North Dakota governor vetoes bill to change state employee health insurance

North Dakota Gov. Kelly Armstrong vetoed a bill Monday that opponents worried would lead to state employees paying health insurance premiums.

Senate Bill 2160 would have moved the state’s insurance to a plan that offers benefits compliant with the federal Affordable Care Act.

Supporters of the bill said it would have given more flexibility to the state over health insurance plan options and would have provided better coverage of preventative care. Opponents said it could lead to employees paying health insurance premiums, which they don’t currently.

North Dakota House approves change to state health insurance plan

In Armstrong’s veto message to the Senate, he said the state’s health plans are one of the most valued benefits for state employees. He added it was one of the state’s “strongest and most useful recruitment and retention tools.”

“Senate Bill 2160 disposes of that tool and replaces it with a more expensive alternative,” Armstrong wrote.

The health plan switch was estimated to cost at least $25.8 million every two years, according to the governor’s office.

“The current health plan is better for state employees and employees of political subdivisions,” Armstrong wrote. He added, if the bill were to become law, state employees and employees of political subdivisions would have been put in separate health insurance pools, which would have raised the cost on both groups.

The vetoed bill will now go back to the Senate. It would take a two-thirds majority vote to override the governor’s veto.

The Senate passed the bill 44-2.