2001 SESSION

01-2268

10/09

HOUSE BILL 1271-FN

COMMITTEE: Executive Departments and Administration

ANALYSIS

This bill requires that dental care benefits be provided to retired state employees and their spouses, as well as to state employees and their families.

- - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - -

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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

01-2268

10/09

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand One

Be it Enacted by the Senate and House of Representatives in General Court convened:

1 Dental Care Added; State Employees Group Insurance. Amend RSA 21-I:26-28 to read as follows:

21-I:26 Purpose and Policy. This subdivision is to provide permanent group life insurance and group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefits for New Hampshire state employees and their families, and retired state employees and their spouses. In view of the accepted value of group insurance to the well-being and efficiency of employees on the part of small and large private employers and the other 5 New England states in obtaining benefits of this type of insurance for their employees, the state of New Hampshire implements this subdivision in order that the state shall compare favorably to the standards now commonly accepted by private employers and the state employees in the other 5 New England states by making available to state employees and their families and retired state employees and their spouses permanent group life insurance and group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical insurance benefits.

21-I:27 Administration. Administration of the state employees permanent group life and group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical insurance benefits shall be the responsibility of the commissioner of administrative services.

21-I:28 Contract. The commissioner of administrative services shall be authorized to enter into permanent group life insurance contracts with an insurance company or companies, or other group licensed to do business in the state of New Hampshire. The commissioner of administrative services shall be authorized to enter into group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefits contracts with an insurance company or companies, third party administrators, or any organization necessary to administer and provide a health plan under the provisions of this subdivision. The commissioner of administrative services, in consultation with the fiscal committee of the general court, shall from time to time assess the medical insurance coverage given by its present insurer and by others in order to determine which of various contracts would best serve the interests of the state employees.

2 Dental Care Added; State Employees Group Insurance. Amend RSA 21-I:30 - 31 to read as follows:

21-I:30 Medical [and], Surgical, and Dental Benefits.

I. The state shall pay a premium for each state employee and permanent temporary or permanent seasonal employee as defined in RSA 98-A:3 including spouse and minor, fully dependent children, if any, and each retired employee, as defined in paragraph II of this section, and his or her spouse, or retired employee's beneficiary, only if an option was taken at the time of retirement and the employee is not now living, toward group hospitalization, hospital medical care, surgical care, dental care, and other medical benefits plan or a self-funded alternative within the limits of the funds appropriated at each legislative session and providing any change in plan or vendor is approved by the fiscal committee of the general court prior to its adoption. Funds appropriated for this purpose shall not be transferred or used for any other purpose.

II. For the purposes of this section, "retired employee" means each group II state employee who retires. "Retired employee" also means each group I state employee who:

(a) Has at least 10 years of creditable service for the state and who also is at least 60 years of age at the time of retirement; or

(b) Has at least 30 years of creditable service for the state at the time of retirement, regardless, of the employee's age; or

(c) Is but for the provisions of 1989, 376:10, otherwise eligible to receive medical [and], surgical, or dental benefits under this section notwithstanding subparagraphs (a) and (b), and paragraph IV, on June 30, 1989, and who retires between July 1, 1989, and June 30, 1994; or

(d) Dies or retires and is eligible for accidental death or accidental disability retirement benefits, regardless of the state employee's age or number of years of creditable service; or

(e) Retires and is eligible for ordinary disability retirement benefits, regardless of the state employee's age; or

(f) Dies and is eligible for ordinary death retirement benefits, if the state employee was eligible for service retirement at the time of his death, if the state employee had at least 10 years of creditable service for the state.

III. Any vested deferred state retiree may receive medical [and], surgical, and dental benefits under this section if the vested deferred state retiree is eligible. To be eligible, a vested deferred state retiree shall have at least 10 years of creditable service with the state. In addition, if the vested deferred state retiree is a member of group I, such retiree shall be at least 60 years of age to be eligible. If the vested deferred state retiree is a member of group II, such retiree shall not be eligible until 20 years from the date of becoming a member of group II and shall be at least 45 years of age.

IV. Each state employee who has at least 10 years of creditable service for the state and who elects to take a reduced service retirement allowance shall be defined as a "retired employee" for the purposes of being eligible to receive medical [and], surgical, and dental benefits under this section when the state employee reaches age 60.

V. No state employee who terminates [his] state service before [he becomes] becoming eligible for retirement benefits as a "retired employee" as defined under paragraphs II-IV shall be eligible for medical [and], surgical, and dental benefits under this section.

21-I:30-a Additional Medical [and], Surgical, and Dental Benefits.

I. The state shall pay a premium for permanent group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefits for the surviving spouse and dependent children of a deceased group I or group II state employee who dies as the natural and proximate result of injuries suffered while in the performance of duty, provided that:

(a) Any such child shall qualify as a dependent under the provisions of RSA 21-I:26-36.

(b) Any such surviving spouse shall cease to be qualified for medical [and], surgical, and dental benefits under this section upon the remarriage of the surviving spouse.

(c) No surviving spouse or dependent children shall be qualified or continue to be qualified for medical [and], surgical, and dental benefits under this section while receiving medical or dental insurance or health care benefits from any other employer-sponsored plan.

(d) The state shall pay the premium for supplemental medical [and], surgical, and dental benefits under this section for any such child who qualifies as a dependent under the provisions of RSA 21-I:26-36 and who is eligible for medicare benefits.

II. In the case of the surviving spouse and dependent children of a group II state employee member who are eligible for medical [and] surgical, and dental benefits under this section and also under the provisions of RSA 100-A:50-55, the state shall pay the difference between the amount paid under RSA 100:52 and the premium paid under subparagraph I.

III. Funding to pay the premium for benefits under this section shall come from the benefit adjustment account.

21-I:31 Dividends. Any dividends which may be received from this life insurance program and the group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefits shall be paid to the state to be used to extend greater coverage by increasing the face value of the life insurance program.

3 Dental Care Added; State Employees Group Insurance. Amend RSA 21-I:34 and 35 to read as follows:

21-I:34 Age Limit. There shall be no age limit to participate in either the permanent group life insurance or in the group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefits program.

21-I:35 Examinations. There shall be no physical examination or health statement required for coverage under either the permanent group life insurance or group hospitalization, hospital medical care, surgical care, dental care, and other medical and surgical benefit programs; provided, however, that, if a state employee otherwise eligible fails to apply for any such insurance coverage within the time required by the insurance contract, the insurer may require that the employee submit satisfactory evidence of insurability as a condition for becoming insured.

4 Effective Date. This act shall take effect 60 days after its passage.

LBAO

01-2268

9/19/01

HB 1271-FN - FISCAL NOTE

FISCAL IMPACT: