Revision: March 9, 2017, 1:25 p.m.
SB 215-FN - AS AMENDED BY THE SENATE
03/09/2017 0568s
2017 SESSION
17-0965
01/04
SENATE BILL 215-FN
AN ACT permitting the community college system to participate in the state health care plan.
SPONSORS: Sen. Feltes, Dist 15; Sen. Soucy, Dist 18; Rep. Shurtleff, Merr. 11; Rep. Gile, Merr. 27; Rep. Wallner, Merr. 10
COMMITTEE: Executive Departments and Administration
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This bill permits the community college system to participate in the state group health insurance plan.
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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
03/09/2017 0568s 17-0965
01/04
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Seventeen
AN ACT permitting the community college system to participate in the state health care plan.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 State Employee Group Insurance; Community College System 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 shall also provide access to such benefits, except permanent group life insurance, for the community college system at a cost to the applicable employer to be determined by the commissioner of the department of administrative services. 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 New Paragraph; Medical and Surgical Benefits; Community College System Added. Amend RSA 21-I:30 by inserting after paragraph I the following new paragraph:
I-a. The community college system may participate in the group insurance plans provided that:
(a) Prior to any agreement between the department of administrative services and the community college system, the community college system shall provide the department of administrative services with a data file of its health and basic life plan members and the cost data associated with their medical and pharmacy insurance claims for the last 2 years and the department of administrative services shall undertake an assessment of the costs and benefits of the community college system’s participation in such plans.
(b) The department of administrative services and the community college system agree on the effective date and the duration of community college system participation in such group insurance plans.
(c) The community college system agrees it would not offer third-party group insurance plans and it agrees to pay the department of administrative services all of associated administrative costs of managing the community college system employee and dependent participation, including any periodic cost increases, reserve adjustments, and reserve requirements.
(d) The community college system agrees to accept the terms of such plans that are collectively bargained every 2 years by the department of administrative services.
(e) The community college system agrees to maintain current employee records including eligibility and enrollment data as required by the department of administrative services.
3 Eligibility. 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, the community college system may participate in the group insurance plans, except permanent group life insurance, at a cost to the employer to be determined by the commissioner of the department of administrative services.
4 Effective Date. This act shall take effect 60 days after its passage.
17-0965
1/26/17
SB 215-FN- FISCAL NOTE
AS INTRODUCED
AN ACT permitting the community college system to participate in the state health care plan.
FISCAL IMPACT: [ X ] State [ ] County [ ] Local [ ] None
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| Estimated Increase / (Decrease) | |||
STATE: | FY 2018 | FY 2019 | FY 2020 | FY 2021 |
Appropriation | $0 | $0 | $0 | $0 |
Revenue | $0 | $0 | $0 | $0 |
Expenditures | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase | Indeterminable Increase |
Funding Source: | [ ] General [ ] Education [ ] Highway [ X ] Employee and Retiree Benefit Risk Management Fund | |||
METHODOLOGY:
This bill permits the Community College System of NH (CCSNH) to participate in the state health care plan. The Department of Administrative Services (DAS) states that making the state’s active health benefit plan available to the CCSNH employees and family members will be in addition to the other health benefit plans already offered to CCSNH employees. These other health benefit plans are high deductible plans with high out-of-pocket costs compared to the state health care plan. It is therefore likely that CCSNH employees will choose the state health benefit plan and even more so for those employees with higher out-of-pocket costs. DAS bills agencies by subscriber and estimates a CCSNH active employee population of as many as 700 subscribers (a “subscriber” is an individual employee, or an employee and spouse with dependent children, if applicable). DAS would require assistance with benefits administration and would need a 0.5 FTE position, program specialist II, labor grade 28, step 1 at a cost of $33,210 in FY 2018; $31,820 in FY 2019; $32,999 in FY 2020; and $34,448 in FY 2021. DAS indicates this bill will increase the cost of the state’s active health benefit plan by a significant, but indeterminable amount. CCSNH is unable to estimate a fiscal impact, as the cost to CCSNH would be determined by the Commissioner of DAS. CCSNH anticipates some duplicative administrative costs that will increase administrative expenses.
AGENCIES CONTACTED:
Department of Administrative Services and Community College System of New Hampshire