1| SENATE FLOOR VERSION |
| April 2, 2024 |
2| |
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3|ENGROSSED HOUSE |
|BILL NO. 3586 By: Strom of the House |
4| |
| and |
5| |
| Garvin of the Senate |
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7| |
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8| An Act relating to state employee health insurance; |
| amending 70 O.S. 2021, Section 14-108.1, which |
9| relates to health insurance plan for employees; |
| modifying references to entity names; amending 70 |
10| O.S. 2021, Section 26-104, which relates to funding |
| to provide flexible benefit allowance; modifying |
11| references to entity names; amending 70 O.S. 2021, |
| Section 26-105, which relates to use of flexible |
12| benefit allowance; modifying references to entity |
| names; amending 74 O.S. 2021, Section 85.58A, which |
13| relates to establishment of comprehensive |
| professional risk management program; modifying |
14| references to entity names; amending 74 O.S. 2021, |
| Section 1316.2, which relates to continuance of |
15| health and dental insurance benefits; modifying |
| citations; amending 74 O.S. 2021, Section 1321, which |
16| relates to determination of rates and benefits; |
| modifying references to entity names; amending 74 |
17| O.S. 2021, Section 1332, which relates to |
| establishment of disability insurance program for |
18| state employees; modifying references to entity names |
| and updating citations; amending 74 O.S. 2021, |
19| Section 1332.1, which relates to collections from |
| state agencies; modifying references to entity names; |
20| amending 74 O.S. 2021, Section 1346, which relates to |
| creation of flexible benefit revolving fund; |
21| modifying references to entity names; amending 74 |
| O.S. 2021, Section 1370, which relates to flexible |
22| benefit dollars in the Oklahoma State Employees |
| Benefits Act; modifying references to entity names; |
23| repealing 74 O.S. 2021, Section 1329.1, which relates |
| to mutual accountability incentive pilot program; |
24| repealing 74 O.S. 2021, Sections 1381, 1382, 1383, |
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arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 1
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1| and 1384, which relate to the Wellness Program Act; |
| and providing an effective date. |
2| |
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3| |
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4|BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: |
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5| SECTION 1. AMENDATORY 70 O.S. 2021, Section 14-108.1, is |
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6|amended to read as follows: |
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7| Section 14-108.1 A. The board of education of each technology |
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8|center school district in this state shall provide a health |
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9|insurance plan for the employees of the technology center school |
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10|district. Technology center school districts may obtain health and |
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11|dental insurance coverage as provided for in the State and Education |
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12|Employees Group Insurance Oklahoma Employees Insurance and Benefits |
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13|Act or may obtain other health insurance coverage. Any technology |
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14|center district that does not participate in the health and dental |
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15|insurance plans offered through the State and Education Employees |
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16|Group Insurance Oklahoma Employees Insurance and Benefits Act shall |
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17|obtain health insurance coverage for the employees which provides |
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18|open enrollment, and provide for the continuation of health |
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19|insurance coverage, including supplemental Medicare insurance |
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20|coverage, for those district employees who retire from said district |
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21|after September 30, 1991, with a vested benefit in the Teachers' |
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22|Retirement System of Oklahoma. A retired person who begins |
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23|receiving benefits from the Teachers' Retirement System of Oklahoma |
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24|after September 30, 1991, who retires from a technology center |
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1|school district that provides other health insurance coverage, and |
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2|who elects to continue said health insurance coverage shall pay to |
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3|the technology center school district the premium rate for the |
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4|health insurance minus an amount equal to the premium rate of the |
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5|Medicare supplement or the amount determined pursuant to subsection |
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6|(4) of Section 1316.3 of Title 74 of the Oklahoma Statutes, |
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7|whichever is less, which shall be paid by the Teachers' Retirement |
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8|System of Oklahoma to the technology center school district. The |
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9|technology center school district shall remit to the health |
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10|insurance coverage provider the total premium due less any |
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11|uncollected amounts payable from retired technology center school |
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12|district employees or their qualified survivors. |
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13| B. A technology center school district that participates in |
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14|health insurance coverage other than the health insurance plan |
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15|offered by the State and Education Employees Group Insurance |
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16|Oklahoma Employees Insurance and Benefits Act shall not be required |
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17|to pay any portion of the premium for the employees or the |
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18|dependents of the employees of said school district. Unless a |
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19|school district negotiates an agreement with its employees regarding |
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20|health insurance pursuant to Sections 509.1 through 509.9 of this |
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21|title, and to the extent that the agreement provides for the members |
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22|of the recognized bargaining unit, a technology center school |
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23|district that participates in health insurance coverage other than |
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24|the health insurance plan offered by the State and Education |
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1|Employees Group Insurance Oklahoma Employees Insurance and Benefits |
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2|Act is prohibited from acquiring additional or supplemental health |
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3|or dental insurance for any board member, superintendent or any |
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4|other employee which is not available to all employees of said |
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5|district, and said technology center school district shall not pay a |
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6|greater portion of the employee or dependent premium for any health |
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7|or dental insurance plan or plans provided by said technology center |
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8|school district on behalf of any board member, superintendent or |
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9|employee than that portion paid on behalf of all participating |
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10|employees of said district. |
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11| C. If a technology center school district obtains health |
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12|insurance coverage from a source other than through the State and |
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13|Education Employees Group Insurance Oklahoma Employees Insurance and |
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14|Benefits Act, the employees of the technology center school district |
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15|who would be eligible to participate in the health and dental plans |
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16|may require the board of education of the technology center school |
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17|district to call an election to allow said employees to vote as to |
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18|whether the technology center school district shall participate in |
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19|the health and dental insurance plans offered through the State and |
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20|Education Employees Group Insurance Oklahoma Employees Insurance and |
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21|Benefits Act. Upon the filing with the board of education of a |
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22|petition calling for such an election which is signed by no less |
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23|than thirty percent (30%) of the eligible employees of the |
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24|technology center school district, the board of education shall call |
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1|an election for the purpose of determining whether the technology |
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2|center school district shall participate in the health and dental |
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3|insurance plans offered through the State and Education Employees |
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4|Group Insurance Oklahoma Employees Insurance and Benefits Act. The |
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5|election shall be held within thirty (30) days of the filing of the |
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6|petition. If a majority of those eligible employees voting at the |
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7|election vote to participate in the health and dental insurance |
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8|plans offered through the State and Education Employees Group |
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9|Insurance Oklahoma Employees Insurance and Benefits Act, the board |
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10|of education of the technology center school district shall apply |
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11|for such participation within thirty (30) days of the election. |
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12| D. If a technology center school district does not have any |
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13|health insurance coverage of the type required by this section, that |
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14|technology center school district shall immediately be enrolled in |
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15|the health and dental insurance plans offered through the State and |
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16|Education Employees Group Insurance Oklahoma Employees Insurance and |
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17|Benefits Act. |
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18| E. A carrier providing health insurance coverage for employees |
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19|of a technology center school district health insurance group which |
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20|replaces a previous carrier for such technology center school |
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21|district employees shall provide coverage for each retired employee |
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22|who is receiving a benefit or terminates employment with a vested |
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23|benefit from the Teachers' Retirement System of Oklahoma and who is |
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24|enrolled in the health insurance group by the previous carrier at |
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arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 5
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1|the time the previous carrier providing health insurance coverage is |
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2|replaced. Notwithstanding any provision in this section to the |
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3|contrary, any person who retires pursuant to the provisions of the |
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4|Teachers' Retirement System of Oklahoma prior to May 1, 1993, or |
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5|terminates service with a vested benefit, pursuant to the provisions |
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6|of the Teachers' Retirement System of Oklahoma prior to May 1, 1993, |
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7|may continue to participate in the health and dental plans |
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8|authorized by the provisions of the State and Education Employees |
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9|Group Insurance Oklahoma Employees Insurance and Benefits Act. |
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10| F. In the event a technology center school district ceases to |
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11|exist, the assets and duties of said technology center school |
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12|district are transferred to one or more other technology center |
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13|school districts, said other technology center school district or |
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14|districts do not agree to employ all of the former employees of the |
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15|technology center school district that is ceasing to exist, and said |
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16|former employees who are not being reemployed have rights under |
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17|federal or state law to continue group insurance coverage, the |
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18|annexing technology center school district having the largest |
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19|general fund revenue for the most recent preceding fiscal year for |
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20|which data is available shall provide group insurance coverage to |
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21|said former employees not being retained during the period as |
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22|required by law. |
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23| SECTION 2. AMENDATORY 70 O.S. 2021, Section 26-104, is |
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24|amended to read as follows: |
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1| Section 26-104. A. Each fiscal year, the Legislature shall |
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2|appropriate adequate funding to the State Board of Education and the |
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3|State Board of Career and Technology Education for the purpose of |
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4|providing a flexible benefit allowance to school district employees |
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5|pursuant to this act. Unless the Legislature appropriates adequate |
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6|funding specifically for the purpose of providing a flexible benefit |
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7|allowance to school district employees, the Oklahoma State Board of |
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8|Education shall allocate from the funds appropriated to the Oklahoma |
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9|State Board of Education for the support of public school activities |
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10|an amount to fully fund the flexible benefit allowance, which shall |
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11|occur first prior to allocating the funds for any other purpose. |
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12|The amount appropriated for funding and disbursed to school |
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13|districts shall be calculated by multiplying the number of eligible |
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14|school district employees employed by school districts which are |
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15|participating in the health insurance plan offered by the State and |
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16|Education Employees Group Insurance Oklahoma Employees Insurance and |
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17|Benefits Board or are self-insured as counted in February of each |
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18|year by the amount of the flexible benefit allowance credited to the |
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19|eligible school employees as established in Section 26-105 of this |
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20|title. Each Board shall disburse the total amount appropriated for |
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21|funding the flexible benefit allowance to school districts during |
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22|the fiscal year. From the total amount appropriated, each Board |
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23|shall disburse the appropriate amounts, based on the number of |
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24| |
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1|eligible school district employees employed by that school district, |
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2|to each school district. |
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3| B. Every school district shall establish or make available to |
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4|school district employees a cafeteria plan pursuant to 26 U.S.C. |
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5|Section 125 of the United States Code. The plan shall offer, as a |
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6|benefit, major medical health care plan coverage. |
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7| C. The flexible benefit allowance amount established pursuant |
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8|to Section 26-105 of this title shall be credited to each eligible |
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9|school district employee. School district employees shall elect |
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10|whether to use the flexible benefit allowance to pay for coverage in |
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11|the health insurance plan offered by the State and Education |
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12|Employees Group Insurance Oklahoma Employees Insurance and Benefits |
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13|Board or the self-insured plan offered by the school district and |
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14|may receive the excess flexible benefit allowance as taxable |
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15|compensation as provided in Section 26-105 of this title. |
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16| D. The administrator of the cafeteria plan shall maintain a |
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17|separate account for each participating school district employee. |
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18|School districts shall forward the school district employee flexible |
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19|benefit allowance amounts to the administrator for elected purchases |
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20|of cafeteria plan benefits. |
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21| E. Expenses included in an employee's salary adjustment |
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22|agreement pursuant to the cafeteria plan shall be limited to |
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23|expenses for: |
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24| |
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1| 1. Premiums for any health insurance, health maintenance |
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2|organization, life insurance, long term disability insurance, dental |
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3|insurance or high deductible health benefit plan offered to |
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4|employees and their dependents; and |
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5| 2. All other eligible benefit programs offered under 26 U.S.C. |
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6|Section 125 of the United States Code. |
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7| F. The flexible benefit allowance amount established in Section |
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8|26-105 of this title shall not be included as income in computation |
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9|of state retirement contributions and benefits or as part of the |
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10|Minimum Salary Schedule for teachers established in Section |
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11|18-114.12 of this title. School districts shall not consider the |
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12|flexible benefit allowance amount as income for eligible support |
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13|employees and thereby shall not reduce the salary of an eligible |
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14|support employee. |
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15| SECTION 3. AMENDATORY 70 O.S. 2021, Section 26-105, is |
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16|amended to read as follows: |
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17| Section 26-105. A. The flexible benefit allowance shall be |
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18|used by a school district employee who is participating in the |
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19|cafeteria plan to purchase major medical health care plan coverage |
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20|offered by the school district through a cafeteria plan. Any excess |
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21|flexible benefit allowance over the cost of the major medical |
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22|coverage purchased by the employee who is participating in the |
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23|cafeteria plan may be used to purchase any of the additional |
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24|benefits offered by the school district or may be taken as taxable |
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1|compensation as provided in subsection C of this section. Certified |
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2|personnel who choose not to participate in the |
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3|school-district-sponsored cafeteria plan shall receive Sixty-nine |
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4|Dollars and seventy-one cents ($69.71) per month as taxable |
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5|compensation in lieu of the flexible benefit allowance amount |
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6|provided in subsection B of this section. Support personnel who |
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7|choose not to participate in the school-district-sponsored cafeteria |
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8|plan shall receive One Hundred Eighty-nine Dollars and sixty-nine |
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9|cents ($189.69) per month as taxable compensation in lieu of the |
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10|flexible benefit allowance amount provided in subsection B of this |
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11|section. |
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12| B. Each eligible school district employee shall be credited |
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13|annually with a specified amount as a flexible benefit allowance |
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14|which shall be available for the purchase of benefits. The amount |
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15|of the flexible benefit allowance credited to each eligible school |
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16|district employee shall be communicated to the employee prior to the |
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17|enrollment period for each plan year. |
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18| 1. For the fiscal year ending June 30, 2002, the flexible |
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19|benefit allowance amount for certified personnel shall be no less |
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20|than Sixty-nine Dollars and seventy-one cents ($69.71) per month. |
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21|For the fiscal year ending June 30, 2002, the flexible benefit |
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22|allowance amount for support personnel shall be no less than One |
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23|Hundred Eighty-nine Dollars and sixty-nine cents ($189.69) per |
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24|month. |
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1| 2. For the fiscal year ending June 30, 2004, the flexible |
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2|benefit allowance amount for certified personnel shall be no less |
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3|than fifty-eight percent (58%) of the premium amount for the |
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4|HealthChoice (Hi) option plan for an individual offered by the State |
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5|and Education Employees Group Insurance Oklahoma Employees Insurance |
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6|and Benefits Board. For the fiscal year ending June 30, 2003, and |
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7|each fiscal year thereafter, the flexible benefit allowance amount |
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8|for support personnel shall be no less than one hundred percent |
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9|(100%) of the premium amount for the HealthChoice (Hi) option plan |
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10|for an individual offered by the State and Education Employees Group |
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11|Insurance Oklahoma Employees Insurance and Benefits Board. |
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12| 3. For the fiscal year ending June 30, 2005, and each fiscal |
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13|year thereafter, the flexible benefit allowance amount for certified |
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14|personnel shall be no less than one hundred percent (100%) of the |
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15|premium amount for the HealthChoice (Hi) option plan for an |
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16|individual offered by the State and Education Employees Group |
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17|Insurance Oklahoma Employees Insurance and Benefits Board. |
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18| C. If a school district employee who is participating in the |
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19|cafeteria plan elects benefits whose sum total is less than the |
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20|flexible benefit allowance, the employee shall receive any excess |
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21|flexible benefit allowance as taxable compensation. Such taxable |
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22|compensation shall be paid in substantially equal amounts each pay |
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23|period over the plan year. Except as otherwise provided for in |
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24|subsection D of this section, on termination during a plan year, a |
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1|participating school district employee shall have no right to |
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2|receive any taxable cash compensation allocated to the portion of |
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3|the plan year after the termination of the employee. |
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4| D. In cases where the employee of a school district fulfills |
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5|the terms of their contract and terminates employment for the |
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6|subsequent year, the employee shall be entitled to the flexible |
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7|benefit allowance for the remainder of the current benefit term. |
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8|For purposes of this subsection, "benefit term" shall mean the |
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9|twelve-month period after the initiation of benefits for the |
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10|position held by the employee. |
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11| E. Each school district employee shall make an annual election |
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12|of benefits under the plan during an enrollment period to be held |
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13|prior to the beginning of each plan year. The enrollment period |
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14|dates will be determined annually and will be announced by the |
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15|school district, providing the enrollment period shall end no later |
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16|than thirty (30) days before the beginning of the plan year. Each |
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17|school district employee shall make an irrevocable advance election |
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18|for the plan year or the remainder of the plan year pursuant to |
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19|procedures the school district shall prescribe. |
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20| F. The school district shall prescribe the forms that school |
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21|district employees shall be required to use in making their |
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22|elections, and may prescribe deadlines and other procedures for |
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23|filing the elections. |
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24| |
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1| G. School district employees hired after the closing of the |
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2|enrollment period shall be allowed to make an election as provided |
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3|in this act. |
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4| H. A district board of education shall have the option of |
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5|providing a flexible benefit allowance to the superintendent of the |
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6|school district in an amount not more than the amount of the |
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7|flexible benefit allowance established for certified personnel in |
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8|subsection B of this section. Funding for the flexible benefit |
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9|allowance for a superintendent shall be provided through local |
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10|revenue. |
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11| SECTION 4. AMENDATORY 74 O.S. 2021, Section 85.58A, is |
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12|amended to read as follows: |
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13| Section 85.58A A. The Office of Management and Enterprise |
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14|Services (OMES) shall establish for all state agencies, whether or |
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15|not subject to the Oklahoma Central Purchasing Act, and other |
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16|entities as provided by law a comprehensive professional risk |
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17|management program which shall: |
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18| 1. Identify and evaluate risks of loss and exposures to loss to |
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19|officers, employees and properties; |
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20| 2. Minimize risks through loss-prevention and loss-control |
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21|programs; |
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22| 3. Transfer risks, if economically advantageous to the state, |
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23|by acquiring commercial insurance, contractual pass through of |
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24|liability, or by other means; |
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1| 4. Consolidate and administer risk management plans and |
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2|programs including self-insurance programs, except State Employees |
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3|Group Insurance; |
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4| 5. Determine feasibility of and, if feasible, establish |
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5|self-insurance programs, considering whether a program may be |
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6|self-supporting to remain financially and actuarially sound; |
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7| 6. Provide a system to allocate insurance and program costs to |
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8|determine payment for insurance coverage and program expenses |
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9|provided by the Office of Management and Enterprise Services; |
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10| 7. When requested by a state retirement system or the State and |
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11|Education Employees Group Insurance Oklahoma Employees Insurance and |
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12|Benefits Board, assist in obtaining insurance authorized by law. If |
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13|requested by the Oklahoma State Regents for Higher Education, assist |
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14|trust funds for which the State Regents serve as trustees in |
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15|obtaining insurance authorized by law; |
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16| 8. Assist state agencies and officers, employees, and members |
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17|thereof, charged with licensing authority, in obtaining insurance |
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18|for liability for judgments, based on the licensing authority, |
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19|rendered by any court pursuant to federal law; |
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20| 9. When requested by a public trust established pursuant to |
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21|Title 60 of the Oklahoma Statutes of which the State of Oklahoma is |
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22|the beneficiary, obtain, provide or assist the public trust in |
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23|obtaining insurance authorized by law or trust indenture covering |
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24|any board member, trustee, official, officer, employee or volunteer |
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1|for errors and omissions or liability risks arising from the |
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2|performance of official duties pursuant to law or trust indenture; |
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3| 10. When requested by the Oklahoma State Regents for Higher |
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4|Education, for the purpose of insuring real property required |
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5|pursuant to Section 4018 of Title 70 of the Oklahoma Statutes, of |
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6|which the Oklahoma State Regents for Higher Education is the |
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7|beneficiary, obtain, provide or assist the Oklahoma State Regents |
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8|for Higher Education in obtaining insurance for the real property |
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9|pursuant to the provisions of this section; and |
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10| 11. Authorize the Risk Management Administrator to declare an |
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11|emergency for the purpose of mitigating damages to any state-owned |
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12|property insured under the comprehensive professional risk |
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13|management program administered by OMES. |
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14| B. The Director of the Office of Management and Enterprise |
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15|Services may hire or contract for the services of a Risk Management |
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16|Administrator to supervise the Comprehensive Professional Risk |
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17|Management Program established pursuant to this section. If |
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18|appointed by the Director as a state employee, the Risk Management |
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19|Administrator shall be in the unclassified service. |
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20| C. The Risk Management Administrator shall evaluate insurance |
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21|coverage needs and in force for state agencies, whether or not |
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22|subject to the Oklahoma Central Purchasing Act, and other entities |
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23|as provided by law. All entities shall submit to the Risk |
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24| |
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1|Management Administrator all information which the Risk Management |
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2|Administrator deems necessary to perform this duty. |
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3| D. The Risk Management Administrator in conjunction with the |
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4|State Purchasing Director under the authority of the Director of the |
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5|Office of Management and Enterprise Services may negotiate insurance |
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6|coverage and insurance-related services including, but not limited |
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7|to, insurance brokerage and consulting services. The State |
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8|Purchasing Director shall ensure open processes for solicitation and |
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9|qualification of insurance coverage and services providers. The |
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10|State Purchasing Director shall award contracts for insurance |
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11|coverage and services to the provider or providers which offer the |
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12|best and final terms and conditions. The State Purchasing Director |
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13|may authorize the Risk Management Administrator to bind for |
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14|insurance coverage with providers. |
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15| E. The school districts of this state may request the Risk |
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16|Management Administrator to advise for the purchase of insurance |
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17|coverage for the school districts. |
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18| F. A state agency, whether or not subject to the Oklahoma |
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19|Central Purchasing Act, that contemplates purchase of property and |
| |
20|casualty insurance, shall provide details of the proposed purchase |
| |
21|to the Risk Management Administrator for approval or disapproval |
| |
22|prior to the purchase. |
| |
23| |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 16
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1| G. The Director of the Office of Management and Enterprise |
| |
2|Services shall promulgate rules to effect the provisions of the |
| |
3|comprehensive professional risk management program. |
| |
4| H. 1. a. Any community action agency established pursuant to |
| |
5| Sections 5035 through 5040 of this title may |
| |
6| participate in the comprehensive professional risk |
| |
7| management program established pursuant to this |
| |
8| section for risks incurred as a result of operating a |
| |
9| Head Start program or providing transportation |
| |
10| services to the public. The Risk Management |
| |
11| Administrator shall obtain or provide for insurance |
| |
12| coverage for such community action agencies or bonding |
| |
13| for employees of such community action agencies. Any |
| |
14| liability insurance coverage obtained or provided |
| |
15| shall include expenses for administrative and legal |
| |
16| services obtained or provided by the Risk Management |
| |
17| Administrator. |
| |
18| b. The Risk Management Administrator shall determine |
| |
19| criteria for participation in the risk management |
| |
20| program by such community action agencies. In |
| |
21| addition, the Risk Management Administrator may |
| |
22| require each such community action agency to: |
| |
23| |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 17
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1| (1) provide adequate qualified personnel and |
| |
2| suitable facilities and equipment for operating a |
| |
3| Head Start program or providing transportation |
| |
4| services to the public, and |
| |
5| (2) comply with such standards as are necessary for |
| |
6| the protection of the clients it serves. |
| |
7| 2. To receive coverage pursuant to this section, a community |
| |
8|action agency shall make payments for any insurance coverage and |
| |
9|shall otherwise comply with the provisions of this section and rules |
| |
10|promulgated by the Office pursuant to the provisions of this |
| |
11|section. |
| |
12| 3. Requests for the insurance coverage provided pursuant to the |
| |
13|provisions of this subsection shall be submitted in writing to the |
| |
14|Risk Management Administrator by the community action agencies. |
| |
15| I. The Risk Management Administrator may provide or obtain for |
| |
16|any state agency, public trust with the state as a beneficiary and a |
| |
17|director, officer, employee or member thereof, insurance for |
| |
18|liability for loss, including judgments, awards, settlements, costs |
| |
19|and legal expenses, resulting from violations of rights or |
| |
20|privileges secured by the Constitution or laws of the United States |
| |
21|of America which occur while a director, officer, employee or member |
| |
22|is acting within the scope of service to the State of Oklahoma. The |
| |
23|insurance shall be for coverage in excess of the limits on liability |
| |
24|established by The Governmental Tort Claims Act but shall not limit |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 18
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1|or waive any immunities now or hereafter available to the State of |
| |
2|Oklahoma or any state agency, any public trust with the state as a |
| |
3|beneficiary, or any director, officer, employee or member thereof |
| |
4|including, but not limited to, any immunities under the Eleventh |
| |
5|Amendment to the Constitution of the United States, state sovereign |
| |
6|immunity, and any absolute or qualified immunity held by any |
| |
7|director, officer, employee or member. |
| |
8| SECTION 5. AMENDATORY 74 O.S. 2021, Section 1316.2, is |
| |
9|amended to read as follows: |
| |
10| Section 1316.2 A. Any employee, other than an education |
| |
11|employee, who retires pursuant to the provisions of the Oklahoma |
| |
12|Public Employees Retirement System or who has a vested benefit |
| |
13|pursuant to the provisions of the Oklahoma Public Employees |
| |
14|Retirement System may continue in force the health and dental |
| |
15|insurance benefits authorized by the provisions of the Oklahoma |
| |
16|Employees Insurance and Benefits Act, or other employer insurance |
| |
17|benefits if the employer does not participate in the plans offered |
| |
18|by the Office of Management and Enterprise Services, if such |
| |
19|election to continue in force is made within thirty (30) days from |
| |
20|the date of termination of service. Except as otherwise provided |
| |
21|for in Section 840-2.27I of this title and subsection H of this |
| |
22|section, health and dental insurance coverage may not be reinstated |
| |
23|at a later time if the election to continue in force is declined. |
| |
24|Vested employees other than education employees who have terminated |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 19
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1|service and are not receiving benefits and effective July 1, 1996, |
| |
2|nonvested persons who have terminated service with more than eight |
| |
3|(8) years of participating service with a participating employer, |
| |
4|who within thirty (30) days from the date of termination of service |
| |
5|elect to continue such coverage, shall pay the full cost of the |
| |
6|insurance premium at the rate and pursuant to the terms and |
| |
7|conditions established by the Office. Provided also, any employee |
| |
8|other than an education employee who commences employment with a |
| |
9|participating employer on or after September 1, 1991, who terminates |
| |
10|service with such employer on or after July 1, 1996, but who |
| |
11|otherwise has insufficient years of service to retire or terminate |
| |
12|service with a vested benefit pursuant to the provisions of the |
| |
13|Oklahoma Public Employees Retirement System or to elect to continue |
| |
14|coverage as a nonvested employee as provided in this section, but |
| |
15|who, immediately prior to employment with the participating |
| |
16|employer, was covered as a dependent on the health and dental |
| |
17|insurance policy of a spouse who was an active employee other than |
| |
18|an education employee, may count as part of his or her credited |
| |
19|service for the purpose of determining eligibility to elect to |
| |
20|continue coverage under this section, the time during which the |
| |
21|terminating employee was covered as such a dependent. |
| |
22| B. 1. Health insurance benefit plans offered pursuant to this |
| |
23|section shall include: |
| |
24| a. indemnity plans offered through the Office, |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 20
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1| b. managed care plans offered as alternatives to the |
| |
2| indemnity plans offered through the Office, |
| |
3| c. Medicare supplements offered pursuant to the Oklahoma |
| |
4| Employees Insurance and Benefits Act, |
| |
5| d. Medicare risk-sharing contracts offered as |
| |
6| alternatives to the Medicare supplements offered |
| |
7| through the Office. All Medicare risk-sharing |
| |
8| contracts shall be subject to a risk adjustment |
| |
9| factor, based on generally accepted actuarial |
| |
10| principles for adverse selection which may occur, and |
| |
11| e. for the Oklahoma Public Employees Retirement System, |
| |
12| other employer-provided health insurance benefit plans |
| |
13| if the employer does not participate in the plans |
| |
14| offered pursuant to the Oklahoma Employees Insurance |
| |
15| and Benefits Act. |
| |
16| 2. Health insurance benefit plans offered pursuant to this |
| |
17|section shall provide prescription drug benefits, except for plans |
| |
18|designed pursuant to the Medicare Prescription Drug Improvement and |
| |
19|Modernization Act of 2003, pursuant to 42 USCA Section 1395w-101, et |
| |
20|seq., for which provision of prescription drug benefits is optional, |
| |
21|and except for plans offered pursuant to subparagraph e of paragraph |
| |
22|1 of this subsection. |
| |
23| C. 1. Designated public retirement systems shall contribute a |
| |
24|monthly amount towards the health insurance premium of certain |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 21
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1|individuals receiving benefits from the public retirement system as |
| |
2|follows: |
| |
3| a. a retired employee, other than an education employee |
| |
4| or an employee who participates in the defined |
| |
5| contribution system administered by the Oklahoma |
| |
6| Public Employees Retirement System on or after |
| |
7| November 1, 2015, who is receiving benefits from the |
| |
8| Oklahoma Public Employees Retirement System after |
| |
9| September 30, 1988, shall have One Hundred Five |
| |
10| Dollars ($105.00), or the premium rate of the health |
| |
11| insurance benefit plan, whichever is less, paid by the |
| |
12| Oklahoma Public Employees Retirement System to the |
| |
13| Board or to another insurance carrier or other |
| |
14| qualified benefits administrator of the employer if |
| |
15| the employer does not participate in the plans offered |
| |
16| by the Office in the manner specified in subsection G |
| |
17| of this section, |
| |
18| b. a retired employee or surviving spouse other than an |
| |
19| education employee who is receiving benefits from the |
| |
20| Oklahoma Law Enforcement Retirement System after |
| |
21| September 30, 1988, is under sixty-five (65) years of |
| |
22| age and is not otherwise eligible for Medicare shall |
| |
23| have the premium rate for the health insurance benefit |
| |
24| plan or One Hundred Five Dollars ($105.00), whichever |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 22
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1| is less, paid by the Oklahoma Law Enforcement |
| |
2| Retirement System to the Office in the manner |
| |
3| specified in subsection G of this section, |
| |
4| c. a retired employee other than an education employee |
| |
5| who is receiving benefits from the Oklahoma Law |
| |
6| Enforcement Retirement System after September 30, |
| |
7| 1988, is sixty-five (65) years of age or older or who |
| |
8| is under sixty-five (65) years of age and is eligible |
| |
9| for Medicare shall have One Hundred Five Dollars |
| |
10| ($105.00), or the premium rate of the health insurance |
| |
11| benefit plan, whichever is less, paid by the Oklahoma |
| |
12| Law Enforcement Retirement System to the Office in the |
| |
13| manner specified in subsection G of this section, and |
| |
14| d. a retired employee other than an education employee |
| |
15| who is receiving benefits from the Uniform Retirement |
| |
16| System for Justices and Judges after September 30, |
| |
17| 1988, shall have One Hundred Five Dollars ($105.00), |
| |
18| or the premium rate of the health insurance plan, |
| |
19| whichever is less, paid by the Uniform Retirement |
| |
20| System for Justices and Judges to the Office in the |
| |
21| manner specified in subsection G of this section. |
| |
22| 2. Premium payments made pursuant to this section shall be made |
| |
23|subject to the following conditions: |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 23
___________________________________________________________________________
1| a. the health plan shall be authorized by the provisions |
| |
2| of the Oklahoma Employees Insurance and Benefits Act, |
| |
3| except that if an employer from which an employee |
| |
4| retired or with a vested benefit pursuant to the |
| |
5| provisions of the Oklahoma Public Employees Retirement |
| |
6| System does not participate in the plans authorized by |
| |
7| the provisions of the Oklahoma Employees Insurance and |
| |
8| Benefits Act, the health plan will be the health |
| |
9| insurance benefits of the employer from which the |
| |
10| individual retired or vested, |
| |
11| b. for plans offered by the Oklahoma Employees Insurance |
| |
12| and Benefits Act, the amount to be paid shall be |
| |
13| determined pursuant to the provisions of this |
| |
14| subsection and shall first be applied in whole or in |
| |
15| part to the prescription drug coverage premium. Any |
| |
16| remaining amount shall be applied toward the medical |
| |
17| coverage premium, |
| |
18| c. for all plans, if the amount paid by the public |
| |
19| retirement system does not cover the full cost of the |
| |
20| elected coverage, the individual shall pay the |
| |
21| remaining premium amount, and |
| |
22| d. payment shall be made by the retirement systems in |
| |
23| the manner specified under subsection G of this |
| |
24| section. |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 24
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1| D. For any member of the Oklahoma Law Enforcement Retirement |
| |
2|System killed in the line of duty, whether the member was killed in |
| |
3|the line of duty prior to May 18, 2005, or on or after May 18, 2005, |
| |
4|or if the member was on a disability leave status at the time of |
| |
5|death, the surviving spouse or dependents of such deceased member of |
| |
6|the Oklahoma Law Enforcement Retirement System may elect to continue |
| |
7|or commence health and dental insurance benefits, provided the |
| |
8|dependents pay the full cost of such insurance, and for deaths |
| |
9|occurring on or after July 1, 2002, such election is made within |
| |
10|thirty (30) days of the date of death. The eligibility for the |
| |
11|benefits shall terminate for the surviving children when the |
| |
12|children cease to qualify as dependents. |
| |
13| E. Effective July 1, 2004, a retired member of the Oklahoma Law |
| |
14|Enforcement Retirement System who retired from the System by means |
| |
15|of a personal and traumatic injury of a catastrophic nature and in |
| |
16|the line of duty and any surviving spouse of such retired member and |
| |
17|any surviving spouse of a member who was killed in the line of duty |
| |
18|shall have one hundred percent (100%) of the retired member's or |
| |
19|surviving spouse's health care premium cost, whether the member or |
| |
20|surviving spouse elects coverage under the Medicare supplement or |
| |
21|Medicare risk-sharing contract, paid by the Oklahoma Law Enforcement |
| |
22|Retirement System to the Office in the manner specified in |
| |
23|subsection H of this section. For plans offered by the Office, such |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 25
___________________________________________________________________________
1|contributions will first be applied in whole or in part to the |
| |
2|prescription drug coverage premium, if any. |
| |
3| F. Dependents of a deceased employee who was on active work |
| |
4|status or on a disability leave at the time of death or of a |
| |
5|participating retardant or of any person who has elected to receive |
| |
6|a vested benefit under the Oklahoma Public Employees Retirement |
| |
7|System, the Uniform Retirement System for Justices and Judges or the |
| |
8|Oklahoma Law Enforcement Retirement System may continue the health |
| |
9|and dental insurance benefits in force, provided the dependents pay |
| |
10|the full cost of such insurance and they were covered as eligible |
| |
11|dependents at the time of such death and such election is made |
| |
12|within thirty (30) days of date of death. The eligibility for the |
| |
13|benefits shall terminate for the surviving children when the |
| |
14|children cease to qualify as dependents. |
| |
15| G. The amounts required to be paid by the Oklahoma Public |
| |
16|Employees Retirement System, the Uniform Retirement System for |
| |
17|Justices and Judges and the Oklahoma Law Enforcement Retirement |
| |
18|System pursuant to this section shall be forwarded no later than the |
| |
19|tenth day of each month following the month for which payment is due |
| |
20|by the Oklahoma Public Employees Retirement System Board of Trustees |
| |
21|or the Oklahoma Law Enforcement Retirement Board to the Office for |
| |
22|deposit in the Health, Dental and Life Insurance Reserve Fund or to |
| |
23|another insurance carrier or other administrator of qualified |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 26
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1|benefits of the employer as provided for in subsection H of Section |
| |
2|1315 of this title. |
| |
3| H. Upon retirement from employment of the Board of Regents of |
| |
4|the University of Oklahoma, any person who was or is employed at the |
| |
5|George Nigh Rehabilitation Institute and who transferred employment |
| |
6|pursuant to Section 3427 of Title 70 of the Oklahoma Statutes, any |
| |
7|person who was employed at the Medical Technology and Research |
| |
8|Authority and who transferred employment pursuant to Section 7068 of |
| |
9|this title and any person who is a member of the Oklahoma Law |
| |
10|Enforcement Retirement System pursuant to the authority of Section |
| |
11|2-314 of Title 47 of the Oklahoma Statutes may participate in the |
| |
12|benefits authorized by the provisions of the Oklahoma Employees |
| |
13|Insurance and Benefits Act for retired participants including |
| |
14|health, dental and life insurance benefits, if such election to |
| |
15|participate is made within thirty (30) days from the date of |
| |
16|termination of service. Life insurance benefits for any such person |
| |
17|who transferred employment shall not exceed the coverage the person |
| |
18|had at the time of such transfer. Retirees who transferred |
| |
19|employment and who participate pursuant to this paragraph shall pay |
| |
20|the premium for elected benefits less any amounts paid by a state |
| |
21|retirement system pursuant to this section. |
| |
22| SECTION 6. AMENDATORY 74 O.S. 2021, Section 1321, is |
| |
23|amended to read as follows: |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 27
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1| Section 1321. A. The Office of Management and Enterprise |
| |
2|Services shall have the authority to determine all rates and life, |
| |
3|dental and health benefits. All rates shall be compiled in a |
| |
4|comprehensive Schedule of Benefits. The Schedule of Benefits shall |
| |
5|be available for inspection during regular business hours at the |
| |
6|Office of Management and Enterprise Services. The Office shall have |
| |
7|the authority to annually adjust the rates and benefits based on |
| |
8|claim experience. |
| |
9| B. The premiums for such insurance plans offered for the next |
| |
10|plan year shall be established as follows: |
| |
11| 1. For active employees and their dependents, the Office's |
| |
12|premium determination shall be made no later than the bid submission |
| |
13|date for health maintenance organizations set by the Oklahoma State |
| |
14|Employees Benefits Council Oklahoma Employees Insurance and Benefits |
| |
15|Board, which shall be set in August no later than the third Friday |
| |
16|of that month; and |
| |
17| 2. For all other covered members and dependents, the Office's |
| |
18|and the health maintenance organizations' premium determinations |
| |
19|shall be no later than the fourth Friday of September. |
| |
20| C. The Office may approve a mid-year adjustment provided the |
| |
21|need for an adjustment is substantiated by an actuarial |
| |
22|determination or more current experience rating. The only |
| |
23|publication or notice requirements that shall apply to the Schedule |
| |
24|of Benefits shall be those requirements provided in the Oklahoma |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 28
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1|Open Meeting Act. It is the intent of the Legislature that the |
| |
2|benefits provided not include cosmetic dental procedures except for |
| |
3|certain orthodontic procedures as adopted by the Director. |
| |
4| SECTION 7. AMENDATORY 74 O.S. 2021, Section 1332, is |
| |
5|amended to read as follows: |
| |
6| Section 1332. A. The State and Education Employees Group |
| |
7|Insurance Oklahoma Employees Insurance and Benefits Board shall |
| |
8|establish a Disability Insurance Program for state employees. The |
| |
9|program shall consist of a long-term disability plan and a |
| |
10|short-term disability plan. Participation in the program shall be |
| |
11|limited to state employees who have been state employees for a |
| |
12|period of not less than one (1) month and who are eligible for |
| |
13|enrollment in the Health Insurance Plan administered by the Board. |
| |
14|No state employee shall be eligible to receive any benefits from the |
| |
15|long-term disability program unless the state employee has used all |
| |
16|of the sick leave of the employee. The Board shall promulgate such |
| |
17|rules as are necessary for adoption and administration of the |
| |
18|Disability Insurance Program, including but not limited to benefit |
| |
19|eligibility requirements, methods for computing benefit amounts, |
| |
20|benefits amounts, and verification of medical and health status of |
| |
21|employees applying for or receiving benefits. |
| |
22| B. The Disability Insurance Program shall be funded from |
| |
23|appropriations made by the Legislature. Employees shall not be |
| |
24|required to make contributions to participate in the program. |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 29
___________________________________________________________________________
1| C. Employee disability insurance coverage shall begin on March |
| |
2|1, 1986. |
| |
3| D. The Board shall establish a grievance procedure by which a |
| |
4|three-member grievance panel established in the same manner as |
| |
5|specified in paragraph 6 of Section 1306 Section 1304.1 of this |
| |
6|title shall act as an appeals body for complaints regarding the |
| |
7|allowance and payment of claims, eligibility, and other matters. |
| |
8|The grievance procedure provided by this subsection shall be the |
| |
9|exclusive remedy available to persons having complaints against the |
| |
10|insurer. Such grievance procedure shall be subject to the Oklahoma |
| |
11|Administrative Procedures Act, including provisions for the review |
| |
12|of agency decisions by the district court. The grievance panel |
| |
13|shall schedule a hearing regarding the allowance and payment of |
| |
14|claims, eligibility and other matters within sixty (60) days from |
| |
15|the date the grievance panel receives a written request for a |
| |
16|hearing. Upon written request to the grievance panel received not |
| |
17|less than ten (10) days before the hearing date, the grievance panel |
| |
18|shall cause a full stenographic record of the proceedings to be made |
| |
19|by a licensed or certified court reporter at the insured employee's |
| |
20|expense. |
| |
21| E. The Board may establish a claim processing division for |
| |
22|claims administration or may contract for claims administration |
| |
23|services with a private insurance carrier or a company that |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 30
___________________________________________________________________________
1|specializes in claims administration of any insurance that the Board |
| |
2|may be directed to offer. |
| |
3| SECTION 8. AMENDATORY 74 O.S. 2021, Section 1332.1, is |
| |
4|amended to read as follows: |
| |
5| Section 1332.1 A. The State and Education Employees Group |
| |
6|Insurance The Oklahoma Employees Insurance and Benefits Board shall |
| |
7|collect from state agencies each month, the premium amount, as |
| |
8|determined by the Board, for each employee of a state agency that |
| |
9|participates in the Disability Insurance Program. Said sum shall be |
| |
10|deposited in the State Employees Disability Insurance Reserve Fund |
| |
11|for use in accordance with law. |
| |
12| B. The State and Education Employees Group Insurance Oklahoma |
| |
13|Employees Insurance and Benefits Board shall submit a monthly |
| |
14|statement of the revenues and disbursements of the Disability |
| |
15|Insurance Program to the Governor, the Speaker of the House of |
| |
16|Representatives, the President Pro Tempore of the Senate and the |
| |
17|Legislative Service Bureau. The Legislative Service Bureau shall |
| |
18|distribute copies of such monthly statements to the fiscal staff of |
| |
19|the House of Representatives and the State Senate. |
| |
20| C. On or before March 1 of each year, the State and Education |
| |
21|Employees Group Insurance Oklahoma Employees Insurance and Benefits |
| |
22|Board shall submit a report of the actuarially-determined future |
| |
23|needs of the Disability Insurance Program. Said report shall be |
| |
24| |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 31
___________________________________________________________________________
1|submitted and distributed as provided for in subsection B of this |
| |
2|section. |
| |
3| D. The Board shall provide for the continuation of dependent |
| |
4|health coverage to disability recipients for that period of time |
| |
5|when the employee is qualified as disabled but not yet received |
| |
6|disability benefit income. |
| |
7| E. The Board shall deduct all dependent health coverage |
| |
8|premiums due and owing from the first retroactive disability payment |
| |
9|and each payment thereafter. |
| |
10| SECTION 9. AMENDATORY 74 O.S. 2021, Section 1346, is |
| |
11|amended to read as follows: |
| |
12| Section 1346. There is hereby created in the State Treasury a |
| |
13|revolving fund for the State and Education Employees Group Insurance |
| |
14|Oklahoma Employees Insurance and Benefits Board to be designated the |
| |
15|"Flexible Benefit Revolving Fund". The fund shall be a continuing |
| |
16|fund, not subject to fiscal year limitations, and shall consist of |
| |
17|employee payroll deductions and contributions for flexible spending |
| |
18|accounts. All monies accruing to the credit of said fund are hereby |
| |
19|appropriated and may be budgeted and expended by the State and |
| |
20|Education Employees Group Insurance Oklahoma Employees Insurance and |
| |
21|Benefits Board for expenses of the state employees flexible benefits |
| |
22|plan and for expenses authorized by law. The State and Education |
| |
23|Employees Group Insurance Oklahoma Employees Insurance and Benefits |
| |
24|Board is authorized to pay employee claim costs associated with the |
| |
arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 32
___________________________________________________________________________
1|state employees flexible benefits plan from monies accrued for said |
| |
2|purpose. Expenditures from said funds shall be pursuant to the laws |
| |
3|of the state and statutes relating to the state employees flexible |
| |
4|benefits plan. |
| |
5| SECTION 10. AMENDATORY 74 O.S. 2021, Section 1370, is |
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6|amended to read as follows: |
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7| Section 1370. A. Subject to the requirement that a participant |
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8|must elect the default benefits, the basic plan, or is a person who |
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9|has retired from a branch of the United States military and has been |
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10|provided with health care through a federal plan, to the extent that |
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11|it is consistent with federal law, or is an active employee who is |
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12|eligible to participate and who is a participant who has opted out |
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13|of the state's basic plan according to the provisions of Section |
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14|1308.3 of this title, and provides proof of this coverage, flexible |
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15|benefit dollars may be used to purchase any of the benefits offered |
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16|by the Oklahoma State Employees Benefits Council Oklahoma Employees |
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17|Insurance and Benefits Board under the flexible benefits plan. A |
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18|participant who has opted out of the state's basic plan and provided |
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19|proof of other coverage as described in this subsection shall |
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20|receive One Hundred Fifty Dollars ($150.00) in lieu of the flexible |
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21|benefit monthly. A participant's flexible benefit dollars for a |
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22|plan year shall consist of the sum of (1) flexible benefit allowance |
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23|credited to a participant by the participating employer, and (2) pay |
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24|conversion dollars elected by a participant. |
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1| B. Each participant shall be credited annually with a specified |
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2|amount as a flexible benefit allowance which shall be available for |
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3|the purchase of benefits. For participants on a biweekly payroll |
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4|system the disbursement of the flexible benefit allowance shall be |
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5|credited over twenty-four pay periods resulting in two pay periods |
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6|that do not reflect a credit. The amount of the flexible benefit |
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7|allowance credited to each participant shall be communicated to him |
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8|or her prior to the enrollment period for each plan year. |
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9| C. Except as provided in subsection D of this section, for the |
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10|plan year beginning January 1, 2013, the benefit allowance shall not |
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11|be less than the Plan Year 2012 benefit allowance amounts, and each |
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12|plan year thereafter, the amount of a participant's benefit |
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13|allowance, which shall be the total amount the employer contributes |
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14|for the payment of insurance premiums or other benefits, shall be: |
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15| 1. The greater of the amount of benefit which the participant |
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16|would have qualified for as of plan year 2021, or an amount equal to |
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17|the monthly premium of the HealthChoice High Option plan, the |
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18|average monthly premiums of the dental plans, the monthly premium of |
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19|the disability plan, and the monthly premium of the basic life |
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20|insurance plan offered to state employees or the amount determined |
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21|by the Council based on a formula for determining a participant's |
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22|benefit credits consistent with the requirements of 26 U.S.C., |
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23|Section 125(g)(2) and regulations thereunder; |
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24| |
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1| 2. The greater of the amount of benefit which the participant |
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2|would have qualified for as of plan year 2021 or an amount equal to |
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3|the monthly premium of the HealthChoice High Option plan, the |
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4|average monthly premiums of the dental plans, the monthly premium of |
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5|the disability plan, and the monthly premium of the basic life |
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6|insurance plan offered to state employees plus one of the additional |
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7|amounts as follows for participants who elect to include one or more |
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8|dependents: |
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9| a. for a spouse, seventy-five percent (75%) of the |
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10| HealthChoice High Option plan, available for coverage |
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11| of a spouse, |
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12| b. for one child, seventy-five percent (75%) of the |
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13| HealthChoice High Option plan, for coverage of one |
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14| child, |
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15| c. for two or more children, seventy-five percent (75%) |
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16| of the HealthChoice High Option plan, for coverage of |
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17| two or more children, |
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18| d. for a spouse and one child, seventy-five percent (75%) |
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19| of the HealthChoice High Option plan, for coverage of |
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20| a spouse and one child, or |
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21| e. for a spouse and two or more children, seventy-five |
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22| percent (75%) of the HealthChoice High Option plan, |
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23| for coverage of a spouse and two or more children; |
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24| |
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1| 3. For the plan year beginning January 1, 2022, the amount of a |
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2|participant's benefit allowance shall be increased by two percent |
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3|(2%) from the amount provided in the previous year; |
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4| 4. For the plan year beginning January 1, 2023, the amount of a |
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5|participant's benefit allowance shall be increased by two percent |
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6|(2%) from the amount provided in the previous year; or |
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7| 5. The greater of the amount of benefit which the participant |
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8|would have qualified for as of plan year 2023, or an amount equal to |
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9|the monthly premium of the HealthChoice High Option plan, the |
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10|average monthly premiums of the dental plans, the monthly premium of |
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11|the disability plan and the monthly premium of the basic life |
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12|insurance plan offered to state employees plus one of the additional |
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13|amounts as follows for participants who elect to include one or more |
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14|dependents: |
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15| a. for a spouse, seventy-five percent (75%) of the |
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16| HealthChoice High Option plan, available for coverage |
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17| of a spouse, |
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18| b. for one child, seventy-five percent (75%) of the |
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19| HealthChoice High Option plan, for coverage of one |
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20| child, |
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21| c. for two or more children, seventy-five percent (75%) |
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22| of the HealthChoice High Option plan, for coverage of |
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23| two or more children, |
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24| |
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1| d. for a spouse and one child, seventy-five percent |
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2| (75%) of the HealthChoice High Option plan, for |
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3| coverage of a spouse and one child, or |
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4| e. for a spouse and two or more children, seventy-five |
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5| percent (75%) of the HealthChoice High Option plan, |
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6| for coverage of a spouse and two or more children. |
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7| D. To the extent that it is consistent with federal laws and |
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8|regulations, and in particular the regulations set forth by the |
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9|Secretary of Defense in 32 C.F.R. Section 199.8(d)(6), a benefit may |
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10|be provided to an employee who is an eligible TRICARE beneficiary |
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11|whereby he or she may purchase a group TRICARE Supplemental product |
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12|under a qualifying cafeteria plan consistent with the requirements |
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13|of 26 U.S.C., Section 125, provided that: |
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14| 1. The state, as employer, may not provide any payment for nor |
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15|receive any consideration or compensation for offering the benefit; |
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16| 2. The employer's only involvement is in providing the |
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17|administrative support for the benefit under the cafeteria plan; and |
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18| 3. The employee's participation in the plan is completely |
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19|voluntary. |
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20| The benefit allowance under paragraph 2 of subsection C of this |
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21|section of an employee whose plan participation includes a group |
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22|TRICARE Supplemental benefit shall not include any allowance or |
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23|portion thereof for such TRICARE Supplemental benefit. |
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24| |
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1| E. This section shall not prohibit payments for supplemental |
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2|health insurance coverage made pursuant to Section 1314.4 of this |
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3|title or payments for the cost of providing health insurance |
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4|coverage for dependents of employees of the Grand River Dam |
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5|Authority. |
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6| F. If a participant desires to buy benefits whose sum total of |
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7|benefit prices is in excess of his or her flexible benefit |
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8|allowance, the participant may elect to use pay conversion dollars |
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9|to purchase such excess benefits. Pay conversion dollars may be |
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10|elected through a salary reduction agreement made pursuant to the |
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11|election procedures of Section 1371 of this title. The elected |
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12|amount shall be deducted from the participant's compensation in |
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13|equal amounts each pay period, with the exception of participants on |
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14|a biweekly payroll system, where such deduction shall occur over |
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15|twenty-four pay periods over the plan year. On termination of |
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16|employment during a plan year, a participant shall have no |
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17|obligation to pay the participating employer any pay conversion |
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18|dollars allocated to the portion of the plan year after the |
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19|participant's termination of employment. |
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20| G. If a participant elects benefits whose sum total of benefit |
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21|prices is less than his or her flexible benefit allowance, he or she |
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22|shall receive any excess flexible benefit allowance as taxable |
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23|compensation. Such taxable compensation will be paid in |
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24|substantially equal amounts each pay period, with the exception of |
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1|participants on a biweekly payroll system, where such deduction |
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2|shall occur over twenty-four pay periods over the plan year. On |
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3|termination during a plan year, a participant shall have no right to |
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4|receive any such taxable cash compensation allocated to the portion |
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5|of the plan year after the participant's termination. Nothing |
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6|herein shall affect a participant's obligation to elect the minimum |
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7|benefits or to accept the default benefits of the plan with |
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8|corresponding reduction in the sum of his or her flexible benefit |
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9|allowance equal to the sum total benefit price of such minimum |
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10|benefits or default benefits. |
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11| SECTION 11. REPEALER 74 O.S. 2021, Section 1329.1, is |
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12|hereby repealed. |
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13| SECTION 12. REPEALER 74 O.S. 2021, Sections 1381, 1382, |
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14|1383, and 1384, are hereby repealed. |
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15| SECTION 13. This act shall become effective November 1, 2024. |
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16|COMMITTEE REPORT BY: COMMITTEE ON RETIREMENT AND INSURANCE |
|April 2, 2024 - DO PASS |
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arsid4807113 SENATE FLOOR VERSION - HB3586 SFLR Page 39
