The original instrument was prepared by Jay Lueckel. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Ann S.
Brown.
DIGEST
SB 260 Reengrossed 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. The Conference principals are as follows:
1. A professional member of the governor's staff appointed by governor.
2. A professional member of the commissioner of administration's staff appointed by COA.
3. A professional member of the legislature appointed by the president of Senate appointed by
the president.
4. A professional member of the legislature appointed by the speaker of the House, appointed
by the speaker.
5. A professional member of OGB appointed by the commissioner.
6. An individual member with five years professional experience or fiscal expertise in health
insurance, actuarial services, financial services, or banking industries to be selected from list
of names submitted by the commissioner of insurance, the commissioner of financial
institutions, and the Legislative Auditor.
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. Provides for review of plan of benefits and contracts for professional, personal, and social services
contracts other than contracts for legal services or actuarial services, including contracts modified
by $1 million or more.
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 that the board shall review and recommend 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 which shall review and make recommendations 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 three-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 recommendation of benefits plans and
proposed rate structures.
Present law provides for the composition of the board as sixteen members with fifteen voting.
Proposed law changes present law in regards to the board composition from sixteen members to
eleven voting members. The existing membership is as follows:
1. One member of the House appointed by the speaker.
2. One member of the Senate appointed by the president.
3. The commissioner of insurance (non-voting). 4. Five members appointed by the governor from individuals in the private sector.
5. Two members elected by retired participants in the health benefits program - one from
among the retired teachers or retired school employees; one from among retired state
employees.
6. Six who shall be elected by participants in health benefits programs from the following
agencies - higher education, teachers, DHH and DCFS, DOTD, and DPS/Corrections.
Proposed law changes present law by providing for an eleven member voting board which retains
two retiree members to be elected and nine members to be appointed as follows: three members
appointed by the speaker of the House of Representatives; three members appointed by the president
of the Senate, and three members appointed by the governor.
Proposed law provides that each of the appointed members shall have a minimum of five years
professional experience or fiscal expertise in the industries of health insurance, actuarial sciences,
financial services, or banking.
Proposed law provides that terms of the members are staggered similar to existing law - legislative
appointees serve four year terms; gubernatorial appointees shall serve six year terms; and the terms
of the elected retiree members are six years.
Proposed law requires Senate confirmation of all appointed members, including any serving in the
event of a vacancy.
Effective January 1, 2016.
(Amends R.S. 42:802(B)(7), 881, 882(A), (B), (D), and (E); adds R.S. 39:21.3(G), R.S. 42:802(D),
and 881(B))
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Finance to the original bill
1. Changes background requirements for House of Representatives appointee and office
of Group Benefits appointee from forecasting expertise to fiscal experience.
2. Adds individual member to the Group Benefits Estimating Conference with five
years professional experience or fiscal expertise in health insurance, actuarial
services, financial services, or banking industries to be selected from list of names
submitted by the commissioner of insurance, the commissioner of financial
institutions, and the Legislative Auditor.
3. Provides for review of plan of benefits and contracts for professional, personal, and
social services contracts other than contracts for legal services or actuarial services, including contracts modified by $1 million or more.
4. Provides that the Group Benefits Policy and Planning Board will review and
recommend plans of life and health benefits prior to their adoption.
5. Provides for an eleven member voting board which retains two retiree members to
be elected and nine members to be appointed as follows: three members appointed
by the speaker of the House of Representatives; three members appointed by the
president of the Senate, and three members appointed by the governor.
6. Provides that each of the appointed members shall have a minimum of five years
professional experience or fiscal expertise in the industries of health insurance,
actuarial sciences, financial services, or banking.
7. Provides that the terms of the members are staggered similar to existing law -
legislative appointees serve four year terms; gubernatorial appointees shall serve six
year terms; and the terms of the elected retiree members are six years.
Senate Floor Amendments to engrossed bill
1. Requires Senate confirmation of all appointed members to the Group Benefits Policy
and Planning Board.
2. Makes technical corrections.