exempt

                                                   (REPRINTED WITH ADOPTED AMENDMENTS)

 

Assembly Bill No. 564–Committee on Government Affairs

 

March 26, 2001

____________

 

Referred to Committee on Government Affairs

 

SUMMARY—Makes various changes relating to public employees’ benefits program. (BDR 23‑1346)

 

FISCAL NOTE:  Effect on Local Government: No.

                             Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

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:

 

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

1-2    287.043  1.  The board shall:

1-3    (a) Establish and carry out a program to be known as the public

1-4  employees’ benefits program which:

1-5       (1) Must include a program relating to group life, accident or health

1-6  insurance, or any combination of these; and

1-7       (2) May include a program to reduce taxable compensation or other

1-8  forms of compensation other than deferred compensation,

1-9  for the benefit of all state officers and employees and other persons who

1-10  participate in the program.

1-11    (b) Ensure that the program is funded on an actuarially sound basis and

1-12  operated in accordance with sound insurance and business practices.

1-13    2.  In establishing and carrying out the program, the board shall:

1-14    (a) For the purpose of establishing actuarial data to determine rates

1-15  and coverage for active and retired state officers and employees and their

1-16  dependents, commingle the claims experience of such active and retired

1-17  officers and employees and their dependents.

1-18    (b) Except as otherwise provided in this paragraph, negotiate and

1-19  contract with the governing body of any public agency enumerated in NRS

1-20  287.010 which is desirous of obtaining group insurance for its officers,

2-1  employees and retired employees by participation in the program. The

2-2  board may establish separate rates and coverage for those officers,

2-3  employees and retired employees based on actuarial reports.

2-4    [(b)] (c) Give public notice in writing of proposed changes in rates or

2-5  coverage to each participating public employer who may be affected by the

2-6  changes. Notice must be provided at least 30 days before the effective date

2-7  of the changes.

2-8    [(c)] (d) Purchase policies of life, accident or health insurance, or any

2-9  combination of these, or, if applicable, a program to reduce the amount of

2-10  taxable compensation pursuant to 26 U.S.C. § 125, from any company

2-11  qualified to do business in this state or provide similar coverage through a

2-12  plan of self-insurance established pursuant to NRS 287.0433 for the benefit

2-13  of all eligible public officers, employees and retired employees who

2-14  participate in the program.

2-15    [(d)] (e) Except as otherwise provided in this Title, develop and

2-16  establish other employee benefits as necessary.

2-17    [(e)] (f) Investigate and approve or disapprove any contract proposed

2-18  pursuant to NRS 287.0479.

2-19    [(f)] (g) Adopt such regulations and perform such other duties as are

2-20  necessary to carry out the provisions of NRS 287.0402 to 287.049,

2-21  inclusive, including, without limitation, the establishment of:

2-22      (1) Fees for applications for participation in the program and for the

2-23  late payment of premiums or contributions;

2-24      (2) Conditions for entry and reentry into the program by public

2-25  agencies enumerated in NRS 287.010;

2-26      (3) The levels of participation in the program required for employees

2-27  of participating public agencies;

2-28      (4) Procedures by which a group of participants in the program may

2-29  leave the program pursuant to NRS 287.0479 and conditions and

2-30  procedures for reentry into the program by such participants; and

2-31      (5) Specific procedures for the determination of contested claims.

2-32  [(g)] (h) Appoint an independent certified public accountant. The

2-33  accountant shall:

2-34      (1) Provide anannual audit of the program; and

2-35      (2) Report to the board and the interim retirement and benefits

2-36  committee of the legislature created pursuant to NRS 218.5373.

2-37    [(h)] (i) Appoint an attorney who specializes in employee benefits. The

2-38  attorney shall:

2-39      (1) Perform a biennial review of the program to determine whether

2-40  the program complies with federal and state laws relating to taxes and

2-41  employee benefits; and

2-42      (2) Report to the board and the interim retirement and benefits

2-43  committee of the legislature created pursuant to NRS 218.5373.

2-44    3. The board shall submit an annual report regarding the

2-45  administration and operation of the program to the director of the

2-46  legislative counsel bureau not more than 6 months before the board

2-47  establishes rates and coverage for members for the following calendar

2-48  year. The report must include, without limitation:

3-1    (a) The amount paid by the program in the preceding calendar year

3-2  for the claims of active and retired state officers and employees; and

3-3    (b) The amount paid by the program in the preceding calendar year

3-4  for the claims of retired members of the program who were provided

3-5  coverage for medical or hospital service, or both, by the Health

3-6  Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a plan that

3-7  provides similar coverage.

3-8    4. The board may use any services provided to state agencies and shall

3-9  use the services of the purchasing division of the department of

3-10  administration to establish and carry out the program.

3-11    [4.] 5.  The board may make recommendations to the legislature

3-12  concerning legislation that it deems necessary and appropriate regarding

3-13  the program.

3-14    [5.] 6.  The state and any other public employers that participate in the

3-15  program are not liable for any obligation of the program other than

3-16  indemnification of the board and its employees against liability relating to

3-17  the administration of the program, subject to the limitations specified in

3-18  NRS 41.0349.

3-19    [6.] 7.  As used in this section, “employee benefits” includes any form

3-20  of compensation provided to a public employee except federal benefits,

3-21  wages earned, legal holidays, deferred compensation and benefits available

3-22  pursuant to chapter 286 of NRS.

3-23    Sec. 2.  NRS 287.0434 is hereby amended to read as follows:

3-24    287.0434  The board may:

3-25    1.  Use its assets to pay the expenses of health care for its members and

3-26  covered dependents, to pay its employees’ salaries and to pay

3-27  administrative and other expenses.

3-28    2.  Enter into contracts relating to the administration of the program,

3-29  including, without limitation, contracts with licensed administrators and

3-30  qualified actuaries. Each such contract with a licensed administrator:

3-31    (a) Must be submitted to the commissioner of insurance not less than 30

3-32  days before the date on which the contract is to become effective for

3-33  approval as to the reasonableness of administrative charges in relation to

3-34  contributions collected and benefits provided.

3-35    (b) Does not become effective unless approved by the commissioner.

3-36    (c) Shall be deemed to be approved if not disapproved by the

3-37  commissioner of insurance within 30 days after its submission.

3-38    3.  Enter into contracts with physicians, surgeons, hospitals, health

3-39  maintenance organizations and rehabilitative facilities for medical, surgical

3-40  and rehabilitative care and the evaluation, treatment and nursing care of

3-41  members and covered dependents. The board shall not enter into a

3-42  contract pursuant to this subsection unless:

3-43    (a) Provision is made by the board to offer all the services specified in

3-44  the request for proposals, either by a health maintenance organization or

3-45  through separate action of the board.

3-46    (b) The rates set forth in the contract are based on the commingled

3-47  claims experience of active and retired state officers and employees and

3-48  their dependents.

4-1    4.  Enter into contracts for the services of other experts and specialists

4-2  as required by the program.

4-3    5.  Charge and collect from an insurer, health maintenance

4-4  organization, organization for dental care or nonprofit medical service

4-5  corporation, a fee for the actual expenses incurred by the board, the state or

4-6  a participating public employer in administering a plan of insurance offered

4-7  by that insurer, organization or corporation.

4-8    Sec. 3. On or after January 1, 2002, the board of the public

4-9  employees’ benefits program shall not enter into or renew any contract that

4-10  does not comply with subsection 3 of NRS 287.0434, as amended by this

4-11  act.

4-12    Sec. 4. This act becomes effective on January 1, 2002.

 

4-13  H