Senate Concurrent Resolution No. 50–Committee on Legislative Affairs and Operations

 

May 28, 2001

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Referred to Committee on Legislative Affairs and Operations

 

SUMMARY—Directs Legislative Commission to conduct interim study of certain systems that offer health benefits provided by various governmental employers. (BDR R‑1549)

 

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

 

Senate Concurrent RESOLUTION—Directing the Legislative Commission to conduct an interim study of certain systems that offer health benefits provided by various governmental employers.

 

1-1     Whereas, In Nevada, insurance trusts are a part of the systems that

1-2  offer health benefits provided by state and local governmental employers

1-3  for the benefit of certain public employees; and

1-4     Whereas, Insurance trusts are financed primarily through premiums

1-5  that are subsidized in large part by the taxpayers of Nevada; and

1-6     Whereas, Unlike private insurance companies that must comply with

1-7  state laws, such as those which set time limits on the review and payment

1-8  of medical claims, the insurance trusts that serve certain public employees

1-9  are not subject to state or federal regulation; and

1-10     Whereas, Recent reviews and comprehensive audits of certain

1-11  insurance trusts have revealed serious problems in the management of

1-12  these benefit programs; and

1-13     Whereas, Some of the problems occurring in the fiscal

1-14  mismanagement of insurance trusts include unpaid claims of medical

1-15  providers that were eventually sent to collections, thus impairing the credit

1-16  report of certain governmental employees who are individual trust

1-17  members, and reports of trust members being dropped by their physicians

1-18  or having the provision of services limited; now, therefore, be it

1-19     Resolved by the Senate of the State of Nevada, the Assembly

1-20  Concurring, That the Legislative Commission is hereby directed to

1-21  appoint a committee, composed of members of the Senate and members of

1-22  the Assembly, to study certain systems that offer health benefits provided

1-23  by various governmental employers in Nevada; and be it further

1-24     Resolved, That the study must include, without limitation, an analysis

1-25  of:

2-1    1.  The operational practices of insurance trusts that have led to a huge

2-2  backlog of medical claims and the nonpayment or delinquent payment of

2-3  medical claims;

2-4    2.  Fiscal mismanagement by insurance trusts;

2-5    3.  Allegations of unnecessary inflation of overhead in some insurance

2-6  trusts;

2-7    4.  The fiduciary obligations of the trustees;

2-8    5.  The financial soundness of insurance trusts that offer health benefits

2-9  and suggestions for protection of Nevada’s taxpayers and the employees

2-10  and retirees covered by insurance trusts in the event such a system fails;

2-11    6.  The impact on the state budget and health benefits plan, if any, in

2-12  the event an insurance trust fails; and

2-13    7.  Disclosure of financial information and other pertinent plan

2-14  information; and be it further

2-15     Resolved, That any recommended legislation proposed by the

2-16  committee must be approved by a majority of the members of the Senate

2-17  and a majority of the members of the Assembly appointed to the

2-18  committee; and be it further

2-19     Resolved, That the Legislative Commission shall submit a report of

2-20  the results of the study and any recommended legislation to the 72nd

2-21  session of the Nevada Legislature.

 

2-22  H