MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Insurance; Appropriations

By: Representatives Stringer, Warren

AN ACT TO AMEND SECTIONS 25-15-251 AND 25-15-261, MISSISSIPPI CODE OF 1972, TO PROVIDE THAT CERTAIN RETIRED PUBLIC SCHOOL EMPLOYEES MAY ENROLL IN THE PUBLIC SCHOOL EMPLOYEES HEALTH INSURANCE PLAN DURING A ONE-YEAR OPEN ENROLLMENT PERIOD; 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 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, and those retired employees who enroll in the plan during the open enrollment period provided in Section 25-15-261.

(e) "Board" means the State and Public School Employees Health Insurance Management Board created in Section 25-15-303.

SECTION 2. 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 board. Forms for this purpose shall be prescribed and issued by the board. 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 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 Health Insurance Plan.

(2) The state shall annually provide 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 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 board.

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 board determines actuarially that the premium paid by the participating retirees adversely affects the overall cost of the plan to the state, then the board may impose a premium surcharge, not to exceed fifteen percent (15%), upon such participating retired employees who are under the age for Medicare eligibility.

(5) The board shall provide for an open enrollment period, beginning July 1, 1999, and ending July 1, 2000, for those employees who retired before April 12, 1991.

SECTION 3. This act shall take effect and be in force from and after July 1, 1999.