The Group Insurance Board today approved the selection of vendors for the Group Health Insurance Program and reviewed the program’s reserve fund.
The Board approved recommendations resulting from the procurement process to issue letters of intent to award contracts to:
- Navitus Health Solutions – For the Pharmacy Benefit Manager
- UnitedHealthcare – For the administration of the Medicare Advantage and Medicare Plus plans
The contracts are effective January 1, 2026, with the potential for two additional contract extensions.
The Department of Employee Trust Funds conducted three nationwide requests for proposal that collected data from vendors on quality, network access, cost, and other program requirements. The vendors with the highest scores were recommended to the Board.
Reserve Fund
In advance of benefit change and rate setting discussions for plan year 2026, ETF provided an update on the reserve fund of the Group Health Insurance Program. The reserve fund is used to pay claims for the self-insured pharmacy and dental programs, and to reduce premiums when there is a surplus. Several factors have contributed to a strained cash flow position.
ETF and the Board’s actuary, Segal, are preparing reserve projections for the Board’s future discussions on 2026 rates. In addition, ETF will propose changes to the reserve policy to establish the cash flow needs of the program.
Other Business
The Board approved the election of officers, including Chair Herschel Day, Vice Chair Nathan Houdek, and Secretary Nancy Thompson for two-year terms effective May 1, 2025.
The Board’s next regularly scheduled meeting is February 26, 2025.