June activity and bring updated reports in September. Moore and staff emphasized ongoing efforts to manage prescription drug trends and to continue financial oversight into the next fiscal year.