Title 101 | Chapter 002 | Regulation 210E
101 KAR 2:210REG
A proposed version of this document exists.
PREVIOUS VERSION
The previous document that this document is based upon is available.
STATEMENT OF EMERGENCY
101 KAR 2:210E
This emergency administrative regulation incorporates by reference the 2025 plan year handbook for the self-insured plan offered through the Public Employee Health Insurance Program, commonly known as the Kentucky Employees’ Health Plan. KRS 18A.2254(1) requires the Personnel Cabinet to promulgate an administrative regulation that incorporates the plan year handbook by reference and to file the administrative regulation by September 15 of each year. This emergency administrative regulation is necessary to meet the filing deadline established by state law at KRS 18A.2254(1)(a)3. KRS 18A.2254(1)(a) requires the secretary of the Personnel Cabinet to annually promulgate an administrative regulation to incorporate by reference the plan year handbook. The handbook must contain, at a minimum, the premiums, employee contributions, employer contributions, and a summary of benefits, co-pays, coinsurance, and deductibles for each plan provided to public employees covered under the self-insured plan. The 2025 plan year handbook, or Benefits Selection Guide, contains the required and necessary information for public employees to make health insurance coverage decisions during open enrollment in October 2024. This administrative regulation incorporates by reference the 2025 Benefits Selection Guide that will be distributed by the Personnel Cabinet’s Department of Employee Insurance to public employees covered under the self-insured plan. An ordinary administrative regulation is not sufficient due to the statutory filing deadlines and handbook distribution requirements. This emergency administrative regulation will be replaced by an ordinary administrative regulation. The ordinary administrative regulation is not identical to this emergency administrative regulation. This emergency administrative regulation will be in effect for part of the current 2024 plan year. The existing language in the Benefits Selection Guide for the 2024 plan year should remain until such time as the ordinary administrative regulation incorporating the Benefits Selection Guide for plan year 2025 replaces this emergency administrative regulation.
ANDY BESHEAR, Governor
MARY ELIZABETH BAILEY, Secretary
PERSONNEL CABINET
Office of the Secretary
(Emergency Amendment)
101 KAR 2:210E.2024 and 2025 Plan Year Handbooks for the Public Employee Health Insurance Program.
Section 1.
The Department of Employee Insurance shall distribute or make available to the public employees covered under the self-insured plan the 2024 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide, which shall include the premiums, employee contributions, employer contributions, and a summary of benefits, copays, coinsurance, and deductibles for each plan provided to the public employees covered under the self-insured plan.Section 2.
(1)
The Department of Employee Insurance shall distribute or make available to the public employees covered under the self-insured plan the 2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide, which shall include the premiums, employee contributions, employer contributions, and a summary of benefits, copays, coinsurance, and deductibles for each plan provided to the public employees covered under the self-insured plan.(2)
The 2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide shall govern the health plan benefits for public employees covered under the self-insured plan beginning January 1, 2025.Section 3.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"2024 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide", 2024 edition; and(b)
"2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide", 2025 edition.(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Personnel Cabinet, 501 High Street, 3rd Floor, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m. The material incorporated by reference is also available on the Personnel Cabinet's Web site on the Kentucky Employees' Health Plan page under KEHP Documents at https://personnel.ky.gov/Pages/Kentucky-Employees'-Health-Plan.aspx.MARY ELIZABETH BAILEY, Secretary
APPROVED BY AGENCY: September 11, 2024
FILED WITH LRC: September 13, 2024 at 8:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on October 21, 2024, at 10:00 a.m. at 501 High Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on October 31, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Will Adams, Staff Attorney, Office of Legal Services, Personnel Cabinet, 501 High Street, 2nd Floor, Frankfort, Kentucky 40601, phone (502) 782-4370, fax (502) 564-5278, email Will.Adams@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Will Adams
(1) Provide a brief summary of:
(a) What this administrative regulation does:
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.
(b) The necessity of this administrative regulation:
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.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
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.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
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.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
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.
(b) The necessity of the amendment to this administrative regulation:
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.
(c) How the amendment conforms to the content of the authorizing statutes:
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.
(d) How the amendment will assist in the effective administration of the statutes:
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.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
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.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
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.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
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.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
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.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Costs of implementing this administrative regulation initially are believed to be minimal.
(b) On a continuing basis:
Costs of implementing this administrative regulation on a continuing basis are believed to be minimal.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The source of funding to be used for the implementation of this administrative regulation will be the Public Employee Health Insurance Trust Fund.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This is an amendment. This administrative regulation will not require an increase in funding or fees.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish fees or directly or indirectly increase any fees.
(9) TIERING: Is tiering applied?
No, tiering is not applied because this administrative regulation applies equally to all participants in the Public Employee Health Insurance Program.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 18A.030(2)(b), 18A.2254(1)(a)
(2) Identify the promulgating agency and any other affected state units, parts, or divisions:
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(3) Identify affected local entities (for example: cities, counties, fire departments, school districts):
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(4) Identify additional regulated entities not listed in questions (2) or (3):
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(5) Provide a narrative to explain the:
(a) Fiscal impact of this administrative regulation:
This administrative regulation does not have a significant fiscal impact.
(b) Methodology and resources used to determine the fiscal impact:
The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.
(6) Explain:
(a) Whether this administrative regulation will have an overall negative or adverse major economic impact to the entities identified in questions (2) - (4). ($500,000 or more, in aggregate)
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.
(b) The methodology and resources used to reach this conclusion:
The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.
STATEMENT OF EMERGENCY
101 KAR 2:210E
This emergency administrative regulation incorporates by reference the 2025 plan year handbook for the self-insured plan offered through the Public Employee Health Insurance Program, commonly known as the Kentucky Employees’ Health Plan. KRS 18A.2254(1) requires the Personnel Cabinet to promulgate an administrative regulation that incorporates the plan year handbook by reference and to file the administrative regulation by September 15 of each year. This emergency administrative regulation is necessary to meet the filing deadline established by state law at KRS 18A.2254(1)(a)3. KRS 18A.2254(1)(a) requires the secretary of the Personnel Cabinet to annually promulgate an administrative regulation to incorporate by reference the plan year handbook. The handbook must contain, at a minimum, the premiums, employee contributions, employer contributions, and a summary of benefits, co-pays, coinsurance, and deductibles for each plan provided to public employees covered under the self-insured plan. The 2025 plan year handbook, or Benefits Selection Guide, contains the required and necessary information for public employees to make health insurance coverage decisions during open enrollment in October 2024. This administrative regulation incorporates by reference the 2025 Benefits Selection Guide that will be distributed by the Personnel Cabinet’s Department of Employee Insurance to public employees covered under the self-insured plan. An ordinary administrative regulation is not sufficient due to the statutory filing deadlines and handbook distribution requirements. This emergency administrative regulation will be replaced by an ordinary administrative regulation. The ordinary administrative regulation is not identical to this emergency administrative regulation. This emergency administrative regulation will be in effect for part of the current 2024 plan year. The existing language in the Benefits Selection Guide for the 2024 plan year should remain until such time as the ordinary administrative regulation incorporating the Benefits Selection Guide for plan year 2025 replaces this emergency administrative regulation.
ANDY BESHEAR, Governor
MARY ELIZABETH BAILEY, Secretary
PERSONNEL CABINET
Office of the Secretary
(Emergency Amendment)
101 KAR 2:210E.2024 and 2025 Plan Year HandbooksHandbook for the Public Employee Health Insurance Program.
Section 1.
The Department of Employee Insurance shall distribute or make available to the public employees covered under the self-insured plan the 2024 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide, which shall include the premiums, employee contributions, employer contributions, and a summary of benefits, copays, coinsurance, and deductibles for each plan provided to the public employees covered under the self-insured plan.Section 2.
(1)
The Department of Employee Insurance shall distribute or make available to the public employees covered under the self-insured plan the 2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide, which shall include the premiums, employee contributions, employer contributions, and a summary of benefits, copays, coinsurance, and deductibles for each plan provided to the public employees covered under the self-insured plan.(2)
The 2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide shall govern the health plan benefits for public employees covered under the self-insured plan beginning January 1, 2025.Section 3.
Incorporation by Reference.(1)
The following material is incorporated by reference:(a)
"2024 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide", 2024 edition; and(b)
"2025 Plan Year Kentucky Employees' Health Plan Benefits Selection Guide", 2025 edition(2)
This material may be inspected, copied, or obtained, subject to applicable copyright law, at the Personnel Cabinet, 501 High Street, 3rd Floor, Frankfort, Kentucky 40601, Monday through Friday, 8:00 a.m. to 4:30 p.m. The material incorporated by reference is also available on the Personnel Cabinet's Web site on the Kentucky Employees' Health Plan page under KEHP Documents at https://personnel.ky.gov/Pages/Kentucky-Employees'-Health-Plan.aspx.MARY ELIZABETH BAILEY, Secretary
APPROVED BY AGENCY: September 11, 2024
FILED WITH LRC: September 13, 2024 at 8:25 a.m.
PUBLIC HEARING AND COMMENT PERIOD: A public hearing on this administrative regulation shall be held on October 21, 2024, at 10:00 a.m. at 501 High Street, Frankfort, Kentucky 40601. Individuals interested in being heard at this hearing shall notify this agency in writing five (5) workdays prior to the hearing, of their intent to attend. If no notification of intent to attend the hearing is received by that date, the hearing may be cancelled. This hearing is open to the public. Any person who wishes to be heard will be given an opportunity to comment on the proposed administrative regulation. A transcript of the public hearing will not be made unless a written request for a transcript is made. If you do not wish to be heard at the public hearing, you may submit written comments on the proposed administrative regulation. Written comments shall be accepted until 11:59 p.m. on October 31, 2024. Send written notification of intent to be heard at the public hearing or written comments on the proposed administrative regulation to the contact person.
CONTACT PERSON: Will Adams, Staff Attorney, Office of Legal Services, Personnel Cabinet, 501 High Street, 2nd Floor, Frankfort, Kentucky 40601, phone (502) 782-4370, fax (502) 564-5278, email Will.Adams@ky.gov.
REGULATORY IMPACT ANALYSIS AND TIERING STATEMENT
Contact Person:
Will Adams
(1) Provide a brief summary of:
(a) What this administrative regulation does:
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.
(b) The necessity of this administrative regulation:
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.
(c) How this administrative regulation conforms to the content of the authorizing statutes:
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.
(d) How this administrative regulation currently assists or will assist in the effective administration of the statutes:
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.
(2) If this is an amendment to an existing administrative regulation, provide a brief summary of:
(a) How the amendment will change this existing administrative regulation:
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.
(b) The necessity of the amendment to this administrative regulation:
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.
(c) How the amendment conforms to the content of the authorizing statutes:
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.
(d) How the amendment will assist in the effective administration of the statutes:
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.
(3) List the type and number of individuals, businesses, organizations, or state and local governments affected by this administrative regulation:
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.
(4) Provide an analysis of how the entities identified in question (3) will be impacted by either the implementation of this administrative regulation, if new, or by the change, if it is an amendment, including:
(a) List the actions that each of the regulated entities identified in question (3) will have to take to comply with this administrative regulation or amendment:
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.
(b) In complying with this administrative regulation or amendment, how much will it cost each of the entities identified in question (3):
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.
(c) As a result of compliance, what benefits will accrue to the entities identified in question (3):
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.
(5) Provide an estimate of how much it will cost the administrative body to implement this administrative regulation:
(a) Initially:
Costs of implementing this administrative regulation initially are believed to be minimal.
(b) On a continuing basis:
Costs of implementing this administrative regulation on a continuing basis are believed to be minimal.
(6) What is the source of the funding to be used for the implementation and enforcement of this administrative regulation:
The source of funding to be used for the implementation of this administrative regulation will be the Public Employee Health Insurance Trust Fund.
(7) Provide an assessment of whether an increase in fees or funding will be necessary to implement this administrative regulation, if new, or by the change if it is an amendment:
This is an amendment. This administrative regulation will not require an increase in funding or fees.
(8) State whether or not this administrative regulation establishes any fees or directly or indirectly increases any fees:
This administrative regulation does not establish fees or directly or indirectly increase any fees.
(9) TIERING: Is tiering applied?
No, tiering is not applied because this administrative regulation applies equally to all participants in the Public Employee Health Insurance Program.
FISCAL IMPACT STATEMENT
(1) Identify each state statute, federal statute, or federal regulation that requires or authorizes the action taken by the administrative regulation.
KRS 18A.030(2)(b), 18A.2254(1)(a)
(2) Identify the promulgating agency and any other affected state units, parts, or divisions:
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(3) Identify affected local entities (for example: cities, counties, fire departments, school districts):
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(4) Identify additional regulated entities not listed in questions (2) or (3):
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.
(a) Estimate the following for the first year:
Expenditures:
This administrative regulation itself is not anticipated to trigger direct expenditures.
Revenues:
This administrative regulation does not generate revenue.
Cost Savings:
This administrative regulation itself will not result in cost savings.
(b) How will expenditures, revenues, or cost savings differ in subsequent years?
Expenditures, revenues, and cost savings specific to annual promulgation of this regulation are not anticipated to change in subsequent years.
(5) Provide a narrative to explain the:
(a) Fiscal impact of this administrative regulation:
This administrative regulation does not have a significant fiscal impact.
(b) Methodology and resources used to determine the fiscal impact:
The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.
(6) Explain:
(a) Whether this administrative regulation will have an overall negative or adverse major economic impact to the entities identified in questions (2) - (4). ($500,000 or more, in aggregate)
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.
(b) The methodology and resources used to reach this conclusion:
The provisions of this administrative regulation were reviewed, and a significant fiscal impact was not identified.