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'Self-insurance' bill now before a Senate committee

Dave Thompson
/
Prairie Public

A Senate committee is considering a bill to have the state set up a self-insurance plan for the state employees’ health benefit.

North Dakota is the only state that doesn’t have self-insurance. It contracts with Sanford Health to provide that coverage.

"There's not a bogeyman in here," House Majority Leader Al Carlson (R-Fargo), the bill's lead sponsor,  told the Senate Government and Veterans Affairs Committee. "This is a matter of whether we believe we can be a risk-taker -- and also a reward-taker."

Carlson says other states that have done it have shown it is very successful.

"They have saved significant amounts of premium dollars for their premium payers," Carlson said. "And they've used their reserves to lower premiums."

Carlson wanted to have the plan start January first – but he’s asking the Committee to change the date until next July first – to give the state time to work out an agreement with Sanford Health.

But a representative of Sanford Health told the Committee there could be a problem with that – since Sanford maintains the contract is in effect until 2021.

"We believe it amounts to an unconstitutional impairmet of our existing contract," said Sanford senior director of marketing strategy for Sanford Health. "However, if the date were to change to the expiration date of June 30th, 2021, we would be happy to support the bill."

The committee has not yet taken action. The House has already passed it.

Credit Dave Thompson / P
/
P
Sanford Health senior director of market strategy testifies at the Senate Government and Veterans Affairs Committee (4-3-17).

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