HB1544 (2012) Detail

Adding state and local government part-time and public employees to employees eligible to participate in the state group insurance coverage.


HB 1544-FN – AS INTRODUCED

2012 SESSION

12-2399

01/04

HOUSE BILL 1544-FN

AN ACT adding state and local government part-time and public employees to employees eligible to participate in the state group insurance coverage.

SPONSORS: Rep. Marshall Quandt, Rock 13; Rep. Copeland, Rock 13; Rep. Matt Quandt, Rock 13

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill allows state and local government part-time and public employees 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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

12-2399

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twelve

AN ACT adding state and local government part-time and public employees to employees eligible to participate in the state group insurance coverage.

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

1 Part-Time and Public Employees 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. This subdivision also provides such benefits for part-time public employees in the state of New Hampshire and its political subdivisions at a pro-rated rate of the negotiated premium. 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 all state and public 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 Part-Time State and Public 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 pro-rated premium for part-time state and public employees 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. Part-time state employees in the state of New¬†Hampshire and its political subdivisions may participate in the group insurance plan at a pro-rated rate of the negotiated premium. Funds appropriated for this purpose shall not be transferred or used for any other purpose.

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, public employees of the political subdivisions of the state and part-time state employees may participate in the group insurance plans at a pro-rated rate of the negotiated premium.

4 Part-Time Employees. Amend RSA 98-A:6-a to read as follows:

98-A:6-a Health and Dental Benefits. Any individual employed in state service on a part-time basis whose employment calls for 30 hours or more work in a normal calendar week[, and whose position is anticipated to have a duration of 6 months or more,] shall be entitled to elect to receive such health and dental benefits as are afforded full-time state employees[, except that the state’s share of the cost of such benefits shall be decreased by a factor equal to the difference between 37.5 hours and the number of hours such individual works in a normal calendar week, divided by 37.5 hours. The remaining costs of health and dental benefits which any such individual elects to receive pursuant to this section shall be withheld from such individual’s salary as a payroll deduction] at a pro-rated rate of the negotiated premium.

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

LBAO

12-2399

12/13/11

HB 1544-FN - FISCAL NOTE

AN ACT adding state and local government part-time and public employees to employees eligible to participate in the state group insurance coverage.

FISCAL IMPACT:

      The Department of Administrative Services, New Hampshire Association of Counties, and New Hampshire Municipal Association state this bill may have an indeterminable impact on state revenues and state, county, and local expenditures in FY 2012 and each year thereafter. There will be no impact on county or local revenue.

METHODOLOGY:

    The Department of Administrative Services states this bill permits part-time state employees and public employees of political subdivisions to enroll in the state’s group insurance plans (State Plans) and requires the state to pay an undefined “pro-rated” premium toward benefits of public employees of political subdivisions. The Department states State Plan programs are not designed to administer the benefits of other employers, including political subdivisions and in order for the Department to administer the State Plans to include political subdivisions it would need to fund and staff an actuarial, auditing, compliance, communications, data processing, record-keeping, and customer service infrastructure, as the current structure serves a single employer. The Department states it is unable to precisely calculate the fiscal impact of such an expansion but states it currently expects to expend $1,300,000 in FY 2011 for consultants and dedicated staff costs, and believes expanding the programs to cover political subdivisions could run two to three times as much, or an increase of $1,300,000 to $2,600,000 per fiscal year. The Department also states this bill would require the state to fund a portion of the premium for employees for political subdivisions. The Department states it does not possess the data necessary to estimate the fiscal impact of this provision, but does state each newly eligible employee of political subdivisions who elect to enroll in State Plans would result in an impact on state expenditures. Finally, the Department states this bill expands the definition of part-time state employees entitled to elect to enroll in State Plans. The Department states it is unable to determine the number of part-time state employees that would be affected as agency reporting for benefit purposes is limited to benefit eligible part-time employees expected to work 30 plus hours weekly and have a duration of at least six months, and this bill deletes the requirement of the six month employment duration to be eligible to enroll in State Plans. Ultimately, the Department does not possess the necessary data to determine this bills impact on state revenues or expenditures.

    The New Hampshire Association of Counties states this bill allows county employees to participate in the state’s group insurance plans (State Plans). The Association states since this bill is only enabling, counties would make individual determinations relating to participation based on a costs and benefit between State Plans and other plans. The Association assumes counties would only decide to participate in the State Plans if county expenditures for health insurance costs would decrease.

    The New Hampshire Municipal Association states this bill would allow employees of political subdivisions to participate in the state’s group insurance plans (State Plans). The Association states if some municipal employees choose to participate in the State Plans it may reduce local expenditures. The Association states it is impossible to predict if any participation would occur and cannot estimate a fiscal impact of this bill.

Links

HB1544 at GenCourtMobile

Action Dates

Date Body Type

Bill Text Revisions

HB1544 Revision: 21589 Date: Dec. 22, 2011, midnight

Docket