ORIGINAL SENATE
FILE NO. 0112
ENROLLED ACT NO.
23, SENATE
FIFTY-SIXTH
LEGISLATURE OF THE STATE OF WYOMING
2001
GENERAL SESSION
AN ACT relating to state
employees and officials;
transferring the
state employees' and officials' group
insurance program
to the department of administration and
information;
assigning all duties and functions of the
state employees'
and officials' group insurance board of
administration to
the department; specifying additional
related duties of
the department; transferring personnel,
appropriations
and property to the department as specified;
terminating the
state employees' and officials' group
insurance board
of administration; extending terms of
current board
members until transfer is effective;
providing for an
advisory panel; and providing for
effective dates.
Be It Enacted
by the Legislature of the State of Wyoming:
Section 1. W.S. 9-3-217 is created to read:
9-3-217. Advisory
panel; composition; compensation.
(a) The
director of the department shall establish an
advisory panel
consisting of active plan participants
employed by the state,
the University of Wyoming and
Wyoming community
colleges and of retired employees who are
plan participants. The
panel shall consist of no more than
ten (10) members and,
insofar as possible, shall
proportionally
represent the specified employee groups
participating in the
group health insurance plan. The
advisory panel shall
be consulted regarding plan benefits
and costs.
(b) State,
university and community college employee
members of the panel
shall suffer no loss of wages for the
time devoted to attending
meetings of the panel called by
the department. All members shall be provided per diem and
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travel
expenses incurred for attending such meetings at the
rates provided under
W.S. 9-3-102 and 9-3-103.
Section 2. W.S. 9-2-1003 by creating a new subsection
(e), 9-3-203(a)(v), (vii), (x), by creating a new paragraph
(xi), (xii) and by amending and renumbering (xi) as (xiii)
and (xii), 9-3-205(a)(intro), (i), (vi), (viii), (xii),
(xiii), (b) and by creating a new subsection (d),
9-3-206(a), (b)(intro), (c) and (d), 9-3-207(a) and (c),
9-3-208(a) and (c), 9-3-209, 9-3-210(b), 9-3-211 and
9-3-213(a), (b)(intro), (ii) and (c) are amended to read:
9-2-1003. Director and
division administrators;
appointment;
removal; powers of director.
(e) The director shall
administer through his office
or through a division
of the department, the duties of the
department under the
State Employees' and Officials' Group
Insurance Act.
9-3-203. Definitions.
(a) As used in this act:
(v) "Group insurance plan"
means the health and
life insurance plans
defined in this section, the flexible
benefits plan or any
other group insurance coverages
contracted for by the board department,
including
disability insurance,
as defined in W.S. 26-5-103(a);
(vii) "Hospital and medical
benefits" means
hospital room and
board, other hospital services, certain
outpatient benefits,
maternity benefits, surgical benefits,
including obstetrical
care, in-hospital medical care,
diagnostic X-ray and
laboratory benefits, physician's
services provided by
house and office calls, prescription
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drugs,
outpatient psychiatric services and other benefits
determined by the board department.
Benefits may be
provided on a
coinsurance basis, the insured to pay a
proportion of the cost
of benefits;
(x) "Supplemental health
insurance plan" or
"supplemental
plan" means a group insurance contract or a
medical or hospital
service agreement provided by a carrier
for the purpose of
paying for or reimbursing the cost of
hospital and medical
care in excess of or supplemental to
medicare or medicaid,
or both, which employees or officials
and their dependents
may be eligible to receive.
Supplemental coverage
may consist of one (1), a combination
of, or alternative
plans in the discretion of the board
(xi) "Department"
means the department of
administration and information;
(xii) "Flexible benefits
plan" means a plan of
benefits established
by board department
rules and
regulations and
adopted pursuant to the Internal Revenue
Code of 1986, Title 26
of the United States code and
qualified under § 125 of the Internal Revenue
Code of 1986.
The plan may include
benefits authorized by the Internal
Revenue Code of 1986
and related federal regulations which
are consistent with
Wyoming law;.
(xi)(xiii) "This
act" means W.S. 9-3-202 through
9-3-213; 9-3-217.
9-3-205. Administration
and management of group
insurance
program; powers and duties; adoption of rules and
regulations.
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(a) The board department
shall administer and manage
the state employees'
and officials' group insurance program
and, subject to the
provisions of this act:
(i) Shall prepare specifications for
the health
insurance plan and a
supplemental plan, the life insurance
plan and any other
group insurance plan contracted for by
the board department;
(vi) Shall establish a procedure by
which the
board department
shall hear complaints by insured employees
concerning the
allowance and payment of claims, eligibility
for coverage and other
matters. Unless otherwise provided
in the group insurance
or supplemental plan or plans, any
decision of the board department
upon complaints is not
binding upon either
the employee or carrier and the
provisions of the
Wyoming Administrative Procedure Act
shall not apply to the
proceedings. The group insurance or
supplemental plan or
plans may provide that the decision of
the board department
shall be binding upon both the
employee and the
carrier as to certain disputes and in such
event the procedure
adopted by the board department shall
conform to the
provisions of the Wyoming Administrative
Procedure Act;
(viii) Shall continuously study the
operation of
the group insurance
plan including such matters as gross
and net costs,
administrative costs, benefits, utilization
of benefits and claims
administration;
(A) Gross and net
costs, including
administrative costs;
(B) Claims administration;
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(C) Comprehensive
health claims utilization
information to
determine the causes of plan health care
cost increases and
strategies to control those costs;
(D) Factors in the
plan's design that may
adversely affect
participation;
(E) The effect of
benefit changes;
(F) Contribution
levels and recommendations
to attract a broad mix
of participants to the plan;
(G) Demographic
information about existing
and eligible
participants;
(H) Trends in costs
and benefits of the
plan relative to other
plans.
(xii) May contract with carriers to
underwrite
optional group
insurance plans which may be additions to or
supplemental to those
plans contracted under this act and
which are paid for
entirely by state employees and
officials, entirely by
the state, or by both. The
contracts shall be
designed to provide the fullest benefits
at the lowest cost,
and the board department
may contract
with the same carriers
for the optional group insurance
plans as for the other
plans contracted for under this act;
(xiii) May contract with any person for
the
furnishing of
actuarial services, the preparation of
specifications for
group insurance plans and other
specialized services
which cannot be performed by the board
services shall be
awarded through responsible competitive
bidding at intervals
as the board department
determines,
and shall be reviewed
annually by the board department;
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(b) The board department
shall adopt rules and
regulations consistent
with the provisions of this act as
necessary to carry out
its statutory duties and
responsibilities under this act.
(d) The department
shall report the results of the
analysis conducted
pursuant to paragraph (a)(viii) of this
section and suggested
activities to manage the plan by
December 1 of each
year to a committee of the legislature
designated by the
management council.
9-3-206. Specifications
for insurance plan;
submission of
bids; change of carriers; notice of rate
changes or
intent of carrier not to renew; premium tax
exemption.
(a) The specifications drawn by the board department
for the health
insurance plan shall include hospital and
medical benefits, and
comparable benefits for employees who
rely solely on
spiritual means for healing. The
specification drawn by
the board department
for the life
insurance plan and any
other group insurance plan shall
include benefits as
determined by the board department.
Bids shall be
submitted to the board department within time
limits established by
the board department
and, in addition
to the carrier's cost
proposal, shall include an
explanation of the
method of claims administration proposed
by the carrier and the
cost thereof, the amount of total
premiums to be
retained by the carrier, the purpose for
which these retained
funds would be allocated, and other
information requested
by the board department.
(b) The board department
may:
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(c) Any carrier under contract with
the board
board department
sixty (60) days
notice of any proposed
rate change in the contract
specifications or
intent not to renew the contract. If the
board department
and the carrier agree during the sixty
(60) day period to any
rate change in the specifications,
the board department
may renew the contract, as changed,
without reopening to
bids.
(d) If the board department
decides to change
carriers or to reopen
bids on the underwriting of any
aspect of the group
insurance plan, it shall follow the
same procedures in the
selection of a subsequent carrier as
it did in awarding the
initial contract.
9-3-207. Eligibility for
membership in plan; state
employees; 31
day period to elect enrollment; new
employees;
later enrollment.
(a) Any state employee eligible for
membership in the
group insurance plan
at the time the plan becomes effective
shall have thirty-one
(31) days to either elect to be
enrolled or not be
enrolled in the plan. The board
employees shall notify
the board department
of their
decision within the
prescribed thirty-one (31) day period.
(c) Employees who elect not to be
enrolled within the
time prescribed in
subsections (a) and (b) of this section
may be enrolled at a
later date upon conditions the board
the exclusion of
preexisting conditions from coverage.
9-3-208. State officials;
31 day period to elect
enrollment;
newly appointed or elected officials; later
enrollment.
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(a) State officials eligible for
membership in the
group insurance plan
at the time the plan becomes effective
shall have thirty-one
(31) days to either elect to become
enrolled or not become
enrolled in the plan. The election
shall be made
according to procedures established by the
board
(c) Eligible state officials who
elect not to become
enrolled within the
time prescribed in subsections (a) and
(b) of this section
may be enrolled at a later date upon
conditions the board department
may impose, such as a
physical examination
or the exclusion of preexisting
conditions from
coverage.
9-3-209. Dependents;
election of coverage; later
election;
change in number of dependents.
(a) Any eligible employee or official
may elect to
have his dependents
covered by the group insurance plan.
The election shall be
made at the time the employee or
official becomes
enrolled in the plan, under procedures the
board department
may establish. If dependent coverage is
not elected at the
time that an employee or official
becomes enrolled in
the plan, dependent coverage may be
elected at a later
date under conditions the board
exclusion of
preexisting conditions from coverage.
(b) Any employee or official who has
elected to have
his dependents covered
as provided in subsection (a) of
this section, and who
subsequently has a change in the
number of his
dependents, may at the time of the change
increase or decrease
the number of his dependents covered
by the group insurance
plan under procedures established by
the board department.
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(c) Any employee or official who has
no eligible
dependents at the time
he becomes enrolled in the group
insurance plan, and
who later has an eligible dependent
may, at the time his
dependency status changes, elect
coverage for the
dependent under procedures established by
the board department.
9-3-210. Amount of
state's contribution; estimates
submitted to
state budget officer; specified employees
participation
in federal program.
(b) Any state agency, department or
institution,
including the
University of Wyoming and the community
colleges in the state,
shall pay monthly to the board
legislature for each
eligible employee or official electing
to become covered by
any portion of the group insurance
plan as the
contribution of the state to that plan during
the period the
employee or official is enrolled in the
plan. If the monthly
premium for coverage of the employee
or official is less
than the amount established and
appropriated by the
legislature, the balance may be applied
to the premium for
coverage of dependents, or to the
premium for any
optional group insurance coverage made
available by the board department, if so elected.
9-3-211. Deductions from
salaries of monthly
contributions
by employees and officials; establishment of
procedure.
The
amount of monthly contribution to be made by eligible
employees and
officials enrolled in the group insurance
plan for themselves
and their dependents shall be deducted
from the monthly
salaries of the employees and officials by
the various agencies
and remitted to the board
department.
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The
procedure for deductions and remittances shall be
established by the board department. If a flexible benefits
plan is chosen, the
employees' and officials' contribution
shall be applied to
the chosen benefits in an amount
determined by the
employee or official.
9-3-213. Treasurer of
monies; bond; deposit in trust
and agency
fund of premium cost payments, dividend payments
and return of
premiums; expenditures; investment of excess
portions.
(a) The state treasurer shall be the
treasurer of
monies under this act,
and his general bond to the state of
Wyoming shall cover
all liabilities for his acts as
treasurer. The board department
shall remit to the
treasurer for deposit
in the trust and agency fund all
payments received by
the board department
for the group
insurance premium
costs from employees and officials, and
the state agencies,
departments and institutions. The board
the trust and agency
fund any dividend payments and return
of premium received by
the board department
from any
carrier underwriting
the group insurance plan. All
remittances shall be
made as soon as possible after they
are received.
(b) Expenditures shall be made from
the trust and
agency fund, upon
certification of the board department to
the office of the
state auditor, only for the following
purposes:
(ii) The state's cost of administering
group
insurance and
supplemental plans, subject to annual
appropriation by the
legislature based on the submission by
the board department
of a budget request containing
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detailed
information on current and projected
administrative costs.
(c) The board department
shall certify in writing to
the state treasurer
for investment portions of the monies
which in its judgment
will not be needed for the payment of
premiums to the
carriers underwriting the group insurance
or supplemental plans.
Section 3. W.S. 9-2-1022(a)(xiv),
9-2-2008(d),
9-3-203(a)(i), 9-3-204
and 9-3-205(a)(xv) are repealed.
(a) All
positions, personnel, appropriations,
property, equipment
and authority in the state employees'
and officials' group
insurance board of administration are
transferred to the
department of administration and
information by this
act. All payments for group insurance
premium costs, all
dividend payments or return of premium
previously received by
the board and all such payments
received by the
department in carrying out its duties under
the State Employees'
and Officials' Group Insurance Act
shall be remitted to
the state treasurer and accounted for
in accordance with the
provisions of W.S. 9-3-213. The
state's cost of
administering the State Employees' and
Officials' Group
Insurance Act shall be paid in accordance
with the provisions of
W.S. 9-3-213. The validity of rules,
regulations,
contracts, agreements or other obligations of
the board are not
affected by this act.
(b) Expenditures
may be made from the trust and
agency fund pursuant
to W.S. 9-3-213(b), as required by the
director of the
department of administration and
information in taking
necessary transitional actions to
implement the
provisions of this act. Until July 1,2001,
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the
expenditures shall be made upon request of the director
and certification of
the board to the office of the state
auditor. The
department shall promulgate all necessary
rules and regulations
to carry out the provisions of this
act as soon as
feasible after the effective date of this
subsection.
Section 5. Notwithstanding
the provisions of W.S.
9-3-204, no further
elections shall be held for the state
employees' and officials'
group insurance board of
administration and the
terms of all members serving on the
board on the effective
date of this section shall terminate
July 1, 2001.
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(a) Sections
4(b) and 5 of this act are effective
immediately upon
completion of all acts necessary for a
bill to become law as
provided by Article 4, Section 8 of
the Wyoming
Constitution.
(b) The balance of this act is effective
July 1,
2001.
(END)
Speaker of
the House President of
the Senate
Governor
TIME APPROVED: _________
DATE APPROVED: _________
I hereby certify that this act originated in the
Senate.
Chief Clerk
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