Oklahoma 2024 Regular Session

Oklahoma Senate Bill SB1272 Compare Versions

Version 1 (Old)

Version 2 (New)

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3		-	ENGR. H. A. to ENGR. S. B. NO. 1272 Page 1 1
	3	+	SB1272 HFLR Page 1
	4	+	BOLD FACE denotes Committee Amendments. 1
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28		-	ENGROSSED HOUSE AMENDME NT
29		-	TO
30		-	ENGROSSED SENATE BILL NO . 1272 By: McCortney of the Senate
	29	+	HOUSE OF REPRESENTATIVES - FLOOR VERSION
31	30
32		-	~~and~~
	31	+	STATE OF OKLAHOMA
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34		-	Sneed of the House
35		-
36		-
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38		-
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40		-	[ Oklahoma Employees Insurance and Benefits Act -
41		-	Reserve Fund - approval - notification - reporting -
42		-	effective date -
43		-	emergency ]
44		-
45		-
46		-
47		-
48		-	AMENDMENT NO. 1. Page 1, line 10, strike the enacting clause
49		-
50		-	Passed the House of Representatives the 17th day of April, 2024.
51		-
52		-
53		-
54		-
55		-
56		-	Presiding Officer of the House of
57		-	Representatives
58		-
59		-
60		-	Passed the Senate the ____ day of _______ ___, 2024.
61		-
62		-
63		-
64		-
65		-
66		-	Presiding Officer of the Senate
67		-
68		-
69		-	ENGR. S. B. NO. 1272 Page 1 1
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	33	+	2nd Session of the 59th Legislature (2024)
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94	35		ENGROSSED SENATE
95	36		BILL NO. 1272 By: McCortney of the Senate
96	37
97	38		and
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99	40		Sneed of the House
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104	45		[ Oklahoma Employees Insurance and Benefits Act -
105	46		Reserve Fund - approval - notification - reporting -
106	47		effective date -
107	48		emergency ]
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112	53		BE IT ENACTED BY THE PEOP LE OF THE STATE OF OKLAHOMA:
113	54		SECTION 1. AMENDATORY 74 O.S. 2021, Section 1312, is
114	55		amended to read as follows:
115	56		Section 1312. (1) A. Except as otherwise provided by law, all
116	57		employee and employer contributions, appropriations and dividend
117	58		payments related to the health and dental plans administered by the
118	59		Director of the Office of Management and Enterprise Services (OMES)
119	60		shall be deposited in a fund in the State Treasury which is hereby
120	61		created and which shall be known as the Health and Dental Insurance
121	62		Reserve Fund “Health and Dental Insurance Reserve Fund ”. The money
122	63		in such fund shall be invested by the Oklahoma Employees In surance
123	64		and Benefits Board in the manner specified in Section 1305.1 of this
124		-	title. Investment income of the fund shall be added to the fund.
125		-	Money payable to the claims administrator and all expenses in
126	65
127		-	ENGR. S. B. NO. 1272 Page 2 1
	66	+	SB1272 HFLR Page 2
	67	+	BOLD FACE denotes Committee Amendments. 1
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	92	+	title. Investment income of the fund shall be added to the fund.
	93	+	Money payable to the claims administrator and all expenses in
152	94		connection with the plans shall be paid from the f und. The Board
153	95		shall have responsibility for management of the fund.
154	96		(2) B. All monies in the Health an d Dental Insurance Reserve
155	97		Fund that are reserves for the life insurance plan administered by
156	98		the Office OMES shall be transferred to the Life Insuranc e Reserve
157	99		Fund on July 1, 1989.
158	100		C. 1. For the fiscal year ending June 30, 2025, and each
159	101		fiscal year thereafter, OMES shall maintain and record the internal
160	102		benchmark for funds necessary to operate the state -administered
161	103		plans to be held in the Health and Dental Insurance Reserve Fund.
162	104		2. For the purposes of this section, “internal benchmark” means
163	105		the National Association of Insurance Commissioners recommended
164	106		calculation for risk -based capital plus the previous ten (10) years ’
165	107		average for claims and in vestment losses.
166	108		D. 1. Any funds in excess of the limitations set forth in
167	109		subsection C of this section shall be spent to lower premiums and
168	110		health insurance costs pursuant to the schedule prescribed in
169	111		paragraph 2 of this subsection . A clear and concis e statement of
170	112		how cost savings are implemented for the plan year shall be provided
171	113		to all enrollees.
172		-	2. Funds in excess of the internal benchmark shall be spent in
173		-	accordance with paragraph 1 of this subsection pursuant to the
174		-	following schedule:
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176		-	ENGR. S. B. NO. 1272 Page 3 1
	115	+	SB1272 HFLR Page 3
	116	+	BOLD FACE denotes Committee Amendments. 1
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	141	+	2. Funds in excess of the internal benchmark shall be spent in
	142	+	accordance with paragraph 1 of this subsection pursuant to the
	143	+	following schedule:
201	144		a. for the plan year beginning January 1, 2025, twenty
202	145		percent (20%) of the monies exceeding the reported
203	146		internal benchmark,
204	147		b. for the plan year beginning January 1, 2026, forty
205	148		percent (40%) of the monies exceeding the reported
206	149		internal benchmark,
207	150		c. for the plan year beginning January 1, 2027, sixty
208	151		percent (60%) of the monies excee ding the reported
209	152		internal benchmark,
210	153		d. for the plan year beginning January 1, 2028, eighty
211	154		percent (80%) of the monies exceeding the reported
212	155		internal benchmark, and
213	156		e. for the plan year beginning January 1, 2029, and each
214	157		plan year thereafter, one hundred percent (100%) of
215	158		the monies exceeding the reported internal benchmark.
216	159		E. Beginning January 1, 2026, and each year thereafter, OMES
217	160		shall electronically issue an annual report to the President Pro
218	161		Tempore of the Senate, the Speaker of the House of Rep resentatives,
219	162		and the Oklahoma Employees Insurance and Benefits Board not later
220	163		than July 1 containing the following information regarding all
221	164		state-administered plans:
222		-	1. Reserve amounts for the previous five (5) fiscal years;
223		-	2. Current operating expen ses;
224	165
225		-	ENGR. S. B. NO. 1272 Page 4 1
	166	+	SB1272 HFLR Page 4
	167	+	BOLD FACE denotes Committee Amendments. 1
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	192	+	1. Reserve amounts for the previous five (5) fiscal years;
	193	+	2. Current operating expenses ;
250	194		3. Premium rates for enr ollees of each plan for the previous
251	195		five (5) plan years;
252	196		4. An explanation of all premium decreases, increases, and cost
253	197		savings realized by enrollee s for the current plan year ; and
254	198		5. Any other information deemed necessary by the Board.
255	199		SECTION 2. This act shall become effective July 1, 2024.
256	200		SECTION 3. It being immediately necessary for the preservation
257	201		of the public peace, health or safety, an emergency is hereby
258	202		declared to exist, by reason whereof this act shall tak e effect and
259	203		be in full force from and after its passage and approval.
260		-	Passed the Senate the 1 4th day of March, 2024.
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264		-	Presiding Officer of the Senate
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267		-	Passed the House of Representatives the ____ day of __________,
268		-	2024.
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270		-
271		-
272		-	Presiding Officer of the House
273		-	of Representatives
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275		-
	205	+	COMMITTEE REPORT BY: COMMITTEE ON APPROPRIATIONS AND BUDGET, dated
	206	+	04/11/2024 - DO PASS, As Amended.