HB 771-FN – AS INTRODUCED
2007 SESSION
01/10
HOUSE BILL 771-FN
AN ACT extending medical and surgical benefits to domestic partners.
SPONSORS: Rep. Butler, Carr 1; Rep. DeChane, Straf 3; Rep. Levasseur, Hills 11
COMMITTEE: Executive Departments and Administration
This bill extends the state employees’ medical and surgical benefit package to domestic partners of employees.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
07-0863
01/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seven
AN ACT extending medical and surgical benefits to domestic partners.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Purpose and Policy; Domestic Partners 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 including domestic partners, and retired state employees and their spouses or domestic partners. 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 including domestic partners, and retired state employees and their spouses or domestic partners permanent group life insurance and group hospitalization, hospital medical care, surgical care and other medical and surgical insurance benefits.
2 Medical and Surgical Benefits; Domestic Partners 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,] dependents, if any, and each retired employee, as defined in paragraph II of this section, and [his or her] any retired employee’s spouse or domestic partner, or retired employee’s beneficiary, only if an option was taken at the time of retirement and the employee is not now living, 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. For the purposes of this section, “dependents” shall include a spouse, domestic partner, or minor fully dependent child of the state employee or domestic partner.
3 New Paragraph; Definition Added. Amend RSA 21-I:30 by inserting after paragraph II the following new paragraph:
II-a.(a) For the purposes of RSA 21-1:26 to RSA 21-I:36 “domestic partner” means a person in a domestic partnership with a state employee or retired employee as set forth in subparagraph (b).
(b)(1) A domestic partnership exists when a state employee or retired employee subject to this chapter certifies by affidavit to the director of personnel that the employee and domestic partner share a relationship meeting the following criteria:
(A) Both partners are of the same sex.
(B) Both partners share a common residence.
(C) Neither partner is married to a different person nor a member of another domestic partnership.
(D) Neither partner is a parent, parent’s sibling, child, sibling, grandchild, sibling’s child, first cousin, or grandparent of the other partner.
(E) Both partners are at least 18 years of age.
(F) Both partners agree, through domestic partnership agreement, relationship contract or by this affidavit, to a commitment to remain responsible indefinitely for each other’s welfare and to provide for the division of jointly acquired property, if any, in the event of the termination of the relationship.
(2) A domestic partnership shall terminate when either partner notifies the director of personnel by completion of a form prescribed by the director of personnel that the relationship has ended, including by a partner’s marriage to a different person or cessation of common residence. A temporary separation resulting from work, education, or health-related requirements shall not constitute the cessation of a common residence. The director of personnel shall mail a copy of such declaration to the other partner, if applicable, unless both have signed the termination statement. Nothing in this subparagraph shall be construed to deprive a person of benefit continuation eligibility otherwise available under state law, including benefits due a retired employee’s surviving domestic partner or continuation coverage pursuant to subparagraph (d).
(c) Misrepresentation in the affidavit required in subparagraph (b)(1) shall result in an obligation to repay the benefits received, and a civil fine not to exceed $1,000 enforceable by the attorney general and payable to the general fund. A failure to notify the director of personnel of the cessation of the domestic partnership relationship shall result in an obligation to repay any benefits received after the relationship ended.
(d) Notwithstanding any provision of law to the contrary, any group hospitalization, hospital medical care, surgical care and other medical benefits plan or contract or self-funded alternative that provides coverage to domestic partners or surviving domestic partners of state employees and retired employees pursuant to this chapter shall provide such partners and their minor fully dependent children with the equivalent coverage and the equivalent right to continue health care coverage that the state of New Hampshire is obligated to provide to spouses, divorced spouses, or surviving spouses, as the case may be, and their minor fully dependent children, including under the Consolidated Omnibus Budget Reconciliation Act (COBRA), as amended, and RSA 415:18, VII(g).
(e) Notwithstanding any law to the contrary, the state of New Hampshire shall provide enrollment rights to domestic partners or surviving domestic partners of state employees and retired employees, and their minor fully dependent children, that are equivalent to the enrollment rights provided to spouses or surviving spouses, and their minor fully dependent children.
4 Additional Medical and Surgical Benefits. Amend RSA 21-I:30-a, I-III to read as follows:
I. The state shall pay a premium for permanent group hospitalization, hospital medical care, surgical care, and other medical and surgical benefits for the surviving spouse or domestic partner, and dependent children of a deceased group I or group II state employee or retirement system member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:
(a) Any such child shall qualify as a dependent under the provisions of RSA 21-I:26-36 and be under 18 years of age, or if a full-time student, be under 23 years of age.
(b) Any such surviving spouse or domestic partner shall cease to be qualified for medical and surgical benefits under this section upon [the remarriage of] the surviving [spouse] spouse’s or domestic partner’s subsequent entry into a marriage or domestic partnership with another person.
(c) No surviving spouse or dependent children shall be qualified or continue to be qualified for medical and surgical benefits under this section while receiving medical insurance or health care benefits from any other employer-sponsored plan.
(d) The state shall pay the premium for supplemental medical and surgical benefits under this section for any such child who qualifies as a dependent under the provisions of RSA 21-I:26-36 and who is eligible for Medicare benefits.
(e) Any such domestic partner shall only be qualified for medical and surgical benefits under this section if the deceased employee or retired employee had filed the affidavit described in RSA 21-I:30 before his or her death.
II. In the case of the surviving spouse, domestic partner, and dependent children of a group I or group II state employee or retirement system member who are eligible for medical and surgical benefits under this section and also under the provisions of RSA 100-A:50-55, the state shall pay the difference between the amount paid under RSA 100-A:52 and the premium paid under paragraph I.
III. The additional benefits provided under this section shall be available to the surviving spouse or domestic partner, and dependent children of a full-time employee of the state, an agency of the state, or any political subdivision of the state adopting the provisions of RSA 100-A, including full-time elected or appointed officers.
5 Retirement; Medical Insurance Coverage; Domestic Partners Included. Amend RSA 100-A:50, I to read as follows:
I. Every political subdivision of the state that provides for its active employees any group medical insurance or group health care plan, including but not limited to hospitalization, hospital medical care, surgical care, dental care, or other group medical or health care plan, shall permit its employees upon retirement to continue to participate in the same medical insurance or health care group or plan as its active employees. Retired employees shall be deemed to be part of the same group as active employees of the same employer for purposes of determining medical insurance premiums. Coverage for spouses, domestic partners, as defined in RSA 21-I:30, II-a, other family members and beneficiaries of retirees shall also be permitted to the extent that coverage is provided for the spouses, domestic partners, other family members and beneficiaries of active employees. Present retirees not covered shall be permitted to rejoin the active employee health insurance or health care group. Persons retired prior to July 1, 1988, shall be given the opportunity to rejoin the group during a 2-year period, beginning on July 1, 1989, and ending on July 1, 1991. Such persons shall continue to participate in the same coverage as active employees without any benefit waiting period.
6 Payment by Retirement System; Group II. Amend RSA 100-A:52 to read as follows:
100-A:52 Payment by Retirement System; Group II.
I. The New Hampshire retirement system shall pay the cost for permanent group hospitalization, hospital medical care, surgical care and other medical and surgical benefits, in the employer-sponsored plan provided for active employees of a retiree’s former employer, subject to the provisions of RSA 100-A:55, for the following persons:
(a) Any person retired as a group II member of the New Hampshire retirement system on service or disability retirement, provided that such person shall be entitled to retirement on the basis of group II creditable service without including any credit for service as a group I member of the retirement system, or any person retired on or before July 1, 1991, as a group I member whose service retirement benefit is based upon the provisions of RSA 100-A:19-c and who has a minimum of 10 years of creditable service as a group II member.
(b) The surviving spouse of a deceased retired group II member who met the qualifications of subparagraph (a), or of a deceased member who died while in service as a group II member, provided that such surviving spouse was covered as the member’s spouse in the employer-sponsored plan before the member’s death and is entitled to a monthly allowance under RSA 100-A:8, 100-A:9, 100-A:12 or 100-A:13.
(c) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member’s spouse or domestic partner, or the qualified surviving spouse or domestic partner.
(d) The surviving spouse or domestic partner and children of a deceased group II member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:
(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and
(2) Such surviving spouse or domestic partner shall cease to be qualified upon [the remarriage of] the surviving [spouse] spouse’s or domestic partner’s subsequent entry into a marriage or domestic partnership with another person; and
(3) No surviving spouse, domestic partner, or child shall be qualified or continue to be qualified under this subparagraph while receiving or eligible to receive medical insurance or health care benefits from any employer-sponsored plan.
(e) Any person who, prior to July 1, 1988, had completed no less than 20 years of group II creditable service, but who for reasons other than retirement or death ceased to be a group II member prior to attaining the age of 45, and who, as of July 1, 1993, is eligible for vested deferred retirement benefits.
(f) Persons who are group II permanent policemen members on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty who become permanent policemen members of group II after June 30, 1988, but before July 1, 1991.
(g) The spouse or domestic partner of a qualified retiree, until death [or] remarriage, or entry into a domestic partnership with another person.
(h) The surviving domestic partner of a deceased retired group II member who met the qualifications of subparagraph (a), or of a deceased member who died while in service as a group II member, provided that such surviving domestic partner was covered as the member’s domestic partner in the employer-sponsored plan before the member’s death.
II. However, for the fiscal year beginning July 1, 1990, the maximum amount payable by the retirement system under this subdivision on account of each person qualified under paragraph I who is not entitled to Medicare benefits, shall be $101.50 per month, and on account of each person qualified under paragraph I who is entitled to Medicare benefits, shall be $64 per month. As of July 1, 1991, and on each July 1 thereafter, the maximum amount payable by the retirement system as provided in this paragraph shall be increased by 8 percent, compounded on previous increases.
III. In the case of group II members retired from state employment before July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the balance shall be paid by the state as provided in RSA 21-I:26-36.
III-a. In the case of group II members retired from state employment on or after July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the state shall pay its portion as provided in RSA 21-I:26-36. If the cost of the premium for any retired group II member and spouse or domestic partner, surviving spouse or domestic partner, or any other person entitled to benefits under paragraph I shall exceed the maximum under paragraph II, and the state does not elect to pay the excess cost above the amount to be paid under RSA 21-I:26-36, the excess cost shall be paid by the retiree or qualified surviving spouse or domestic partner and may be deducted from retirement benefits as provided in RSA 100-A:51. The state may require, as a condition for coverage, that the retiree or surviving spouse or domestic partner apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.
IV. In the case of group II members retired from employment by political subdivisions of the state, the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided through the former employer for qualified persons. If the cost of the premium for any retired group II member or surviving spouse or domestic partner shall exceed the maximum under paragraph II, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse or domestic partner and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse or domestic partner apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.
V. There shall be no age limit to participate in the medical and health benefits provided in paragraph I, and there shall be no physical examination or health statement required for such coverage, provided, however, that if an eligible retired group II member of the retirement system fails to apply for such coverage within the time required by the insurance contract, the insurer may require satisfactory evidence of insurability as a condition for becoming insured.
VI. Any group II member retired before July 1, 1988, or surviving spouse, who would have been eligible for medical benefits under this section if this section had been in effect on the member’s date of retirement, shall have the option of re-joining the medical or health plan sponsored by the retired member’s former employer and of receiving benefits under this section, provided that such retired member or surviving spouse shall apply to the employer for such benefits before July 1, 1989. Upon receipt of such application, the former employer shall enroll such retiree or other eligible person in the employer’s plan in the same manner and subject to the same conditions as enrollment of a new employee but without any benefit-waiting period which may be applicable to new employees of that employer. Neither an employer nor an employer’s group plan or insurer shall be liable for any claims incurred prior to the date of enrollment under this paragraph.
VII. The retirement system shall notify all group II retirees and surviving spouse or domestic partner beneficiaries, who are currently drawing monthly allowances from the retirement system, of their possible right to re-join an active-employee medical insurance or health plan and to receive benefits under this section, and shall provide assistance to them in the preparation of the necessary application.
VIII. Any person who is eligible to receive group insurance or other medical benefits under the provisions of this section, but who does not need and who declines such benefits because they would be duplicative of coverage under any employer-sponsored plan, shall nevertheless continue to be eligible and, upon ceasing to be eligible for the other coverage, shall be permitted to receive the benefits allowable under this section without any waiting period.
7 Payment by Retirement System; Group I. Amend RSA 100-A:52-b, I(e)-(h) to read as follows:
(e) Any certifiably dependent child with a disability living in the household and being cared for by the qualified retired member, the member’s spouse or domestic partner, or the qualified surviving spouse or domestic partner.
(f) The surviving spouse or domestic partner and children of a deceased group I member who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:
(1) Any such child shall be qualified under this subparagraph only if under 18 years of age, or under 23 years of age if attending school on a full-time basis; and
(2) Such surviving spouse or domestic partner shall cease to be qualified upon [the remarriage of] the surviving [spouse] spouse’s or domestic partner’s subsequent entry into a marriage or domestic partnership with another person; and
(3) No surviving spouse, domestic partner, or child shall be qualified or continue to be qualified under this subparagraph while receiving or eligible to receive medical insurance or health care benefits from any employer’s sponsored plan.
(g) Any group I member retired on or before July 1, 2004 on disability retirement as the natural and proximate result of injuries suffered while in the performance of duty.
(h) The spouse or domestic partner of a qualified retiree, until death [or], remarriage, or entry into a domestic partnership with another person.
(i) The surviving domestic partner of a deceased retired group I member who met the qualifications of subparagraphs (a), (b) or (c), or of a deceased member who died while in service as a group I member, provided that such surviving domestic partner was covered as the member’s spouse in the employer-sponsored plan before the member’s death.
8 Payment by Retirement System; Group I; Domestic Partners Added. Amend RSA 100-A:52-b, IV-VI to read as follows:
IV. In the case of group I members retired from employment by political subdivisions of the state, the amount payable by the retirement system on account of qualified persons shall be paid over to the employer, insurer, or health care administrator and used to pay for all or part of the medical benefits provided through the former employer for qualified persons. If the cost of the premium for any eligible person under paragraph I shall exceed the maximum under paragraph III, and the employer does not elect to pay the excess cost, the excess cost shall be paid by the retiree or qualified surviving spouse or domestic partner and may be deducted from retirement benefits as provided in RSA 100-A:51. The employer may require, as a condition for coverage, that the retiree or surviving spouse or domestic partner apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.
V. As of July 1, 2001, in the case of group I members retired from state employment before July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the balance shall be paid by the state as provided in RSA 21-I:26-36.
VI. As of July 1, 2001, in the case of group I members retired from state employment on or after July 1, 1991, and their beneficiaries who are eligible for coverage under this subdivision and also under the provisions of RSA 21-I:26-36, the amount payable by the retirement system on account of such persons shall be paid over to the state and used to pay for all or part of the medical benefits provided under RSA 21-I:26-36 for such persons, and the state shall pay its portion as provided in RSA 21-I:26-36. If the cost of the premium for any retired group I member and spouse, or domestic partner surviving spouse, surviving domestic partner, or any other person entitled to benefits under paragraph I shall exceed the maximum under paragraph III, and the state does not elect to pay the excess cost above the amount to be paid under RSA 21-I:26-36, the excess cost shall be paid by the retiree or qualified surviving spouse or domestic partner and may be deducted from retirement benefits as provided in RSA 100-A:51. The state may require, as a condition for coverage, that the retiree or surviving spouse or domestic partner apply for deduction of such excess cost from retirement benefits as provided in RSA 100-A:51.
9 Payment by Retirement System; Group I. Amend RSA 100-A:52-b, X to read as follows:
X. The retirement system shall notify all group I teacher and political subdivision employee retirees and surviving spouse or domestic partner beneficiaries, who are currently drawing monthly allowances from the retirement system, of their possible right to re-join and active-employee medical insurance or health plan and to receive benefits under this section.
10 Effective Date. This act shall take effect 60 days after its passage.
LBAO
07-0863
Revised 02/02/07
HB 771 FISCAL NOTE
AN ACT extending medical and surgical benefits to domestic partners.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state expenditures by $380,000 in FY 2007, $830,000 in FY 2008, $935,000 in FY 2009, $1,051,221 in FY 2010, and $1,181,887 in FY 2011. There will be no fiscal impact on county and local expenditures or state, county, and local revenues.
METHODOLOGY:
The Department of Administrative Services states this bill provide domestic partners of State of New Hampshire employees medical and surgical benefits. The costs to provide coverage are based on actuarial estimates of medical claims of approximately $152 million in FY 2007, $166 million in FY 2008, and $187 million in FY 2009. For FY 2010 and FY 2011 actuarial estimates for total claims were not available. For those two years the Department applied a factor of 12.43% to both FY 2009 and FY 2010 projected claims. The 12.43% factor is based on percent increase in medical claim activity from FY 2009 over FY 2008. The costs were calculated as follows:
FY
2007 ($152 million x .005)/2 = $380,000
2008 $166 million x .005 = $830,000
2009 $187 million x .005 = $935,000
2010 $935,000 x 1.1243 = $1,051,221
2011 $1,051,220 x 1.1243 = $1,181,887
This bill does not appropriate funds for the increased cost to the state health insurance program.