Assembly Concurrent Resolution No. 10–Committee on
Elections, Procedures, and Ethics

 

FILE NUMBER..........

 

Assembly Concurrent RESOLUTION—Directing the Legislative Commission to conduct an interim study of the operations of the Public Employees’ Benefits Program.

 

    Whereas, The Public Employees’ Benefits Program was

established in 1999 as the state agency legislatively approved to

provide group life, accident or health insurance, or any combination

of these, for state and nonstate public active and retired employees,

and surviving spouses and children of certain persons formerly

employed by a participating public agency; and

    Whereas, As of January 2003, there were 22,345 active state

employees and 5,105 retired state employees who rely on the

Program for their group health insurance coverage; and

    Whereas, In addition, another 1,706 active nonstate public

employees and 1,570 retired nonstate public employees, and 288

eligible survivors rely on this health insurance coverage as well; and

    Whereas, In recent months, allegations have been raised

regarding the effectiveness, efficiency and efficacy of the Program;

and

    Whereas, Public employees and public employers across

Nevada are experiencing cost increases for this coverage and they

recognize that larger groups have stronger buying power when

seeking coverage; and

    Whereas, Many public employees are covered under collective

bargaining agreements which need to be changed if a statewide

public employee insurance plan is to be established; and

    Whereas, Many of the employees and retirees and their

families who are covered under the group health insurance provided

by the Program are asking for assistance in resolving an untenable

situation which has resulted in extraordinarily high premiums for

this coverage; now, therefore, be it

    Resolved by the Assembly of the State of Nevada, the

Senate Concurring, That the Legislative Commission is hereby

directed to appoint a committee composed of three members of the

Assembly and three members of the Senate to conduct an interim

study of the operations of the Public Employees’ Benefits Program

relating to the provision of group health insurance; and be it further

    Resolved, That the Legislative Commission shall designate a

Chairman of the committee who shall appoint an advisory

committee of at least nine members, who are not Legislators, as

follows:

    1.  At least one representative of the Retired Public Employees

of Nevada or its successor organization;

    2.  At least one representative of the Nevada Association of

Counties, or its successor organization, or the Nevada League of

Cities, or its successor organization;

    3.  At least one representative of the State of Nevada

Employees Association or its successor organization;

    4.  At least one person who possesses knowledge concerning

the management of risk or the management of insurance trusts;

    5.  At least one provider of health insurance;

    6.  The Executive Officer of the Board of the Public

Employees’ Benefits Program; and

    7.  Representatives of other local public employee organizations

and representatives of public employers; and be it further

    Resolved, That the study must include, without limitation:

    1.  An examination of the methods used for determining

premiums, equitable employee contributions based upon actual costs

to this state and coverage for active and retired state and nonstate

public employees and their dependents;

    2.  A review of the administration and solvency of the Fund for

the Public Employees’ Benefits Program;

    3.  A review of the financial contributions, if any, that nonstate

public employers have made to assist their retired employees in

maintaining health insurance coverage;

    4.  The feasibility of soliciting proposals for a contract that

would take over the entire statewide operation or the regional

operation of group health insurance funded by public employees and

public employers;

    5.  An examination of relevant facts to determine whether all

members of the Public Employees’ Retirement System should be

required to participate in a statewide program of health insurance

funded by public employees and public employers;

    6.  The desirability of eliminating or changing the composition

of the Board of the Public Employees’ Benefits Program;

    7.  Consideration of whether it is feasible or desirable to allow

voluntary participation of public employees and public employers in

such a Program;

    8.  The feasibility and desirability of establishing a program

similar to the Federal Employees Health Benefits Program, which

provides a choice through local and national carriers;

    9.  Consideration of how the nonstate public employers should

contribute to the costs of insurance for employees who retire from

their service;

    10.  Consideration of requiring nonstate public employers’

benefit plans to include reinstatement rights for their retirees, as

currently required by the Public Employees’ Benefits Program;

    11.  Consideration of options for prefunding retiree health

benefits for all members of the Public Employees’ Benefits

Program;

    12.  Consideration of a state subsidy mechanism providing for a

specific dollar amount or a specific percentage of the cost for

employees and separately for their dependents, including an

appropriate funding method;

    13.  A review of this state’s retiree subsidy formula for past,

present and future retirees and an appropriate funding method to

address the current structural deficit;

    14.  Consideration of the feasibility, desirability and financial

impact of authorizing large groups of participants to withdraw from

the Public Employees’ Benefits Program to obtain group insurance

from other sources;

    15.  Consideration of the feasibility and financial impact of the

State of Nevada forming one or more purchasing coalitions with

surrounding states or private entities, or both; and

    16.  An analysis and review of issues related to:

    (a) Pharmaceutical programs that are designed to reduce the

price of prescription drugs for:

        (1) Persons of low income in this state;

        (2) Enrollees in this state’s health benefits plan; and

        (3) Participants in programs administered by this state that

make available or provide prescription drugs;

    (b) Prescription drug buying clubs that are used in other states

and the potential for such clubs to assist the residents of this state in

reducing their expenses for prescription drugs;

    (c) Methods to access manufacturer rebates for prescription

drugs to assist the residents of this state in reducing their expenses

for prescription drugs;

    (d) Interagency bulk purchasing and interstate buying of

prescription drugs to reduce the prices of prescription drugs for this

state’s programs and health benefits plan;

    (e) Methods to negotiate for lower prices on prescription drugs

and a plan to carry out the methods; and

    (f) Methods to control the prices of prescription drugs for this

state’s programs that provide pharmaceutical assistance to persons

of low income in this state and for enrollees in this state’s health

benefits plan; and be it further

    Resolved, That any recommended legislation proposed by the

committee must be approved by a majority of the members of the

Assembly and a majority of the members of the Senate appointed to

the committee; and be it further

    Resolved, That the Legislative Commission shall submit a

progress report of the results of the study and any recommendations

for legislation to the 73rd Session of the Nevada Legislature and a

final report of the results of the study and any recommendations for

legislation to the 74th Session of the Nevada Legislature.

 

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