State Board Plans Urgent Meeting to Address Healthcare Funding and Rate Increases

In a recent meeting held on June 21, 2021, the Arkansas Treasurer of State and board members discussed critical financial strategies for the upcoming fiscal year. A significant focus was placed on addressing a proposed supplemental appropriation of $20 million for FY21, which aims to bolster the state’s financial reserves and support ongoing initiatives.

The board highlighted the need for a comprehensive review of the state’s health care plan, particularly in light of rising costs and employee contributions. Discussions revealed that Arkansas currently has one of the lowest state contributions compared to surrounding states, while employee contributions are notably high. This imbalance has raised concerns about the sustainability of the health care benefits provided to state employees and retirees.

A key takeaway from the meeting was the urgency to set rates for the health care plan by January 1, 2022. Board members emphasized the importance of making timely recommendations to the legislature to ensure that employees and retirees have adequate time to evaluate their options. The board plans to meet weekly to address these pressing issues and refine their proposals.

Additionally, the board discussed the necessity of addressing existing deficits and ensuring adequate reserves for the upcoming fiscal year. The conversation underscored the importance of balancing the financial responsibilities between the state and its employees, particularly as they navigate the complexities of health care costs.

As the meeting concluded, members agreed to reconvene on Tuesday, June 29, to continue their discussions and finalize recommendations for the legislature. This ongoing dialogue reflects the board's commitment to ensuring that state employees receive fair and sustainable health care benefits while maintaining fiscal responsibility.