Bill Text - SB215 (2018)

(Second New Title) permitting the university system of New Hampshire and the community college system of New Hampshire to participate in the state health insurance plan.


Revision: Feb. 15, 2018, 7:42 p.m.

SB 215-FN - VERSION ADOPTED BY BOTH BODIES

 

03/09/2017   0568s

4May2017... 1527h

3Jan2018... 2511h

2017 SESSION

17-0965

01/04

 

SENATE BILL 215-FN

 

AN ACT permitting the university system of New Hampshire and the community college system of New Hampshire to participate in the state health insurance 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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AMENDED ANALYSIS

 

This bill permits the university system of New Hampshire and the community college system of New Hampshire to participate in the state group health insurance plan under certain circumstances.

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.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

4May2017... 1527h

3Jan2018... 2511h 17-0965

01/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT permitting the university system of New Hampshire and the community college system of New Hampshire to participate in the state health insurance plan.

 

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

 

1  State Employees Group Insurance; Administration.  Amend RSA 21-I:27, I to read as follows:

I.  Administration of the state employees permanent group life and state employees and retirees group hospitalization, hospital medical care, surgical care and other medical and surgical insurance benefits shall be the responsibility of the commissioner of administrative services.  [If the commissioner of administrative services concludes that inclusion of the university system of New Hampshire in the health plan would best serve the interests of the state employees and the state of New Hampshire, then the commissioner shall, with the consent of the university system board of trustees, administer the health benefits of the university system of New Hampshire employees as set forth in this subdivision].

2  State Employee Group Insurance; University System of New Hampshire; Community College System of New Hampshire 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 may also provide access to such benefits, except permanent group life insurance, for employees of the university system of New Hampshire and the community college system of New Hampshire.  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.

3  New Subdivision; Medical and Surgical Benefits; University System of New Hampshire.  Amend RSA 187-A by inserting after section 42 the following new subdivision:

Medical and Surgical Benefits; University System of New Hampshire

187-A:43  Medical and Surgical Benefits; University System of New Hampshire.  The university system of New Hampshire may participate in the state group health insurance plan if the board of trustees applies for such benefits to the commissioner of the department of administrative services in writing.  Upon receipt of the application, the commissioner shall conduct a cost analysis pursuant to paragraph VI and shall seek legislation authorizing application of such benefits and provided further that:

I.  The university system of New Hampshire agrees to accept the terms of the state group health insurance plan that is collectively bargained every 2 years by the department of administrative services.

II.  The board of trustees, when applying in writing, shall agree that these benefits shall apply to all employees and no other group health insurance plans shall be offered by the system while employees are part of the state group health insurance plan.

III.  The university system shall pay all associated administrative costs of managing university system employee and dependent participation, including any periodic cost increases,  additional department of administrative services staff requirements, reserve adjustments and reserve requirements.

IV.  The university system agrees to maintain current employee records including eligibility and enrollment data as required by the department of administrative services.

V.  The university system agrees to remain in the state group health insurance plan for a minimum of 5 years from the date of entry.

VI.  Cost analysis, including costs associated with the risk management unit staff, shall be paid for by the university system.    The university system shall pay all associated costs of transferring data into the state group health insurance plan and all costs associated with data collection, data manipulation associated with transferring from one plan to another,  and costs of university system changes, including staff costs.

VII.  The university system shall provide to the risk management unit a file of medical and pharmaceutical claims for the previous 2 years which shall not contain any personally identifiable information.

4  New Paragraph; University System of New Hampshire; Authority of Board of Trustees.  Amend RSA 187-A:16 by inserting after paragraph XXIII the following new paragraph:

XXIV.  Apply for medical and surgical benefits in accordance with RSA 187-A:43.

5  New Subdivision; Community College System of New Hampshire; Medical and Surgical Benefits.  Amend RSA 188-F by inserting after section 67 the following new subdivision:

Community College System of New Hampshire; Medical and Surgical Benefits

188-F:68  Medical and Surgical Benefits; Community College System of New Hampshire.  The community college system of New Hampshire may participate in the state group health insurance plan if the board of trustees applies for such benefits to the commissioner of the department of administrative services in writing.  Upon receipt of the application, the commissioner shall conduct a cost analysis pursuant to paragraph VI and shall seek legislation authorizing application of such benefits and provided further that:

I.  The community college system agrees to accept the terms of the state group health insurance plan that is collectively bargained every 2 years by the department of administrative services.

II.  The board of trustees, when applying in writing, shall agree that these benefits shall apply to all employees and no other group health insurance plans shall be offered by the community college system while employees are part of the state group health insurance plan.

III.  The community college system shall pay all associated administrative costs of managing the system employee and dependent participation, including any periodic cost increases, additional department of administrative services staff requirements, reserve adjustments and reserve requirements.

IV.  The community college system agrees to maintain current employee records including eligibility and enrollment data as required by the department of administrative services.

V.  The community college system agrees to remain in the state group health insurance plan for a minimum of 5 years from the date of entry.

VI.  Cost analysis, including costs associated with the risk management unit staff, shall be paid for by the community college system.    The community college system shall pay all associated costs of transferring data into the state group health insurance plan and all costs associated with data collection, data manipulation associated with transferring from one plan to another,  and costs of system changes, including staff costs.

VII.  The community college system shall provide to the risk management unit a file of medical and pharmaceutical claims for the previous 2 years which shall not contain any personally identifiable information.

6  New Paragraph; Community College System of New Hampshire; Authority of the Board of Trustees.  Amend RSA 188-F:6 by inserting after paragraph XXI the following new paragraph:

XXII.  Apply for medical and surgical benefits in accordance with RSA 188-F:68.

7  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 university system of New Hampshire and the community college system of New Hampshire may participate in the group health insurance plan, except permanent group life insurance, in accordance with RSA 187-A:43 and RSA 188-F:68.

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

 

LBAO

17-0965

Amended 1/22/18

 

SB 215-FN- FISCAL NOTE

AS AMENDED BY THE HOUSE (AMENDMENT #2017-2511h)

 

AN ACT permitting the university system of New Hampshire and the community college system of New Hampshire to participate in the state health insurance plan.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

FY 2022

   Appropriation

$0

$0

$0

$0

$0

   Revenue

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

   Expenditures

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Indeterminable Increase

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Employee and Retiree Benefit Risk Management Fund

 

METHODOLOGY:

This bill as amended permits the Community College System of New Hampshire (CCSNH) and the University System of New Hampshire (USNH) to access the State's Health Benefit Plan (HBP) under certain circumstances.  Each institution's board of trustees must apply in writing for participation in such plan to the Commissioner of the Department of Administrative Services (DAS).  Upon receipt of such application the DAS Commissioner shall conduct a cost analysis and seek legislation authorizing the application of such benefits.  CCSNH and USNH shall pay for the cost analysis, including costs associated with DAS Risk Management Unit (RMU) staff, transferring data, and system changes and associated staff costs.

 

DAS estimates the current consultant would charge a minimum of $7,500 for a cost analysis for CCSNH and $12,500 for a cost analysis of USNH.  Project costs could increase if any institutional data sets are incomplete and need to be rerun.  DAS cannot quantify the time and costs associated with its own work in creating a cost analysis and seeking authorizing legislation.  However, these activities may require a substantial amount of RMU resources.  DAS anticipates revenue and expenditures may both increase as health care costs increase due to CCSNH and USNH participation, with such increases to be paid for by those institutions with no net impact to DAS.  DAS assumes both institutions would request to participate in FY 2018, with cost analyses conducted and paid for by both institutions.  Once completed, DAS would need to analyze any additional costs to the agency and  propose legislation to include a complete cost analysis, including subscriber monthly rates, estimated HBP cost and costs incurred by each institution.  DAS assumes an active employee population of approximately 600 active subscribers and a USNH active employee population of 4,000 active employees.  Subscribers are individual employees or an employee and spouse with dependent children, if applicable.  DAS anticipates it would need one full-time position, Program Specialist II, Labor Grade 21, Step 1, to administer benefits for eligible CCSNH and USNH employees, and only one part-time position if only CCSNH subscribers participate (full time salary and benefits of $69,000 in FY 2018, $72,000 in FY 2019, $76,000 in FY 2020 and $79,000 in FY 2022).

 

CCSNH and USNH both indicate the impact on expenditures is indeterminable at this time, and is dependent on the entities choosing to participate in the State HBP.

 

AGENCIES CONTACTED:

Department of Administrative Services, Community College System of New Hampshire, and University System of New Hampshire