Assembly Bill No. 564–Committee on Government Affairs

 

CHAPTER..........

 

AN ACT relating to programs for public employees; requiring the commingling of the claims experience of active and retired state employees to determine rates and coverage; prohibiting the board of the public employees’ benefits program from entering into certain contracts; requiring the board to provide an annual report regarding the administration and operation of the program to the director of the legislative counsel bureau; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

   Section 1.  NRS 287.043 is hereby amended to read as follows:

   287.043  1.  The board shall:

   (a) Establish and carry out a program to be known as the public

 employees’ benefits program which:

     (1) Must include a program relating to group life, accident or health

 insurance, or any combination of these; and

     (2) May include a program to reduce taxable compensation or other

 forms of compensation other than deferred compensation,

for the benefit of all state officers and employees and other persons who

 participate in the program.

   (b) Ensure that the program is funded on an actuarially sound basis and

 operated in accordance with sound insurance and business practices.

   2.  In establishing and carrying out the program, the board shall:

   (a) For the purpose of establishing actuarial data to determine rates

 and coverage for active and retired state officers and employees and

 their dependents, commingle the claims experience of such active and

 retired officers and employees and their dependents.

   (b) Except as otherwise provided in this paragraph, negotiate and

 contract with the governing body of any public agency enumerated in NRS

 287.010 which is desirous of obtaining group insurance for its officers,

 employees and retired employees by participation in the program. The

 board may establish separate rates and coverage for those officers,

 employees and retired employees based on actuarial reports.

   [(b)] (c) Give public notice in writing of proposed changes in rates or

 coverage to each participating public employer who may be affected by

 the changes. Notice must be provided at least 30 days before the effective

 date of the changes.

   [(c)] (d) Purchase policies of life, accident or health insurance, or any

 combination of these, or, if applicable, a program to reduce the amount of

 taxable compensation pursuant to 26 U.S.C. § 125, from any company

 qualified to do business in this state or provide similar coverage through a

 plan of self-insurance established pursuant to NRS 287.0433 for the

 benefit of all eligible public officers, employees and retired employees

 who participate in the program.

   [(d)] (e) Except as otherwise provided in this Title, develop and

 establish other employee benefits as necessary.

   [(e)] (f) Investigate and approve or disapprove any contract proposed

 pursuant to NRS 287.0479.

   [(f)] (g) Adopt such regulations and perform such other duties as are

necessary to carry out the provisions of NRS 287.0402 to 287.049,

 inclusive, including, without limitation, the establishment of:

     (1) Fees for applications for participation in the program and for the

 late payment of premiums or contributions;

     (2) Conditions for entry and reentry into the program by public

 agencies enumerated in NRS 287.010;

     (3) The levels of participation in the program required for employees

 of participating public agencies;

     (4) Procedures by which a group of participants in the program may

 leave the program pursuant to NRS 287.0479 and conditions and

 procedures for reentry into the program by such participants; and

     (5) Specific procedures for the determination of contested claims.

[(g)] (h) Appoint an independent certified public accountant. The

 accountant shall:

     (1) Provide anannual audit of the program; and

     (2) Report to the board and the interim retirement and benefits

 committee of the legislature created pursuant to NRS 218.5373.

   [(h)] (i) Appoint an attorney who specializes in employee benefits. The

 attorney shall:

     (1) Perform a biennial review of the program to determine whether

 the program complies with federal and state laws relating to taxes and

 employee benefits; and

     (2) Report to the board and the interim retirement and benefits

 committee of the legislature created pursuant to NRS 218.5373.

   3. The board shall submit an annual report regarding the

 administration and operation of the program to the director of the

 legislative counsel bureau not more than 6 months before the board

 establishes rates and coverage for members for the following calendar

 year. The report must include, without limitation:

   (a) The amount paid by the program in the preceding calendar year

 for the claims of active and retired state officers and employees; and

   (b) The amount paid by the program in the preceding calendar year

 for the claims of retired members of the program who were provided

 coverage for medical or hospital service, or both, by the Health

 Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan that

 provides similar coverage.

   4. The board may use any services provided to state agencies and shall

 use the services of the purchasing division of the department of

 administration to establish and carry out the program.

   [4.] 5.  The board may make recommendations to the legislature

 concerning legislation that it deems necessary and appropriate regarding

 the program.

   [5.] 6.  The state and any other public employers that participate in the

 program are not liable for any obligation of the program other than

 indemnification of the board and its employees against liability relating to

 the administration of the program, subject to the limitations specified in

 NRS 41.0349.

   [6.] 7.  As used in this section, “employee benefits” includes any form

 of compensation provided to a public employee except federal benefits,

wages earned, legal holidays, deferred compensation and benefits available

pursuant to chapter 286 of NRS.

   Sec. 2.  NRS 287.0434 is hereby amended to read as follows:

   287.0434  The board may:

   1.  Use its assets to pay the expenses of health care for its members and

 covered dependents, to pay its employees’ salaries and to pay

 administrative and other expenses.

   2.  Enter into contracts relating to the administration of the program,

 including, without limitation, contracts with licensed administrators and

 qualified actuaries. Each such contract with a licensed administrator:

   (a) Must be submitted to the commissioner of insurance not less than 30

 days before the date on which the contract is to become effective for

 approval as to the reasonableness of administrative charges in relation to

 contributions collected and benefits provided.

   (b) Does not become effective unless approved by the commissioner.

   (c) Shall be deemed to be approved if not disapproved by the

 commissioner of insurance within 30 days after its submission.

   3.  Enter into contracts with physicians, surgeons, hospitals, health

 maintenance organizations and rehabilitative facilities for medical,

 surgical and rehabilitative care and the evaluation, treatment and nursing

 care of members and covered dependents. The board shall not enter into

 a contract pursuant to this subsection unless:

   (a) Provision is made by the board to offer all the services specified in

 the request for proposals, either by a health maintenance organization

 or through separate action of the board.

   (b) The rates set forth in the contract are based on the commingled

 claims experience of active and retired state officers and employees and

 their dependents.

   4.  Enter into contracts for the services of other experts and specialists

 as required by the program.

   5.  Charge and collect from an insurer, health maintenance

 organization, organization for dental care or nonprofit medical service

 corporation, a fee for the actual expenses incurred by the board, the state

 or a participating public employer in administering a plan of insurance

 offered by that insurer, organization or corporation.

   Sec. 3. On or after January 1, 2002, the board of the public

 employees’ benefits program shall not enter into or renew any contract

 that does not comply with subsection 3 of NRS 287.0434, as amended by

 this act.

   Sec. 4. This act becomes effective on January 1, 2002.

 

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