MISSISSIPPI LEGISLATURE

1997 Regular Session

To: Insurance; Appropriations

By: Representatives Horne, Stevens, Robinson (84th)

AN ACT TO CREATE NEW SECTION 25-15-303, MISSISSIPPI CODE OF 1972, TO CREATE A STATE AND PUBLIC SCHOOL EMPLOYEES HEALTH INSURANCE MANAGEMENT BOARD; TO DEFINE THE BOARD'S DUTIES AND MEMBERSHIP; TO PROVIDE FOR THE SELECTION OF A STATE INSURANCE ADMINISTRATOR AND DEPUTY ADMINISTRATOR; TO REQUIRE THE DEPARTMENT OF FINANCE AND ADMINISTRATION TO PROVIDE STAFFING TO THE BOARD; TO AMEND SECTIONS 25-15-3 AND 25-15-251, MISSISSIPPI CODE OF 1972, TO DEFINE THE TERM "BOARD"; AND FOR RELATED PURPOSES. 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MISSISSIPPI:

SECTION 1. The following shall be codified as Section 25-15-303, Mississippi Code of 1972:

25-15-303. (1) There is created the State and Public School Employees Health Insurance Management Board, which shall administer the State Employees Life and Health Insurance Plan provided for under Section 25-15-3 et seq., and the Public School Employees Health Insurance Plans created under Section 25-15-251 et seq. The State and Public School Employees Health Insurance Management Board, hereafter referred to as the "board," shall also be responsible for administering all procedures for selecting third-party administrators provided for in Section 25-15-301. Whenever the term "department," "Department of Finance and Administration," or "board," appears in Sections 25-15-3 et seq., 25-15-251 et seq., and 25-15-301, such term means the State and Public School Employees Health Insurance Management Board.

(2) The board shall consist of the following: 

(a) The Chairman of the Workers' Compensation Commission;

(b) The Commissioner of Insurance;

(c) The Commissioner of Higher Education;

(d) The State Superintendent of Education;

(e) The Executive Director of the Department of Finance and Administration;

(f) Two (2) appointees of the Governor whose terms shall be concurrent with that of the Governor, one (1) of whom shall have experience in providing actuarial advice to companies that provide health insurance to large groups and one (1) of whom shall have experience in the day-to-day management and administration of a large self-funded health insurance group.

(g) The Chairman of the Senate Insurance Committee or his designee;

(h) The Chairman of the House of Representatives Insurance Committee or his designee;

(i) The Chairman of the Senate Appropriations Committee or his designee; and

(j) The Chairman of the House of Representatives Appropriations Committee or his designee.

The legislators, or their designees, shall serve as ex officio, nonvoting members of the board.

The Executive Director of the Department of Finance and Administration shall be the chairman of the board.

(3) The board shall meet at least monthly and maintain minutes of such meetings. The board shall have the sole authority to promulgate rules and regulations governing the operations of the insurance plans and shall be vested with all legal authority necessary and proper to perform this function including, but not limited to:

(a) Defining the scope and coverages provided by the insurance plans;

(b) Seeking proposals for services or insurance through competitive processes where required by law and selecting service providers or insurers under procedures provided for by law; and

(c) Developing and adopting strategic plans and budgets for the insurance plans.

The Department of Finance and Administration shall also employ a State Insurance Administrator, who shall be responsible for the day-to-day management and administration of the insurance plans. The board shall employ a Deputy State Insurance Administrator who shall be an actuary and a member of the American Academy of Actuaries. The Deputy State Insurance Administrator shall have experience in providing actuarial services to companies which provide health insurance to large groups. The deputy administrator shall receive a salary set by the board and shall not be subject to the authority of the State Personnel Board for any purpose. The Department of Finance and Administration shall provide to the board on a full-time basis personnel and technical support necessary and sufficient to effectively and efficiently carry out the requirements of this section.

(4) Members of the board shall not receive any compensation or per diem, but may receive travel reimbursement provided for under Section 25-3-41 except that the legislators shall receive per diem and expenses which shall be paid from the contingent expense funds of their respective houses in the same amounts as provided for committee meetings when the Legislature is not in session; however, no per diem and expenses for attending meetings of the board shall be paid while the Legislature is in session.

SECTION 2. Section 25-15-3, Mississippi Code of 1972, is amended as follows:

25-15-3. For the purposes of this article, the words and phrases used herein shall have the following meanings:

(a) "Employee" means a person who works full time for the State of Mississippi and receives his compensation in a direct payment from a department, agency or institution of the state government. This shall include legislators, employees of the legislative branch and the judicial branch of the state and "employees" shall include full-time salaried judges and full-time district attorneys and their staff and full-time compulsory school attendance officers. For the purposes of this article, any "employee" making contributions to the State of Mississippi retirement plan shall be considered a full-time employee.

(b) "Board" means the State and Public School Employees Health Insurance Management Board. Whenever the term "department," "Department of Finance and Administration," or "board" appears in this article, such term means the State and Public School Employees Health Insurance Management Board.

(c) "Plan" means the State Employees Life and Health Insurance Plan created under this article.

(d) "Fund" means the State Employees Insurance Fund set up under this article.

(e) "Retiree" means any person retired under the Mississippi retirement plan.

SECTION 3. Section 25-15-251, Mississippi Code of 1972, is amended as follows:

25-15-251. For the purposes of this article, the words and phrases used herein shall have the following meanings:

(a) "Employee" means a person who works full time for any school district, community/junior college, public library or university-based program authorized under Section 37-23-31 for deaf, aphasic and emotionally disturbed children, or any regular nonstudent school bus driver.

(b) "Board" means the State and Public School Employees Health Insurance Management Board. Whenever the term "department," "Department of Finance and Administration," or "board" appears in this article, such term means the State and Public School Employees Health Insurance Management Board.

(c) "Plan" means the Public School Employees Health Insurance Plan created under this article.

(d) "Retiree" means any retired employee as defined in this section who is enrolled on April 12, 1991, in a group health insurance plan offered by the individual school district or community/junior college district, and those active employees who may subsequently retire from employment after April 12, 1991.

SECTION 4. This act shall take effect and be in force from and after its passage.