SSHB 315: "An Act allowing employers that are small businesses, small nonprofit organizations, or small associations for insurance purposes to join state employee insurance coverage as a group; and providing for an effective date."
00 SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 315 01 "An Act allowing employers that are small businesses, small nonprofit organizations, or 02 small associations for insurance purposes to join state employee insurance coverage as a 03 group; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 39.30.090(a) is amended to read: 06 (a) The Department of Administration may obtain a policy or policies of group 07 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 08 AS 22.25.090, AS 39.35.535 or former AS 39.37.145, employees of other 09 participating governmental units, [OR] persons entitled to coverage under 10 AS 23.15.136, employees of small businesses, employees of small nonprofit 11 organizations, or members of small associations for insurance purposes, subject to 12 the following conditions: 13 (1) A group insurance policy must [SHALL] provide one or more of 14 the following benefits: life insurance, accidental death and dismemberment insurance,
01 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 02 dental expense insurance, audiovisual insurance, or other medical care insurance. 03 (2) Each eligible employee of the state, the spouse and the unmarried 04 children chiefly dependent on the eligible employee for support, and each eligible 05 employee of another participating governmental unit shall be covered by the group 06 policy, unless exempt under regulations adopted by the commissioner of 07 administration. 08 (3) A governmental unit may participate under a group policy if 09 (A) its governing body adopts a resolution authorizing 10 participation, and payment of required premiums; 11 (B) a certified copy of the resolution is filed with the 12 Department of Administration; and 13 (C) the commissioner of administration approves the 14 participation in writing. 15 (4) A small business, a small nonprofit organization, or a small 16 association for insurance purposes may participate under a group policy if 17 (A) it applies to participate and agrees to payment of 18 required premiums; 19 (B) a certified copy of the application is filed with the 20 Department of Administration; and 21 (C) the commissioner of administration approves the 22 participation in writing. 23 (5) In procuring a policy of group health or group life insurance as 24 provided under this section or excess loss insurance as provided in AS 39.30.091, the 25 Department of Administration shall comply with the dual choice requirements of 26 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 27 transact business in the state under AS 21.09, a hospital or medical service corporation 28 authorized to transact business in this state under AS 21.87, or a health maintenance 29 organization authorized to operate in this state under AS 21.86. An excess loss 30 insurance policy may be obtained from a life or health insurer authorized to transact 31 business in this state under AS 21.09 or from a hospital or medical service corporation
01 authorized to transact business in this state under AS 21.87. 02 (6) [(5)] The Department of Administration shall make available bid 03 specifications for desired insurance benefits or for administration of benefit claims and 04 payments to (A) all insurance carriers authorized to transact business in this state 05 under AS 21.09 and all hospital or medical service corporations authorized to transact 06 business under AS 21.87 who are qualified to provide the desired benefits; and (B) 07 [TO] insurance carriers authorized to transact business in this state under AS 21.09, 08 hospital or medical service corporations authorized to transact business under 09 AS 21.87, and third-party administrators licensed to transact business in this state and 10 qualified to provide administrative services. The specifications shall be made 11 available at least once every five years. The lowest responsible bid submitted by an 12 insurance carrier, hospital or medical service corporation, or third-party administrator 13 with adequate servicing facilities shall govern selection of a carrier, hospital or 14 medical service corporation, or third-party administrator under this section or the 15 selection of an insurance carrier or a hospital or medical service corporation to provide 16 excess loss insurance as provided in AS 39.30.091. 17 (7) [(6)] If the aggregate of dividends payable under the group 18 insurance policy exceeds the governmental unit's share of the premium, the excess 19 shall be applied by the governmental unit for the sole benefit of the employees. 20 (8) [(7)] A person receiving benefits under AS 14.25.110, AS 22.25, 21 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 22 effect under this section at the time of termination of employment with the state or 23 participating governmental unit. 24 (9) [(8)] A person electing to have insurance under (8) [(7)] of this 25 subsection shall pay the cost of this insurance. 26 (10) [(9)] For each permanent part-time state employee electing 27 coverage under this section, the state shall contribute one-half the state contribution 28 rate for permanent full-time state employees, and the permanent part-time employee 29 shall contribute the other one-half. 30 (11) [(10)] A person receiving benefits under AS 14.25, AS 22.25, 31 AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for
01 that person and eligible dependents under this section. The level of coverage for 02 persons over 65 shall be the same as that available before reaching age 65 except that 03 the benefits payable shall be supplemental to any benefits provided under the federal 04 old age, survivors, and disability insurance program. A person electing to have 05 insurance under this paragraph shall pay the cost of the insurance. The commissioner 06 of administration shall adopt regulations implementing this paragraph. 07 (12) [(11)] A person receiving benefits under AS 14.25, AS 22.25, 08 AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person 09 and eligible dependents under this section. A person who elects insurance under this 10 paragraph shall pay the cost of the insurance premium. The commissioner of 11 administration shall adopt regulations to implement this paragraph. 12 (13) [(12)] Each licensee holding a current operating agreement for a 13 vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy 14 that applies to governmental units other than the state. 15 * Sec. 2. AS 39.30.090(b) is amended by adding new paragraphs to read: 16 (4) "Alaska business" means the business is located in Alaska and is 17 organized under the relevant provisions of the Alaska Statutes; if the form of business 18 is not required to be organized under a statute, then the sole proprietor or joint 19 venturers who own the business must be Alaska residents; 20 (5) "small business" means an Alaska business that employed an 21 average of at least two but not more than 300 employees on the business days during 22 the preceding calendar year and that employs at least two employees on the first day of 23 a health benefit plan year; 24 (6) "small nonprofit organization" means a nonprofit corporation, 25 association, club, or society organized and operated exclusively for charitable, 26 religious, scientific, or educational purposes or for the promotion of social welfare and 27 that has received an exemption from the payment of federal income tax, that employed 28 an average of at least two but not more than 300 employees on the business days 29 during the preceding calendar year, and that employs at least two employees on the 30 first day of a health benefit plan year; 31 (7) "small association for insurance purposes" means an association
01 composed of Alaska businesses or nonprofit organizations that, as a group, employ an 02 average of at least two but not more than 300 employees on the business days during 03 the preceding calendar year and that employs at least two employees on the first day of 04 a health benefit plan year. 05 * Sec. 3. This Act takes effect July 1, 2003.