Citations Affected: IC 5-10-8-8.
Synopsis: Health insurance for retired state employees. Provides that
a state employee who retires after June 30, 2005: (1) may obtain state
employee health insurance coverage equal to the coverage offered to
active state employees if the retired state employee pays the employee's
share of the premium; and (2) remains eligible for coverage when the
employee is eligible for Medicare.
Effective: July 1, 2005.
January 18, 2005, read first time and referred to Committee on Employment and Labor.
A BILL FOR AN ACT to amend the Indiana Code concerning state
and local administration.
employer and the employee share of the cost of the coverage.
(f) The group health insurance program required under subsections (b) through (e) must be equal to that offered active employees. The retired employee may participate in the group health insurance program if the retired employee pays an amount equal to the:
(1) employer's and the employee's premium, if the retired employee's retirement date is before July 1, 2005; and
(2) employee's premium, if the retired employee's retirement date is after June 30, 2005;
for the group health insurance for an active employee and if the retired employee within ninety (90) days after the employee's retirement date files a written request for insurance coverage with the employer. However, the employer may elect to pay any part of the retired employee's premium with respect to insurance coverage under this chapter.
(g) Except as provided in subsection (j), a retired employee's eligibility to continue insurance under this section 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 this section 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 health insurance program maintained by the 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.
(i) An employer may provide group health insurance for retired employees or their spouses not covered by this section and may provide group health insurance that contains provisions more favorable to retired employees and their spouses than required by this section. A
public employer may provide group health insurance to an employee
who is on leave without pay for a longer period than required by
(j) An employer:
(1) may elect to permit former employees whose retirement date is before July 1, 2005; and
(2) shall elect to permit former employees whose retirement date is after June 30, 2005;
and their spouses, including surviving spouses, to
participate in a group health insurance program under this chapter after
the former employee (who is otherwise qualified under this chapter to
participate in a group insurance program) or spouse has become
eligible for Medicare coverage as prescribed by 42 U.S.C.A. U.S.C.
1395 et seq. An employer who makes an election under this section
may require a person who continues participates in coverage under
this subsection to participate in a retiree health benefit plan developed
under section 8.3 of this chapter.