1 New Paragraph; Medical and Surgical Benefits; Retired State Employees; Definition of Spouse. Amend RSA 21-I:30 by inserting after paragraph VII the following new paragraph:

VII-a. For the purposes of this section, "spouse'' means (a) for state employees who retire on or after July 1, 2017, the spouse of the retired employee on the effective date of the retired employee's retirement from active service, and (b) for state employees who retired prior to July 1, 2017, the current spouse of the retired employee on July 1, 2017.

2 Medical and Surgical Benefits; Eligibility; Spouse. Amend RSA 21-I:30, V(b) to read as follows:

(b) If an unmarried retiree marries after retirement, the benefit plan shall be extended to the new spouse. Notwithstanding paragraph II, if a married retiree divorces after retirement, the divorced spouse shall no longer be eligible to participate in the benefit plan but shall be offered a federal COBRA benefit option.

3 New Paragraph; Medical and Surgical Benefits; Group I; Retired Employee Eligibility. Amend RSA 21-I:30 by inserting after paragraph VI the following new paragraph:

VI-a. Notwithstanding the eligibility provisions in this section for state employees, no state employee who commences service on or after July 1, 2017 shall be eligible to be a retired employee as defined in paragraph VI and shall not be eligible to participle in the group medical benefits plan available to group I retired state employees who began service prior to July 1, 2017.

4 New Paragraph; Medical and Surgical Benefits; Group II; Retired Employee Eligibility. Amend RSA 21-I:30 by inserting after paragraph VII the following new paragraph:

VII-a. Notwithstanding the eligibility provisions in this section for state employees, no state employee who commences service on or after July 1, 2017 shall be eligible to be a retired employee as defined in paragraph VII and shall not be eligible to participle in the group medical benefits plan available to group II retired state employees who began service prior to July 1, 2017.

5 Department of Administrative Services; Retired State Employee Defined Contribution Plan for Health Benefits. The commissioner of the department of administrative services shall develop a defined contribution plan for health care to be implemented for non-Medicare-eligible state retirees and Medicare-eligible state retirees by January 1, 2018. Appropriate legislation incorporating the plan and any related statutory changes shall be proposed for introduction prior to January 1, 2018. The plan shall be constructed substantially as follows:

I. A Medicare-eligible defined contribution plan.

(a) The plan shall apply to retirees and spouses eligible for Medicare, and allow Medicare-eligible dependents to participate at full cost to the retiree.

(b) On or after January 1, 2018, the current group plan for Medicare-eligible retirees and spouses and dependents will terminate and the commissioner of administrative services will administer the defined contribution plan for retiree health benefits for retirees, spouses, and dependents who are Medicare eligible.

(c) The Medicare-eligible retiree provisions shall include the department of administrative services paying a defined amount for a retiree and spouse into a health reimbursement arrangement (HRA) administered by a private Medicare exchange that will assist participants with enrollment in individual Medicare health benefit plans.

(d) Minor dependents and disabled adult dependents who are eligible for Medicare may continue to participate at full cost to the retiree.

(e) The commissioner of administrative services shall procure the services of a private Medicare exchange administrator.

(f) The amount of the defined benefit shall be determined annually by the department and approval by the fiscal committee of the general court after a public hearing, within the funds appropriated by the legislature.

(g) If enrollment is greater than projected, the fiscal committee of the general court shall authorize additional funding to provide retiree health benefits.

(h) The reserve requirement in RSA 21-I:30-b would be removed for the Medicare-eligible defined contribution plan, since claims reserve is no longer necessary.

(i) Prior to adoption, the proposed plan design of the Medicare-eligible state retiree defined contribution plan shall be approved by the fiscal committee of the general court after a public hearing.

II. A non-Medicare-eligible state retiree defined contribution plan.

(a) Funding approved in the state budget will determine monthly state paid benefit amount that will presumably increase over time.

(1) On or after January 1, 2018, the department of administrative services shall pay a defined dollar amount monthly for retiree health benefits for all non-Medicare eligible retirees and spouses.

(2) The amount of the state's monthly defined dollar amount shall be determined annually by the department and approved by the fiscal committee of the general court after a public hearing, within the funds appropriated by the legislature.

(3) All non-Medicare eligible retirees and spouses who participate in the plan shall pay the balance of the monthly working rate premium to the department or their benefits will terminate.

(4) Minor dependents and disabled adult dependents who are not eligible for Medicare may continue to participate at full cost to the retiree.

(b). The non-Medicare-eligible state retiree health plan would require retaining a revised version of the reserve requirement in RSA 21-I:30-b since the state retains the claims risk associated with running the non-Medicare-eligible plan.

III. The provision of state retiree health plans and the funding of a defined construction health plan are subject to future appropriations and are not guaranteed.

6 Effective Date.

I. Section 5 of this act shall take effect upon its passage.

II. The remainder of this act shall take effect July 1, 2017.

1 New Paragraph; Medical and Surgical Benefits; Retired State Employees; Definition of Spouse. Amend RSA 21-I:30 by inserting after paragraph VII the following new paragraph:

VII-a. For the purposes of this section, "spouse'' means (a) for state employees who retire on or after July 1, 2017, the spouse of the retired employee on the effective date of the retired employee's retirement from active service, and (b) for state employees who retired prior to July 1, 2017, the current spouse of the retired employee on July 1, 2017.

2 Medical and Surgical Benefits; Eligibility; Spouse. Amend RSA 21-I:30, V(b) to read as follows:

(b) Notwithstanding paragraph II, if a married retiree divorces after retirement, the divorced spouse shall no longer be eligible to participate in the benefit plan but shall be offered a federal COBRA benefit option.

3 New Paragraph; Medical and Surgical Benefits; Group I; Retired Employee Eligibility. Amend RSA 21-I:30 by inserting after paragraph VI the following new paragraph:

VI-a. Notwithstanding the eligibility provisions in this section for state employees, no state employee who commences service on or after July 1, 2017 shall be eligible to be a retired employee as defined in paragraph VI and shall not be eligible to participle in the group medical benefits plan available to group I retired state employees who began service prior to July 1, 2017.

4 New Paragraph; Medical and Surgical Benefits; Group II; Retired Employee Eligibility. Amend RSA 21-I:30 by inserting after paragraph VII the following new paragraph:

VII-a. Notwithstanding the eligibility provisions in this section for state employees, no state employee who commences service on or after July 1, 2017 shall be eligible to be a retired employee as defined in paragraph VII and shall not be eligible to participle in the group medical benefits plan available to group II retired state employees who began service prior to July 1, 2017.

5 Department of Administrative Services; Retired State Employee Defined Contribution Plan for Health Benefits. The commissioner of the department of administrative services shall develop a defined contribution plan for health care to be implemented for non-Medicare-eligible state retirees and Medicare-eligible state retirees by January 1, 2018. Appropriate legislation incorporating the plan and any related statutory changes shall be proposed for introduction prior to January 1, 2018. The plan shall be constructed substantially as follows:

I. A Medicare-eligible defined contribution plan.

(a) The plan shall apply to retirees and spouses eligible for Medicare, and allow Medicare-eligible dependents to participate at full cost to the retiree.

(b) On or after January 1, 2018, the current group plan for Medicare-eligible retirees and spouses and dependents will terminate and the commissioner of administrative services will administer the defined contribution plan for retiree health benefits for retirees, spouses, and dependents who are Medicare eligible.

(c) The Medicare-eligible retiree provisions shall include the department of administrative services paying a defined amount for a retiree and spouse into a health reimbursement arrangement (HRA) administered by a private Medicare exchange that will assist participants with enrollment in individual Medicare health benefit plans.

(d) Minor dependents and disabled adult dependents who are eligible for Medicare may continue to participate at full cost to the retiree.

(e) The commissioner of administrative services shall procure the services of a private Medicare exchange administrator.

(f) The amount of the defined benefit shall be determined annually by the department and approval by the fiscal committee of the general court after a public hearing, within the funds appropriated by the legislature.

(g) If enrollment is greater than projected, the fiscal committee of the general court shall authorize additional funding to provide retiree health benefits.

(h) The reserve requirement in RSA 21-I:30-b would be removed for the Medicare-eligible defined contribution plan, since claims reserve is no longer necessary.

(i) Prior to adoption, the proposed plan design of the Medicare-eligible state retiree defined contribution plan shall be approved by the fiscal committee of the general court after a public hearing.

II. A non-Medicare-eligible state retiree defined contribution plan.

(a) Funding approved in the state budget will determine monthly state paid benefit amount that will presumably increase over time.

(1) On or after January 1, 2018, the department of administrative services shall pay a defined dollar amount monthly for retiree health benefits for all non-Medicare eligible retirees and spouses.

(2) The amount of the state's monthly defined dollar amount shall be determined annually by the department and approved by the fiscal committee of the general court after a public hearing, within the funds appropriated by the legislature.

(3) All non-Medicare eligible retirees and spouses who participate in the plan shall pay the balance of the monthly working rate premium to the department or their benefits will terminate.

(4) Minor dependents and disabled adult dependents who are not eligible for Medicare may continue to participate at full cost to the retiree.

(b). The non-Medicare-eligible state retiree health plan would require retaining a revised version of the reserve requirement in RSA 21-I:30-b since the state retains the claims risk associated with running the non-Medicare-eligible plan.

III. The provision of state retiree health plans and the funding of a defined construction health plan are subject to future appropriations and are not guaranteed.

6 Effective Date.

I. Section 5 of this act shall take effect upon its passage.

II. The remainder of this act shall take effect July 1, 2017.