At the latest PEBP Board meeting on Feb. 24th, the worst‑case scenarios from the actuary’s presentation didn’t materialize, but serious questions remain about the program’s financial status. It was clear, however, that the hundreds of public comments from state workers made a real impact. Thank you to everyone who showed up and spoke out!
Major Decisions Delayed Until March 19
No final decisions were made at this meeting. The March 19 rate-setting meeting will be crucial. With PEBP’s financials under review and major premium adjustments ahead, state workers should stay engaged and prepared to weigh in. The Board’s decisions next month will determine employee premiums and potential relief on out‑of‑pocket limits for the coming year. NFA will continue to keep members informed.
Plan Design and Rate Decisions in March
Because the underlying financial data is still in question (details below), the Board directed PEBP’s actuary to bring back options in March, including:
- No additional plan design changes beyond those already approved in December—meaning the increased deductibles and out‑of‑pocket maximums remain, but no further benefits cuts will be added.
- Project rates using current plan experience and inflation. This suggests that no new charges will be added specifically to rebuild reserves next year.
- Re‑price the three plan options to match experience and eliminate cross-subsidization. Because of claims experience, the low‑deductible plan and the EPO/HMO plan are likely to see substantial premium increases for employees.
- A three‑year phase‑in of premium increases. This is intended to soften the impact—but increases are still coming.
- Options to rescind December’s out‑of‑pocket maximum (OOPmax) increases. Thanks to a motion by Board members Blaine Harper (AFSCME) and Jennifer McClendon (NSHE North), the actuary will also present options for (a) rolling back the $1,000 / $2,000 OOPmax increase just for the high‑deductible plan; or (b) restoring the FY2026 OOPmax for all three plan options. Although their motion failed due to lack of cost data, both rollback options remain on the table for the March meeting.
High Uncertainty Over PEBP’s Financials
In written public comment for NFA (p. 921 of 1021), Kent Ervin pointed out errors and discrepancies in numbers provided by PEBP and its actuary. He asked, “How can any of the information and recommendations be trusted?” The day before the meeting PEBP removed slides from the presentation regarding revenues and reserves. At the beginning of the meeting, Chair Jim Wells indicated (time 3:28) that collections into the PEBP operating account may have been incorrect for the past 18 months. They "are hoping" to have a reconciliation in the next month. Segal, PEBP’s actuary, stated that monthly revenue is matching expenses for the first half of FY2026, which implies that previous statements about cash flow shortfalls were wrong. In an exchange during closing public comment (2:25:25), Wells indicated that they are investigating the source of incorrect state contribution amounts used by the actuary until now.
NFA and other public employee advocates are calling for an independent audit and review of PEBP’s accounting, budgeting, and rate-setting.
Chair Wells also criticized (2:35) public comments from union members. That was effectively rebutted by UNLV Professor Jorge Fonseca, who defended workers providing input in his public comment (19:24).
Media Coverage
The Nevada Independent: “Confusion over Nevada health insurance program’s finances clouds future for state workers. Officials admitted they are operating with incomplete financial information and cannot make insurance plan changes until the situation becomes clearer.”
KLAS 8 News:Looming insurance rate hikes cloud Nevada employees’ morale; ‘mass exodus’ coming? Ominously: “The Director of the Nevada Health Authority is exploring some new ways to purchase and provide coverage at the state level.”
KTNV 13 Las Vegas: State employees asking for clarity after confusion regarding health insurance plans
The Nevada Globe: Insurance Ultimatum: State Workers Warn of Resignations Over Looming Rate Hikes
beinsure.com: Nevada state workers push back on projected PEBP insurance increases
