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Governor Bullock Announces Millions of Taxpayer Dollars Saved Through Changes to Montana State Employee Health Plan

Tuesday, January 26, 2016/Categories: Governor's Office/Tags: Governor Bullock , Department of Administration , Sheila Hogan , State Employee Health Plan

HELENA, MT – Today Governor Steve Bullock was joined by Sheila Hogan, Director of the Department of Administration and Dan Villa, Budget Director to highlight millions of taxpayer dollars saved and advancements in health outcomes resulting from innovative changes to the Montana State Employee Health Plan.

“Saving Montana’s taxpayers millions of dollars while improving the healthcare of our state employees is a win-win,” said Governor Bullock. “I applaud the progress made this past year improving the ways we approach the State Employee Health Plan and focusing on long-term, balanced solutions that will pave the way to even more cost savings in the future.”

The Governor highlighted steps taken by the Department of Administration to turn a $12 million projected shortfall in 2015 into $2 million cost savings, a $14 million turnaround. These steps include:

  • Increasing contract efficiencies and reducing overlap of services;
  • Moving the state’s data services to its internal IT team, savings the costs associated with an external data warehouse;
  • Working with the State Health Centers to increase member use for primary care services; including an educational campaign to encourage and inform members about the services and access provided by the health centers; and
  • Contracting with Allegiance, a Montana-based company, to serve as the state’s new health care partner, which resulted in a 24% reduction in administrative fees.

“We will continue to strive to find ways of preserving the plan’s financial wellness while securing quality and affordable care,” said Director Hogan. “I’m proud of the work the State of Montana has done to work together with its plan members, providers, vendors, and the State Employee Group Benefits Advisory Council to implement meaningful healthcare solutions.”

For more information about Montana’s State Employee Health Plan, visit www.benefits.mt.gov.

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