Citations Affected: IC 5-10.
Synopsis: Group insurance for township employees. Provides that a
township may elect to provide coverage for township employees under
a group insurance program offered to county employees by the county
in which the township is located. Specifies that a township employee
covered under a county group insurance program and the township in
which the employee is employed must pay the same total insurance
premium that is charged for a county employee insured under the
county group insurance program. Specifies that the township must pay
any costs incurred by the county as a result of providing the county
group insurance program to the township's employees.
Effective: January 1, 2002.
January 17, 2001, read first time and referred to Committee on Local Government.
January 31, 2001, amended, reported _ Do Pass.
February 8, 2001, read second time, amended, ordered engrossed.
February 9, 2001, engrossed.
February 12, 2001, read third time, passed. Yeas 80, nays 13.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
county in which the township is located.
However, the establishment of a self-insurance program is subject to
the approval of the unit's fiscal body.
(c) A public employer may pay a part of the cost of group insurance,
but shall pay a part of the cost of group life insurance for local
employees. A public employer may pay, as supplemental wages, an
amount equal to the deductible portion of group health insurance as
long as payment of the supplemental wages will not result in the
payment of the total cost of the insurance by the public employer.
(d) An insurance contract for local employees under this section
may not be canceled by the public employer during the policy term of
the contract.
(e) After June 30, 1986, a public employer shall provide a group
health insurance program under subsection (g) to each retired
employee:
(1) whose retirement date is:
(A) after May 31, 1986, for a retired employee who was a
teacher (as defined in IC 20-6.1-1-8) for a school corporation;
or
(B) after June 30, 1986, for a retired employee not covered by
clause (A);
(2) who will have reached fifty-five (55) years of age on or before
the employee's retirement date but who will not be eligible on that
date for Medicare coverage as prescribed by 42 U.S.C. 1395 et
seq.;
(3) who will have completed twenty (20) years of creditable
employment with a public employer on or before the employee's
retirement date, ten (10) years of which must have been
completed immediately preceding the retirement date; and
(4) who will have completed at least fifteen (15) years of
participation in the retirement plan of which the employee is a
member on or before the employee's retirement date.
(f) A group health insurance program required by subsection (e)
must be equal in coverage to that offered active employees and must
permit the retired employee to participate if the retired employee pays
an amount equal to the total of the employer's and the employee's
premiums for the group health insurance for an active employee and if
the employee, within ninety (90) days after the employee's retirement
date files a written request with the employer for insurance coverage.
However, the employer may elect to pay any part of the retired
employee's premiums.
(g) A retired employee's eligibility to continue insurance under
subsection (e) ends when the employee becomes eligible for Medicare
coverage as prescribed by 42 U.S.C. 1395 et seq., or when the
employer terminates the health insurance program. A retired employee
who is eligible for insurance coverage under subsection (e) may elect
to have the employee's spouse covered under the health insurance
program at the time the employee retires. If a retired employee's spouse
pays the amount the retired employee would have been required to pay
for coverage selected by the spouse, the spouse's subsequent eligibility
to continue insurance under this section is not affected by the death of
the retired employee. The surviving spouse's eligibility ends on the
earliest of the following:
(1) When the spouse becomes eligible for Medicare coverage as
prescribed by 42 U.S.C. 1395 et seq.
(2) When the employer terminates the health insurance program.
(3) Two (2) years after the date of the employee's death.
(4) The date of the spouse's remarriage.
(h) This subsection does not apply to an employee who is entitled
to group insurance coverage under IC 20-6.1-6-1(c). An employee who
is on leave without pay is entitled to participate for ninety (90) days in
any group health insurance program maintained by the public employer
for active employees if the employee pays an amount equal to the total
of the employer's and the employee's premiums for the insurance.
However, the employer may pay all or part of the employer's premium
for the insurance.
(i) A public employer may provide group health insurance for
retired employees or their spouses not covered by subsections (e)
through (g) and may provide group health insurance that contains
provisions more favorable to retired employees and their spouses than
required by subsections (e) through (g). A public employer may
provide group health insurance to an employee who is on leave without
pay for a longer period than required by subsection (h), and may
continue to pay all or a part of the employer's premium for the
insurance while the employee is on leave without pay.
(j) If a township elects to join a county group insurance
program under subsection (b)(3) the township and each insured
township employee shall pay, in a proportion determined by the
township, the same total insurance premium that is charged for
each insured county employee. In addition, the township shall pay
any additional cost to the county as a result of providing the county
group insurance program to the township employees. However, the
county may elect to pay the public employer's share of the
premium for the township employees.