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STATE OF OKLAHOMA
2nd Session of the 59th Legislature (2024)
COMMITTEE SUBSTITUTE
FOR
SENATE BILL 1272 By: McCortney of the Senate
and
Sneed of the House
COMMITTEE SUBSTITUTE
An Act relating to the Oklahoma Employees Insurance
and Benefits Act; amending 74 O.S. 2 021, Section
1312, which relates to the Health and Dental
Insurance Reserve Fund ; defining term; establishing
maximum amount to be deposited into fund; requiring
approval by Oklahoma Employees I nsurance and Benefits
Board for certain administrative changes; directing
use of certain excess funds pursuant to certain
schedule; requiring notification of certain
information to enrollees; requiring reporting;
providing contents o f report; updating statutory
language; 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 (OMES)
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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 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 the fund.
Money payable to the claims administrator and all expenses in
connection with the plans shall be paid from the fund. The 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 OMES shall be transferred to the Life Insurance Reser ve
Fund on July 1, 1989.
C. 1. For the fiscal year ending June 30, 2025, and each
fiscal year thereafter, OMES shall maintain and record the internal
benchmark for funds necessary to operate the stat e-administered
plans to be held in the Health and Dental Insurance Reserve Fund.
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.
D. 1. Any funds in excess of the limitations set forth in
subsection C of this section shall be spent to lower premiums and
health insurance costs pursuant to the schedule prescribed in
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paragraph 2 of this subsection. A clear and concise statement of
how cost savings are implemented for the plan year shall be provided
to all enrollees.
2. Funds in excess of the internal benchma rk shall be spent in
accordance with paragraph 1 of this s ubsection pursuant to the
following schedule:
a. for the plan year beginning Jan uary 1, 2025, twenty
percent (20%) of the monies exceeding the reported
internal benchmark,
b. for the plan year beginning January 1, 202 6, forty
percent (40%) of the monies exceeding the reported
internal benchmark,
c. for the plan year beginning January 1, 2027, sixty
percent (60%) of the monies exceeding the reported
internal benchmark,
d. for the plan year beginning Janu ary 1, 2028, eighty
percent (80%) of the monies exceeding the reported
internal benchmark, and
e. for the plan year beginning January 1 , 2029, and each
plan year thereafter , one hundred percent (100%) of
the monies exceeding the reported internal benchmark.
E. Beginning January 1, 2026, and each year thereafter, OMES
shall electronically issue an annual report to the President Pro
Tempore of the Senate, the Speaker of the House of Representatives,
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and the Oklahoma Employees Insurance and Benefits Board not later
than July 1 containing the following information regarding all
state-administered plans:
1. Reserve amounts for the previous five (5) fiscal years;
2. Current operating expenses;
3. Premium rates for enrollees of each pla n for the previous
five (5) plan years;
4. An explanation of all premium de creases, increases, and cost
savings realized by enrollees for the current plan year; and
5. 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.
59-2-3551 RD 2/28/2024 6:37:50 PM