HB 66: "An Act relating to providing medical insurance coverage under the Teachers' Retirement System of Alaska and the Public Employees' Retirement System of Alaska; and providing for an effective date."
00 HOUSE BILL NO. 66 01 "An Act relating to providing medical insurance coverage under the Teachers' 02 Retirement System of Alaska and the Public Employees' Retirement System of Alaska; 03 and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 14.25.168(a) is amended to read: 06 (a) Except as provided in (c) of this section, the following persons are entitled 07 to major medical insurance coverage under this section: 08 (1) for teachers first hired before July 1, 1990, 09 (A) a teacher who is receiving a monthly benefit from the plan 10 and who has elected coverage; 11 (B) the spouse and dependent children of the teacher described 12 in (A) of this paragraph; 13 (C) the surviving spouse of a deceased teacher who is receiving 14 a monthly benefit from the plan and who has elected coverage;
01 (D) the dependent children of a deceased teacher who are 02 dependent on the surviving spouse described in (C) of this paragraph; 03 (2) for teachers first hired on or after July 1, 1990, 04 (A) a teacher who is receiving a monthly benefit from the plan 05 and who has elected coverage for the teacher; 06 (B) the spouse of the teacher described in (A) of this paragraph 07 if the teacher elected coverage for the spouse; 08 (C) the dependent children of the teacher described in (A) of 09 this paragraph if the teacher elected coverage for the dependent children; 10 (D) the surviving spouse of a deceased teacher who is receiving 11 a monthly benefit from the plan and who has elected coverage; 12 (E) the dependent children of a deceased teacher who are 13 dependent on the surviving spouse described in (D) of this paragraph if the 14 surviving spouse has elected coverage for the dependent children; 15 (3) for a deceased teacher, the surviving spouse and dependent 16 children of the deceased teacher if the spouse or children are determined to be 17 eligible for payment of a monthly survivor's pension under AS 14.25.157. 18 * Sec. 2. AS 14.25.168(d) is amended to read: 19 (d) A benefit recipient may elect major medical insurance coverage in 20 accordance with regulations and under the following conditions: 21 (1) a person who has less than 25 years of membership service and 22 who is younger than 60 years of age must pay an amount equal to the full monthly 23 group premium for retiree major medical insurance coverage; 24 (2) a disabled member, a disabled member who is appointed to normal 25 retirement, a person 60 years of age or older, a person who receives major medical 26 insurance coverage under (a)(3) of this section, or a person who has at least 25 27 years of membership service is not required to make premium payments. 28 * Sec. 3. AS 14.25.470(c) is repealed and reenacted to read: 29 (c) The following persons are eligible to elect medical benefits under 30 AS 14.25.480: 31 (1) a member who is eligible for retirement under (a) of this section;
01 (2) a member's surviving spouse if the member had retired or was 02 eligible for retirement and medical benefits at the time of the member's death; 03 (3) a deceased member's surviving spouse, if the deceased member's 04 surviving spouse has been determined to be eligible for payment of a monthly 05 survivor's pension under AS 14.25.487; and 06 (4) a deceased member's dependent children if the deceased member's 07 surviving spouse or dependent children have been determined to be eligible for 08 payment of a monthly survivor's pension under AS 14.25.487. 09 * Sec. 4. AS 14.25.470(d) is amended to read: 10 (d) A person [MEMBER] shall apply for retirement and medical benefits on 11 the forms and in the manner prescribed by the administrator. 12 * Sec. 5. AS 14.25.470(g) is repealed and reenacted to read: 13 (g) If an eligible person elects not to participate in the retiree major medical 14 insurance plan, the election becomes irrevocable upon application for employment or 15 when the person reaches 70 1/2 years of age, whichever is later. 16 * Sec. 6. AS 14.25.480(b) is repealed and reenacted to read: 17 (b) Retiree major medical insurance plan coverage elected by 18 (1) a member under AS 14.25.470(c)(1) covers the member, the 19 member's spouse, and the member's dependent children; 20 (2) a surviving spouse under AS 14.25.470(c)(2) or (3) covers the 21 surviving spouse and the member's children who are dependent on the surviving 22 spouse; 23 (3) a dependent child under AS 14.25.470(c)(4) or a person authorized 24 to act on behalf of the dependent child covers the dependent child. 25 * Sec. 7. AS 14.25.480(d) is amended to read: 26 (d) Major medical insurance coverage takes effect on the first day of the 27 month following the date of the administrator's approval of the election and stops 28 when the person who receives [ELECTS] coverage is no longer eligible to receive 29 coverage [DIES] or fails to make a required premium payment. 30 * Sec. 8. AS 14.25.480 is amended by adding a new subsection to read: 31 (l) Notwithstanding (g) of this subsection, a person who is eligible for major
01 medical insurance coverage under AS 14.25.470(c)(3) or (4) is not required to make 02 premium payments. 03 * Sec. 9. AS 14.25.489 is amended to read: 04 Sec. 14.25.489. Premiums for retiree major medical insurance coverage 05 upon termination of disability benefits or survivor's pension. The premium for 06 retiree major medical insurance coverage payable by a member whose disability 07 benefit is terminated under AS 14.25.485(g) or by an eligible survivor whose survivor 08 pension is terminated under AS 14.25.485(i) [OR 14.25.487(e)] when the member 09 would have been eligible for normal retirement if the member had survived shall be 10 determined under AS 14.25.480(g)(2) as if the member or survivor were eligible for 11 Medicare. A person who receives major medical coverage under 12 AS 14.25.470(c)(3) or (4) is not required to make premium payments for that 13 coverage. 14 * Sec. 10. AS 39.30.400(b) is amended to read: 15 (b) Upon application of an eligible person, the administrator shall reimburse to 16 the eligible person the costs for medical care expenses as defined in 26 U.S.C. 213(d). 17 Reimbursement is limited to the medical expenses of 18 (1) an eligible member, the spouse of an eligible member, and the 19 dependent children of an eligible member; [OR] 20 (2) a surviving spouse and the dependent children of an eligible 21 member dependent on the surviving spouse; or 22 (3) an eligible member's dependent children if the member dies 23 and there is no surviving spouse. 24 * Sec. 11. AS 39.35.535(a) is amended to read: 25 (a) Except as provided in (d) of this section, the following persons are entitled 26 to major medical insurance coverage under this section: 27 (1) for employees first hired before July 1, 1986, 28 (A) an employee who is receiving a monthly benefit from the 29 plan and who has elected coverage; 30 (B) the spouse and dependent children of the employee 31 described in (A) of this paragraph;
01 (C) the surviving spouse of a deceased employee who is 02 receiving a monthly benefit from the plan and who has elected coverage; 03 (D) the dependent children of a deceased employee who are 04 dependent on the surviving spouse described in (C) of this paragraph; 05 (2) for members first hired on or after July 1, 1986, 06 (A) an employee who is receiving a monthly benefit from the 07 plan and who has elected coverage for the employee; 08 (B) the spouse of the employee described in (A) of this 09 paragraph if the employee elected coverage for the spouse; 10 (C) the dependent children of the employee described in (A) of 11 this paragraph if the employee elected coverage for the dependent children; 12 (D) the surviving spouse of a deceased employee who is 13 receiving a monthly benefit from the plan and who has elected coverage; 14 (E) the dependent children of a deceased employee who are 15 dependent on the surviving spouse described in (D) of this paragraph if the 16 surviving spouse has elected coverage for the dependent children; 17 (3) for a deceased member, the surviving spouse and dependent 18 children of the deceased member if the spouse or children are determined to be 19 eligible for payment of a monthly survivor's pension under AS 39.35.430. 20 * Sec. 12. AS 39.35.535(c) is amended to read: 21 (c) A benefit recipient may elect major medical insurance coverage in 22 accordance with regulations and under the following conditions: 23 (1) a person, other than a disabled member or a disabled member who 24 is appointed to normal retirement, must pay an amount equal to the full monthly group 25 premium for retiree major medical insurance coverage if the person is 26 (A) younger than 60 years of age and has less than 27 (i) 25 years of credited service as a peace officer under 28 AS 39.35.360 and 39.35.370; or 29 (ii) 30 years of credited service under AS 39.35.360 and 30 39.35.370 that is not service as a peace officer; or 31 (B) of any age and has less than 10 years of credited service;
01 (2) a person is not required to make premium payments for retiree 02 major medical coverage if the person 03 (A) is a disabled member; 04 (B) is a disabled member who is appointed to normal 05 retirement; 06 (C) is 60 years of age or older and has at least 10 years of 07 credited service; [OR] 08 (D) has at least 09 (i) 25 years of credited service as a peace officer under 10 AS 39.35.360 and 39.35.370; or 11 (ii) 30 years of credited service under AS 39.35.360 and 12 39.35.370 not as a peace officer; or 13 (E) is receiving a benefit under (a)(3) of this section. 14 * Sec. 13. AS 39.35.870(c) is repealed and reenacted to read: 15 (c) The following persons are eligible to elect medical benefits under 16 AS 39.35.880: 17 (1) a member who is eligible for retirement under (a) of this section; 18 (2) a member's surviving spouse if the member had retired or was 19 eligible for retirement and medical benefits at the time of the member's death; 20 (3) a deceased member's surviving spouse, if the deceased member's 21 surviving spouse has been determined to be eligible for payment of a monthly 22 survivor's pension under AS 39.35.430; and 23 (4) a deceased member's dependent children if the deceased member's 24 surviving spouse or dependent children have been determined to be eligible for 25 payment of a monthly survivor's pension under AS 39.35.430. 26 * Sec. 14. AS 39.35.870(d) is amended to read: 27 (d) A person [MEMBERS] shall apply for retirement and medical benefits on 28 the forms and in the manner prescribed by the administrator. 29 * Sec. 15. AS 39.35.870(g) is repealed and reenacted to read: 30 (g) If an eligible person elects not to participate in the retiree major medical 31 insurance plan, the election becomes irrevocable upon application for employment or
01 when the person reaches 70 1/2 years of age, whichever is later. 02 * Sec. 16. AS 39.35.880(b) is repealed and reenacted to read: 03 (b) Retiree major medical insurance plan coverage elected by 04 (1) an eligible member under AS 39.35.870(c) covers the eligible 05 member, the spouse of the eligible member, and the dependent children of the eligible 06 member; 07 (2) an eligible surviving spouse under AS 39.35.870(c) covers the 08 surviving spouse and the dependent children of the eligible member who are 09 dependent on the surviving spouse; 10 (3) a dependent child under AS 39.35.870(c) or a person authorized to 11 act on behalf of the dependent child covers the dependent child. 12 * Sec. 17. AS 39.35.880(d) is amended to read: 13 (d) Major medical insurance coverage takes effect on the first day of the 14 month following the date of the administrator's approval of the election and stops 15 when the person who receives [ELECTS] coverage is no longer eligible to receive 16 coverage [DIES] or fails to make a required premium payment. 17 * Sec. 18. AS 39.35.880 is amended by adding a new subsection to read: 18 (l) Notwithstanding (g) of this section, a person who is eligible for major 19 medical insurance coverage under AS 39.35.870(c)(3) or (4) is not required to make 20 premium payments. 21 * Sec. 19. AS 39.35.894 is amended to read: 22 Sec. 39.35.894. Premiums for retiree major medical insurance coverage 23 upon termination of disability benefits or survivor's pension. The premium for 24 retiree major medical insurance coverage payable by an employee whose disability 25 benefit is terminated under AS 39.35.890(g) or by an eligible survivor whose survivor 26 pension is terminated under AS 39.35.890(k) [OR 39.35.892(e)] when the employee 27 would have been eligible for normal retirement if the employee had survived shall be 28 determined under AS 39.35.880(g)(2) as if the employee or survivor were eligible for 29 Medicare. A person who receives major medical coverage under 30 AS 39.35.870(c)(3) or (4) is not required to make premium payments for that 31 coverage.
01 * Sec. 20. AS 14.25.480(c) and AS 39.35.880(c) are repealed. 02 * Sec. 21. The uncodified law of the State of Alaska is amended by adding a new section to 03 read: 04 RETROACTIVITY. This Act is retroactive to January 1, 2014. 05 * Sec. 22. This Act takes effect immediately under AS 01.10.070(c).