HB1426 (2012) Detail

Relative to employer negotiations for health care coverage.


HB 1426-LOCAL – AS INTRODUCED

2012 SESSION

12-2166

06/10

HOUSE BILL 1426-LOCAL

AN ACT relative to employer negotiations for health care coverage.

SPONSORS: Rep. Kurk, Hills 7

COMMITTEE: Municipal and County Government

ANALYSIS

This bill gives municipalities the option of drafting new health care plans for their 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2166

06/10

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT relative to employer negotiations for health care coverage.

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

1 New Subdivision; Municipal Health Insurance. Amend RSA 31 by inserting after section 133 the following new subdivision:

Municipal Health Insurance

31:134 Purpose. Given the severe fiscal crisis facing municipalities, the purpose of this section is to allow municipalities to achieve cost savings on municipal group health insurance.

31:135 Municipal Health Insurance Coverage; Negotiations.

I. Notwithstanding any law to the contrary, a town may, in order to achieve reductions in health care expenditures, elect to notify the representative of each bargaining unit that it desires to engage in a process to reduce health insurance costs.

II. The governing body of the town and the representative of the bargaining unit shall negotiate an agreement which shall determine how the health care plan shall be modified.

III. The governing body and the representative of the bargaining unit shall determine how the resulting cost savings shall be shared. Cost savings for purposes of this section shall mean the decrease in the town’s share of the total premium costs for the fiscal year. At least 1/4 of the cost savings shall be returned to the town’s general operating budget, and at least 1/4 of the cost savings realized shall be returned to the employees in the form of premium reductions, premium contributions paid by the town, health reimbursement accounts, wellness programs, health care trust funds for emergency medical care or inpatient hospital care, Medicare Part B reimbursements or other qualified medical expenses, as determined through negotiation.

31:136 Resolution of Disputes.

I. If the governing body of the town and the representative of the bargaining unit have not reached an agreement within 45 days after their first meeting, any unresolved issues shall be submitted to an arbitrator with expertise in municipal health benefits selected by the parties under the rules of the American Arbitration Association.

II. The form of arbitration shall be last best offer, issue by issue. The arbitrator shall have the power to administer oaths and to require by subpoena the attendance and testimony of witnesses, production of books, records, and other evidence relative to or pertinent to the issues. The cost of arbitration shall be shared equally by the town and the bargaining unit. No person acting as an arbitrator under this section shall be required by any administrative, arbitration, or non-criminal judicial tribunal to disclose any files, records, documents, notes, or other papers or be required to testify with regard to any information obtained while functioning as an arbitrator under this subdivision.

III. The arbitrator shall issue a decision not later than 45 days after the unresolved issues are submitted to him or her. The arbitrator shall decide any issues not resolved by the parties, including how the remaining cost savings shall be shared.

IV. In reaching a decision, the arbitrator shall consider the town’s ability to pay, existing premium contribution ratios between the town and the employees, intended use of savings by the town, any historical negotiations or concessions by retirees on benefits, and the historical negotiations on benefits and salary including total compensation, and all other evidence.

V. The arbitrator’s decision, if supported by material and substantive evidence on the whole record, shall be binding upon the parties, unless the decision of the arbitrator is rejected by the governing body of the town by a 2/3 vote within 30 days. If the town rejects the decision of the arbitrator, the town shall not implement any changes to the existing health care plan.

31:137 Health Reimbursement Accounts. A town that reduces the actuarial value of the health care plans may provide health reimbursement accounts to reimburse employees for qualified medical expenses. Qualified medical expenses may include, but shall not be limited to, out-of-pocket costs such as inpatient and outpatient copayments, calendar year deductibles, office visit copayments, and prescription drug copayments.

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