House Bill 1458

AN ACT TO AMEND SECTION 25-17-9, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT THE STATE AND SCHOOL EMPLOYEES HEALTH INSURANCE MANAGEMENT BOARD SHALL CHOOSE THE PROVIDERS IT DEEMS ACCEPTABLE TO PROVIDE BENEFITS OR SERVICES RELATED TO CAFETERIA PLANS OF STATE AGENCIES; AND FOR RELATED PURPOSES.

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

SECTION 1. Section 25-17-9, Mississippi Code of 1972, is amended as follows:

25-17-9. (1) For the purpose of this section, "provider" means any insurance company, corporation, person or other entity which provides benefits included in, or administrative services related to, cafeteria plans.

(2) The State and School Employees Health Insurance Management Board shall choose the providers it deems acceptable to provide benefits or services related to a cafeteria plan or any supplemental insurance plan of state agencies. The board shall spread upon its minutes its choice of provider and its reasons for selecting the provider. A state agency shall promptly notify the State and School Employees Health Insurance Management Board of any complaint that it has against the provider.

(3) (a) The State Auditor shall compile a list of providers of cafeteria plans which shall contain those providers he deems acceptable to provide benefits or services related to a cafeteria plan of a * * * local governmental entity. To be deemed acceptable, a provider shall:

(i) Be authorized to do business in this state or be a corporation organized or existing under the laws of this state;

(ii) Maintain an office in this state with sufficient staff and equipment to render the contracted services for plans which are subject to this chapter as required by the State Auditor;

(iii) Obtain and maintain a comprehensive dishonesty, destruction and disappearance bond in the amount designated by the State Auditor (a copy of which shall be maintained on file at all times in the Office of the State Auditor, who shall be promptly notified by the surety on such bond of any change in or cancellation of such bond) unless the provider uses the type of administration which does not require the accumulation or escrow of employees' or employers' monies for reimbursement purposes; and

(iv) Comply with the guidelines established by the State Auditor pertaining to * * * local governmental entities' cafeteria plans.

(b) The State Auditor shall revise the list annually unless an earlier revision is necessary to remove a provider who does not satisfy the requirements set forth in subparagraphs (i) through (iv) of paragraph (a).

(c) Only providers who appear on the most recent list compiled by the State Auditor shall, directly or indirectly, provide benefits included in or administrative services related to cafeteria plans of a * * * local governmental entity.

(d) A * * * local governmental entity shall promptly notify the State Auditor of any complaint that it has against a provider.

(4) All cafeteria plans authorized in Section 25-17-3, Mississippi Code of 1972, shall be in compliance with current Internal Revenue Service requirements promulgated in Sections 89 and 125 of the Internal Revenue Code. Documentation of such compliance by cafeteria plans of state agencies shall be on file with the State and School Employees Health Insurance Management Board. Documentation of such compliance by cafeteria plans of local governmental entities shall be on file in the Office of the State Auditor.

(5) The State and School Employees Health Insurance Management Board may promulgate rules and regulations necessary to implement the provisions of this section pertaining to cafeteria plans of state agencies. The State Auditor may promulgate rules and regulations necessary to implement the provisions of this section pertaining to cafeteria plans of local governmental entities.

SECTION 2. This act shall take effect and be in force from and after January 1, 2006.