DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 370 Engrossed 2015 Regular Session Broadwater
Abstract: Establishes the Group Benefits Actuarial Committee and requires an annual actuary study
on the premium rate structure and approval by the committee of the premium rates charged
for members of the Office of Group Benefits.
Present law provides with respect to the powers and duties of the Office of Group Benefits (OGB).
Authorizes OGB to administer all aspects of program benefits for group insurance, including
authorization to appoint an independent actuary, adopt and promulgate rules, prepare and submit a
budget, designate a depository for money under its control, establish benefit plans and premium rates
under the direction of the commissioner of administration, negotiate contracts, administer and
provide for the administration of a qualified cafeteria plan, authorize small debts, and procure
internal auditing service contracts.
Proposed law retains present law with respect to the authority of OGB to establish benefit plans
under the direction of the commissioner of administration, but clarifies that the authority to establish
benefit plans is subject to promulgation in accordance with the Administrative Procedure Act.
Proposed law retains present law with respect to the authority of OGB to establish premium rates
under the direction of the commissioner of administration, but requires review and final approval
of premium rates by the Group Benefits Actuarial Committee (committee) established by proposed
law.
Proposed law defines "benefit plan" for purposes of present law and proposed law regarding state
group insurance as coverages offered by the plan to eligible persons, including copayments,
deductibles, costs of prescription drugs, or any other medical costs associated with health care that
are required to be paid directly by the covered person.
Proposed law requires that an actuarial study of the program and the premium rate structure be
performed at least annually by the actuary appointed by OGB and that the study be submitted to both
OGB and the committee no less than 30 days prior to a new plan year.
Proposed law establishes the Group Benefits Actuarial Committee, to be comprised of the
commissioner of insurance, or his designee, the state treasurer, or his designee, and the legislative
auditor, or his designee. Further requires the commissioner of insurance to serve as chairman of the
committee.
Proposed law requires OGB to annually submit its premium rate recommendation to the committee for review and approval, regardless of whether any changes to the premium rate are recommended.
Requires the premium rate recommendation to be submitted no less than 30 days prior to the new
plan effective dates. Requires premium rates and changes to be approved by the committee before
implementation.
Proposed law requires OGB to submit any recommended premium rate changes during a plan year
no less than 30 days prior to the recommended date of change. Further requires an actuarial study
relative to the recommended change be submitted to the committee.
Proposed law requires the committee to hold a public hearing for review of an actuarial study and
premium rate recommendation and that OGB provide notice to all plan members, whether active or
retired. Requires the committee to approve, modify, or reject the recommended premium rate
recommendation. Requires OGB to implement the premium rate approved by the committee.
Proposed law requires the commissioner of insurance to promulgate rules and regulations for
implementation of proposed law.
Effective upon signature of governor or lapse of time for gubernatorial action.
(Amends R.S. 42:802(B)(6) and (7); Adds R.S. 42:802.1(F), 812, and 891-893)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Appropriations to the original
bill:
1. Provide that the actuarial report and rates establishment shall be performed at least
annually.
2. Clarify that the establishment of the premium rate is not subject to promulgation in
accordance with the Administrative Procedure Act.
3. Allow the committee to modify the recommended rate change rather than approve an
alternate rate.