SUMMARY

The Group Insurance Board (GIB) oversees group insurance programs that are administered by the Department of Employee Trust Funds (ETF). The programs are funded primarily by premiums paid by employers and participants and by investment income earned on program reserves. Expenditures for these programs totaled $1.7 billion in 2017. Most state agencies and local governments responding to our survey indicated satisfaction with the Group Health Insurance program and the assistance provided by ETF. We found that ETF did not consistently provide adequate administration of contracts with program administrators, program actuaries, and auditors and did not consistently prepare and provide GIB with its written analyses of key programmatic information. ETF has taken steps to improve its administration of the programs, and we make recommendations for further improvements.