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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
SENATE BILL 1272 By: McCortney
AS INTRODUCED
An Act relating to Oklahoma Employees Insurance and
Benefits Act; amending 74 O.S. 2 021, Section 1312,
which relates to the Health and Dental Insurance
Reserve Fund; establishing maximum amount to be
deposited into fund; requiring approval by Oklahoma
Employees Insurance and Benefits Board for certain
administrative changes; directing use of certain
excess funds; requiring notification of certain
information to enrollees; requiring reporting;
providing contents o f report; providing an effective
date; and declaring an emergency.
BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
SECTION 1. AMENDATORY 74 O.S. 2021, Section 1312, is
amended to read as follows:
Section 1312. (1) A. Except as otherwise provided by law, all
employee and employer contributions, appropriations and dividend
payments related to the health and dental plans administered by the
Director of the Office of Management and Enterprise Services shall
be deposited in a fund in the State Treasury which is hereby created
and which shall be known as the Health and Dental Insurance Reserve
Fund “Health and Dental Ins urance Reserve Fund”. The money in such
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fund shall be invested by the Oklahoma Employees I nsurance and
Benefits Board in the manner specified in Section 1305.1 of this
title. Investment income of the fund shall be added to th e fund.
Money payable to the claims administrator and all expenses in
connection with the plans shall be paid from the fund. Th e Board
shall have responsibility for management of the fund.
(2) B. All monies in the Health and Dental Insurance Reserve
Fund that are reserves for the life insurance plan a dministered by
the Office shall be transferred to the Life Insurance Reser ve Fund
on July 1, 1989.
C. 1. For the fiscal year beginning July 1, 2024, and each
fiscal year thereafter, monies in the Health and Dental Insurance
Reserve Fund shall not exceed the internal benchmark set by the
Office for funds necessary to operate the stat e-administered plans.
2. For the purposes of this section, “internal benchmark” means
the National Association of Insurance Commissioners ’ recommended
calculation for risk-based capital plus the previous ten (10) years
average for claims and investment losses.
3. Any funds in excess of the limitations set forth in
paragraph 1 of this subsection shall be used by the O ffice to lower
premiums and health i nsurance costs for the following plan year. A
clear and concise statement of how cost savings are implemented for
the plan year shall be provided to all enrollees.
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4. Beginning July 1, 2025, and each fiscal year thereafter, the
office shall issue an annual report to the President Pro Tempore of
the Senate, the Speaker of the House of Representatives, and the
Oklahoma Employees Insurance and Benefits Board not later than July
1 containing the following information regarding all state-
administered plans:
a. reserve amounts for the previous five (5) fiscal
years,
b. current operating expenses,
c. premium rates for enrollees of each pla n for the
previous five (5) plan years,
d. an explanation of all premium de creases, increases,
and cost savings realized by enrollees for the current
plan year, and
e. any other information deem ed necessary by the Board.
SECTION 2. This act shall become effective July 1, 2024.
SECTION 3. It being immediately necessary for the preservation
of the public peace, health or safety, an emergency is hereby
declared to exist, by reason whereof thi s act shall take effect and
be in full force from and after its passage an d approval.
59-2-2365 RD 12/11/2023 10:51:17 AM