Transcript Highlights:

• Sarah Baker, actuarial update. Sarah Baker, actuarial update. Thank you, Chair.
• Membership and study goals or direction. So does that help? It does.
• Do you, and you might not have actuarial numbers at this... Capped?
• Do you, and you might not have actuarial numbers at this point in time.
• We're bringing a proposal, a study session on the ad hoc...

Keywords: 904, all

Transcript Highlights:

• From what the actuaries have told me—and I'm not an actuary; I do not speak, but I listen to them—they're
• ERB is doing an actuarial evaluation. They work with GRS.
• They're getting actuarial numbers every year.
• Same studies, virtually identical.
• Madam Chair, Senator Gonzales [ID: member_13638], this is the actuarial study as of last year.

Transcript Highlights:

• Chair, today I spoke with the actuary for OSI and asked about premiums.
• So, I also have a whole lot of studies that also show, Mr.
• Chair, the most recent actuarial study that was completed on the patient compensation fund, that study
• Chair, first of all The past legislation required that actuarial studies analyses be done every year
• The actuary told us that could drop that language.

Keywords: 996, all

Transcript Highlights:

• board has recommended and the actuaries board has recommended and the actuaries have<00:06:58.479
• In 2017, the actuaries...
• actuarial liability. actuarial liability.
• And the actuaries recommended >> All right. And the actuaries recommended it. it. it.
• And the study every 5 years or so.

Keywords: Finance - Room 216, 20 January, 2026; 10:30 AM, 925, all

Summary: The committee heard an update from PERS Executive Director Higgins, who reported that the system has about $38 billion in assets, earned roughly 11.7% last fiscal year, and is about 57% funded. He thanked lawmakers for a newly passed $1 billion funding bill and emphasized that funding the existing system remains the top priority. Higgins also noted that the board’s actuarially recommended contribution is about 26% of payroll, while the system is currently receiving about 18.4%, and said PERS will return later in session with a few requested bills. Higgins addressed several policy topics under discussion this session, including return-to-work rules, first responders, and Tier 5. He said return-to-work changes are possible if the law is changed and funding implications are addressed. For first responders, he said any special treatment should be done within PERS rather than by creating a separate system, with the affected group and parameters clearly defined and fully funded. He also said the new Tier 5 hybrid plan is being implemented on track for March 1 and is projected to improve the system’s long-term financial position by reducing future liabilities and helping pay down the unfunded liability. Members then questioned Higgins about the system’s funding policy, the 30-year closed amortization period used in the ADC calculation, and whether that approach should be revisited in light of recent funding actions and changes in assumptions. Higgins said the board reviews the policy annually, that the closed amortization approach was chosen to better pay down the unfunded liability, and that the annual valuation and experience studies already incorporate recent funding changes, Tier 5, and the phased employer-rate increases. He acknowledged that a significant new infusion of funding could justify reviewing the amortization period, but cautioned against changing it too often because it could undermine progress toward paying down the unfunded liability.

Transcript Highlights:

• She said that many members had demanded an actuarial study and noted that the bill started out without
• <00:28:44.240> This that there be an actuarial study.
• This that there be an actuarial study.
• So, if we look between the number of claims that have been submitted versus the actuarial study, which
• <01:01:24.880> study, versus the uh uh the actuarial study, versus the uh uh the actuarial

Keywords: 1187, senate, all

Transcript Highlights:

• is the actuarial accrued liability?
• Page 26: every two years, NHRS has our actuary do a detailed actuarial valuation, and they calculate
• Page 26: every two years, NHRS has our actuary do a detailed actuarial valuation, and they calculate
• actuary do a detailed Actuarial actuary do a detailed Actuarial valuation<04:01:10.920> and
• <04:01:29.279> acred it's the value of the Actuarial acred it's the value of the Actuarial

Keywords: 928, house, all

Summary: The committee held an orientation for new and returning members of the House committee on agencies and administration, with introductions from members and staff. Chair Carol Maguire outlined her expectations for hearings: keep questions focused on the bill, be respectful to witnesses, and use the committee’s orientation opportunities to learn about the jail staff, retirement system, and Office of Professional Licensure. Members also discussed related assignments on other bodies, including the Joint Legislative Committee on Administrative Rules and the Joint Committee on Employee Classification, and noted that some members already serve on those panels. A substantial portion of the meeting focused on the State Building Code and the committee’s upcoming workload. Members explained how the state code is intended to provide a common baseline while allowing limited local options, and why municipalities must formally adopt and publish any local amendments. They reviewed several anticipated bills: a consolidation bill to gather building-code enforcement materials in one place, a bill to update the state energy code, a bill to restrict municipal adoption of building-code changes, and a bill to update the electrical code. Members also discussed how building codes apply to older homes and commercial buildings, and why code updates are important for safety and clarity. The chair said the committee had 36 bills currently scheduled, including many early bills that must move by March 6 because they will be heard by two committees. She said the committee would use subcommittees for harder bills, with three subcommittees this year: pensions, licensing, and likely state building code. She also outlined the hearing schedule, including lighter bills on February 12 and the expectation of executive sessions later in the month. No votes were taken during the orientation, but members were told that public hearings do not require a quorum and that hard copies of bills would be distributed by committee staff.

Transcript Highlights:

• Most of that has been actuarial changes to methodology, which I think are very positive changes.
• We would definitely want to make sure we have zero unfunded actuarial liability.
• The experience study is conducted by Milliman, the actuary for DMS.
• Milliman does an experience study, and they go and look at every one of the cohorts.
• Milliman does an experience study, and they go and look at every one of the cohorts.

Summary: The Government Operations Subcommittee met with a quorum and began with member introductions and remarks from the chair emphasizing the committee’s focus on government efficiency, accountability, and oversight of executive branch agencies. Members shared their districts and backgrounds, with several noting hurricane recovery in their communities and a shared interest in reducing bureaucracy and improving service to Floridians. The committee’s only presentation was from Chris Spencer, Executive Director of the State Board of Administration, who gave an overview of the SBA’s governance structure, investment responsibilities, and divestment policies. He explained the SBA’s management of more than $257 billion in assets, including the Florida Retirement System, the Florida Hurricane Catastrophe Fund, and Florida PRIME, and reviewed the Protecting Florida’s Investments Act restrictions covering Northern Ireland, Cuba, Venezuela, Israel, Sudan, Iran, and China. He also described the implementation of HB 7071, including the required divestment from direct holdings in Chinese companies, and said the SBA had reduced its direct Chinese holdings from 33 companies totaling over $172 million to 13 companies totaling about $64 million, with completion expected ahead of the September 1, 2025 deadline. Members asked detailed questions about the Israel boycott list, Morningstar and MSCI, how the SBA gathers information, whether Cuba’s federal designation changes affect Florida law, how companies are removed from scrutinized lists, and whether divestment timing could affect returns. Spencer said the SBA uses public and paid research sources, gives companies a 90-day cure period in some cases, and brings list changes to the trustees for approval. He also explained that the China benchmark change is intended to reduce passive exposure while still allowing active investment decisions, and said the PFIA restrictions have had a modestly positive overall effect on pension performance. The chair also asked about the Florida Retirement System funded ratio and the CAT Fund’s capacity; Spencer said the pension fund is at 80.7% funded, that actuarial assumptions are reviewed regularly, and that the CAT Fund currently has more than $10.5 billion in liquid claims-paying capacity and is expected to remain well positioned for hurricane losses. No votes were taken, and the meeting adjourned after the presentation and questions.

Transcript Highlights:

• It's a study.
• To ensure the actuarial soundness of the teacher retirement system for the foreseeable future.
• Um, would it be OK if I had our staff actuary come up and answer that question, because I'm not the actuary
• House Bill 4029, this bill, is the outcome of that study and provides a targeted solution.
• Uh, we, we did a study with TRS did a study and it showed the cost of doing either a 20 to 25 year retirement

Transcript Highlights:

• Uh, the experience studies result in the actuary being able to fine-tune assumptions to better match
• the Uh the experience studies result in the actuary<00:03:11.280> being<00:03:11.519> able<
• Unlike the prior motion, which started with experience studies conducted by the plan's actuaries, this
• In fact, PAR's board supported an actuarial study to determine the potential cost of a new plan based
• The information I had from GRS, the actuary that did the study, is that over the course of 15 years,

Keywords: 1187, senate, all

Transcript Highlights:

• for the use of the Hospital Medicaid Developmental Disability Subcommittee as they complete their study
• You should all have in your packet a copy of an actuarial and consultant services agreement.
• Generally, your actuarial would be a separate entity from the broker or the other person, but. Yep.
• This will be your own actuary that can give you an independent look at anything that's going to come
• So just wanted to kind of see how, you know, how that might compare to the other actuary service that

Keywords: 1204, all

Transcript Highlights:

• It was converted to an actuarial study.
• study um and converted to a an Actuarial study um and so<00:17:50.960> we<00:17:51.280> we
• > study<00:17:52.679> out<00:17:52.880> to so we we put the Actuarial study out to
• <00:18:11.280> study and no one had B on the Actuarial study and no one had B on the Actuarial
• <00:18:32.679> study Actuarial study Actuarial study we<00:18:35.240> I<00:18:35.360>

Keywords: 912, senate, all

Summary: The Joint Committee on Labor and Judiciary heard the Judiciary’s budget presentation from Brandon Kimura and other court administrators. The Judiciary outlined its mission and access-to-justice programs, including specialty courts, self-help centers, online small claims dispute resolution, and e-reminders. It requested an operating budget of $6.17 million in FY 2026 and $6.25 million in FY 2027, along with 17 permanent and one temporary position, and described a series of staffing and program requests tied to specialty courts, district court operations, technology, and public guardianship. Major program requests included making women’s court permanent by converting seven temporary positions to permanent and adding a substance use counselor; expanding truancy court and the Early Education Intervention Program on Oahu; and making the driving while impaired court permanent. The Judiciary also sought staffing and funding for the new Wahiawa District Court, including security, janitorial, IT, clerical, bailiff, and social worker support, plus an additional district court judge and staff in Kona. Technology requests included cybersecurity tools and a cybersecurity unit, enhanced email protection, and replacement of aging network switches. Other operating requests included continued funding for the Criminal Justice Research Institute, restoration of 12 positions cut during the pandemic, and added support for the Office of the Public Guardian. For capital improvement projects, the Judiciary’s top priorities were $4 million to design a new South Kohala District Court, $900,000 to replace an aging AC chiller on Kauai, and $5 million for lump-sum facility preservation work. Members asked questions about purchase-of-service contract rates, implementation of court-appointed fee increases, federal grant dependence, specialty court effectiveness, truancy court outcomes, and the condition of the Ewa District Court site. Judiciary witnesses said they were working to raise provider rates through contracts and a separate bill, cited low recidivism and reduced petitions as evidence that specialty courts and truancy efforts are working, and said the Ewa site has significant foundation issues that may require further assessment or a different location.

Transcript Highlights:

• You can see where they fall in terms of their actuarial funding ratio compared to their peers around
• They have been contributing significantly more than is actuarial.
• I should say, 'actuarially determined.'
• That's the actual term, the actuarially determined contribution.
• One is a study on contribution rates and a study.

Transcript Highlights:

• One of them was that it needed to be actuarially sound and reimbursement-based.
• Now, with the actuaries, there is a threshold. The term is credibility.
• It does not mean that the data was not credible; that's just an actuary term that they use.
• We discussed it with the actuaries.
• We've talked about a lot of very actuarially sound data that you're collecting...

Summary: The committee heard a presentation from Dr. Kelly O’Dare on first responder behavioral health access, peer support, and suicide prevention. She described UCF Restores, the Second Alarm Project, and related partnerships that provide culturally competent treatment, peer training, clinician education, disaster response support, and behavioral health navigation. She cited survey and state data showing significant rates of sleep problems, anxiety, depression, substance use, and suicide among Florida first responders, and said evidence-based treatment has helped many patients recover, including a reported 76% who no longer met PTSD diagnostic criteria after treatment. Senators asked about measuring outcomes, peer support standards, and whether the state should create more consistent statewide requirements; O’Dare said peer support training must be specialized, linked to higher levels of care, and supported by sustainable funding and statewide coordination. The committee also heard from a public commenter who supported the work and emphasized the need for adequate resources and peer support infrastructure. The committee then received a Department of Children and Families presentation from Casey Penn on the proposed funding methodology for community-based care lead agencies under HB 7089. Penn explained that the new model is intended to be actuarially based, reimbursement-oriented, and more transparent than prior funding approaches, using historical expenditures, standardized reporting, and two main tiers: Tier 1 for largely fixed administrative and operational costs, and Tier 2 for direct child-serving costs based on per-child-per-month blended rates. He said the model includes a 2% risk corridor for Tier 2, hold-harmless funding in the first year, and optional Tier 3 performance incentives, with an estimated additional state appropriation need after offsets. Senators raised concerns about prevention, historical inequities, reasonableness of costs, administrative overhead, blended state and federal funds, adoption subsidies, high-acuity placements, and disaster-related disruptions. Penn said some of those issues could be addressed in future iterations as the child welfare information system is modernized, and he agreed to provide written responses to committee questions. Representatives of the Florida Coalition for Children and CBCs responded that the model is a major improvement but urged additional safeguards, including an administrative cap, clearer separation of direct and indirect costs, and better treatment of federal and pass-through funds. They argued that the system already has oversight and that deficits reflect insufficient appropriations rather than excess spending, while also noting that higher-acuity children and regional differences can drive costs. No votes were taken on either topic, and the meeting ended with committee staff introductions and adjournment.

Transcript Highlights:

• It's an actuarial study. There's a different methodology.
• It's an actuarial study. There's a different methodology.
• actuaries can use the uh RBC system. actuaries can use the uh RBC system.
• Yeah, I thought that's what they're doing the cost study. Oh, this is the cost study.
• done, because it's a second cost study, essentially be building off of that original cost study.

Keywords: 928, house, all

Summary: The subcommittee continued work on Senate Bill 297 and a new amendment dealing with pooled risk management programs and whether they should be regulated under the insurance department. Lisa Duket, executive director of SchoolCare, testified at length that the draft language could allow co-mingling of public entity risk funds, could trigger producer-licensing requirements for staff who are not actually brokers, and may not fit public entity risk pools because they are not insurance companies. She also raised concerns about the March 1 reporting deadline, the proposed uniform accounting language, aggregate excess insurance, examination costs being charged to the program, and confidentiality provisions that she argued may conflict with right-to-know principles for public entities. She urged the committee to slow down and consider a study committee or more time for review, saying the regulated entities were not adequately involved in drafting the proposal. Chairman Hunt and the department responded that the bill is intended to create a licensure-based regulatory model, similar to other licensed industries, and that the pooled risk management program would be exempt from producer licensing while anyone else selling or negotiating such coverage would need a producer license. The department said failure to comply would be handled through an administrative licensing process, with denial or nonrenewal of a license and appeal through the department process. On the reporting deadline, the department said March 1 is a standard filing date used for financial analysis and that the filing can be the most recent annual report, regardless of fiscal year end. They also explained that the confidentiality language was taken from existing RSA 5B, that aggregate excess insurance was included as a solvency measure, and that the draft was intended to preserve familiar language while adapting it for pooled risk programs. The discussion did not include a final vote or formal action on the bill in the portion provided. The committee appeared to be compiling follow-up questions for the insurance department and considering whether additional revisions or a slower process would be needed before moving the bill forward.

Transcript Highlights:

• For example, it would be better to have people who know something about actuarial studies and risk assessment
• I will say one thing about actuaries.
• So would you agree that preceding your time, even though we had actuarial studies and reports, they were
• So again, back to the actuaries.
• study to fund.

Keywords: 996, all

Transcript Highlights:

• Do you want to explain it in more actuarial terms than I can? Yes, Mr.
• Can I refer to my actuary to talk about that?
• I understand actuaries well, as I was on the board for eight years.
• And I'm seeing nodding from our actuary who's here.
• to be an actuary.

Transcript Highlights:

• I'm a principal and consulting actuary with Milliman in San Francisco.
• It might be helpful, but there's no actuarial or scientific studies that we can point to.
• The study reinforces these principles and provides additional pathways The study reinforces these principles
• We have study after study that says people need the help.
• We're carefully studying the recommendations.

Keywords: 987, senate, all

Summary: The Senate Committee on Insurance held an informational hearing on how climate change, wildfire risk, and related catastrophes are affecting California’s insurance market, affordability, and availability. Chair and members framed the issue as a statewide challenge tied to resiliency, land use, utilities, legal liability, and the FAIR Plan. Senator Becker noted the hearing was connected to SB 254 and its recent report, while the Vice Chair emphasized that the state’s current regulatory framework limits flexibility and that industry testimony would also have been useful. Amy Bach of United Policyholders described worsening availability and affordability, driven by climate impacts, insurtech/risk scoring, inflation, and the growth of surplus lines coverage. She said the Sustainable Insurance Strategy is beginning to show progress, but the FAIR Plan remains too large and non-admitted carriers create concerns because they are less regulated and do not share FAIR Plan or guaranty fund obligations. She stressed that mitigation incentives, grants, and voluntary insurer rewards for wildfire-hardening are important, but that many households cannot afford the needed improvements. In response to questions, she said underinsurance remains a major problem, especially after recent fires, and suggested stronger insurer responsibility for replacement-cost estimates or broader replacement-cost endorsements. Actuary Nancy Watkins and Stanford’s Michael Wara argued that California must both reduce wildfire risk and allow actuarially sound pricing if it wants a healthier market. Watkins compared the market to a household with rising expenses and said the state needs a mitigation framework focused on the highest-risk communities, especially older neighborhoods and homes near the wildland-urban interface. Wara said premiums must roughly equal expected claims plus expenses, and that California is “burning down too many houses,” which drives both availability problems and higher rates. He highlighted the role of structure-to-structure spread, older housing stock, utility ignitions, and the need to focus on community hardening, not just vegetation management. Both speakers said mitigation should be targeted, science-based, and sustained rather than one-time or scattered. Frank Freebalt of Cal Poly and Michael Gullner of UC Berkeley continued the discussion on fire modeling and risk reduction. Freebalt said the problem is best understood as a structure ignition and urban conflagration problem, requiring integrated land-use, utility, and community mitigation, with evidence-based priorities and better analytics. He emphasized that the state should focus on the highest-risk intersections first and that targeted mitigation can multiply the effectiveness of suppression and evacuation resources. No votes or formal actions were taken; the hearing was informational and focused on testimony, questions, and policy discussion.

Transcript Highlights:

• They have a lot of experience in regards to doing actuary models across the country.
• So historical data from that CDC now there is with the actuaries a threshold.
• That's just an actuary term that they use.
• We discussed it with the actuaries removing those costs from the PC pm.
• All right. >> We've talked about a lot of very actuarially sound data that you're collecting.

Keywords: 999, senate, all

Transcript Highlights:

• actuaries does not relate to budget.
• So the actuaries are built to the actuarial practice, and work is to look at what the cost of the program
• Actuaries work very hard to not be budget-driven.
• So there's a Budget in actuarial science.
• But I do hope that you all, in the agency, your actuaries and the agency's actuaries, are trying to figure

Keywords: 907, all

Summary: The committee held an informational hearing focused first on Oregon Medicaid coordinated care organization (CCO) finances and rate setting. Oregon Health Authority staff explained how 2025 CCO financial results will inform 2027 capitation rates, including reserve requirements, subcapitation arrangements, and major cost drivers such as behavioral health, pharmacy, rural hospital costs, and dental directed payments. They said the Legislature’s added 2025 funding materially improved CCO margins and that, without it, the program would have been negative overall. Members asked about retained earnings, subcapitation, behavioral health utilization, ABA therapy, and whether outcomes are being evaluated; OHA said rate setting is actuarial and that CCOs, OHA, and other partners all play roles in monitoring efficacy and access. OHA also reviewed House Bill 4039 changes intended to increase transparency and give CCOs earlier access to rate information and reconciliation exhibits. CCO representatives then testified that the system is under significant financial pressure and that behavioral health state-directed payments, benefit changes, and federal uncertainty from H.R. 1 are reducing flexibility. CareOregon said it has lost more than $500 million over the last couple of years and is now making provider terminations and other network changes to align spending with available funding, while emphasizing that CCOs must make hard decisions about which services and providers can be sustained. Eastern Oregon CCO said rural and frontier factors, cost-based hospitals, air ambulance needs, and statewide efficiency adjustments are not fully reflected in rates, and that dental funding is especially strained. Trillium similarly warned that state-directed payments and benefit expansion pressures are constraining the global budget model and that H.R. 1 could worsen acuity and volatility. Members pressed the witnesses on who is responsible for evaluating treatment effectiveness, especially for ABA and psychotherapy, and on how utilization limits and reimbursement changes are being used to control costs. The committee then shifted to an overview of the Affordable Care Act and Oregon’s commercial insurance market. Department of Consumer and Business Services staff explained actuarial value, metal tiers, premium tax credits, medical loss ratio rules, and the main drivers of premium rates: cost trend, utilization trend, and administrative costs. They said mandates have likely added only a limited amount to premiums over the past decade, though the exact effect is difficult to isolate, and they gave examples of how high-cost, low-volume services versus broad, high-utilization services can affect rates differently. Staff also noted that Providence Health Plan and PacificSource Health Plans are withdrawing from the individual market, though consumers should still have at least three insurer options in every county and may have four in many counties. The division said it is in the middle of reviewing proposed 2027 rates and will continue its public rate review process, including hearings and written comment.

Transcript Highlights:

• So the future service benefit cost is 1.41% for the PAR members according to the actuarial study performed
• c> this the actuarial study performed by this the actuarial study performed by this group.<00:55:
• That um study is currently with our actuaries that we're looking at.
• That um study is currently with our actuaries that we're looking at.
• That um study is currently with<01:25:22.000> our<01:25:22.159> actuaries<01:25:22.719>

Keywords: 1187, senate, all