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

 

March 24, 2003

____________

 

Referred to Committee on Elections, Procedures, and Ethics

 

SUMMARY—Directs Legislative Commission to conduct interim study of operations of Public Employees’ Benefits Program. (BDR R‑1111)

 

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

 

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

 

1-1  Whereas, The Public Employees’ Benefits Program was

1-2  established in 1999 as the state agency legislatively approved to

1-3  provide group life, accident or health insurance, or any combination

1-4  of these, for state and nonstate public active and retired employees,

1-5  and surviving spouses and children of certain persons formerly

1-6  employed by a participating public agency; and

1-7  Whereas, As of January 2003, there were 22,345 active state

1-8  employees and 5,105 retired state employees who rely on the

1-9  Program for their group health insurance coverage; and

1-10      Whereas, In addition, another 1,706 active nonstate public

1-11  employees and 1,570 retired nonstate public employees, and 288

1-12  eligible survivors rely on this health insurance coverage as well; and

1-13      Whereas, In recent months, allegations have been raised

1-14  regarding the effectiveness, efficiency and efficacy of the Program;

1-15  and

1-16      Whereas, Public employees and public employers across

1-17  Nevada are experiencing cost increases for this coverage and they

1-18  recognize that larger groups have stronger buying power when

1-19  seeking coverage; and

1-20      Whereas, Many public employees are covered under collective

1-21  bargaining agreements which need to be changed if a statewide

1-22  public employee insurance plan is to be established; and

2-1  Whereas, Many of the employees and retirees and their

2-2  families who are covered under the group health insurance provided

2-3  by the Program are asking for assistance in resolving an untenable

2-4  situation which has resulted in extraordinarily high premiums for

2-5  this coverage; now, therefore, be it

2-6  Resolved by the Assembly of the State of Nevada, the

2-7  Senate Concurring, That the Legislative Commission is hereby

2-8  directed to appoint a committee composed of three members of the

2-9  Assembly and three members of the Senate to conduct an interim

2-10  study of the operations of the Public Employees’ Benefits Program

2-11  relating to the provision of group health insurance; and be it further

2-12      Resolved, That the Legislative Commission shall designate a

2-13  Chairman of the committee who shall appoint an advisory

2-14  committee of at least nine members, who are not Legislators, as

2-15  follows:

2-16      1.  At least one representative of the Retired Public Employees

2-17  of Nevada or its successor organization;

2-18      2.  At least one representative of the Nevada Association of

2-19  Counties, or its successor organization, or the Nevada League of

2-20  Cities, or its successor organization;

2-21      3.  At least one representative of the State of Nevada

2-22  Employees Association or its successor organization;

2-23      4.  At least one person who possesses knowledge concerning

2-24  the management of risk or the management of insurance trusts;

2-25      5.  At least one provider of health insurance;

2-26      6.  The Executive Officer of the Board of the Public

2-27  Employees’ Benefits Program; and

2-28      7.  Representatives of other local public employee organizations

2-29  and representatives of public employers; and be it further

2-30      Resolved, That the study must include, without limitation:

2-31      1.  An examination of the methods used for determining

2-32  premiums, equitable employee contributions based upon actual costs

2-33  to this state and coverage for active and retired state and nonstate

2-34  public employees and their dependents;

2-35      2.  A review of the administration and solvency of the Fund for

2-36  the Public Employees’ Benefits Program;

2-37      3.  A review of the financial contributions, if any, that nonstate

2-38  public employers have made to assist their retired employees in

2-39  maintaining health insurance coverage;

2-40      4.  The feasibility of soliciting proposals for a contract that

2-41  would take over the entire statewide operation or the regional

2-42  operation of group health insurance funded by public employees and

2-43  public employers;

2-44      5.  An examination of relevant facts to determine whether all

2-45  members of the Public Employees’ Retirement System should be

3-1  required to participate in a statewide program of health insurance

3-2  funded by public employees and public employers;

3-3  6.  The desirability of eliminating or changing the composition

3-4  of the Board of the Public Employees’ Benefits Program;

3-5  7.  Consideration of whether it is feasible or desirable to allow

3-6  voluntary participation of public employees and public employers in

3-7  such a Program;

3-8  8.  The feasibility and desirability of establishing a program

3-9  similar to the Federal Employees Health Benefits Program, which

3-10  provides a choice through local and national carriers;

3-11      9.  Consideration of how the nonstate public employers should

3-12  contribute to the costs of insurance for employees who retire from

3-13  their service;

3-14      10.  Consideration of requiring nonstate public employers’

3-15  benefit plans to include reinstatement rights for their retirees, as

3-16  currently required by the Public Employees’ Benefits Program;

3-17      11.  Consideration of options for prefunding retiree health

3-18  benefits for all members of the Public Employees’ Benefits

3-19  Program;

3-20      12.  Consideration of a state subsidy mechanism providing for a

3-21  specific dollar amount or a specific percentage of the cost for

3-22  employees and separately for their dependents, including an

3-23  appropriate funding method;

3-24      13.  A review of this state’s retiree subsidy formula for past,

3-25  present and future retirees and an appropriate funding method to

3-26  address the current structural deficit;

3-27      14.  Consideration of the feasibility, desirability and financial

3-28  impact of authorizing large groups of participants to withdraw from

3-29  the Public Employees’ Benefits Program to obtain group insurance

3-30  from other sources;

3-31      15.  Consideration of the feasibility and financial impact of the

3-32  State of Nevada forming one or more purchasing coalitions with

3-33  surrounding states or private entities, or both; and

3-34      16.  An analysis and review of issues related to:

3-35      (a) Pharmaceutical programs that are designed to reduce the

3-36  price of prescription drugs for:

3-37          (1) Persons of low income in this state;

3-38          (2) Enrollees in this state’s health benefits plan; and

3-39          (3) Participants in programs administered by this state that

3-40  make available or provide prescription drugs;

3-41      (b) Prescription drug buying clubs that are used in other states

3-42  and the potential for such clubs to assist the residents of this state in

3-43  reducing their expenses for prescription drugs;

4-1  (c) Methods to access manufacturer rebates for prescription

4-2  drugs to assist the residents of this state in reducing their expenses

4-3  for prescription drugs;

4-4  (d) Interagency bulk purchasing and interstate buying of

4-5  prescription drugs to reduce the prices of prescription drugs for this

4-6  state’s programs and health benefits plan;

4-7  (e) Methods to negotiate for lower prices on prescription drugs

4-8  and a plan to carry out the methods; and

4-9  (f) Methods to control the prices of prescription drugs for this

4-10  state’s programs that provide pharmaceutical assistance to persons

4-11  of low income in this state and for enrollees in this state’s health

4-12  benefits plan; and be it further

4-13      Resolved, That any recommended legislation proposed by the

4-14  committee must be approved by a majority of the members of the

4-15  Assembly and a majority of the members of the Senate appointed to

4-16  the committee; and be it further

4-17      Resolved, That the Legislative Commission shall submit a

4-18  progress report of the results of the study and any recommendations

4-19  for legislation to the 73rd Session of the Nevada Legislature and a

4-20  final report of the results of the study and any recommendations for

4-21  legislation to the 74th Session of the Nevada Legislature.

 

4-22  H