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SPONSOR: |
Rodriguez |
DATE TYPED: |
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HB |
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SHORT TITLE: |
Insurance Benefits for Legislators |
SB |
503/aSFC/aSFI#1 |
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ANALYST: |
Geisler |
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APPROPRIATION
Appropriation
Contained |
Estimated
Additional Impact |
Recurring or
Non-Rec |
Fund Affected |
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FY03 |
FY04 |
FY03 |
FY04 |
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NFI |
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(Parenthesis
( ) Indicate Expenditure Decreases)
General
Services Department (GSD)
Retiree
Health Care Authority (RHCA)
SUMMARY
Synopsis of SFl Amendment #1
Senate Floor Amendment Number 1 is a repeat of the
Senate Finance Committee amendment described below.
Synopsis of Senate
Finance Committee Amendment
Senate Finance Committee makes the following
amendment to Senate Bill 503.
The amendments still allow legislators to become
members of the state group benefit plan but must bear the entire cost on their
own. Since the state will not be making
a contribution, the appropriation is not necessary.
Synopsis of Original Bill
Senate Bill 503 would allow current state
legislators to be covered under the health insurance benefits package
administered by the Risk Management Division (RMD) of the General Services
Department (GSD). The state would pay 60%
and legislators would pay 40% of the monthly premiums to the RMD employee
benefits fund, or directly to the insurer if authorized by the RMD
Director. Former legislators could
participate in the Retiree Health Care insurance plan, but the legislative member
would pay the full cost of the coverage.
FISCAL IMPLICATIONS
The bill makes a
recurring $100.0 general fund appropriation to the Legislative Council Service
to support this program. According to
GSD, the appropriation contained would cover approximately 70 people, which
would include both legislators and their family members
(26 legislator
members at the current average family size). There are
112 legislators during the 46th Legislature. Per the RHCA, since this new group of
eligible recipients would pay 100% of the premiums under the Retiree Health
Care plans, it is not anticipated that there would be any fiscal
implications.
ADMINISTRATIVE IMPLICATIONS
RHCA
notes that it staff growth has failed to keep pace with its enrollment growth;
adding a new group of eligible retirees would further strain the
administrative/service staff.
OTHER SUBSTANTIVE ISSUES
This bill would establish a new “group” under
the state’s medical plan and might provide health insurance coverage for people
currently not covered by health insurance.
Evaluation of the actuarial soundness of the GSD health benefits fund
and its ability to handle the increased participation should be considered.
GG/njw/ls