SB 142: "An Act relating to municipal and state group health insurance plans and policies, including self-insured plans and policies, and the administration and management of pharmacy benefits; and providing for an effective date."
00 SENATE BILL NO. 142 01 "An Act relating to municipal and state group health insurance plans and policies, 02 including self-insured plans and policies, and the administration and management of 03 pharmacy benefits; and providing for an effective date." 04 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 05 * Section 1. AS 29.10.200 is amended by adding a new paragraph to read: 06 (68) AS 29.20.420 (health care insurance plans). 07 * Sec. 2. AS 29.20 is amended by adding a new section to article 5 to read: 08 Sec. 29.20.420. Health care insurance plans. (a) Except as provided in (c) of 09 this section, a municipality that offers a group health care insurance plan covering 10 municipal employees, including by means of self-insurance, and the plan's pharmacy 11 benefits manager are subject to AS 21.27.901 - 21.27.975 and AS 21.36.520. 12 (b) This section applies to home rule and general law municipalities. 13 (c) This section does not apply to a health care insurance plan subject to the 14 provisions of 29 U.S.C. 1001 - 1191 (Employee Retirement Income Security Act of
01 1974). 02 (d) In this section, "health care insurance plan" has the meaning given in 03 AS 21.54.500. 04 * Sec. 3. AS 39.30.090(a) is amended to read: 05 (a) The Department of Administration may obtain a policy or policies of group 06 insurance covering state employees, persons entitled to coverage under AS 14.25.168, 07 14.25.480, AS 22.25.090, AS 39.35.535, 39.35.880, or former AS 39.37.145, 08 employees of other participating governmental units, or persons entitled to coverage 09 under AS 23.15.136, subject to the following conditions: 10 (1) a group insurance policy shall provide one or more of the following 11 benefits: life insurance, accidental death and dismemberment insurance, weekly 12 indemnity insurance, hospital expense insurance, surgical expense insurance, dental 13 expense insurance, audiovisual insurance, or other medical care insurance; 14 (2) each eligible employee of the state, the spouse and the unmarried 15 children chiefly dependent on the eligible employee for support, and each eligible 16 employee of another participating governmental unit shall be covered by the group 17 policy, unless exempt under regulations adopted by the commissioner of 18 administration; 19 (3) a governmental unit may participate under a group policy if 20 (A) its governing body adopts a resolution authorizing 21 participation and payment of required premiums; 22 (B) a certified copy of the resolution is filed with the 23 Department of Administration; and 24 (C) the commissioner of administration approves the 25 participation in writing; 26 (4) in procuring a policy of group health or group life insurance as 27 provided under this section or excess loss insurance as provided in AS 39.30.091, the 28 Department of Administration shall comply with the dual choice requirements of 29 AS 21.86.310, and shall obtain the insurance policy from an insurer authorized to 30 transact business in the state under AS 21.09, a hospital or medical service corporation 31 authorized to transact business in this state under AS 21.87, or a health maintenance
01 organization authorized to operate in this state under AS 21.86; an excess loss 02 insurance policy may be obtained from a life or health insurer authorized to transact 03 business in this state under AS 21.09 or from a hospital or medical service corporation 04 authorized to transact business in this state under AS 21.87; 05 (5) the Department of Administration shall make available bid 06 specifications for desired insurance benefits or for administration of benefit claims and 07 payments to (A) all insurance carriers authorized to transact business in this state 08 under AS 21.09 and all hospital or medical service corporations authorized to transact 09 business under AS 21.87 who are qualified to provide the desired benefits; and (B) 10 insurance carriers authorized to transact business in this state under AS 21.09, hospital 11 or medical service corporations authorized to transact business under AS 21.87, and 12 third-party administrators licensed to transact business in this state and qualified to 13 provide administrative services; the specifications shall be made available at least once 14 every five years; the lowest responsible bid submitted by an insurance carrier, hospital 15 or medical service corporation, or third-party administrator with adequate servicing 16 facilities shall govern selection of a carrier, hospital or medical service corporation, or 17 third-party administrator under this section or the selection of an insurance carrier or a 18 hospital or medical service corporation to provide excess loss insurance as provided in 19 AS 39.30.091; 20 (6) if the aggregate of dividends payable under the group insurance 21 policy exceeds the governmental unit's share of the premium, the excess shall be 22 applied by the governmental unit for the sole benefit of the employees; 23 (7) a person receiving benefits under AS 14.25.110, AS 22.25, 24 AS 39.35, or former AS 39.37 may continue the life insurance coverage that was in 25 effect under this section at the time of termination of employment with the state or 26 participating governmental unit; 27 (8) a person electing to have insurance under (7) of this subsection 28 shall pay the cost of this insurance; 29 (9) for each permanent part-time employee electing coverage under 30 this section, the state shall contribute one-half the state contribution rate for permanent 31 full-time state employees, and the permanent part-time employee shall contribute the
01 other one-half; 02 (10) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 03 or former AS 39.37 may obtain auditory, visual, and dental insurance for that person 04 and eligible dependents under this section; the level of coverage for persons over 65 05 shall be the same as that available before reaching age 65 except that the benefits 06 payable shall be supplemental to any benefits provided under the federal old age, 07 survivors, and disability insurance program; a person electing to have insurance under 08 this paragraph shall pay the cost of the insurance; the commissioner of administration 09 shall adopt regulations implementing this paragraph; 10 (11) a person receiving benefits under AS 14.25, AS 22.25, AS 39.35, 11 or former AS 39.37 may obtain long-term care insurance for that person and eligible 12 dependents under this section; a person who elects insurance under this paragraph 13 shall pay the cost of the insurance premium; the commissioner of administration shall 14 adopt regulations to implement this paragraph; 15 (12) each licensee holding a current operating agreement for a vending 16 facility under AS 23.15.010 - 23.15.210 shall be covered by the group policy that 17 applies to governmental units other than the state; 18 (13) a group health insurance policy covering employees of a 19 participating governmental unit, except for a group health insurance policy 20 subject to the provisions of 29 U.S.C. 1001 - 1191 (Employee Retirement Income 21 Security Act of 1974), is subject to AS 21.27.901 - 21.27.975 and AS 21.36.520, 22 including requirements relating to administration and management of pharmacy 23 benefits under the policy. 24 * Sec. 4. AS 39.30.091 is amended to read: 25 Sec. 39.30.091. Authorization for self-insurance and excess loss insurance. 26 Notwithstanding AS 21.86.310 or AS 39.30.090, the Department of Administration 27 may provide, by means of self-insurance, one or more of the benefits listed in 28 AS 39.30.090(a)(1) for state employees eligible for the benefits by law or under a 29 collective bargaining agreement and for persons receiving benefits under AS 14.25, 30 AS 22.25, AS 39.35, or former AS 39.37, and their dependents. The department shall 31 procure any necessary excess loss insurance under AS 39.30.090. Except for a health
01 insurance plan subject to the provisions of 29 U.S.C. 1001 - 1191 (Employee 02 Retirement Income Security Act of 1974), a self-insured group health insurance 03 plan covering active state employees provided under this section and the plan's 04 pharmacy benefits manager are subject to AS 21.27.901 - 21.27.975 and 05 AS 21.36.520, including requirements relating to administration and 06 management of pharmacy benefits under the plan. 07 * Sec. 5. This Act takes effect January 1, 2026.