CSSSHB 315(STA): "An Act allowing employers that are small businesses, small nonprofit organizations, small special services organizations, or small associations for insurance purposes to join state employee insurance coverage as a group; and providing for an effective date."
00 CS FOR SPONSOR SUBSTITUTE FOR HOUSE BILL NO. 315(STA) 01 "An Act allowing employers that are small businesses, small nonprofit organizations, 02 small special services organizations, or small associations for insurance purposes to join 03 state employee insurance coverage as a 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 businesses, of nonprofit organizations, of special 11 services organizations, or of members of associations for insurance purposes 12 eligible under (c) of this section, subject to 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) If it is eligible under (c) of this section, a business, a nonprofit 16 organization, a special services organization, or an association for insurance 17 purposes may participate under a group policy if 18 (A) it applies to participate and agrees to payment of 19 required premiums; 20 (B) the application is filed with the Department of 21 Administration; and 22 (C) the commissioner of administration approves the 23 participation in writing. 24 (5) In procuring a policy of group health or group life insurance as 25 provided under this section or excess loss insurance as provided in AS 39.30.091, the 26 Department of Administration shall comply with the dual choice requirements of 27 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 28 transact business in the state under AS 21.09, a hospital or medical service corporation 29 authorized to transact business in this state under AS 21.87, or a health maintenance 30 organization authorized to operate in this state under AS 21.86. An excess loss 31 insurance policy may be obtained from a life or health insurer authorized to transact
01 business in this state under AS 21.09 or from a hospital or medical service corporation 02 authorized to transact business in this state under AS 21.87. 03 (6) [(5)] The Department of Administration shall make available bid 04 specifications for desired insurance benefits or for administration of benefit claims and 05 payments to (A) all insurance carriers authorized to transact business in this state 06 under AS 21.09 and all hospital or medical service corporations authorized to transact 07 business under AS 21.87 who are qualified to provide the desired benefits; and (B) 08 [TO] insurance carriers authorized to transact business in this state under AS 21.09, 09 hospital or medical service corporations authorized to transact business under 10 AS 21.87, and third-party administrators licensed to transact business in this state and 11 qualified to provide administrative services. The specifications shall be made 12 available at least once every five years. The lowest responsible bid submitted by an 13 insurance carrier, hospital or medical service corporation, or third-party administrator 14 with adequate servicing facilities shall govern selection of a carrier, hospital or 15 medical service corporation, or third-party administrator under this section or the 16 selection of an insurance carrier or a hospital or medical service corporation to provide 17 excess loss insurance as provided in AS 39.30.091. 18 (7) [(6)] If the aggregate of dividends payable under the group 19 insurance policy exceeds the governmental unit's share of the premium, the excess 20 shall be applied by the governmental unit for the sole benefit of the employees. 21 (8) [(7)] A person receiving benefits under AS 14.25.110, AS 22.25, 22 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 23 effect under this section at the time of termination of employment with the state or 24 participating governmental unit. 25 (9) [(8)] A person electing to have insurance under (8) [(7)] of this 26 subsection shall pay the cost of this insurance. 27 (10) [(9)] For each permanent part-time state employee electing 28 coverage under this section, the state shall contribute one-half the state contribution 29 rate for permanent full-time state employees, and the permanent part-time employee 30 shall contribute the other one-half. 31 (11) [(10)] A person receiving benefits under AS 14.25, AS 22.25,
01 AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for 02 that person and eligible dependents under this section. The level of coverage for 03 persons over 65 shall be the same as that available before reaching age 65 except that 04 the benefits payable shall be supplemental to any benefits provided under the federal 05 old age, survivors, and disability insurance program. A person electing to have 06 insurance under this paragraph shall pay the cost of the insurance. The commissioner 07 of administration shall adopt regulations implementing this paragraph. 08 (12) [(11)] A person receiving benefits under AS 14.25, AS 22.25, 09 AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person 10 and eligible dependents under this section. A person who elects insurance under this 11 paragraph shall pay the cost of the insurance premium. The commissioner of 12 administration shall adopt regulations to implement this paragraph. 13 (13) [(12)] Each licensee holding a current operating agreement for a 14 vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy 15 that applies to governmental units other than the state. 16 * Sec. 2. AS 39.30.090(b)(1) is amended to read: 17 (1) "eligible employee" means 18 (A) an employee who has served in permanent full-time or 19 part-time employment with the same governmental unit for 30 days or more, 20 except an emergency or temporary employee; 21 (B) an elected or appointed official of a governmental unit, 22 effective upon taking the oath of office; and 23 (C) a contractual employee of the legislative branch of state 24 government under AS 24.10.060(f) if the employee's personal services contract 25 provides that the employee is entitled to coverage; 26 (D) an employee who has served in permanent full-time or 27 part-time employment with the same business, nonprofit organization, 28 special services organization, or member of an association for insurance 29 purposes for 30 days or more, except an emergency or temporary 30 employee; 31 * Sec. 3. AS 39.30.090(b) is amended by adding new paragraphs to read:
01 (1) "association for insurance purposes" means an association 02 composed of businesses or nonprofit organizations or both, organized and operating in 03 Alaska; 04 (2) "business" means a business located in Alaska and organized under 05 the relevant provisions of the Alaska Statutes; if the form of business is not required to 06 be organized under a statute, then the sole proprietor or joint venturers who own the 07 business must be Alaska residents; 08 (3) "nonprofit organization" means a nonprofit corporation, 09 association, club, or society organized and operating in Alaska exclusively for 10 charitable, religious, scientific, or educational purposes or for the promotion of social 11 welfare and that has received an exemption from the payment of federal income tax; 12 (4) "special services organization" means an entity, corporation, or 13 nonprofit organization organized and operating in Alaska that is 14 (A) an entity, including a sole proprietorship and a corporation 15 solely owned by one person, 16 (i) operating a child care facility that is licensed under 17 AS 14.37; 18 (ii) operating a residential child care facility, child 19 placement agency, foster home, or maternity home that is licensed 20 under AS 47.35; 21 (iii) operating an assisted living home that is licensed 22 under AS 47.33; 23 (iv) operating a community-based center for adult day 24 care as that term is defined in AS 47.65.290; or 25 (v) providing home care services as defined in 26 AS 47.65.290; 27 (B) a corporation incorporated under AS 10.20 that 28 (i) receives state grants to provide services; or 29 (ii) makes grants to other corporations incorporated 30 under AS 10.20 that receive state grants to provide services; or 31 (C) a nonprofit organization, regardless of whether
01 incorporated, whose primary purpose is to provide assistance to disadvantaged 02 classes or groups. 03 * Sec. 4. AS 39.30.090 is amended by adding a new subsection to read: 04 (c) A business, nonprofit organization, or special services organization that 05 employed an average of at least two but not more than 50 eligible employees on the 06 business days during the preceding calendar year and employs at least two eligible 07 employees on the first day of a health benefit plan year may apply to participate as a 08 group under (a) of this section. An association for insurance purposes may apply to 09 participate as a group under (a) of this section if the combined total number of eligible 10 employees of all business and nonprofit organizations within the association is not less 11 than two and not more than 50. 12 * Sec. 5. This Act takes effect January 1, 2003.