Louisiana House Bill HCR113

Louisiana 2015 Regular Session

• Introduced: 5/5/15
• Refer: 5/6/15
• Report Pass: 6/1/15
• Engrossed: 6/3/15
• Passed: 6/8/15

Caption

Urges and requests the Office of Group Benefits to study the cost for each member school board to terminate participation in the programs offered by the Office of Group Benefits

Impact

If implemented, the findings of the study could have a substantial impact on how local school boards manage their participation in group insurance programs. It highlights the financial challenges faced by smaller parish school boards, which may find the costs of termination to be prohibitive. This could lead to a broader conversation about the sustainability of group insurance programs for schools and the need for reform in how costs are assessed and allocated in these programs.

Summary

House Concurrent Resolution No. 113 urges and requests the Office of Group Benefits to study the costs associated with member school boards terminating their participation in group insurance programs. This study is particularly pertinent as termination can involve significant financial implications, including an actuarially determined pro-rata share of accrued liabilities. The resolution specifically requests a written report of findings to be submitted to the House Committee on Appropriations and the Senate Committee on Finance before the start of the 2016 Regular Session of the Legislature of Louisiana.

Sentiment

The sentiment surrounding HCR113 appears to be cautiously supportive. Legislators recognize the importance of understanding the financial implications of participation in group benefits and are taking a proactive step to gather data that reflects the realities faced by local school districts. However, there is an underlying concern regarding the potential financial burden school boards may face, particularly those in less affluent areas.

Contention

The primary contention regarding HCR113 lies in the implications of the potential findings. The resolution suggests that while the study may uncover necessary data on costs, it could also highlight the disadvantages faced by smaller parishes in covering insurance liabilities, thereby raising concerns about equity and accessibility across different regions. The resolution emphasizes the need for a careful examination of both the costs and the structural challenges associated with terminating participation in group insurance programs.