The original instrument was prepared by Cheryl Cooper. The following digest, which
does not constitute a part of the legislative instrument, was prepared by Nancy
Vicknair.
DIGEST
SB 554 Reengrossed 2018 Regular Session Claitor
Present law requires employer and employee contributions for payment of premiums for group
benefits to be deposited directly with the Office of Group Benefits (OGB).
Proposed law retains present law and requires employer and employee contributions for payment of
premiums for group benefits to be deposited directly with OGB or its third-party administrator.
Excludes from the deposit requirement premiums associated with either of the following:
(1)Any individual Medicare marketplace health reimbursement arrangement contracted by OGB
for Medicare-eligible enrollees.
(2)Health plans administered by LSU.
Present law requires the loss of eligibility for coverage under both the life insurance plan and the
health and accident insurance plan by any person convicted of fraudulently obtaining funds from
OGB.
Proposed law permits OGB to retroactively cancel coverage in the following instances:
(1)To the extent the cancellation of coverage is attributable to a failure by the enrollee to timely
pay required premiums or contributions toward the cost of coverage.
(2) The cancellation of coverage is initiated by the enrollee or dependent.
Proposed law provides the enrollee whose coverage is cancelled pursuant to proposed law is liable
to OGB for all benefits paid by the office on behalf of the enrollee and dependents after the effective
date of rescission or cancellation of coverage.
Present law requires coverage of any person with a developmental disability who acquired such
disability prior to attaining the age of 21, with one parent whose coverage of such person was
terminated as a result of lost employment of the parent and one parent who is an employee.
Proposed law permits OGB to offer group insurance coverage to the following dependents of an
enrollee:
(1)The spouse of the enrollee. (2)A child or grandchild of the enrollee, until the end of the month the child reaches the age of
26, unless coverage is terminated earlier.
(3)A dependent for whom the enrollee has court-ordered legal custody or court-ordered legal
guardianship until the dependent turns 18.
Present law permits OGB participating employers to deduct from the employee's pay the employee's
portion of the premiums for benefit programs.
Proposed law retains present law and allows deduction of surcharges and other voluntary
contributions authorized by the employee in writing.
Present law permits OGB to impose a surcharge, payable solely by the participant employer, upon
any class of employees or retirees. Further requires OGB to remove the participant employer and all
of its employees and retirees from participation in OGB programs for failure to pay the surcharge.
Proposed law retains present law and authorizes OGB to impose a surcharge on an enrollee and to
remove an enrollee and his dependents for failing to pay the surcharge.
Present law provides for filling vacancies on the OGB Policy and Planning Board.
Proposed law retains present law and requires the board to fill a vacancy by appointment in the event
no person qualifies to run for one or more elected positions. Requires the board to promulgate rules
to implement proposed law.
Effective August 1, 2018.
(Amends R.S. 42:805(D), 807, 808(E), 809, 857, 883(A); adds R.S. 42:808(F) and 882(D)(3);
repeals R.S. 42:804, 854(A) and (B), and 855 and R.S. 22:1002)
Summary of Amendments Adopted by Senate
Committee Amendments Proposed by Senate Committee on Senate and Governmental
Affairs to the original bill
1. Removes OGB's ability to retroactively cancel any health or life insurance coverage
of an enrollee or of his dependents if the enrollee engages in an act, practice, or
omission that, in the opinion of OGB, constitutes fraud.
Senate Floor Amendments to engrossed bill
1. Makes technical changes.