Citations Affected:
IC 5-10-8
;
IC 20-5-2-2
;
IC 20-7.5-1-4
; noncode.
Synopsis: Local unit employee health benefits. Allows a local governmental unit to provide
group health insurance coverage to active and retired officials and employees through one of
three methods, including participation in a local unit group to provide coverage under a state
employee health benefit plan. Requires the local unit group to be treated as a single group that
is separate from the state employee group. Requires the state personnel department to: (1)
establish costs of providing coverage to the local unit group as a whole and establish a uniform
premium schedule; and (2) provide an annual opportunity for local units to elect to provide or
terminate coverage under a state employee health benefit plan. Prohibits the determination of
premiums paid by a local unit from being based on claims made by the local unit. Provides that
the state personnel department may adopt rules specifying minimum participation and
contribution requirements for participation in a state employee health benefit plan. (This
conference committee report: (1) Allows a local governmental unit to provide group health
insurance coverage to active and retired officials and employees through one of three methods,
including participation in a local unit group to provide coverage under a state employee health
benefit plan. (2) Requires the local unit group to be treated as a single group that is separate
from the state employee group. (3) Requires the state personnel department to: (A) determine
costs of providing coverage to the local unit group as a whole and establish a uniform premium
schedule; and (B) provide an annual opportunity for local units to elect to provide or terminate
coverage under a state employee health benefit plan. (4) Prohibits the determination of
premiums paid by a local unit from being based on claims made by the local unit.)
Effective: July 1, 2001.
MR. PRESIDENT:
Your Conference Committee appointed to confer with a like committee from the House
upon Engrossed Senate Amendments to Engrossed House Bill No. 1925 respectfully reports
that said two committees have conferred and agreed as follows to wit:
that the House recede from its dissent from all Senate amendments and
that the House now concur in all Senate amendments to the bill and that
the bill be further amended as follows:
Page 1, line 17, after "group" insert " health".
Page 2, line 2, after "both" insert " one (1)".
Page 2, line 2, reset in roman "of".
Page 2, line 5, delete "a" and insert " the local unit group of local
units that offer the".
Page 2, line 7, before "However," insert " A local unit public
employer may provide programs of group insurance other than
group health insurance for the local unit public employer's active
and retired public safety employees by purchasing policies of
group insurance and by establishing self-insurance programs.".
Page 4, line 18, after "group" insert " health".
Page 4, line 19, after "both" insert " one (1)".
Page 4, line 19, reset in roman "of".
Page 4, line 23, delete "a" and insert " the local unit group of local
units that offer the".
Page 4, line 25, before "However," insert " A public employer may
provide programs of group insurance other than group health
insurance under this section by purchasing policies of group
insurance and by establishing self-insurance programs.".
by the local unit.".
Page 6, line 34, delete "(d)" and insert " (e)".
Page 6, line 34, delete "enrollment" and insert " annual opportunity
for local units to elect to provide or terminate coverage under
subsection (c).".
Page 6, delete lines 35 through 36.
Page 6, line 37, delete "(e)" and insert " (f)".
Page 6, between lines 40 and 41, begin a new paragraph and insert:
"SECTION 4.
IC 5-10-8-7
IS AMENDED TO READ AS FOLLOWS
[EFFECTIVE JULY 1, 2001]: Sec. 7. (a) The state, excluding state
educational institutions (as defined by
IC 20-12-0.5-1
), may not
purchase or maintain a policy of group insurance, except:
(1) life insurance for the state's employees;
or (2) long term care insurance under a long term care insurance
policy (as defined in
IC 27-8-12-5
), for its the state's employees;
or
(3) an accident and sickness insurance policy (as defined in
IC 27-8-5.6-1
) that covers individuals to whom coverage is
provided by a local unit under section 6.6 of this chapter.
(b) With the consent of the governor, the state personnel department
may establish self-insurance programs to provide group insurance other
than life or long term care insurance for state employees and retired
state employees. The state personnel department may contract with a
private agency, business firm, limited liability company, or corporation
for administrative services. A commission may not be paid for the
placement of the contract. The department may require, as part of a
contract for administrative services, that the provider of the
administrative services offer to an employee terminating state
employment the option to purchase, without evidence of insurability,
an individual policy of insurance.
(c) Notwithstanding subsection (a), with the consent of the governor,
the state personnel department may contract for health services for state
employees and individuals to whom coverage is provided by a local
unit under section 6.6 of this chapter through one (1) or more prepaid
health care delivery plans.
(d) The state personnel department shall adopt rules under
IC 4-22-2
to establish long term and short term disability plans for state
employees (except employees who hold elected offices (as defined by
IC 3-5-2-17
)). The plans adopted under this subsection may include
any provisions the department considers necessary and proper and
must:
(1) require participation in the plan by employees with six (6)
months of continuous, full-time service;
(2) require an employee to make a contribution to the plan in the
form of a payroll deduction;
(3) require that an employee's benefits under the short term
disability plan be subject to a thirty (30) day elimination period and
that benefits under the long term plan be subject to a six (6) month
elimination period;
(4) prohibit the termination of an employee who is eligible for
benefits under the plan;
this act, and
IC 5-10-8-6.6
, as added by this act, the coverage that
may be elected under
IC 5-10-8-6.6
, as added by this act:
(1) need not be made available before January 1, 2002; but
(2) must be made available not later than January 1, 2002.".
Renumber all SECTIONS consecutively.
(Reference is to EHB 1925 as printed March 30, 2001.)
____________________________ ____________________________
Representative Moses Senator Ford
Chairperson
____________________________ ____________________________
Representative Young D Senator Hume
House Conferees Senate Conferees