02RS HB846

HB846

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HB 846/LM/AA (BR 2120) - R. Thomas, B. Buckingham, B. Colter, R. Nelson, R. Wilkey

     AN ACT relating to health insurance for public employees.
     Amend KRS 18A.225 to clarify that the definition of "employee" includes persons employed by public postsecondary educational institutions and a consolidated local government; specifically include within the definition all contributing members of the retirement systems administered by the state, including the Kentucky Retirement Systems, Kentucky Teachers' Retirement System, the Legislators' Retirement Plan, and the Judicial Retirement Plan, or persons receiving a contractual contribution from the state toward a retirement plan, or in the case of public postsecondary education employees, individuals participating in an optional retirement plan authorized by KRS 161.567; include certified or classified employees of local boards of education within the definition; include persons who are present or future recipients of a retirement allowance, except exclude persons who are age 65 or older unless the person is actively employed; include eligible dependents and beneficiaries of participating employees and retirees; require all employers of any class of employees or former employees to enter into a contract with the Personnel Cabinet prior to including that group in the state health insurance group; require that an entity's participation in the state-sponsored health insurance program will continue as long as the entity participates in any state-administered retirement system; require each entity participating in the state-sponsored health insurance program to provide an amount equal to the state contribution rate for the employer portion of the health insurance premium, and, for any entity that uses the state payroll system, the employer contribution amount must be equal to, but not greater than, the state contribution rate; require all entities whose employees participate in a state administered retirement system, but are are not insured under the state group, to pay the difference between the health insurance contribution approved by that retirement system and the separately rated health insurance premium for its retired members who retire on or after January 1, 2004; delete language requiring that policies contain the provision that employees or retired employees be allowed to change health care plans during the reopening period without any limitation for pre-existing conditions if the employee has met the pre-existing condition limitation upon initial employment or reemployment with the group; state that employees who are eligible for and elect to participate in the state health insurance program as a retiree, or the spouse or beneficiary of a retiree, under a state-sponsored retirement system shall not be eligible to receive the state health insurance contribution toward health care coverage as a result of any other employment for which there is a public employer contribution, however this does not preclude a retiree and an active employee spouse from using both contributions to the extent needed for purchase of one state sponsored health insurance policy; amend KRS 18A.227 to conform; direct the Legislative Research Commission to have a study conducted to examine the feasibility of the Commonwealth self-insuring health insurance for its state employees.

HB 846 - AMENDMENTS


     HCS/LM/AA - Retain original provisions except include in the definition of employee those persons over the age of sixty-five who are covered pursuant to KRS 61.702(4)(c); delete the study provision from the bill and substitute a new section which directs the LRC's Interim Joint Committee on State Government to determine the cost to members of the state group resulting from agency participation in the retirement systems while insuring their active employees outside the health insurance group; require the LRC to hire an actuary not associated with and without any contractual relations with any involved entity to assist with the study; require the committee to report its findings to the LRC on or before October 1, 2002; provide that the report shall project the cost for at least five years and shall recommend administrative procedures for the affected entities to pay the associated costs.

     HFA (1, R. Thomas) - Require the LRC to conduct a study focusing on the entire state-sponsored health insurance program and report its findings to the LRC on or before October 1, 2003; make conforming amendment.

     SFA (1, C. Borders) - Retain provisions of GA bill but delete the requirement that an entity's participation in the state-sponsored health insurance program shall continue as long as that entity participates in any state-administered retirement system; delete requirement that an entity participating in the state-sponsored health insurance program shall provide an amount at least equal to the state contribution rate for the employer portion of the health insurance premium; delete requirement for a participating entity that uses the state payroll system, that the employer contribution amount shall be equal to, but not greater than, the state contribution.

     SFA (2, C. Borders) - Retain original provisions of GA bill but add 2 KACO representatives and 2 League of Cities representatives to the Advisory Committee on State Health Insurance Subscribers.

     SFA (3, C. Borders) - Retain provisions of GA bill, but provide that the Interim Joint Committee on State Government shall work with representatives of the Office of Public Employee Health Insurance, the Kentucky Education Association, KACO, the League of Cities, Area Development Districts, Kentucky Community Action Agencies, regional universities and other affected governmental entities in conducting the study authorized by this Act; provide that the Co-Chairs of the interim joint committee may provide that appropriate notice of meetings and written materials be given to affected entities.

     SFA (4, T. Buford) - Delete the language that exempted, from the definition of employee for state health insurance purposes, persons age 65 or older who are receiving retirement through the County Employees Retirement System if the recipient is not eligible for Medicare.

     SFA (5, C. Borders) - Retain provisions of GA bill but delete requirement that an entity participate in the state-sponsored health insurance program as long as it participates in any state-administered retirement system.

     SFA (6, T. Buford) - Delete the language that exempted, from the definition of employee for state health insurance purposes, persons age 65 or older who are receiving retirement through the County Employees Retirement System if the recipient is not eligible for Medicare.

     SFA (7, D. Williams) - Amend KRS 18A.225 to provide that if a state employee's residence and place of employment are in the same county and if the hospital located within that county does not offer certain listed services, the state employee may select a plan available in a contiguous county that does provide those services; provide that the state contribution for the plan shall be the amount available in the county where the plan selected is located.

     Mar 4-introduced in House
     Mar 5-to Banking and Insurance (H); reassigned to State Government (H); posting waived
     Mar 11-reported favorably, 1st reading, to Calendar with Committee Substitute ; floor amendment (1) filed to Committee Substitute
     Mar 12-2nd reading, to Rules
     Mar 13-posted for passage in the Regular Orders of the Day for Thursday, March 14, 2002
     Mar 14-3rd reading, passed 93-0 with Committee Substitute, floor amendment (1)
     Mar 15-received in Senate
     Mar 19-to State and Local Government (S)
     Mar 21-reported favorably, 1st reading, to Calendar
     Mar 22-2nd reading, to Rules
     Mar 26-floor amendments (1) (2) and (3) filed
     Mar 28-posted for passage in the Regular Orders of the Day for Thursday, March 28, 2002; passed over and retained in the Orders of the Day; floor amendments (4) (5) (6) and (7) filed
     Mar 29-3rd reading; floor amendments (1) (4) and (6) withdrawn ; passed 33-0 with floor amendments (2) (3) (5) and (7)
     Apr 1-received in House; posted for passage for concurrence in Senate floor amendments (2) (3) (5) and (7)
     Apr 2-House concurred in Senate floor amendments (2) (3) and (5) ; House refused to concur in Senate floor amendment (7)
     Apr 15-received in Senate; returned to House; motion not to concur reconsidered (do not change PASSED status); House concurred in Senate floor amendment (7) ; passed 96-0; enrolled, signed by each presiding officer; delivered to Governor
     Apr 23-signed by Governor (Acts ch. 352)


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