Assembly Bill No. 263–Committee on Ways and Means

 

March 7, 2003

____________

 

Referred to Committee on Ways and Means

 

SUMMARY—Revises provisions governing notice requirements for change in health insurance program for public employees. (BDR 23‑1313)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: No.

 

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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 public employees’ benefits; reducing the number of days of notice that participants in the Public Employees’ Benefits Program must be given before being required to select or change a policy of health insurance that will result in a change in premiums or coverage; 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

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

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

1-8  or other forms of compensation other than deferred

1-9  compensation,

1-10  for the benefit of all state officers and employees and other persons

1-11  who participate in the Program.

1-12      (b) Ensure that the Program is funded on an actuarially sound

1-13  basis and operated in accordance with sound insurance and business

1-14  practices.

2-1  2.  In establishing and carrying out the Program, the Board

2-2  shall:

2-3  (a) For the purpose of establishing actuarial data to determine

2-4  rates and coverage for active and retired state officers and

2-5  employees and their dependents, commingle the claims experience

2-6  of such active and retired officers and employees and their

2-7  dependents.

2-8  (b) Except as otherwise provided in this paragraph, negotiate

2-9  and contract with the governing body of any public agency

2-10  enumerated in NRS 287.010 that wishes to obtain group insurance

2-11  for its officers, employees and retired employees by participation in

2-12  the Program. The Board shall establish separate rates and coverage

2-13  for those officers, employees and retired employees based on

2-14  actuarial reports.

2-15      (c) Except as otherwise provided in paragraph (d), provide

2-16  public notice in writing of any proposed changes in rates or

2-17  coverage to each participating public employer who may be affected

2-18  by the changes. Notice must be provided at least 30 days before the

2-19  effective date of the changes.

2-20      (d) If a proposed change is a change in the premium charged for

2-21  or coverage of health insurance, provide written notice of the

2-22  proposed change to all state officers, employees, retired employees

2-23  and other persons who participate in the Program who may be

2-24  affected by the proposed change. The notice must be provided at

2-25  least [60] 30 days before the date a state officer, employee, retired

2-26  employee or other person is required to select or change his policy

2-27  of health insurance.

2-28      (e) Purchase policies of life, accident or health insurance, or any

2-29  combination of these, or, if applicable, a program to reduce the

2-30  amount of taxable compensation pursuant to 26 U.S.C. § 125, from

2-31  any company qualified to do business in this state or provide similar

2-32  coverage through a plan of self-insurance established pursuant to

2-33  NRS 287.0433 for the benefit of all eligible public officers,

2-34  employees and retired employees who participate in the Program.

2-35      (f) Except as otherwise provided in this title, develop and

2-36  establish other employee benefits as necessary.

2-37      (g) Investigate and approve or disapprove any contract proposed

2-38  pursuant to NRS 287.0479.

2-39      (h) Adopt such regulations and perform such other duties as are

2-40  necessary to carry out the provisions of NRS 287.0402 to 287.049,

2-41  inclusive, including, without limitation, the establishment of:

2-42          (1) Fees for applications for participation in the Program and

2-43  for the late payment of premiums or contributions;

2-44          (2) Conditions for entry and reentry into the Program by

2-45  public agencies enumerated in NRS 287.010;

3-1       (3) The levels of participation in the Program required for

3-2  employees of participating public agencies;

3-3       (4) Procedures by which a group of participants in the

3-4  Program may leave the Program pursuant to NRS 287.0479 and

3-5  conditions and procedures for reentry into the Program by those

3-6  participants; and

3-7       (5) Specific procedures for the determination of contested

3-8  claims.

3-9  (i) Appoint an independent certified public accountant. The

3-10  accountant shall:

3-11          (1) Provide an annual audit of the Program; and

3-12          (2) Report to the Board and the Interim Retirement and

3-13  Benefits Committee of the Legislature created pursuant to

3-14  NRS 218.5373.

3-15      (j) Appoint an attorney who specializes in employee benefits.

3-16  The attorney shall:

3-17          (1) Perform a biennial review of the Program to determine

3-18  whether the Program complies with federal and state laws relating to

3-19  taxes and employee benefits; and

3-20          (2) Report to the Board and the Interim Retirement and

3-21  Benefits Committee of the Legislature created pursuant to

3-22  NRS 218.5373.

3-23      3.  The Board shall submit an annual report regarding the

3-24  administration and operation of the Program to the Director of

3-25  the Legislative Counsel Bureau not more than 6 months before the

3-26  Board establishes rates and coverage for members for the following

3-27  calendar year. The report must include, without limitation:

3-28      (a) The amount paid by the Program in the preceding calendar

3-29  year for the claims of active and retired state officers and

3-30  employees; and

3-31      (b) The amount paid by the Program in the preceding calendar

3-32  year for the claims of retired members of the Program who were

3-33  provided coverage for medical or hospital service, or both, by the

3-34  Health Insurance for the Aged Act, 42 U.S.C. §§ 1395 et seq., or a

3-35  plan that provides similar coverage.

3-36      4.  The Board may use any services provided to state agencies

3-37  and shall use the services of the Purchasing Division of the

3-38  Department of Administration to establish and carry out the

3-39  Program.

3-40      5.  The Board may make recommendations to the Legislature

3-41  concerning legislation that it deems necessary and appropriate

3-42  regarding the Program.

3-43      6.  The State and any other public employers that participate in

3-44  the Program are not liable for any obligation of the Program other

3-45  than indemnification of the Board and its employees against liability

4-1  relating to the administration of the Program, subject to the

4-2  limitations specified in NRS 41.0349.

4-3  7.  As used in this section, “employee benefits” includes any

4-4  form of compensation provided to a public employee except federal

4-5  benefits, wages earned, legal holidays, deferred compensation and

4-6  benefits available pursuant to chapter 286 of NRS.

4-7  Sec. 2.  This act becomes effective upon passage and approval.

 

4-8  H