HB 483: "An Act authorizing state procurement of group insurance for employees of child care facilities, entities licensed as residential child care facilities, child placement agencies, foster homes, and maternity houses, and certain adult residential and day services providers, and for employees of certain nonprofit entities; repealing a provision of the state group insurance procurement law relating to payment of dividends and clarifying a provision of that law relating to part-time employees; authorizing the commissioner of administration to adopt regulations regarding state procurement of group insurance; and providing for an effective date."
00 HOUSE BILL NO. 483 01 "An Act authorizing state procurement of group insurance for employees of child care 02 facilities, entities licensed as residential child care facilities, child placement agencies, 03 foster homes, and maternity houses, and certain adult residential and day services 04 providers, and for employees of certain nonprofit entities; repealing a provision of the 05 state group insurance procurement law relating to payment of dividends and clarifying 06 a provision of that law relating to part-time employees; authorizing the commissioner of 07 administration to adopt regulations regarding state procurement of group insurance; 08 and providing for an effective date." 09 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 10 * Section 1. AS 39.30.090(a) is amended to read: 11 (a) The Department of Administration may obtain a policy or policies of group 12 insurance covering state employees, persons entitled to coverage under AS 14.25.168,
01 AS 22.25.090, AS 39.35.535 or former AS 39.37.145, employees of other 02 participating governmental units, [OR] persons entitled to coverage under 03 AS 23.15.136, or employees of special services organizations, subject to the 04 following conditions: 05 (1) A group insurance policy must [SHALL] provide one or more of 06 the following benefits: life insurance, accidental death and dismemberment insurance, 07 weekly indemnity insurance, hospital expense insurance, surgical expense insurance, 08 dental expense insurance, audiovisual insurance, or other medical care insurance. 09 (2) Each eligible employee of the state, the spouse and the unmarried 10 children chiefly dependent on the eligible employee for support, and each eligible 11 employee of another participating governmental unit or of a special services 12 organization shall be covered by the group policy, unless exempt under regulations 13 adopted by the commissioner of administration. 14 (3) A governmental unit or a special services organization may 15 participate under a group policy if 16 (A) for a governmental unit, its governing body adopts a 17 resolution authorizing participation, and payment of required premiums; 18 (B) for a special services organization 19 (i) that is not a sole proprietorship or solely owned 20 corporation, its governing body adopts a resolution authorizing 21 participation and accepting responsibility for payment of 22 premiums; 23 (ii) that is a sole proprietorship or solely owned 24 corporation, the sole proprietor or sole shareholder signs a 25 statement requesting participation and accepting responsibility for 26 payment of premiums; 27 (C) a certified copy of the resolution, or the original of the 28 statement, as appropriate, is filed with the Department of Administration; 29 and 30 (D) [(C)] the commissioner of administration approves the 31 participation in writing.
01 (4) In procuring a policy of group health or group life insurance as 02 provided under this section or excess loss insurance as provided in AS 39.30.091, the 03 Department of Administration shall comply with the dual choice requirements of 04 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 05 transact business in the state under AS 21.09, a hospital or medical service corporation 06 authorized to transact business in this state under AS 21.87, or a health maintenance 07 organization authorized to operate in this state under AS 21.86. An excess loss 08 insurance policy may be obtained from a life or health insurer authorized to transact 09 business in this state under AS 21.09 or from a hospital or medical service corporation 10 authorized to transact business in this state under AS 21.87. 11 (5) The Department of Administration shall make available bid 12 specifications for desired insurance benefits or for administration of benefit claims and 13 payments to (A) all insurance carriers authorized to transact business in this state 14 under AS 21.09 and all hospital or medical service corporations authorized to transact 15 business under AS 21.87 who are qualified to provide the desired benefits; and (B) to 16 insurance carriers authorized to transact business in this state under AS 21.09, hospital 17 or medical service corporations authorized to transact business under AS 21.87, and 18 third-party administrators licensed to transact business in this state and qualified to 19 provide administrative services. The specifications shall be made available at least 20 once every five years. The lowest responsible bid submitted by an insurance carrier, 21 hospital or medical service corporation, or third-party administrator with adequate 22 servicing facilities shall govern selection of a carrier, hospital or medical service 23 corporation, or third-party administrator under this section or the selection of an 24 insurance carrier or a hospital or medical service corporation to provide excess loss 25 insurance as provided in AS 39.30.091. 26 (6) [IF THE AGGREGATE OF DIVIDENDS PAYABLE UNDER 27 THE GROUP INSURANCE POLICY EXCEEDS THE GOVERNMENTAL UNIT'S 28 SHARE OF THE PREMIUM, THE EXCESS SHALL BE APPLIED BY THE 29 GOVERNMENTAL UNIT FOR THE SOLE BENEFIT OF THE EMPLOYEES. 30 (7)] A person receiving benefits under AS 14.25.110, AS 22.25, 31 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in
01 effect under this section at the time of termination of employment with the state or 02 participating governmental unit. 03 (7) [(8)] A person electing to have insurance under (6) [(7)] of this 04 subsection shall pay the cost of this insurance. 05 (8) [(9)] For each permanent part-time state employee electing 06 coverage under this section, the state shall contribute one-half the state contribution 07 rate for permanent full-time state employees, and the permanent part-time employee 08 shall contribute the other one-half. 09 (9) [(10)] A person receiving benefits under AS 14.25, AS 22.25, 10 AS 39.35, or former AS 39.37 may obtain auditory, visual, and dental insurance for 11 that person and eligible dependents under this section. The level of coverage for 12 persons over 65 shall be the same as that available before reaching age 65 except that 13 the benefits payable shall be supplemental to any benefits provided under the federal 14 old age, survivors, and disability insurance program. A person electing to have 15 insurance under this paragraph shall pay the cost of the insurance. The commissioner 16 of administration shall adopt regulations implementing this paragraph. 17 (10) [(11)] A person receiving benefits under AS 14.25, AS 22.25, 18 AS 39.35, or former AS 39.37 may obtain long-term care insurance for that person 19 and eligible dependents under this section. A person who elects insurance under this 20 paragraph shall pay the cost of the insurance premium. The commissioner of 21 administration shall adopt regulations to implement this paragraph. 22 (11) [(12)] Each licensee holding a current operating agreement for a 23 vending facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy 24 that applies to governmental units other than the state. 25 * Sec. 2. AS 39.30.090(b)(1) is amended to read: 26 (1) "eligible employee" means 27 (A) an employee who has served in permanent full-time or 28 part-time employment with the same governmental unit or special services 29 organization for 30 days or more, including the sole proprietor or the sole 30 shareholder of a proprietorship or corporation described in (4)(A) of this 31 subsection; "eligible employee" does not include [EXCEPT] an emergency
01 or temporary employee; 02 (B) an elected or appointed official of a governmental unit, 03 effective upon taking the oath of office; and 04 (C) a contractual employee of the legislative branch of state 05 government under AS 24.10.060(f) if the employee's personal services contract 06 provides that the employee is entitled to coverage; 07 * Sec. 3. AS 39.30.090(b) is amended by adding a new paragraph to read: 08 (4) "special services organization" means 09 (A) an entity, including a sole proprietorship and a corporation 10 solely owned by one person, 11 (i) operating a child care facility that is licensed under 12 AS 14.37; 13 (ii) operating a residential child care facility, child 14 placement agency, foster home, or maternity home that is licensed 15 under AS 47.35; 16 (iii) operating an assisted living home that is licensed 17 under AS 47.33; 18 (iv) operating a community-based center for adult day 19 care as that term is defined in AS 47.65.290; or 20 (v) providing home care services as defined in 21 AS 47.65.290; 22 (B) a corporation incorporated under AS 10.20 that 23 (i) receives state grants to provide services; or 24 (ii) makes grants to other corporations incorporated 25 under AS 10.20 that receive state grants to provide services; or 26 (C) a nonprofit organization, regardless of whether 27 incorporated, whose primary purpose is to provide assistance to disadvantaged 28 classes or groups. 29 * Sec. 4. AS 39.30 is amended by adding a new section to read: 30 Sec. 39.30.098. Regulations. The commissioner of administration may adopt 31 regulations under AS 44.62 (Administrative Procedure Act) to implement
01 AS 39.30.090 - 39.30.098. 02 * Sec. 5. Section 4 of this Act takes effect immediately under AS 01.10.070(c).