(REPRINTED WITH ADOPTED AMENDMENTS)

 

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 Committee on Health Care to review health benefits provided by State of Nevada to its employees. (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 Committee on Health Care to review the health benefits provided by the State of Nevada to its employees.

 

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; and

1-19      Whereas, The financial stability and actuarial soundness of the

1-20  system pursuant to which the State of Nevada provides health benefits to

1-21  its active and retired employees is of vital importance to those employees

1-22  and the State of Nevada; now, therefore, be it

1-23      Resolved by the Senate of the State of Nevada, the Assembly

1-24  Concurring, That the Legislative Committee on Health Care shall

1-25  review the health benefits provided by the State of Nevada to its active and

1-26  retired employees; and be it further

2-1  Resolved, That the study must include, without limitation, an analysis

2-2  of:

2-3  1.  The operational practices of the system by which the State of

2-4  Nevada provides health benefits to its active and retired employees;

2-5  2.  The financial stability and actuarial soundness of that system and

2-6  suggestions for protection of Nevada’s taxpayers and the employees and

2-7  retirees covered by the system in the event the system fails;

2-8  3.  The impact, if any, on the state budget and the health benefits plan

2-9  offered to state employees in the event the system fails; and

2-10      4.  Disclosure of financial information and other pertinent plan

2-11  information; and be it further

2-12    Resolved, That the Legislative Committee on Health Care shall submit

2-13  a report of its findings and any recommendations for legislation to the 72nd

2-14  session of the Nevada Legislature.

2-15    1.  The operational practices of insurance trusts that have led to a huge

2-16  backlog of medical claims and the nonpayment or delinquent payment of

2-17  medical claims;

2-18    2.  Fiscal mismanagement by insurance trusts;

2-19    3.  Allegations of unnecessary inflation of overhead in some insurance

2-20  trusts;

2-21    4.  The fiduciary obligations of the trustees;

2-22    5.  The financial soundness of insurance trusts that offer health benefits

2-23  and suggestions for protection of Nevada’s taxpayers and the employees

2-24  and retirees covered by insurance trusts in the event such a system fails;

2-25    6.  The impact on the state budget and health benefits plan, if any, in

2-26  the event an insurance trust fails; and

2-27    7.  Disclosure of financial information and other pertinent plan

2-28  information; and be it further

2-29    Resolved, That any recommended legislation proposed by the

2-30  committee must be approved by a majority of the members of the Senate

2-31  and a majority of the members of the Assembly appointed to the

2-32  committee; and be it further

2-33    Resolved, That the Legislative Commission shall submit a report of

2-34  the results of the study and any recommended legislation to the 72nd

2-35  session of the Nevada Legislature.

 

2-36  H