HB 315: "An Act requiring a single insurance provider for all state employees and allowing small employers to join as a group; and providing for an effective date."
00 HOUSE BILL NO. 315 01 "An Act requiring a single insurance provider for all state employees and allowing small 02 employers to join as a group; and providing for an effective date." 03 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 04 * Section 1. AS 23.40.075 is amended by adding a new paragraph to read: 05 (5) single insurance provider requirement of AS 39.30.090(c). 06 * Sec. 2. AS 39.30.090(a) is amended to read: 07 (a) The Department of Administration may obtain a policy or policies of group 08 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 09 AS 22.25.090, AS 39.35.535 or former AS 39.37.145, employees of other 10 participating governmental units, [OR] persons entitled to coverage under 11 AS 23.15.136, or small business employees, subject to the following conditions: 12 (1) A group insurance policy must [SHALL] provide one or more of 13 the following benefits: life insurance, accidental death and dismemberment insurance, 14 weekly indemnity insurance, hospital expense insurance, surgical expense insurance,
01 dental expense insurance, audiovisual insurance, or other medical care insurance. 02 (2) Each eligible employee of the state, the spouse and the unmarried 03 children chiefly dependent on the eligible employee for support, and each eligible 04 employee of another participating governmental unit shall be covered by the group 05 policy, unless exempt under regulations adopted by the commissioner of 06 administration. 07 (3) A governmental unit may participate under a group policy if 08 (A) its governing body adopts a resolution authorizing 09 participation, and payment of required premiums; 10 (B) a certified copy of the resolution is filed with the 11 Department of Administration; and 12 (C) the commissioner of administration approves the 13 participation in writing. 14 (4) A small business may participate under a group policy if 15 (A) it applies to participate and agrees to payment of 16 required premiums; 17 (B) a certified copy of the application is filed with the 18 Department of Administration; and 19 (C) the commissioner of administration approves the 20 participation in writing. 21 (5) In procuring a policy of group health or group life insurance as 22 provided under this section or excess loss insurance as provided in AS 39.30.091, the 23 Department of Administration shall comply with the dual choice requirements of 24 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 25 transact business in the state under AS 21.09, a hospital or medical service corporation 26 authorized to transact business in this state under AS 21.87, or a health maintenance 27 organization authorized to operate in this state under AS 21.86. An excess loss 28 insurance policy may be obtained from a life or health insurer authorized to transact 29 business in this state under AS 21.09 or from a hospital or medical service corporation 30 authorized to transact business in this state under AS 21.87. 31 (6) [(5)] The Department of Administration shall make available bid
01 specifications for desired insurance benefits or for administration of benefit claims and 02 payments to (A) all insurance carriers authorized to transact business in this state 03 under AS 21.09 and all hospital or medical service corporations authorized to transact 04 business under AS 21.87 who are qualified to provide the desired benefits; and (B) 05 [TO] insurance carriers authorized to transact business in this state under AS 21.09, 06 hospital or medical service corporations authorized to transact business under 07 AS 21.87, and third-party administrators licensed to transact business in this state and 08 qualified to provide administrative services. The specifications shall be made 09 available at least once every five years. The lowest responsible bid submitted by an 10 insurance carrier, hospital or medical service corporation, or third-party administrator 11 with adequate servicing facilities shall govern selection of a carrier, hospital or 12 medical service corporation, or third-party administrator under this section or the 13 selection of an insurance carrier or a hospital or medical service corporation to provide 14 excess loss insurance as provided in AS 39.30.091. 15 (7) [(6)] If the aggregate of dividends payable under the group 16 insurance policy exceeds the governmental unit's share of the premium, the excess 17 shall be applied by the governmental unit for the sole benefit of the employees. 18 (8) [(7)] A person receiving benefits under AS 14.25.110, AS 22.25, 19 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 20 effect under this section at the time of termination of employment with the state or 21 participating governmental unit. 22 (9) [(8)] A person electing to have insurance under (8) [(7)] of this 23 subsection shall pay the cost of this insurance. 24 (10) [(9)] For each permanent part-time state employee electing 25 coverage under this section, the state shall contribute one-half the state contribution 26 rate for permanent full-time state employees, and the permanent part-time employee 27 shall contribute the other one-half. 28 (11) [(10)] A person receiving benefits under AS 14.25, AS 22.25, 29 AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for 30 that person and eligible dependents under this section. The level of coverage for 31 persons over 65 shall be the same as that available before reaching age 65 except that
01 the benefits payable shall be supplemental to any benefits provided under the federal 02 old age, survivors, and disability insurance program. A person electing to have 03 insurance under this paragraph shall pay the cost of the insurance. The commissioner 04 of administration shall adopt regulations implementing this paragraph. 05 (12) [(11)] A person receiving benefits under AS 14.25, AS 22.25, 06 AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person 07 and eligible dependents under this section. A person who elects insurance under this 08 paragraph shall pay the cost of the insurance premium. The commissioner of 09 administration shall adopt regulations to implement this paragraph. 10 (13) [(12)] Each licensee holding a current operating agreement for a 11 vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy 12 that applies to governmental units other than the state. 13 * Sec. 3. AS 39.30.090(b) is amended by adding a new paragraph to read: 14 (4) "small business" means a business that employed an average of at 15 least two but not more than 50 employees on the business days during the preceding 16 calendar year and that employs at least two employees on the first day of a health 17 benefit plan year. 18 * Sec. 4. AS 39.30.090 is amended by adding new subsections to read: 19 (c) The Department of Administration shall provide the insurance coverage 20 described in (a) of this section through a single insurance provider, whether by 21 contract or by self-insurance. The provider shall offer as many plans as required to 22 meet the needs of the policyholder groups. A collective bargaining agreement may 23 not allow an organization representing state employees to be exempt from coverage 24 under this section. 25 (d) The groups listed in (a) of this section shall have priority for coverage in 26 the order listed. If the participation of small business employees would raise the 27 number of covered lives above 50 percent of the covered lives in Alaska, small 28 business employees may not be allowed to participate. 29 * Sec. 5. Section 7 of this Act is repealed July 1, 2003. 30 * Sec. 6. The uncodified law of the State of Alaska is amended by adding a new section to 31 read:
01 NO EFFECT ON CURRENT AGREEMENTS. Nothing in this Act terminates or 02 modifies the terms of a collective bargaining agreement in effect on the effective date of this 03 Act. 04 * Sec. 7. The uncodified law of the State of Alaska is amended by adding a new section to 05 read: 06 GROUP LIFE AND HEALTH INSURANCE FOR PUBLIC OFFICERS AND 07 EMPLOYEES. (a) Not later than July 1, 2003, the Department of Administration shall 08 provide the insurance coverage described in AS 39.30.090(a) through a single insurance 09 provider, whether by contract or by self-insurance. The provider shall offer as many plans as 10 required to meet the needs of the policyholder groups. 11 (b) If a collective bargaining agreement between the state and an organization 12 representing state employees expires before July 1, 2003, the new agreement must provide 13 health insurance through the single insurance provider for state employees. 14 * Sec. 8. Sections 1 - 3 of this Act take effect July 1, 2003.