00RS HB697


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HB 697 (BR 1938) - R. Damron, J. Stewart

     AN ACT relating to state employee health benefits.
     Amend KRS 18A.225 to require the State Health Benefits Commission to procure health insurance for state employees; provide that the Advisory Committee of State Health Insurance Subscribers shall expire on October 31, 2000; create new sections of KRS Chapter 42 to create the State Health Benefits Commission to procure comprehensive, affordable health insurance for state employees and to begin operations on October 1, 2000; designate 10 persons as members of the Commission to serve terms of four years; authorize the Commission to hire an executive director and additional staff; require the Auditor to conduct an annual audit of the commission; direct the Commission to appoint a 24-member State Employees Health Benefits Advisory Committee to advise the Commission; provide that the members of the Advisory Committee shall serve terms of two years and be appointed in November of each year; direct the State Health Benefits Commission to design health plans for state employees, negotiate with insurers, and take all appropriate action to procure health insurance for state employees; direct the Commission to gather and analyze data and develop the capacity to self-insure the state health benefits plan; direct the Commission to require health insurers to submit complete and detailed enrollment and claims data to the Commission on a timely basis; require the Commission to submit quarterly reports to the Legislative Research Commission on the distribution of enrollment, claims, and on the financial stability of the program; require the Commission to study and make recommendations to the General Assembly regarding increasing the state contribution to provide support for the dependent coverage and regarding restricting the amount the state may contribute to an employee's flexible spending account to 75% of the state contribution, except for retirees living outside of Kentucky; require the Commission to assess municipal, urban-county, charter county and county governments and state institutions of higher education whose retirees are members of the state employees group for the additional costs that would accrue to state employees group members from having the retirees as group members; require the Commission to submit an annual report to the Governor, the General Assembly, and to state employee group members; amend KRS 42.805 to authorized the Commission to establish a Kentucky Kare health insurance fund to provide for self-insurance; amend KRS 18A.2253, 42.810, and 42.820 to conform.


     HFA (1, S. Riggs) - Delete the provision that restricts the amount the state can contribute to the state employee flexible spending account.
     HFA (2, S. Cave) - Amend to reinstate the Finance and Administration Cabinet and the Personnel Cabinet as the entities to procure health benefit plans for state employees; amend to authorize the State Health Benefits Commission to be an advisory group to the secretary of the Finance and Administration Cabinet; and amend to state that the State Health Benefits Commission will be composed of seven (7) state employees appointed by the Governor.
     HFA (3, R. Damron) - Attach the State Health Benefits Commission to the Personnel Cabinet for administrative purposes only; remove the Auditor as a member of the commission; permit the commissioner of insurance to be a voting member; delete compensation of commission members; require funds in flexible spending accounts to be transferred to the credit of the commission's appropriation account; require amounts from assessments on local governments and colleges and universities that are not needed to meet current costs to be transferred to the credit of the commission's appropriation account; permit the commission to use up to 15 percent of funds transferred to its appropriation account for operations of the commission and the remainder shall be used for the state employees health benefit program.
     HFA (4, R. Damron) - Repeal KRS 42.800 creating the Kentucky Kare Health Insurance Authority; amend KRS 18A.225, 18A.2288, 42.0245, 45A.022, 91A.080, 136.330, 136.340, 136.350, and 205.640 to conform.

     Feb 15-introduced in House
     Feb 16-to Banking and Insurance (H)
     Feb 18-posted in committee
     Feb 24-reported favorably, 1st reading, to Calendar; floor amendment (1) filed
     Feb 25-2nd reading, to Rules
     Mar 1-floor amendments (2) (3) and (4) filed
     Mar 2-recommitted to Appropriations and Revenue (H)

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