HB 401 (BR 1077) - H. Moberly Jr, Ji. Lee
AN ACT relating to public employee health insurance.
Amend KRS 18A.225 to establish the Public Employee Health Insurance Program, establish requirements for the program, permit the program to offer fully-insured plans and self-insured plans, establish requirements for plans, define terms; amend KRS 79.080 to make technical changes; amend KRS 61.702 to make technical changes; amend KRS 161.675 to make technical changes; Amend KRS 18A.2255 to establish new time-frames for secretary of Personnel Cabinet and Advisory committee of State Health Insurance Subscribers and make technical changes; create a new section of KRS Chapter 18A to allow the program to offer a high deductible health benefit plan and health savings account in accordance with federal law, require the program to offer a health reimbursement arrangement, require employer contributions for employees waiving coverage to be forwarded to health reimbursement arrangement, require program to pay all administrative fees associated with offering health reimbursement arrangements and health savings accounts to public employees, require premiums to be based on the experience of the entire group covered under program, require program to offer flexible spending arrangements; create a new section of KRS Chapter 18A to establish a Public Employee Health Insurance Trust Fund to provide funds to pay medical claims and other expenses for public employees covered under self-insured plan offered by program, establish requirements for trust fund; require Personnel Cabinet and the Cabinet for Health and Family Services to conduct study regarding adverse selection in the program and report findings; repeal KRS 18A.2251 and 304.17A-290.
HB 401 - AMENDMENTS
HCS - Retain original provisions; allow fully insured plan to contain provisions approved by executive director of insurance, whether otherwise permitted by KRS Chapter 304; delete requirements that contracts be approved by Government Contracts Review Committee; require contracts to be reviewed by Government Contracts Review Committee; delete requirement that all employees be notified of formulary change; require all impacted employees and Kentucky Group Health Insurance Board to be notified fifteen (15) days before implementation of any formulary change; require insurers offering fully insured plan to employees to notify Personnel Cabinet of any formulary changes fifteen (15) days before implementation of change; require self-insured plan to include mail-order drug option; require the net cost to plans for maintenance drugs dispensed by mail order not to exceed net cost to plans for same drug dispensed by retail pharmacy; amend KRS 18A.225 to delete language allowing retirees whose former employers insure their active employees outside public employee health insurance program to be rated differently; allow public employees to appeal formulary changes; delete requirement that out of state network comply with KRS 304.17A-515; clarify the amount of employer contribution for the health reimbursement arrangement; clarify requirements for administrative fees for health reimbursement arrangements and health savings accounts; require semi-annual reporting on the program's out-of-state provider network and in-state provider network; allow for both quarterly and semi-annual reporting; make technical changes
HFA (1, J. Lee) - Amend to clarify duties of the Government Contract Review Committee; require Public Employee Health Insurance Program's self-insured plan to comply with KRS 304.17A-270 and KRS 304.17A-171; clarify contract and reporting requirements; make technical corrections.
HFA (2, J. Lee) - Amend to clarify that contracts are reviewed by the Government Contract Review Committee; require Public Employee Health Insurance Program's self-insured plan to comply with KRS 304.17A-270, 304.17A-171, 304.17A-700 to 304.17A-730, KRS 205.593, 304.14-135, and 304.99-123; clarify contract and reporting requirements; make technical corrections.
Jan 18-introduced in House
Jan 19-to State Government (H)
Jan 30-posted in committee; posting waived
Feb 7-reported favorably, 1st reading, to Calendar with Committee Substitute
Feb 8-2nd reading, to Rules; posted for passage in the Regular Orders of the Day for Thursday, February 9, 2006
Feb 14-floor amendment (1) filed to Committee Substitute
Feb 15-floor amendment (2) filed to Committee Substitute
Feb 21-3rd reading, passed 99-0 with Committee Substitute, floor amendment (2)
Feb 22-received in Senate
Feb 24-to State and Local Government (S)