HB 1587-FN - AS AMENDED BY THE HOUSE
24feb00.....3510h
2000 SESSION
04/10
HOUSE BILL 1587-FN
AN ACT relative to payment of health insurance costs for certain child day care agencies.
SPONSORS: Rep. Wallner, Merr 24; Sen. Hollingworth, Dist 23; Sen. Larsen, Dist 15
This bill establishes a 3-year pilot program in the department of health and human services which would provide full-time employees of certain child day care agencies with financial assistance from the state in obtaining health care insurance. The bill also authorizes the commissioner of the department of health and human services to seek funding for the pilot program through various charitable trusts including, but not limited to the Endowment for Health Foundation, and the Healthy New Hampshire Foundation.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
24feb00.....3510h
00-2579
04/10
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand
AN ACT relative to payment of health insurance costs for certain child day care agencies.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Intent.
I. The general court hereby finds that it is the intent of this pilot program to provide health insurance coverage for child care workers who care for the children of New Hampshire's lowest income working families. Child care is a vital component of New Hampshire's Welfare to Work initiatives and this pilot program will provide an incentive for licensed child care agencies to accept state subsidized children.
II. The general court further finds that this pilot program will increase benefits in a field which currently has low wages and few employer-sponsored benefits. It is the intent of the general court that increasing the availability of health insurance coverage will result in stabilizing the child care workforce.
2 Health Care Insurance for Employees of Certain Child Day Care Agencies; Pilot Program Established. There is hereby established a 3-year pilot program within the department of health and human services for providing employees of certain child day care agencies with access to health care insurance. For the purposes of this program, "department" shall mean the department of health and human services. The pilot program shall terminate on July 1, 2003 unless the legislature acts to extend the program.
3 Health Care Insurance for Employees of Family Day Care and Group Day Care Homes; Benefit Established.
I. The state shall pay 50 percent of the premium for medical and surgical benefits, including group hospitalization, hospital medical care, and surgical care, for each full-time employee of a family day care home or family group day care home, as such homes are defined in RSA 170-E:2, IV (a) and (b), provided such homes meet the following eligibility requirements:
(a) The family day care home or family group day care home is licensed pursuant to RSA 170-E;
(b) The family day care home has provided care for 2 or more children for which the home received payment under any of the department's child care programs for 9 or more of the preceding 12 months prior to applying to the department for health care coverage under this program, or the family group day care home has provided care for 2 or more children for which the home received payment under any of the department's child care programs for 9 or more of the preceding 12 months prior to applying to the department for health care coverage under this program; and
(c) The family day care home continues to provide child care services for 2 or more children, or the family group day care home continues to provide child care services for 2 or more children, for which either home is receiving payment under any of the department's child care programs as of the time the application to the department for health care coverage is submitted.
II. To be eligible for the benefit established in this section, a full-time employee of a family day care home or family group day care home shall not be eligible to receive health insurance benefits under a spouse's employer-sponsored health insurance programs.
4 Health Care Insurance for Other Child Day Care Agencies; Benefit Established.
I. The state shall pay a percentage of the premium for medical and surgical benefits, including group hospitalization, hospital medical care, and surgical benefits, for each full-time employee of a child day care agency as defined in RSA 170-E:2, IV (c)-(e) and (g) which provides child day care services paid for in whole or in part by the department, and which is licensed pursuant to RSA 170-E.
(a) The state shall pay 35 percent of the premium for a full-time employee of a child day care agency where, during the 6-month period immediately preceding application to the department for health care insurance, the number of children served by that agency who are enrolled in any of the department's child care subsidy or assistance programs is not less than 35 percent or more than 50 percent of the child day care agency's total licensed capacity.
(b) The state shall pay 50 percent of the premium for a full-time employee of a child day care agency where, during the 6-month period immediately preceding application to the department for health care insurance, the number of children served by that agency who are enrolled in any of the department's child care subsidy or assistance programs is greater than 50 percent of the child day care agency's total licensed capacity.
II. To be eligible for the benefit established in this section, a full-time employee of a child day care agency as defined in this section shall not be eligible to receive health insurance benefits under a spouse's employer-sponsored health insurance program.
III. No benefit provided under this section shall exceed benefits provided by the medicaid program.
5 Report. The department of health and human services shall prepare a report detailing the number of participating providers, the number of workers covered by the provisions of the pilot program, the changes in the number of licensed providers, and an estimate of the effect on staff retention. The report shall be submitted to the speaker of the house of representatives, the senate president, and the governor no later than November 1 of each year of the pilot program.
6 Rulemaking. The commissioner of the department of health and human services shall adopt rules, pursuant to RSA 541-A, relative to application procedures, eligibility criteria, limitations and restrictions, insurance coverage benefits limited to the level of benefits provided through the medicaid program, and any other matter consistent with the provisions of the pilot program.
7 Funding. The commissioner of the department of health and human services is authorized to investigate funding all or part of the cost of the pilot program through sources which include, but are not limited to, the Endowment for Health Foundation or the Healthy New Hampshire Foundation.
8 Effective Date.
I. Sections 6 and 7 of this act shall take effect upon its passage.
II. The remainder of this act shall take effect July 1, 2001.
LBAO
00-2579
12/17/99
HB 1587-FN - FISCAL NOTE
AN ACT relative to payment of health insurance costs for certain child day care agencies.
FISCAL IMPACT:
The Department of Heath and Human Services states this bill will increase state general fund expenditures in by $8,199,799 in FY 2002, by $8,161,299 in FY 2003 and FY 2004 and in each year thereafter. There will be no fiscal impact on state, county and local revenue or on county and local expenditures.
METHODOLOGY:
The Department has indicated that there are currently 154 licensed Family and Group Day Care providers that meet the eligibly criteria. The Department anticipates that, due to the incentive provided in this bill, the number of licensed, eligible providers will increase to 500. In order to license up to 300 additional Family and Family Group Day Care providers, the Bureau of Child Care Licensing will need four additional full-time positions: three Licensing Specialists (LG 17) and one Secretary II (LG 8). The unit assigned to administer the program would require three full-time positions: two Program Specialists (LG18) and one Secretary II (LG 8). The Department has assumed the monthly insurance premium would be for family coverage under an HMO plan similar to the coverage for state employees. Insurance cost estimates are based on participation of 525 employees of daycare agencies and participation of 500 Family Group Daycare providers.
FY 2002 FY 2003 FY 2004
Salaries $ 195,371 $ 195,371 $ 195,371
Benefits 60,563 60,563 60,563
Current Expenses 16,450 16,450 16,450
Computers 24,500 0 0
Office Furniture 14,000 0 0
Rent 12,915 12,915 12,915
Travel (mileage) 4,000 4,000 4,000
Total Cost of Staff $ 327,799 $ 289,299 $ 289,299
Insurance Premiums:
Family and Family Group
(500 x$7,680/year) 3,840,000 3,840,000 3,840,000
LBAO
00-2579
12/17/99
Page 2
HB 1587-FN - FISCAL NOTE
Daycare Centers
(525 x $7,680/year) 4,032,000 4,032,000 4,032,000
Total Insurance Cost $7,872,000 $7,872,000 $7,872,000
Totals $8,199,799 $8,161,299 $8,161,299