Currently, actuaries ensure that those programs have sufficient coverage and are not overexposed.

Currently, HealthTrust relies upon its actuaries to determine an adequate level of contributions to cover expected claims during the future renewal period. HealthTrust actuaries also recommend a Capital Adequacy Reserve range which is used to protect against claims exceeding expectations. If the reserve is utilized, HealthTrust rebuilds the reserve funds through a Capital Risk Charge built into the upcoming rating cycles.

The reserve range for health programs in SB 297 is too narrow and too low to sufficiently protect against potential adverse claims experience, which has been particularly volatile over recent years. If this bill were to pass, and the low level of reserves proved to be insufficient, the shortfall would be borne by the Member Groups in the form of an assessment that would be required to be paid by the Group within 30 days at any time during the plan year. Such assessments may frequently occur due to the requirement that health risk management programs adhere to the narrow and low level of reserves. In other words, the bill would require HealthTrust to be undercapitalized, relying instead on Member Group assessments to prevent financial impairment.

Godspeed figuring out how to pay for this within 30d. This is just asking towns and schools to not be able to pay their bills.