Bill Text - SB279 (2006)

Allowing employees of area agencies and mental health clinics to be treated as state employees for purposes of insurance.


Revision: Jan. 21, 2010, midnight

SB 279-FN – AS INTRODUCED

2006 SESSION

06-2008

01/03

SENATE BILL 279-FN

AN ACT allowing employees of area agencies and mental health clinics to be treated as state employees for purposes of insurance.

SPONSORS: Sen. Burling, Dist 5; Sen. Fuller Clark, Dist 24; Rep. Bleyler, Graf 9

COMMITTEE: Banks and Insurance

ANALYSIS

This bill allows employees of area agencies and community mental health centers to participate in the state group insurance coverage.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

06-2008

01/03

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

AN ACT allowing employees of area agencies and mental health clinics to be treated as state employees for purposes of insurance.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Employees of Area Agencies and Community Mental Health Centers Added. Amend RSA 21-I:26 to read as follows:

21-I:26 Purpose and Policy. This subdivision is to provide permanent group life insurance and group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits for New Hampshire state employees and their families, and retired state employees and their spouses, and employees of area agencies and community mental health centers and their families. In view of the accepted value of group insurance to the well-being and efficiency of employees on the part of small and large private employers and the other 5 New England states in obtaining benefits of this type of insurance for their employees, the state of New Hampshire implements this subdivision in order that the state shall compare favorably to the standards now commonly accepted by private employers and the state employees in the other 5 New England states by making available to state employees and their families and retired state employees and their spouses permanent group life insurance and group hospitalization, hospital medical care, surgical care, and other medical and surgical insurance benefits.

2 Certain Employees Added. Amend RSA 21-I:30, I to read as follows:

I. The state shall pay a premium for each state employee and permanent temporary or permanent seasonal employee as defined in RSA 98-A:3 including spouse and minor, fully dependent children, if any, and each retired employee, as defined in paragraph II of this section, and his or her spouse, or retired employee’s beneficiary, only if an option was taken at the time of retirement and the employee is not now living, and a premium for employees of area agencies and community mental health centers and their families toward group hospitalization, hospital medical care, surgical care, and other medical benefits plan or a self-funded alternative within the limits of the funds appropriated at each legislative session and providing any change in plan or vendor is approved by the fiscal committee of the general court prior to its adoption. Funds appropriated for this purpose shall not be transferred or used for any other purpose. Employees of area agencies and community mental health centers and their employees may participate in the group insurance plans.

3 Certain Employees Added. Amend RSA 21-I:32 to read as follows:

21-I:32 Eligibility.

I. Only full time state employees shall be authorized to participate, on a voluntary basis, in the permanent group life insurance program. All full time state employees and retired state employees shall be authorized to participate, on a voluntary basis, in the group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits program.

II. Notwithstanding paragraph I, employees of area agencies and community mental health centers and their families may participate in the group insurance plans.

4 Effective Date. This act shall take effect 60 days after its passage.

LBAO

06-2008

Revised 12/27/05

SB 279 FISCAL NOTE

AN ACT allowing employees of area agencies and mental health clinics to be treated as state employees for purposes of insurance.

FISCAL IMPACT:

The Department of Administrative Services states this bill will increase state general fund expenditures by $54,539 in FY 2007, $52,733 in FY 2008, $54,895 in FY 2009, and $57,086 in FY 2010. This bill will increase state restricted revenue and expenditures by an indeterminable amount in FY 2007 and each year thereafter. There will be no fiscal impact on county and local revenue or expenditures.

METHODOLOGY:

The Department does not know how many subscribers and their dependents will participate in the State’s self-insurance plan as a result of this bill, which authorizes certain individuals other than state employees and retirees to participate in the state medical benefits plan, at the state’s expense. To the extent the individuals enroll in the plan, the current active network monthly working rates for the State Health Care Fund are $474 for a one person plan, $943 for a two-person plan, and $1,506 for a family plan. The Department cannot estimate the amount of revenue (working rates) that will be deposited into the state health care fund, or the impact these individuals will have on paid claims from the fund at this time. The Department states any increase in subscriber coverage will require additional staffing for billing and servicing, which will be funded from the state general fund. The Department estimates costs for a Program Specialist II (LG 21) position would be $33,014 for salary, $2,000 for current expenses, $4,000 for equipment, $14,525 for benefits, and $1,000 for in-state travel resulting in a total cost of $54,539 in the first year. Assuming $200 in equipment costs in each subsequent year, and one step in FY 2008 and each year thereafter, the costs for the position would total $52,733 in FY 2008, $54,895 in FY 2009, and $57,086 in FY 2010.

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