Will Adams

This administrative regulation incorporates by reference the 2025 plan year handbook containing information about the self-insured health insurance plans offered through the Public Employee Health Insurance Program. The handbook, commonly referred to as the Benefits Selection Guide, is distributed to plan holders participating in the self-insured program. The Benefits Selection Guide contains the premiums, employee contributions, employer contributions, and a summary of benefits, co-pays, coinsurance, and deductibles for each plan available to public employees through the self-insured program in 2025.

This administrative regulation is necessary to comply with the statutory mandate of KRS 18A.2254. More specifically, KRS 18A.2254(1)(a) requires the Personnel Cabinet to promulgate an administrative regulation that incorporates by reference the 2025 plan year handbook that will be distributed to the public employees covered by the Public Employee Health Insurance Program. The handbook must be filed with the Legislative Research Commission on or before September 15 each year.

This administrative regulation complies with KRS 18A.2254(1), the statute that establishes the self-insured plan and mandates the promulgation of the administrative regulation.

This administrative regulation aids in the effectuation of the statute, KRS 18A.2254, by incorporating by reference the 2025 plan year handbook for the Public Employee Health Insurance Program in an administrative regulation. Further, this administrative regulation is the method by which the Personnel Cabinet will comply with KRS 18A.2254.

This is an amendment. The existing administrative regulation incorporates by reference the 2024 plan year handbook, which constitutes a compilation of the premium rates and contributions, benefit options, eligibility rules, and enrollment information for participants of the Public Employee Health Insurance Program for plan year 2024. The amendment adds and incorporates by reference the 2025 plan year handbook, which contains the premiums, employee contributions, employer contributions, and a summary of benefits, co-pays, coinsurance, and deductibles for each plan available to public employees for plan year 2025.

This amendment is necessary to give notice regarding the premiums, employee contributions, employer contributions, benefits, co-pays, coinsurance, and deductibles for each plan available to public employees under the Public Employee Health Insurance Program for plan year 2025. This amendment is also necessary to comply with the statutory mandate in KRS 18A.2254 to annually update the regulation incorporating the plan year handbook.

This amendment conforms to the content of KRS 18A.2254, the statute authorizing the self-insured plan under the Public Employee Health Insurance Program. KRS 18A.2254 mandates that the plan year handbook be incorporated by reference in an administrative regulation on or before September 15 each year. This amendment incorporates the 2025 plan year handbook by reference in accordance with KRS 18A.2254.

This amendment conforms to the requirements of KRS 18A.2254, the statute authorizing the self-insured plan under the Public Employee Health Insurance Program. KRS 18A.2254 mandates that the plan year handbook be incorporated by reference in an administrative regulation on or before September 15 each year. This amendment incorporates the 2025 plan year handbook by reference in accordance with KRS 18A.2254.

This administrative regulation affects employees of state and select county and local government entities, including employees of the local school boards and districts.: This administrative regulation also affects certain retirees as specified by KRS 18A.225. More specifically, and as defined by KRS 18A.225(1)(a), this administrative regulation affects approximately 190,154 employees and retirees eligible to participate in the Public Employee Health Insurance Program. In total, this administrative regulation affects approximately 304,649 members in the self-insured plan and those waiving coverage, including employees, retirees, and qualifying dependents.

Affected entities will not be required to take any additional action to comply with this administrative regulation that incorporates the 2025 plan year handbook. The 2025 Benefits Selection Guide will provide information to the public employees covered under the Public Employee Health Insurance Program about the premiums, employee contributions, employer contributions, and a summary of benefits, co-pays, coinsurance, and deductibles for the 2025 plan year.

This administrative regulation provides employer and employee premium contribution information for health plans available under the Public Employee Health Insurance Program for plan year 2025. There is no direct cost impact to employers participating in the Public Employee Health Insurance Program as a result of incorporating the 2025 plan year handbook into the administrative regulation.

For plan year 2025, participating employers (entities) and participating employees and retirees and their beneficiaries and dependents covered under the Public Employee Health Insurance Program will have access to comprehensive health insurance benefits under all plans offered through the self-insured program. For plan year 2025, employee and employer contributions to health coverage premiums remain unchanged across all plans, as compared to 2024 premiums.

Costs of implementing this administrative regulation initially are believed to be minimal.

Costs of implementing this administrative regulation on a continuing basis are believed to be minimal.

The source of funding to be used for the implementation of this administrative regulation will be the Public Employee Health Insurance Trust Fund.

This is an amendment. This administrative regulation will not require an increase in funding or fees.

This administrative regulation does not establish fees or directly or indirectly increase any fees.

No, tiering is not applied because this administrative regulation applies equally to all participants in the Public Employee Health Insurance Program.

KRS 18A.030(2)(b), 18A.2254(1)(a).

The Personnel Cabinet is the promulgating agency. All state agencies and employees participating in the Public Employee Health Insurance Program are affected by the provisions of the incorporated plan year handbook.

This administrative regulation itself is not anticipated to trigger direct expenditures.

This administrative regulation does not generate revenue.

This administrative regulation itself will not result in cost savings.

Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.

All county and local government employees and entities, including local school boards and districts and their employees, that participate in the Public Employee Health Insurance Program are affected by the provisions of the incorporated plan year handbook.

This administrative regulation itself is not anticipated to trigger direct expenditures.

This administrative regulation does not generate revenue.

This administrative regulation itself will not result in cost savings.

Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.

The plan year handbook incorporated in this administrative regulation also affects retirees under the age of 65 who are eligible to participate in the Program by virtue of their participation in one of the state-administered retirement systems.

This administrative regulation itself is not anticipated to trigger direct expenditures.

This administrative regulation does not generate revenue.

This administrative regulation itself will not result in cost savings.

Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.

This administrative regulation does not have a significant fiscal impact.

The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.

An overall negative or adverse major economic impact is not anticipated. This administrative regulation only serves to incorporate the Public Employee Health Insurance Program handbook. It does not, by itself, impose requirements or fees on Program participants.

The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.