Rand says the state doesn't have an extra $800 million.
The State Health Plan covers about 667,000 public employees and school teachers, retirees and their dependents.
Employees pay no monthly premium for their own coverage.
The problems with the plan surfaced last summer as legislators adjourned for the year after plan chief executive George Stokes was fired after legislative leaders said the program fell far short of fiscal goals. But lawmakers said fixing the problems could wait until they reconvened last week.