SATURDAY, DECEMBER 18, 2021 Health plans’ adviser gets extension of pact
The Legislative Council voted Friday to extend by one month the contract of a consultant that it hired in May to recommend changes to the state’s health insurance plans for public school and state employees and retirees.
On Thursday, the council’s executive committee had recommended approval of an amendment to the Bureau of Legislative Research’s contract with The Segal Group to extend the contract until Jan. 31 for up to $57,500 more.
The bureau’s original consulting contract with The Segal Group was for up to $575,000 through Dec. 31, so the amended contract is for up to $632,500. That contract includes an option to renew for six months.
Bureau Director Marty Garrity told the subcommittee Thursday that the contract needs to be extended for continued work on proposed legislation and different parts of the consultant’s report.
Rep. Jeff Wardlaw, R-Hermitage, said he has been meeting with officials at the state’s Employee Benefits Division and he doesn’t want the division to pursue contracts and issue requests for proposals that conflict with the consultant’s recommendations and proposed legislation for the health insurance plans that could be considered in the upcoming fiscal session.
The Segal Group will work with the Employee Benefits Division to make sure the the division’s requests for proposals are in line with the consultant’s recommendations and proposed legislation, he said.
Asked whether he plans to call a special legislative session to consider bills regarding the insurance plans or have the measures considered in the fiscal session
that starts Feb. 14, Gov. Asa Hutchinson said Thursday, “We’ll look at whether there’s a need for a special session around that time and so we’ll just have to wait and see, so it’s a possibility but nothing firm yet.”
It takes a two-thirds vote of the House and Senate to consider non-appropriation bills during a fiscal session. In calling a special session, the governor sets the agenda.
In November, the Legislative Council approved The Segal Group’s recommendations aimed at stabilizing funding and cutting costs for the insurance plans.
Among other things, The Segal Group recommended the Employee Benefits Division prepare a request for proposals for a group Medicare Advantage prescription drug vendor and introduce Medicare Advantage prescription drug coverage in 2023; prepare a request for proposals for a pharmacy vendor that describes the flexibility desired in the program; and issue a request for proposal on a normal contract cycle for the division’s medical contract with Blue Cross Blue Shield.
NO REVENUE CONSULTANT
In another matter related to consultants Thursday, the executive subcommittee decided not to hire a consultant that would advise lawmakers on revenue matters such as estimating the fiscal impact of proposed legislation and forecasting how much money the state will collect.
In June, the bureau issued a request for proposals for state budgeting and revenue forecasting consultant services. The bureau received four proposals. The work would be similar to that done by the state Department of Finance and Administration. The department, however, reports to the governor.
Econometric Studios LLC submitted a maximum bid of $29,500, while REMI Inc. submitted a maximum bid of $170,000, BKD LLP submitted a maximum bid of $590,000 and IHS Markit, doing business as IHS Global Inc., submitted a maximum bid of $1 million, according to bureau records.
Wardlaw said Friday the executive subcommittee decided to pull down the request for proposals to re-evaluate the needs of the General Assembly.
Senate President Pro Tempore Jimmy Hickey, R-Texarkana, told the executive subcommittee Thursday, “We have decided that this may not the best way for the state to go.”
Legislative leaders had intended to hire a consultant to get “dynamic scoring” about certain proposed economic development superprojects and tax cuts, he said.
But the consultants may cost more than what legislative leaders want to spend and be broader than what’s needed, Hickey said.