LCO No. 5933 1 of 4 General Assembly Raised Bill No. 7360 January Session, 2019 LCO No. 5933 Referred to Committee on PLANNING AND DEVELOPMENT Introduced by: (PD) AN ACT CONCERNING NO NSTATE PUBLIC EMPLOYER HEALTH CARE PLANS. Be it enacted by the Senate and House of Representatives in General Assembly convened: Section 1. Subsections (a) to (c), inclusive, of section 3-123sss of the 1 general statutes are repealed and the following is substituted in lieu 2 thereof (Effective July 1, 2019): 3 (a) Notwithstanding any provision of title 38a, the Comptroller shall 4 offer to nonstate public employers and their nonstate public 5 employees, and their retirees, if applicable, coverage under the state 6 employee plan or any group hospitalization, medical, pharmacy or 7 surgical insurance plan developed by the Comptroller. Such nonstate 8 public employees, or retirees, if applicable, shall be pooled with the 9 state employee plan, provided the Comptroller receives an application 10 from a nonstate public employer and the application is approved in 11 accordance with this section or section 3-123ttt. Premium payments for 12 such coverage shall be remitted by the nonstate public employer to the 13 Comptroller and shall be the same as those paid by the state inclusive 14 of any premiums paid by state employees, except (1) premium 15 Raised Bill No. 7360 LCO No. 5933 2 of 4 payments may be adjusted to reflect the cost of health care in the 16 geographic region in which the majority of a nonstate public 17 employer's employees work, (2) premium payments may be adjusted 18 to reflect coverage, or (3) as otherwise provided in this section or 19 section 3-123uuu, as amended by this act. The Comptroller may charge 20 each nonstate public employer participating in the state employee plan 21 an administrative fee calculated on a per member, per month basis. 22 (b) (1) The Comptroller shall offer participation in such plan for not 23 less than three-year intervals. A nonstate public employer may apply 24 for renewal prior to the expiration of each interval. 25 (2) The Comptroller shall develop procedures by which nonstate 26 public employers receiving coverage for nonstate public employees 27 pursuant to the state employee plan may (A) apply for renewal, or (B) 28 withdraw from such coverage, including, but not limited to, the terms 29 and conditions under which such nonstate public employers may 30 withdraw prior to the expiration of the interval. [and the procedure by 31 which any premium payments such nonstate public employers may be 32 entitled to or premium equivalent payments made in excess of 33 incurred claims shall be refunded to such nonstate public employer.] 34 Any such procedures shall provide that nonstate public employees 35 covered by collective bargaining shall withdraw from such coverage in 36 accordance with chapters 68, 113 and 166. 37 (c) Nothing in sections 3-123rrr to 3-123vvv, inclusive, shall (1) 38 require the Comptroller to offer coverage to every nonstate public 39 employer seeking coverage under the state employee plan, [or] (2) 40 prevent the Comptroller from procuring coverage for nonstate public 41 employees from vendors other than those providing coverage to state 42 employees, or (3) prevent the Comptroller from offering plans other 43 than those available to state employees, except the Comptroller shall 44 not offer a plan that would qualify as a high deductible health plan, as 45 defined in Section 220(c) or 223(c) of the Internal Revenue Code of 46 1986, or any subsequent corresponding internal revenue code of the 47 United States, as amended from time to time, used to establish a 48 Raised Bill No. 7360 LCO No. 5933 3 of 4 medical savings account or an Archer MSA pursuant to Section 220 of 49 said Internal Revenue Code or a health savings account pursuant to 50 Section 223 of said Internal Revenue Code. 51 Sec. 2. Section 3-123uuu of the general statutes is repealed and the 52 following is substituted in lieu thereof (Effective July 1, 2019): 53 (a) [There is established an account to be known as the "state 54 employee plan premium account", which shall be a separate, 55 nonlapsing account within the General Fund. All premiums paid by 56 nonstate public employers and nonstate public employees pursuant to 57 participation in the state employee plan shall be deposited into said 58 account. The account shall be administered by the Comptroller, with 59 the advice of the Health Care Cost Containment Committee, for 60 payment of claims and administrative fees to entities providing 61 coverage or services under the state employee plan.] The Comptroller 62 shall establish an accounting procedure to track claims and premiums 63 paid by nonstate public employers. 64 [(b) Each nonstate public employer shall pay monthly the amount 65 determined by the Comptroller for coverage of its nonstate public 66 employees or its nonstate public employees and retirees, as 67 appropriate, under the state employee plan. A nonstate public 68 employer may require each nonstate public employee to contribute a 69 portion of the cost of his or her coverage under the plan, subject to any 70 collective bargaining obligation applicable to such nonstate public 71 employer.] 72 [(c)] (b) If any payment due by a nonstate public employer [under 73 this subsection] pursuant to the procedure established under 74 subsection (a) of this section is not paid after the date such payment is 75 due, interest to be paid by such nonstate public employer shall be 76 added, retroactive to the date such payment was due, at the prevailing 77 rate of interest as determined by the Comptroller. 78 [(d)] (c) If a nonstate public employer fails to make premium 79 payments, the Comptroller may direct the State Treasurer, or any other 80 Raised Bill No. 7360 LCO No. 5933 4 of 4 officer of the state who is the custodian of any moneys made available 81 by grant, allocation or appropriation payable to such nonstate public 82 employer at any time subsequent to such failure, to withhold the 83 payment of such moneys until the amount of the premium or interest 84 due has been paid to the Comptroller, or until the State Treasurer or 85 such custodial officer determines that arrangements have been made, 86 to the satisfaction of the State Treasurer, for the payment of such 87 premium and interest. Such moneys shall not be withheld if such 88 withholding will adversely affect the receipt of any federal grant or aid 89 in connection with such moneys. 90 This act shall take effect as follows and shall amend the following sections: Section 1 July 1, 2019 3-123sss(a) to (c) Sec. 2 July 1, 2019 3-123uuu Statement of Purpose: To authorize the Comptroller to offer additional health insurance plans for nonstate public employers. [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is not underlined.]