SLS 15RS-579 ORIGINAL
2015 Regular Session
SENATE BILL NO. 260
BY SENATORS BROOME AND CLAITOR
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
GROUP BENEFITS PROGRAM. Provides for the organization of the Office of Group
Benefits. (1/1/16)
1 AN ACT
2 To amend and reenact R.S. 42:802(B)(7), 881, and the introductory paragraph of 882(A) and
3 (A)(5), and to enact R.S. 39:21.3(G), R.S. 42:802(D), and 881(B), relative to the
4 Office of Group Benefits; to provide for oversight of the Office of Group Benefits;
5 to provide for estimating the operational and actuarial costs of group benefits
6 programs; to provide for the duties of the Group Benefits Policy and Planning Board;
7 to provide for the membership of the Group Benefits Policy and Planning Board; to
8 provide for an effective date; and to provide for related matters.
9 Be it enacted by the Legislature of Louisiana:
10 Section 1. R.S. 39:21.3(G) is hereby enacted to read as follows:
11 §21.3. Consensus estimating conferences; duties and principals
12 * * *
13 G. Group Benefits Estimating Conference.
14 (1) Duties. The Group Benefits Estimating Conference shall develop
15 official information relating to group health and life insurance planning,
16 premium rates, and budgeting as is determined by the conference principals to
17 be needed for the state planning and budgeting system.
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1 (2) Principals. The principals of the Group Benefits Estimating
2 Conference are as follows:
3 (a) A member of the professional staff of the office of the governor to be
4 appointed by the governor.
5 (b) A member of the professional staff of the division of administration
6 to be appointed by the commissioner of administration.
7 (c) A member of the professional staff of the legislature who shall have
8 fiscal expertise to be appointed by the president of the Senate.
9 (d) A member of the professional staff of the legislature who shall have
10 forecasting expertise to be appointed by the speaker of the House of
11 Representatives.
12 (e) A member of the professional staff of the Office of Group Benefits
13 who shall have forecasting expertise to be appointed by the commissioner of
14 administration.
15 (3) Principal to preside over meetings. The principal representing the
16 office of the governor shall preside over sessions of the conference.
17 * * *
18 Section 2. R.S. 42:802(B)(7), 881, and the introductory paragraph 882(A) and (A)(5)
19 are hereby amended and reenacted and R.S. 42:802(D), and 881(B) are hereby enacted to
20 read as follows:
21 §802. Powers and duties; Office of Group Benefits
22 * * *
23 B. In addition, the office shall have the following powers and duties:
24 * * *
25 (7) To Subject to the board's review and approval, to establish premium
26 rates, under the direction of the commissioner of administration and in consultation
27 with actuaries for the life, health, and other benefit programs offered through the
28 office. The commissioner of administration shall also use any official
29 information developed by the Group Benefits Estimating Conference in the
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1 development of premium rates.
2 * * *
3 D.(1) Notwithstanding any other provision of this Section to the contrary,
4 any new plan of benefits or the annual plan of benefits submitted under the
5 direction of the commissioner of administration for the life, health, and other
6 benefit programs offered through the Office of Group Benefits or any contracts
7 negotiated through the Office of Group Benefits under the provisions of
8 Chapter 17 of Subtitle III of Title 39 of the Louisiana Revised Statutes of 1950
9 as provided in Subsections A and B(8) of this Section shall be subject to review
10 and final approval by the appropriate standing committees of the legislature
11 having jurisdiction over review of agency rules by the Office of Group Benefits
12 as designated by R.S. 49:968(B)(21)(c), or the subcommittees on oversight of
13 such standing committees, and the office of state procurement of the division of
14 administration.
15 (2) The implementation of these programs or contracts shall constitute
16 a rule as defined by R.S. 49:951(6) and shall be adopted and implemented
17 through the procedures set forth in the Administrative Procedure Act.
18 (3) Additionally, any adjustments to such contracts in the amount of one
19 million dollars or more shall require the review and approval of the oversight
20 committees before the modified contracts may be implemented. Such
21 adjustments shall indicate the fiscal impact to the plan of benefits as well as the
22 rate structure, if any, over the subsequent three years or maximum contract
23 period.
24 * * *
25 §881. Establishment of the Group Benefits Policy and Planning Board
26 A. There is hereby established the Group Benefits Policy and Planning Board
27 within the Office of Group Benefits. The board shall review and approve life and
28 health benefit programs offered to eligible employees, including the proposed rate
29 structure which will support the life and health benefit plan. Annually, the chief
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1 executive officer shall submit any proposed changes to the rate structure, and the
2 associated life and health benefits programs to the board to review and approve
3 prior to the final adoption of the plan. The plan submitted by the commissioner
4 of administration shall include an estimate of the costs and an estimated rate
5 structure for a five year period. The board shall submit a written report to the
6 commissioner of administration, the chief executive officer of the Office of
7 Group Benefits, and the appropriate legislative oversight committees, including any
8 comments and recommendations regarding modifications to such proposed benefit
9 plans and the associated rates.
10 B. The Group Benefits Policy and Planning Board shall use any official
11 information provided by the Group Benefits Estimating Conference as may be
12 necessary in the review and approval of benefits plans and proposed rate
13 structures required by this Section.
14 §882. Composition of board
15 A. Membership and qualifications. The board shall be composed of sixteen
16 eighteen members, fifteen seventeen of whom shall be voting members, as follows:
17 * * *
18 (5) Two Four members who shall be elected by retired participants in the
19 health benefits programs offered by the Office of Group Benefits and who shall be
20 voting members, as follows:
21 (a) One Two retiree members who shall be elected from among retired
22 teachers or other retired school employees.
23 (b) One Two retiree members who shall be elected from among retired state
24 employees.
25 * * *
26 Section 3. This Act shall become effective on January 1, 2016; if vetoed by the
27 governor and subsequently approved by the legislature, this Act shall become effective on
28 January 1, 2016, or on the day following such approval by the legislature, whichever is later.
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The original instrument and the following digest, which constitutes no part
of the legislative instrument, were prepared by Jay R. Lueckel.
DIGEST
SB 260 Original 2015 Regular Session Broome
Present law provides for consensus estimating conferences and provides for their duties and
principals.
Proposed law retains present law and provides for the creation of the Group Benefits
Estimating Conference.
Proposed law provides for the duties and principals of the Group Benefits Estimating
Conference.
Present law provides for the powers and duties of the Office of Group Benefits.
Proposed law retains present law and adds that the commissioner of administration shall use
any official information developed by the Group Benefits Estimating Conference in the
development of premium rates.
Proposed law also provides that any new plan of benefits or the annual plan of benefits
submitted by the commissioner of administration through the Office of Group Benefits or
any contract negotiated by the Office of Group Benefits shall be subject to review and
approval by the appropriate standing committees or subcommittees of the legislature having
jurisdiction over agency rules by the Office of Group Benefits and the office of state
procurement of the division of administration.
Proposed law further provides that any adjustments to such contracts in the amount of one
million dollars shall require review and approval of the oversight committees before
implementation. Such adjustments shall show the fiscal impact to the plan of benefits as well
as the rate structure, if any, over the subsequent three years or maximum contract period.
Present law establishes the Group Benefits Policy and Planning Board and provides that it
shall review life and health benefit programs offered to eligible employees.
Proposed law retains present law and adds the board shall review and approve the proposed
rate structure that supports the life and health benefit plan.
Proposed law provides that the chief executive officer shall submit any proposed changes
of the rate structure to the board who shall approve prior to final adoption of the plan.
Proposed law provides the plan submitted by the commissioner of administration shall
include an estimate of the costs and an estimated rate structure for a five-year period.
Present law requires the board to submit a written report to the appropriate legislative
oversight committees regarding modifications of the proposed benefit plans.
Proposed law retains present law and adds that the board shall submit a written report to the
commissioner of administration and the chief executive officer of the Office of Group
Benefits in addition to the appropriate legislative oversight committees, regarding
modifications of the proposed benefit plans.
Proposed law adds that the board shall use any official information provided by the Group
Benefits Estimating Conference as may be necessary in the review and approval of benefits
plans and proposed rate structures.
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Present law provides for the composition of the board.
Proposed law changes present law in regards to board composition from sixteen members
to eighteen members, further providing that seventeen shall be voting members.
Proposed law also changes present law by increasing he number of voting members from
two to four members who shall be elected by retired participants of the health benefits
programs offered by the Office of Group Benefits.
Proposed law further provides that of the four members, two shall be elected from retired
teachers or other retired school employees and two shall be elected from retired state
employees.
Effective January 1, 2016.
(Amends R.S. 42:802(B)(7), 881, 882(A)(intro para) and (A)(5); adds R.S. 39:21.3(G), R.S.
42:802(D), and 881(B))
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words in boldface type and underscored are additions.