Bill No.:         HB0040                                             Drafter: DKG

LSO No.:       14LSO-0087                                     Effective Date: 7/1/2014

Enrolled Act No.:    HEA0003

Chapter No.:                        CH0017

Prime Sponsor:       Joint Appropriations Interim Committee

Catch Title:              State employees’ and officials’ group insurance-membership.

Subject:                     Eligibility for Benefits under the State Group Insurance Plan.

Summary/Major Elements:

· In current law, community college districts participate in the “State Employees’ and Officials’ Group Insurance Plan” (State Insurance Plan).  Recently, the plan provisions were amended to allow school districts the option of participating in the plan.  However, employees of a Board of Cooperative Education Services (BOCES), which is established by agreement between school districts and community colleges districts, could not join the State Insurance Plan.

· This act authorizes employees of a BOCES to be members of the State Insurance Plan, upon the election of the board of the education cooperative and generally under the same conditions imposed for school district participation.

· The BOCES will pay a monthly premium for employees as established by the department of administration and information for other employee participants.

· The act also requires that the BOCES pay a monthly amount equal to the lowest premium for non-supplemental coverage for each eligible employee not electing to become covered under the State Insurance Plan.  (Exceptions are made for employees who have alternative coverage.)

· The employer’s election to participate in the plan is irrevocable for five years.

· The act makes a number of additional amendments regarding any voluntary participating employer (school districts or BOCES).  Including:

o Providing the department the right to audit the payroll records to ensure compliance with the requirements of the act governing the plan.

o Allowing the department the right to assess a voluntary participating employer amounts by which claims paid exceed premiums if the employer withdraws before the five year irrevocable period.

· This act allows the BOCES to provide other insurance plans for its employees as provided by law.