MISSISSIPPI LEGISLATURE

1998 Regular Session

To: Education; Insurance

By: Senator(s) Little

AN ACT TO AMEND SECTIONS 25-15-251 THROUGH 25-15-255, 25-15-256 AND 25-15-259 THROUGH 25-15-263, MISSISSIPPI CODE OF 1972, TO AUTHORIZE GROUP TERM LIFE INSURANCE BENEFITS AS AN OPTION FOR EMPLOYEES PARTICIPATING IN THE PUBLIC SCHOOL EMPLOYEES HEALTH INSURANCE PLAN, TO PRESCRIBE A SCHEDULE OF SUCH LIFE INSURANCE BENEFITS AND TO DESIGNATE THE PLAN AS THE PUBLIC SCHOOL EMPLOYEES LIFE AND HEALTH INSURANCE PLAN; AND FOR RELATED PURPOSES. 

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

SECTION 1. 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) "Department" means the Mississippi Department of Finance and Administration.

(c) "Plan" means the Public School Employees Life and 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 2. Section 25-15-253, Mississippi Code of 1972, is amended as follows:

25-15-253. The Department of Finance and Administration is empowered and authorized to administer the Public School Employees Life and Health Insurance Plan for employees as defined in Section 25-15-251 and to adopt and promulgate rules and regulations for its administration, subject to the terms and limitations contained in this article. The department shall employ, subject to the rules and regulations of the State Personnel Board, such personnel as may be needed to carry out the provisions of this article.

SECTION 3. Section 25-15-255, Mississippi Code of 1972, is amended as follows:

25-15-255. (1) (a) The Department of Finance and Administration shall design a plan of health insurance for employees which provides benefits for semiprivate rooms in addition to other incidental coverages which the department deems necessary.

The amount of the coverages shall be in such reasonable amount as may be determined by the department to be adequate, after due consideration of current health costs in Mississippi. The plan shall also include major medical benefits in such amounts as the department shall determine. The department is also authorized to accept bids for alternate coverage and optional benefits. Any contract for alternative coverage and optional benefits shall be awarded by the department after it has carefully studied and evaluated the bids and selected the best and most cost-effective bid. The department may reject all such bids; however, the department shall notify all bidders of the rejection and shall actively solicit new bids if all bids are rejected.

It is the intent of the Legislature that coverage under this plan may be self-insured by the State of Mississippi and the same as coverage provided state employees under the Public Employees Health Insurance Plan created in Section 25-15-3 et seq. The department may contract the administration and service of the self-insured program to a third party; however, before executing any contract, the department shall actively solicit bids for the administration and service of the program.

The department shall conduct the solicitation and contracting process in strict accordance with Section 1, Ch. 554, Laws of 1995; [See Editor's note to Sections 25-15-5 and 25-15-225].

Beginning on January 1, 1996, any contract entered into between the department for the administration and/or service of the self-insured plan and a third party shall be for the calendar year that begins on the first day of January and expires on the following thirty-first day of December.

The department may employ or contract for such consulting or actuarial services as may be necessary to formulate the Public School Employees Life and Health Insurance Plan, and to assist the department in the preparation of specifications and in the process of advertising for the bids for the plan. Such contracts shall be solicited and entered into in accordance with Section 25-15-5. The department shall keep a record of all persons, agents and corporations who contract with or assist the department in preparing and developing the plan. The department, in a timely manner, shall provide copies of this record to the members of the advisory council created in paragraph (b) of this subsection and those legislators, or their designees, who may attend meetings of the advisory council. The department shall provide copies of this record in the solicitation of bids for the administration and servicing of the self-insured program. Each person, agent or corporation which, during the previous fiscal year, has assisted in the development of the plan or employed or compensated any person who assisted in the development of the plan, and which bids on the administration or servicing of the plan, shall submit to the department a statement accompanying the bid explaining in detail its participation with the development of the plan. This statement shall include the amount of compensation paid by the bidder to any such employee during the previous fiscal year. The department shall make all such information available to the members of the advisory council and those legislators, or their designees, who may attend meetings of the advisory council before any action is taken by the department on the bids submitted. The failure of any bidder to fully and accurately comply with this paragraph shall result in the rejection of any bid submitted by that bidder or the cancellation of any contract executed when the failure is discovered after the acceptance of that bid.

The department is authorized to promulgate rules and regulations to implement the provisions of this subsection. After expiration or termination of the contract between the state and the administering corporation existing immediately before the date on which the plan becomes self-insured by the State of Mississippi, the remainder of funds in the Premium Stabilization Fund shall revert to the Public School Employees Insurance Fund and shall be used exclusively for payment of future premiums.

Any corporation, association, company or individual that contracts with the department for the third-party claims administration of the self-insured plan shall prepare and keep on file an explanation of benefits for each claim processed. The explanation of benefits shall contain such information relative to each processed claim which the department deems necessary, and at a minimum, each explanation shall provide the claimant's name, claim number, provider number, provider name, service dates, type of services, amount of charges, amount allowed to the claimant and reason codes.

The information contained in the explanation of benefits shall be available for inspection upon request by the department. The department shall have access to all claims information utilized in the issuance of payments to employees and providers. Any corporation, association, company or individual that contracts with the department for the administration and/or service of the self-insured plan shall remit one hundred percent (100%) of all savings or discounts resulting from any contract to the department and/or participant. Any corporation, association, company or individual that contracts with the department for the administration and/or service of the self-insured plan shall allow, upon notice by the department, the department or its designee to audit records of the corporation, association, company or individual relative to the corporation, association, company or individual's performance under any contract with the department. The information maintained by any corporation, association, company or individual, relating to such contracts, shall be available for inspection upon request by the department and such information shall be compiled in a manner that will provide a clear audit trail.

(b) There is created an advisory council to the department to advise the department in the formulation of the Public School Employees Life and Health Insurance Plan. The advisory council and those legislators, or their designees, authorized to attend meetings of the advisory council pursuant to this subsection shall be informed in a timely manner concerning each aspect of the formulation and development of the plan. No change in the terms of the Public School Employees Life and Health Insurance Plan may be made effective unless the Executive Director of the Department of Finance and Administration, or his designee, has provided notice to the Public School Employees Life and Health Insurance Advisory Council and has called a meeting of the council at least fifteen (15) days before the effective date of such change. In the event that the Public School Employees Life and Health Insurance Advisory Council does not meet to advise the department on the proposed changes, the changes to the plan shall become effective at such times as the department has informed the council that the changes shall become effective.

The council shall be composed of the State Insurance Commissioner or his designee, two (2) certificated public school administrators appointed by the State Board of Education, two (2) certificated classroom teachers appointed by the State Board of Education, a noncertificated school employee appointed by the State Board of Education, and a community/junior college employee appointed by the State Board for Community and Junior Colleges. Members of the council shall serve at the will and pleasure of the appointing authorities; however, no member shall serve for a period of less than one (1) year. The members of the council shall serve without compensation, per diem or expense reimbursement.

The Chairman of the Senate Insurance Committee, the Chairman of the Senate Education Committee, the Chairman of the House of Representatives Insurance Committee and the Chairman of the House of Representatives Education Committee, and/or their designees from their respective houses, may attend any meeting of the advisory council. The legislators, or their designees, shall have no jurisdiction or vote on any matter within the jurisdiction of the council. For attending meetings of the council, 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 council will be paid while the Legislature is in session. No per diem and expenses will be paid except for attending meetings of the council without prior approval of the proper committee in their respective houses.

(c) Medical benefits for retired employees and dependents under age sixty-five (65) years. The same health insurance coverage as for all other active employees and their dependents shall be available to retired employees and all dependents under age sixty-five (65) years, the level of benefits to be the same level as for all other active participants. This section will apply to those employees who retire due to one hundred percent (100%) medical disability as well as those employees electing early retirement.

(d) Medical benefits for retired employees over age sixty-five (65). The health insurance coverage available to retired employees over age sixty-five (65) years, and all dependents over age sixty-five (65) years, shall be the major medical coverage with the lifetime maximum of One Million Dollars ($1,000,000.00). Benefits shall be reduced by Medicare benefits as though such Medicare benefits were the base plan.

All covered individuals shall be assumed to have full Medicare coverage, Parts A and B; and any Medicare payments under both Parts A and B shall be computed to reduce benefits payable under this plan.

(2) Schedule of life insurance benefits - group term. The amount of term life insurance for each active employee shall not be in excess of One Hundred Thousand Dollars ($100,000.00), or twice the amount of the employee's annual wage to the next highest One Thousand Dollars ($1,000.00), whichever may be less, but in no case less than Thirty Thousand Dollars ($30,000.00), with a like amount for accidental death and dismemberment on a twenty-four-hour basis. The plan will further contain a premium waiver provision if a covered employee becomes totally and permanently disabled prior to age sixty-five (65) years. Retired employees shall be eligible to continue life insurance coverage in an amount of Two Thousand Dollars ($2,000.00), Four Thousand Dollars ($4,000.00) or Ten Thousand Dollars ($10,000.00) into retirement.

(3) Nonduplication of benefits-reduction of benefits by Title XIX benefits. When benefits would be payable under more than one (1) group plan, benefits under those plans will be coordinated to the extent that the total benefits under all plans will not exceed the total expenses incurred.

Benefits for hospital or surgical or medical benefits shall be reduced by any similar benefits payable in accordance with Title XIX of the Social Security Act or under any amendments thereto, or any implementing legislation.

Benefits for hospital or surgical or medical benefits shall be reduced by any similar benefits payable by workers' compensation.

(4) The department is hereby authorized to determine the manner in which premiums and contributions by the state and local school districts shall be collected to provide the self-insured health insurance program for school employees and community/junior college employees as provided under this article.

(5) Any premium differentials, differences in coverages, discounts determined by risk or by any other factors shall be uniformly applied to all active employees participating in the insurance plan. It is the intent of the Legislature that the state contribution to the plan be the same for each employee throughout the state.

(6) Any participant of the State Employees Life and Health Insurance Plan who otherwise would lose coverage and who would be eligible as a dependent under an existing Public School Employees Life and Health Insurance Plan contract may transfer to the Public School Employees Life and Health Insurance Plan as a dependent under the existing contract. Any participant of the Public School Employees Life and Health Insurance Plan who otherwise would lose coverage and who would be eligible as a dependent under an existing State Employees Life and Health Insurance Plan contract may transfer to the State Employees Life and Health Insurance Plan as a dependent under the existing contract. A transfer pursuant to this subsection must occur within thirty-one (31) days of losing coverage. Credit shall be given for any deductible amount satisfied, out-of-pocket expenses and time served toward the twelve-month pre-existing waiting period.

(7) The Department of Finance and Administration shall annually report to the Joint Legislative Budget Committee the condition of the Public School Employees Life and Health Insurance Plan. Such report shall contain, but not be limited to, a report of the plan's financial condition at the close of the most recent complete calendar year. The report shall also include all recommendations made to the department by consultants regarding the plan and its administration, including a complete departmental response to each recommendation. The department shall also list the history of yearly claims paid and premiums received for each employee subgroup, including, but not limited to, active employees, dependents and retirees and shall also publish the loss ratios for these subgroups. For purposes of this subsection, the term "loss ratios" shall mean claims paid by the plan for each subgroup divided by premiums received by the plan for the insurance coverage of the members in that subgroup. Any plan revisions made during the previous year shall also be listed in the report and fully described in the report. The department shall also provide the Joint Legislative Budget Committee with a monthly statement of plan utilization.

In addition to the information provided for herein, the department shall provide to the Joint Legislative Budget Committee budgetary information on the Public School Employees Life and Health Insurance Plan. All information shall be provided to the Joint Legislative Budget Committee in a format designated by the committee. The information shall be provided in September of each year, and at such times throughout the year as the committee deems necessary. The information shall include, but not be limited to:

(a) A detailed breakdown of all expenditures of the plan, administrative and otherwise, for the most recently completed fiscal year and projected expenditures for the current fiscal year;

(b) A schedule of all contracts, administrative and otherwise, executed for the benefit of the plan during the most recent completed fiscal year, and those executed and anticipated for the current fiscal year;

(c) Anticipated plan expenditures, administrative and otherwise, for the next fiscal year.

The department shall also provide to the Joint Legislative Committee on Performance Evaluation and Expenditure Review (PEER) all information described in paragraph (b) in this subsection. The PEER Committee shall prepare a report by January 1 of each year on all contractors utilized by the department for the health plans, excluding the third-party administrator contract. The committee's report shall address the processes by which the department procured the contractors, the contractors' work products and contract expenditures. The review provided for herein shall be supplemental to the review provided for in Section 1, Ch. 554, Laws of 1995; [See Editor's note to Sections 25-15-5 and 25-15-225].

(8) (a) The department may offer medical savings accounts as defined in Section 71-9-3 as a plan option. Provided, however, that prior to offering such accounts as a plan option, the Department of Finance and Administration shall prepare and present to the Legislature by December 15, 1996, a comprehensive study of medical savings accounts to include a proposed implementation timetable and potential actuarial effects of such accounts on the existing public school employees' health plan. The department's study shall also include, but not be limited to, recommended employer contribution levels, recommended employee contribution levels, recommendations on annual rollover of balances or withdrawals for nonmedical purposes, and, recommendations on medical coverage for persons who expend their account balances. The department shall use existing staff resources and those of other agencies to conduct this study. In no case shall the department employ a consultant or contractor other than an actuary to conduct this study. No later than July 15, 1996, the Department of Finance and Administration shall meet with the staff of the PEER Committee and the Legislative Budget Office to receive recommendations on the issues and methods which the department shall consider in preparing its report. No later than October 15, 1996, the Department of Finance and Administration shall submit a copy of its draft report to the PEER Committee and the Legislative Budget Office which shall analyze the report and prepare comments for publication in the final report to be submitted to the House and Senate Insurance Committees on December 15, 1996.

(b) In no case shall the department offer medical savings accounts as an option to health plan participants prior to January 1, 1998.

SECTION 4. Section 25-15-256, Mississippi Code of 1972, is amended as follows:

25-15-256. The state shall provide annually, by line item in the Mississippi Library Commission appropriation bill, such funds to pay fifty percent (50%) of the cost of the above life insurance policy and one hundred percent (100%) of the cost of insurance under the Public School Employees Life and Health Insurance Plan created under Article 7, Chapter 15, Title 25, Mississippi Code of 1972, for all full-time library staff members in each public library in Mississippi. The commission shall allot to each public library a sufficient amount of those funds appropriated to pay the costs of insurance for eligible employees. Any funds so appropriated by line item which are not expended during the fiscal year for which such funds were appropriated shall be carried forward for the same purposes during the next succeeding fiscal year. If any premiums for life and health insurance and/or late charges and interest penalties are not paid by a public library in a timely manner, as defined by the department, the Mississippi Library Commission, upon notice by the department, shall immediately withhold all subsequent disbursements of funds to that public library.

Any local contribution to the cost of insurance paid by a public library for eligible employees during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits distributed among all full-time employees of the library.

SECTION 5. Section 25-15-259, Mississippi Code of 1972, is amended as follows:

25-15-259. The department is hereby authorized to execute a contract or contracts to provide the benefits under the plan. Such contract or contracts may be executed with one or more corporations or associations licensed to transact life, accident and health insurance business in this state, provided, however, that no such contract shall be executed with any corporation, association, or company domiciled in any other state except that such corporation, association or company shall meet the conditions and terms for a like contract established by the state of the domicile of such corporation, association or company for a Mississippi corporation, association or company. No corporation, association or company with less than five (5) years' experience in the health field may bid. All of the benefits to be provided under the plan may be included in one or more similar contracts, or the benefits may be classified into different types with each type included under one or more similar contracts issued by the same or different companies.

The department shall supply the statistical information upon which a quotation is to be calculated, upon request, to all carriers licensed in the state. Bids may be accepted at the discretion of the department, and the department shall have the right to adjust rates on an annual basis if the department shall deem such adjustment necessary. The plan shall be on retention accounting basis. Any additional written information the carrier wishes to submit, supporting the proposed benefits and premium rate, may accompany the proposal. Within thirty (30) days after receiving the proposals, the department shall determine whether to contract with the carrier which has been determined to have submitted the lowest and best bid, or to reject all such bids and receive new proposals.

Said department shall authorize any corporation licensed to transact life, accident and health insurance business in this state issuing any such contract to reinsure portions of such contract with any other such corporation which elected to be a reinsurer and is legally competent to enter into a reinsurance agreement. The department may designate one or more of such corporations as the administering corporation or corporations. Each employee who is covered under any such contract or contracts shall receive a certificate setting forth the benefits to which the employee is entitled thereunder, to whom such benefits shall be payable, to whom claims should be submitted, and summarizing the provisions of the contract principally affecting the employee. Such certificate shall be in lieu of the certificate which the corporation or corporations issuing such contract or contracts would otherwise issue.

The initial contract with the administering corporation may not exceed a three-year period from and after the date of passage of this article [Laws, 1991, Ch. 558, eff April 12, 1991], and any premium rate increases during the initial contract period shall not become effective unless approved by the Department of Finance and Administration. Thereafter, the department may enter into a contractual agreement with an underwriter only on an annual basis, or extend the original agreement on an annual basis for no more than three (3) additional years.

SECTION 6. Section 25-15-261, Mississippi Code of 1972, is amended as follows:

25-15-261. (1) Each eligible employee may participate in the program by signing up for the plan at the time of employment. Each eligible employee who declines coverage under the plan must sign a waiver of coverage. After acceptance in the plan, the employee may cease his or her participation by filing a specific disclaimer with the department. Forms for this purpose shall be prescribed and issued by the department. All eligible employees will be eligible to participate in this self-insured plan on the effective date of the plan or on the date on which they are employed by the school district, if later, provided they make any necessary contributions as set out hereunder. Prior to the initial enrollment cutoff date for the plan, all participating employees who are currently covered under the Public School Employees Life and Health Insurance Plan or under a group health plan sponsored by any participating school district or community/junior college district shall be eligible for full benefits under this plan on the first day of his or her participation regardless of any preexisting health condition or injury. All other participating employees shall have coverage of preexisting illness within one (1) year after enrollment in the plan. Spouses of employees, unmarried dependent children from birth to age nineteen (19) years, unmarried dependent children who are full-time students up to age twenty-three (23) years, and physically or mentally handicapped children, regardless of age, are eligible under this plan as of the date the employee becomes eligible.

If both spouses are eligible employees who participate in the plan, the benefits shall apply individually to each spouse by virtue of his or her participation in the plan. If those spouses also have one or more eligible dependents participating in the plan, the cost of their dependents shall be calculated at a special family plan rate. The cost for participation by the dependents shall be paid by the spouse who elects to carry such dependents under his or her coverage. The special family plan rate shall apply also if the public school, community/junior college district or public library employee's spouse is a covered eligible employee under the State Employees Life Health Insurance Plan.

(2) The state shall annually provide fifty percent (50%) of the above life insurance plan and one hundred percent (100%) of the cost of the above insurance plan for all district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers. Where federal funding is allowable to defray, in full or in part, the cost of participation in the program by district employees who work no less than twenty (20) hours during each week and regular nonstudent school bus drivers, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of such federal funding. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that school districts contribute the cost of participation for such employees from local funds, except that parent fees for child nutrition programs shall not be increased to cover such cost.

Any local contribution to the cost of insurance paid by the school district during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits in that school district for certificated employees and teacher assistants. Any local contribution to the cost of insurance paid by the school district for noncertificated employees during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits in that school district.

(3) The state shall provide annually, by line item in the community/junior college appropriation bill, such funds to pay fifty percent (50%) of the cost of the above life insurance plan and one hundred percent (100%) of the cost of the plan for all community/junior college district employees who work no less than twenty (20) hours during each week.

Where the use of federal funding is allowable to defray, in full or in part, the cost of participation in the insurance plan by community/junior college district employees who work no less than twenty (20) hours during each week, whose salaries are paid, in full or in part, by federal funds, the allowance under this section shall be reduced to the extent of the federal funding. Where the use of federal funds is allowable but not available, it is the intent of the Legislature that community/junior college districts contribute the cost of participation for such employees from local funds.

Any community/junior college district may contribute to the cost of coverage for any district employee from local community/junior college district funds, and any public school district may contribute to the cost of coverage for any district employee from nonminimum program funds. Any part of the cost of such coverage for participating employees of public school districts and public community/junior college districts that is not paid by the state or by the districts shall be paid by the participating employees, which shall be deducted from the salaries of the employees in a manner determined by the department.

Any funds appropriated for the cost of insurance by line item in the community/junior colleges appropriation bill which are not expended during the fiscal year for which such funds were appropriated shall be carried forward for the same purposes during the next succeeding fiscal year.

Any local contribution to the cost of insurance paid by a community/junior college district for eligible employees during the fiscal year immediately preceding July 1, 1994, shall be converted into salary supplements or fringe benefits distributed among all full-time employees of the district.

(4) The state shall not share in the cost of coverage for retired employees. Any retired employee electing to purchase retired health insurance will have the full cost of such insurance deducted monthly from his State of Mississippi retirement plan check or directly billed to him. If the department determines actuarially that the premium paid by the participating retirees adversely affects the overall cost of the plan to the state, then the department may impose a premium surcharge, not to exceed fifteen percent (15%), upon such participating retired employees who are under the age for Medicare eligibility.

SECTION 7. Section 25-15-263, Mississippi Code of 1972, is amended as follows:

25-15-263. (1) The Department of Finance and Administration has the authority to establish and enforce late charges and interest penalties or other penalties for the purpose of requiring the prompt payment of all premiums for life and health insurance permitted under this article. If any premiums for life and health insurance and/or late charges and interest penalties are not paid by a school district in a timely manner, as defined by the department, the Department of Education shall withhold minimum program payments to that district in accordance with Section 37-19-34. If any premiums for life and health insurance and/or late charges and interest penalties are not paid by a community/junior college in a timely manner, as defined by the department, the Mississippi Board for Community and Junior Colleges, upon notice by the department, shall immediately withhold all subsequent disbursement of funds. If any premiums for life and health insurance and/or late charges and interest penalties are not paid by a public library system in a timely manner, as defined by the department, the Mississippi Library Commission, upon notice by the department, shall immediately withhold all subsequent disbursements of funds.

(2) School districts, community/junior colleges and public libraries shall remit to the department those premiums for employees whose cost of the insurance plan is paid in full by the state, by the school district, community/junior college or public library, in full or in part, or by the employee whose premium is deductible from the employee's salary for dependent coverage or employee coverage.

(3) All premiums remitted to the department shall be deposited directly into a depository bank or a special fund in the State Treasury, as determined by the department. Funds maintained in a depository bank or in the State Treasury and interest earned on these funds may be used for the disbursement of claims and shall be exempt from the appropriation process. All funds in excess of the amount needed for disbursement of claims shall be deposited into a special fund in the State Treasury to be known as the Public School Employees Insurance Fund. The State Treasurer shall invest all funds in the Public School Employees Insurance Fund and all interest earned shall be credited to the Public School Employees Insurance Fund. Such funds shall be placed with one or more depositories of the state and invested on the first day such funds are available for investment in certificates of deposit, repurchase agreements or in United States Treasury bills or as otherwise authorized by law for the investment of Public Employees' Retirement System funds, as long as such investment is made from competitive offering and at the highest and best market rate obtainable consistent with any available investment alternatives; provided, however, that such investments shall not be made in shares of stock, common or preferred, or in any other investments which would mature more than one (1) year from the date of investment. The department shall have authority to draw from this fund periodically such funds as are necessary to operate the self-insurance plan or to pay to the insurance carrier the cost of operation of this plan.

(4) The department shall create a Public School Health Insurance Reserve Fund, and funds therein shall be invested by the State Treasurer with all interest earned credited to the Public School Employees Insurance Fund.

SECTION 8. This act shall take effect and be in force from and after July 1, 1998.