Nevada school districts expand insurance coverage under new legal provisions

On March 13, 2025, the Nevada State Legislature introduced Assembly Bill 428, a significant piece of legislation aimed at reforming insurance coverage for local government employees and their dependents. The bill seeks to enhance the accessibility and affordability of group insurance plans offered by school districts and other local governmental agencies.

One of the key provisions of AB428 mandates that if a school district provides group insurance to its officers and employees, members of the board of trustees must also be included in the coverage. This inclusion is designed to ensure equitable access to benefits for all individuals serving in governance roles. Furthermore, the bill stipulates that if the cost of insurance deductions exceeds a trustee's compensation, the trustee is responsible for covering the difference, thereby maintaining financial accountability.

Another notable aspect of AB428 is its provision allowing counties and school districts to contract with legal services organizations. This enables employees of these organizations, along with their dependents, to access the same life, accident, or health insurance benefits available to other local government employees. This provision aims to extend essential health coverage to a broader range of public service workers, thereby addressing gaps in insurance access.

The bill has sparked discussions among lawmakers regarding its potential economic implications. Proponents argue that expanding insurance coverage could lead to improved employee satisfaction and retention, ultimately benefiting public service sectors. However, some opposition has emerged, focusing on concerns about the financial burden on local governments and the sustainability of funding these expanded benefits.

As AB428 progresses through the legislative process, its implications for local governance and employee welfare remain a focal point of debate. Experts suggest that if passed, the bill could set a precedent for similar reforms in other states, potentially reshaping how local government employees access health benefits. The next steps will involve further discussions and potential amendments as legislators weigh the bill's impact on Nevada's public service landscape.