A broad range of restructuring options were presented to the GIB, ranging from maintaining a version of the current program with improvements to contracting with one or two statewide vendors on a self-insured basis, as well as various regionalization options.
Lisa Ellinger, director of ETF's Office of Strategic Health Policy, provided seven scenario options to the Board. The scenarios were based on the priorities communicated by the Board at its November 30 meeting.
January 2018 is the earliest any program structural changes would take effect. Benefit or plan design changes are not being discussed in this process.
The State Legislature's Joint Committee on Finance (JFC) must approve even a partial move to self-insurance. On Monday of this week, the JFC co-chairs sent a letter to the GIB expressing concerns that even a move to regionalization for insurers could impact the state's health care system without saving the state any money. The JFC co-chairs requested a meeting with the GIB chairs to further discuss the issue.
The League is watching this issue because the state's local government health plan might also be impacted by the GIB decision. ETF's consultant, Segal Consulting, has recommended streamlining the local government plan to mirror the state plan options. If the state moves to a regionalized, self-insured structure, the local program could shift to that structure as well.