State worker health benefits program has large reserves, audit finds
But most customers of the state
State worker benefits -- chiefly, a
Under self-insurance, the state would accept the risk for large medical claims instead of paying premiums primarily to provider-owned regional insurance companies. The plan, common among large employers but opposed by local insurers and many state employees, was rejected by the Legislature's budget committee, which ordered the audit.
The audit provides the first glimpse at how much the state spent studying self-insurance and other health benefit changes in recent years. In 2015-2017, the state paid
According to the audit, ETF did not determine the extent to which insurance companies achieved performance goals outlined in contracts or explain how much it could have assessed financial penalties when firms did not achieve the goals.
ETF didn't consistently provide the 11-member
Health insurance program reserves increased from
The insurance board didn't spend any reserves in 2016 and 2017 because it was considering the move to self-insurance.
Among other state agencies surveyed, 95 percent or more said they were satisfied with the open enrollment process and information and assistance provided by ETF. Among local governments in the state worker program, 98 percent said they were satisfied overall.
ETF Secretary
"There are several good recommendations in the report, many of which we will implement, have implemented or are in the process of implementing," Conlin said.
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