Chris Chamness

This administrative regulation incorporates by reference the 2023 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 2023.

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 2023 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 2023 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 2022 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 2022. The amendment adds and incorporates by reference the 2023 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 2023.

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 2023. 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 2023 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 2023 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 178,270 employees and retirees eligible to participate in the Public Employee Health Insurance Program. In total, this administrative regulation affects 291,622 members in the self-insured plan including employees and retirees, qualifying beneficiaries, and dependents.

Affected entities will not be required to take any additional action to comply with this administrative regulation that incorporates the 2023 plan year handbook. The 2023 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 2023 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 2023. There is no direct cost impact to employers participating in the Public Employee Health Insurance Program as a result of incorporating the 2023 plan year handbook into the administrative regulation.

For plan year 2023, 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 2023, employee contributions to health coverage premiums remained unchanged across all plans, as compared to 2022 premiums. Employer premium contribution amounts increased 10% across all plans combined, as compared to 2022 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.

This administrative regulation will affect all employees of state and select county and local government entities, including employees of the local school boards and districts that participate in the Public Employee Health Insurance Program. As employers, this administrative regulation will affect state and select county and local government entities as well as local school boards and districts. 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.

KRS 18A.225, 18A.2253, 18A.2254, 18A.2255, 18A.2259, 18A.226, 18A.227, 18A.2271, 18A.228, 18A.2286, 18A.2287; 26 U.S.C. 21, 105, 106, 125, 129, 152, and 213 (Internal Revenue Code); Prop. Treas. Reg. 1.125-1 through 7; the Patient Protection and Affordable Care Act, Pub. L. No. 111-148 (2010); and the Health Care and Education Reconciliation Act of 2010, Pub. L. No. 111-152.

The administrative regulation will not generate any revenues.

The administrative regulation will not generate any revenues.

Costs of implementing this program are believed to be similar to previous plan years.

The 2023 plan year handbook will be online and distributed electronically rather than in printed hard copy. This method of distribution is expected to be a savings for the Public Employee Health Insurance Program during the 2022 open enrollment season and throughout the 2023 plan year. Should the distribution of the plan year handbook continue to be made available online and distributed only by electronic means in the future, the Public Employee Health Insurance Program could continue to recognize cost savings in subsequent years.

$0

$0

The regulation does not create any cost savings or expenditures beyond the re-sources to promulgate this regulation.

None. This regulation does not create any cost savings for regulated entities during the first year.

None. This regulation will not generate any cost savings for regulated entities during subsequent years.

This regulation does not create any cost for regulated entities during the first year.

The regulation does not create any cost savings or expenditures for subsequent years.

$0

$0

"Major economic impact" means an overall negative or adverse economic impact from an administrative regulation of five hundred thousand dollars ($500,000) or more on state or local government or regulated entities, in aggregate, as determined by the promulgating administrative bodies. [KRS 13A.010(13)] No, this administrative regulation will not have a major economic impact.