Permits reimbursement of COBRA health benefit costs of survivors of certain deceased public safety employees; appropriates $750,000.
Impact
This proposed legislation will amend existing state laws related to health benefits for employees and their dependents. It allocates $750,000 to the Department of Treasury for funding these COBRA reimbursements and encourages future funding to maintain these reimbursements. By specifying that dependents can apply for reimbursement only if they paid for COBRA coverage, it aims not to interfere with their rights to maintain COBRA coverage for the full 36-month period allowed under federal law. Nonetheless, there is a provision for prorating reimbursements if the funding falls short of the applications received.
Summary
Senate Bill S1080 seeks to alleviate the financial burden of health insurance costs for the dependents of certain deceased public safety employees by allowing them to apply for reimbursement of the costs of the first six months of COBRA continuation coverage. The bill identifies 'public safety employees' to include police, firefighters, correctional officers, and emergency responders who have died while on duty or within 24 hours of finishing their shift. Dependent eligibility will rest on the coverage status of these individuals prior to the employee's death, ensuring they had health benefits through the State Health Benefits Program or their employer until that time.
Contention
During discussions on S1080, some lawmakers expressed concern over the sustainability of appropriating funds for COBRA reimbursements, particularly in light of potential budget constraints in future years. Critics have also raised questions regarding whether this bill provides sufficiently robust support for mourners or if it merely shifts financial burden to the state treasury. As COBRA serves as a crucial lifeline for many coast members of public safety, ensuring that this measure is adequately funded will be critical to its success.
Sets level for healthcare benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsidies for out-of-pocket costs.
Relating to certain claims for benefits, compensation, or assistance by certain public safety employees and survivors of certain public safety employees.
Relating to certain claims for benefits, compensation, or assistance by certain public safety employees and survivors of certain public safety employees.
Sets level for health care benefits; requires employee contributions; prohibits reimbursement of Medicare Part B; adds member to SHBP/SEHBP plan design committees; requires retirees to purchase health benefits through exchanges; provides subsides for out-of-pocket costs.
Relating to certain claims for benefits, compensation, or assistance by certain public safety employees and survivors of certain public safety employees.